My brother is a self employed licensed contractor in CA. He recently learned that person he had employed to schedule calls & billing never invoiced his clients for work he had provided. Most of his jobs are COD & generated enough income that he didn't keep track of the jobs she was supposed to be mailing out. She is no longer with him & he has recently learned of numerous invoices which never were billed to the customers, totaling several hundreds of dollars.
Recently he presented a few invoices to a client who agreed the work was done but refused to pay since it had not been billed in a timely manner. He explained the situation, but she refused to listen & has not paid. Is she correct and is there a time limit to bill for services. I understand billing late is not sensible for a business.
Lawsuit / Dispute Attorney
A breach of a written contract has a four year statute of limitations. Breach of an oral or implied contract has a two-year period. The failure to bill promptly should not be a defense in court, provided that the contractor can prove to the court that the work was done and done properly, which it appears the customer will admit it was. If we are talking about several years since the work was done, a judge may find that it was done as a gift, if there is no express contract with the customer. If the amount is under $7500, consider small claims court.