Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

Your Last Resort: The Unpaid Account

By Joe Virene on April 22, 2013
Email this postTweet this postLike this postShare this post on LinkedIn

A suit on an unpaid account against your customer will likely entitle you to the principal balance plus interest and attorney fees.  But a suit on an unpaid account is only as good as your customer’s ability to satisfy the judgment.  A claim on an account against an entity provides very little leverage.  The principals may decide to walk away from the entity and set up another one.  Alternatively, they may file for bankruptcy.  If so, you will have an unsecured claim.  Unsecured creditors almost never receive the principal amount of their claim in bankruptcy.  This makes an unpaid account claim the least powerful of all claims available to a subcontractor or a supplier.

In addition to the unpaid account claim, there are quasi-contract theories, such as quantum meruit, but such claims may be difficult to prove.  In addition, the case law regarding these claims is unsettled, especially when they involvle claims arising out of the chain of contract on a construction project.

Photo of Joe Virene Joe Virene

Joe Virene represents clients in both the construction and oil & gas industries. He has successfully handled various matters, including filing and prosecuting material men, mineral, and maritime liens, among others.

Read more about Joe VireneEmail
  • Posted in:
    Real Estate & Construction
  • Blog:
    Texas Construction Law Blog
  • Organization:
    Gray Reed & McGraw LLP
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo