Timing and Fees on Default

Vincent v. Sonkey, No. B293251 (D2d6 Dec. 29, 2020) 

Plaintiff got a default judgment for $123k. Although the underlying contact had a fee provision, Plaintiff didn’t request fees as part of the default. Defendant moved for relief from default, which was granted, but then reversed on reconsideration after it was shown that Defendant’s declaration not entirely candid. 

Plaintiff then filed a motion for attorneys’ fees. Relying on the rule that attorneys’ fees need to be requested with, and awarded in, a default judgment, the trial court denied the motion.

The Court of Appeal agrees, halfway. The fees for work done prior to the default judgment needed to be addressed in the default judgment. But for period during which Defendant was relieved from the default, this was a real live contested case, for which the prevailing party was entitled to fees under the parties’ contract. And since there was no way for Plaintiff to seek those fees in her original motion for default judgment, it would be an unfair forfeiture to preclude her from recovering them after they were incurred.

Reversed in part.

A Default Needs a Number. No Exceptions.

Sass v. Cohen, No. S255262 (Cal. Dec. 24, 2020)

Section 580 of the Code of Civil Procedure limits a default judgment to the amount stated in the complaint. A prior Court of Appeal case—Cassel v. Sullivan, Roche & Johnson, 76 Cal. App. 4th 1157 (1999)—made an exception for cases seeking an accounting because the defendant purportedly already has enough information to calculate its exposure. About two years ago, the Court of Appeal here disagreed with Cassel and took § 580 for its face value.

Given the split, the Supreme Court took review. It agrees with the Court of Appeal. Section 580 limits a default judgment to the amount stated in the complaint. It does not limit a default judgment to some amount that the defendant could figure out, so the fact that a defendant might theoretically have notice isn’t enough.

Court of Appeal affirmed.

If You Move and Don't Tell the Court, It's Your Fault if You Don't Get Mail

Kramer v. Traditional Escrow, Inc., No. G058522 (D4d3 Oct. 20, 2020)

After Defendants’ lawyer in this wage and hour case quit, they stopped participating in the case. They missed depos, ignored correspondence, and got sanctioned for it a couple of times. Eventually they wound up in default. They sought relief. Their excuse was that their principal had moved, but failed to tell the court. Also the principal’s divorce attorney had some confusing back and forth with Plaintiff’s attorney about the status of the case. 

Although that was good enough for the trial court, it’s not good enough for the Court of Appeal. As the Court puts it, “Defendants cannot deliberately neglect this lawsuit and go off-grid, so to speak, and then complain that they lacked notice of the proceedings.” 

Reversed.