Airs Aromatics, LLC v. CBL Data Recovery Techs., Inc.

233 Cal. Rptr. 3d 656, 23 Cal. App. 5th 1013
CourtCalifornia Court of Appeal, 5th District
DecidedMay 23, 2018
DocketD072624
StatusPublished
Cited by36 cases

This text of 233 Cal. Rptr. 3d 656 (Airs Aromatics, LLC v. CBL Data Recovery Techs., Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Airs Aromatics, LLC v. CBL Data Recovery Techs., Inc., 233 Cal. Rptr. 3d 656, 23 Cal. App. 5th 1013 (Cal. Ct. App. 2018).

Opinion

DATO, J.

*1016CBL Data Recovery Technologies, Inc. (CBL) appeals an order denying its motion to set aside a default judgment entered in favor of Airs Aromatics, LLC (Airs). CBL argues the default judgment was void pursuant *658to sections 580, subdivision (a) and 585, subdivision (c) of the Code of Civil Procedure because the trial court awarded damages in excess of that demanded in the complaint.1 We agree and conclude the default judgment must be vacated.

FACTUAL AND PROCEDURAL BACKGROUND

Airs sued CBL for breach of contract in 2011. The operative complaint alleged that Airs "suffered damages in an amount to be proven at trial, but estimated to exceed $25,000.00." The prayer likewise requested "damages in an amount to be proven." There was no other allegation in the complaint as to the amount of damages sought.

CBL filed an answer and engaged in discovery. The parties participated in a settlement conference in which Airs demanded $5 million to settle all claims. In August 2012, the parties stipulated to withdraw CBL's answer and allow Airs to obtain a default. A month later, Airs filed a Request for Court Judgment seeking over $3 million in damages. It also filed a document entitled, "Evidence of Damages" supporting the requested amount. The court held a default prove-up hearing and, in November 2012, entered default judgment against CBL in the amount of $3,016,802.90.

Years passed. CBL filed a motion in April 2017 to set aside the default judgment. Citing sections 580, subdivision (a) and 585, subdivision (c), CBL

*1017argued the court could not enter a judgment awarding damages greater than that specifically demanded in the complaint.2 It argued the default judgment was void and requested that it be vacated pursuant to section 473, subdivision (d). Airs opposed the motion, arguing the default judgment was merely voidable, not void. In addition, Airs argued the court could exercise discretion to deny CBL's motion on equitable grounds.

The court held a hearing and, in June 2012, denied CBL's motion. It found CBL had adequate notice of the damages sought by Airs:

"The Court finds the facts and circumstances of this case to be distinguishable from Rodriguez v. Cho (2015) 236 [Cal.App.4th] 742, 756, 187 Cal.Rptr.3d 227.
"Here, Defendant filed an Answer to Plaintiff's Complaint and asserted nine affirmative defenses; filed a Case Management Statement and attended a Case Management Conference ('CMC') at which the Court provided the parties trial and related dates; attended a Court managed settlement conference at which, according to Plaintiff, Plaintiff made a settlement demand of $5,000,000; stipulated that Defendant withdraw its Answer and 'a default judgment be entered against the defendant'; and was served with a Request to enter a default *659judgment in the amount of $3,016,965.03, which is actually greater than the amount of the Judgment entered against Defendant on November 2, 2012.
"The Court is satisfied that Defendant had adequate notice of the amount sought against it by Plaintiff, was provided a reasonable opportunity to defend itself and assumed the risk of an adverse Judgment in the amount ultimately entered against it in November 2012. In addition, the Court is persuaded by the reasons set forth in Plaintiff's opposition that this Judgment, under these circumstances, is not void and no good grounds exist to set it aside."

*1018DISCUSSION

CBL challenges the order denying its motion to set aside the default judgment. It argues the court erred in concluding the default judgment was not void. "We review de novo the trial court's determination that a default judgment is or is not void." ( Rodriguez v. Cho (2015) 236 Cal.App.4th 742, 752, 187 Cal.Rptr.3d 227 ( Rodriguez ).)

A

"The relief granted to the plaintiff, if there is no answer, cannot exceed that demanded in the complaint." ( § 580, subd. (a).) The only exceptions to section 580 are personal injury or wrongful death cases and cases requesting punitive damages. ( §§ 580, subd. (a), 425.11, 425.115 ). Neither of those exceptions applies to Airs's request for compensatory damages in this breach of contract action.

Other statutes parallel section 580's bright line rule. A complaint's demand must state the amount of damages sought, except in cases involving personal injury, wrongful death, or punitive damages. (§ 425.10, subd. (a)(2), (b).) In requesting a default judgment, a plaintiff "may apply for the relief demanded in the complaint." ( § 585, subd. (c).) The court "shall render judgment in the plaintiff's favor for that relief, not exceeding the amount stated in the complaint ... as appears by the evidence to be just." (Ibid. )

Section 580 is strictly construed "in accordance with its plain language"-"a plaintiff cannot be granted more relief than is asked for in the complaint." ( In re Marriage of Lippel (1990) 51 Cal.3d 1160, 1166, 276 Cal.Rptr. 290, 801 P.2d 1041 ( Lippel ).) A default judgment greater than the amount specifically demanded in the complaint is void as beyond the court's jurisdiction. ( Greenup v. Rodman (1986) 42 Cal.3d 822, 826, 231 Cal.Rptr. 220, 726 P.2d 1295 ( Greenup ); see Finney v. Gomez (2003) 111 Cal.App.4th 527, 534, 3 Cal.Rptr.3d 604 ["[T]he courts have reaffirmed the language of section 580 is mandatory. Therefore, 'in all default judgments the demand sets a ceiling on recovery.' "].)

Thus in Becker v. S.P.V. Construction Co. (1980)

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Cite This Page — Counsel Stack

Bluebook (online)
233 Cal. Rptr. 3d 656, 23 Cal. App. 5th 1013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/airs-aromatics-llc-v-cbl-data-recovery-techs-inc-calctapp5d-2018.