An American Express Lawsuit Still Has to Be Proven

Being sued by American Express does not mean the creditor automatically wins. The complaint, the applicable Cardmember Agreement, the account records, and the evidence tying the defendant to the claimed balance should be examined carefully. Florida appellate decisions involving American Express and other credit-card claims show that problems with the agreement, liability, standing, or the amount claimed can be significant.

The Correct Cardmember Agreement Matters

In Miteva v. American Express Bank, FSB, 149 So. 3d 755 (Fla. 3d DCA 2014), the Third District reversed a summary judgment for American Express. American Express conceded that the record did not establish its standing when the action was filed and that the incorrect cardmember agreement had been attached to the complaint. The decision illustrates why the agreement relied upon in the lawsuit should be compared closely with the actual account.

Personal Liability on a Business Card Is a Factual and Contractual Question

Florida business owners should also examine whether the evidence actually establishes individual liability. In Fonte v. American Express Bank, FSB, 227 So. 3d 146 (Fla. 2d DCA 2017), American Express sued an individual and a corporation over a business credit-card account. The Second District reversed summary judgment because genuine factual disputes remained. Among other things, the standard corporate credit-card agreement in the record did not establish that the defendants were bound by its terms, and evidence also disputed the amount allegedly owed.

The lesson is not that a business owner can never be personally liable for a corporate card. Rather, liability depends on the governing agreement and the evidence. The fact that someone owned the company, possessed a card, or used an account does not by itself answer every contractual issue.

What If the Complaint Pleads “Account Stated”?

Credit-card complaints may also assert an account-stated claim. In Farley v. Chase Bank, U.S.A., N.A., 37 So. 3d 936 (Fla. 4th DCA 2010), the court explained that an account stated is distinct from an open account. It generally requires an express or implied agreement that a specified balance is correct and due, together with an express or implied promise to pay it. A failure to object to statements within a reasonable time can be important, but the particular facts and communications surrounding the account still matter.

Burt v. Hudson & Keyse, LLC, 138 So. 3d 1193 (Fla. 5th DCA 2014), likewise demonstrates that disputed facts concerning a credit-card debt can prevent summary judgment, including disputes over ownership of the debt and the amount claimed.

Issues Worth Reviewing Immediately

• Whether the complaint relies on the correct Cardmember Agreement;
• Whether the plaintiff can establish the defendant’s contractual liability;
• Whether an individual is actually liable for a business or corporate account;
• Whether the balance includes disputed, unauthorized, duplicate, refunded, or improperly credited transactions;
• Whether prior objections or disputes were made concerning statements or charges;
• Whether the plaintiff can establish standing and ownership of the claim where those issues are disputed; and
• Whether the evidence supports each element of the particular cause of action pleaded.

Preserve the Account Records

A defendant should preserve the summons and complaint, all exhibits, account statements, Cardmember Agreements, payment records, receipts, dispute correspondence, fraud reports, refund documentation, and communications with American Express. Those records can be critical in determining whether a defense is supported by the facts.

Sued by American Express in Florida?

The Law Offices of Andrew J. Pascale, P.A. handles Florida civil litigation involving American Express and other credit-card disputes. A meaningful defense begins with reviewing the complaint, the agreement, the account history, and the evidence the plaintiff will need to prove its claim.

Important: Every case depends on its own facts. The decisions discussed above do not guarantee a particular result. This article provides general information about Florida law and is not legal advice.