Resolving an Assignee’s Collection Claim

When a vendor entered an assignment for the benefit of creditors, the assignee sued a logistics software company to collect what it said was an unpaid balance. Our client disputed the balance. The commercial question was how to resolve the claim at a cost that made sense given the records and the expense of litigation.

Rebuilding the Account

We reviewed the transaction records the assignee produced against our client’s records and the underlying agreements. The reconciliation identified payments and credits that affected the claimed balance. It also surfaced potential claims arising from the vendor’s own performance. We presented the records and the basis for our client’s position to the assignee.

A Resolution Both Sides Could Accept

The assignee initially declined to dismiss the suit. We brought in New Jersey counsel and worked with them on a negotiated resolution. The assignee could collect an agreed amount for the estate while preserving its position on the original claim. Our client could cap its exposure and avoid spending more to litigate a disputed account. The parties agreed to a settlement and mutual release.