MISSISSIPPI LEGISLATURE

2022 Regular Session

To: Judiciary, Division A

By: Senator(s) McCaughn

Senate Bill 2464

AN ACT TO AMEND SECTION 11-53-81, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERM "OPEN ACCOUNT"; TO MAKE TECHNICAL REVISIONS; TO PROVIDE THAT AN OPEN ACCOUNT INVOICE OR ITEMIZED STATEMENT OF THE ACCOUNT MAY OR MAY NOT INCLUDE WRITTEN TERMS OF SALE; TO CLARIFY THAT THIS SECTION DOES NOT REQUIRE WRITTEN DEMAND TO BE MADE BY ANY CERTAIN MEANS; TO PROVIDE THAT THIS SECTION DOES NOT APPLY TO RETAIL SALES INSTALLMENT CONTRACTS THAT ARE ASSIGNED TO LENDERS WHO ARE LICENSED UNDER SECTIONS 75-67-201 THROUGH 75-67-247; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 11-53-81, Mississippi Code of 1972, is amended as follows:

     11-53-81.  (1)  For the purpose of this section, the term "open account" includes, but is not limited to, any and all accounts for which a part or all of the balance is owed, whether the account is for a single transaction, multiple transactions, or a series of transactions, whether or not there was an expectation of future transactions, and whether or not the parties agreed upon a fixed price.  An "open account" may involve the sale of goods or services or both between persons or entities or both, and may be based on an oral or written promise or an agreement, express or implied, for the debtor to pay the account.  "Open accounts" shall include debts incurred for professional services, including, but not limited to, legal services, medical services, and construction services.  The term "open account" shall be broadly construed.

     (2)  When * * * any a person or entity fails to pay an open account within thirty (30) days after receipt of written demand * * * therefor for payment correctly setting forth the amount owed and an invoice or itemized statement of the account in support * * * thereof of the demand, * * * that the person or entity shall be liable for reasonable attorney's fees to be set by the * * * judge court for the prosecution and collection of such claim when judgment on the claim is rendered in favor of the plaintiff or counter-plaintiff, as the case may be.  An open-account invoice or itemized statement of the account may or may not include written terms of sale.

     (3)  Evidence of receipt of written demand by the spouse of the debtor when they are living together as husband and wife on behalf of the debtor may be introduced as evidence of written demand on the debtor.  If that person who is being sued on the open account * * * shall prevails in the suit, he or she shall be entitled to reasonable attorney's fees to be set by the * * * judge court.

     (4)  If delivery of written demand on the debtor is attempted, but not accomplished because circumstances made delivery of written demand impossible or impractical, a notation, on the envelope containing the written demand, made by the person attempting delivery stating the date of the attempted delivery, the reasons why delivery could not be accomplished along with the initials of the person attempting delivery and making * * * said the notation may be introduced as evidence of written demand on the debtor, and if the * * * judge court, in * * * his its discretion, finds that sufficient evidence of due diligence in delivery of written demand has been made, * * * he the court may make a conclusion of written demand for purposes of justice and find that there has been written demand on the debtor.  This section does not require written demand to be made by any certain means.

     (5)  This section shall not apply to retail sales installment contracts that are assigned to lenders who are licensed under Sections 75-67-201 through 75-67-247.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2022.