The Cotto Law Group, LLC v. Vanessa Benevidez

CourtCourt of Appeals of Georgia
DecidedMarch 2, 2022
DocketA21A1601
StatusPublished

This text of The Cotto Law Group, LLC v. Vanessa Benevidez (The Cotto Law Group, LLC v. Vanessa Benevidez) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Cotto Law Group, LLC v. Vanessa Benevidez, (Ga. Ct. App. 2022).

Opinion

FOURTH DIVISION DILLARD, P. J., MERCIER and PINSON, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. https://www.gaappeals.us/rules

March 2, 2022

In the Court of Appeals of Georgia A21A1601. THE COTTO LAW GROUP, LLC v. BENEVIDEZ.

PINSON, Judge.

An employee abruptly resigned from her position as an associate at a law firm

and blocked its access to her firm email account, the firm’s fax line, and client files

kept in an online Dropbox account. The firm sued her, and the trial court entered a

default judgment in its favor after the employee failed to file a timely answer. But the

trial court declined to award any damages after a bench trial on that issue, finding that

the firm had failed to carry its burden to prove any damages. The firm appealed,

contending that the trial court erred by (1) applying the wrong legal standard to its

claims for actual damages and declining to award even nominal damages; (2) failing

to recognize that the default judgment “conclusively established” the employee’s liability for punitive damages and attorney fees; and (3) denying the firm’s right to

present closing argument at trial.

We affirm the trial court’s judgment except with respect to the attorney fees.

The trial court applied the correct legal standard and did not clearly err in finding that

the firm failed to establish its actual damages with reasonable certainty. The court

also did not err in failing to award nominal or punitive damages. And the court did

not commit reversible error by forgoing closing argument. But because the entry of

a default judgment required the trial court to award the firm its reasonable attorney

fees, the judgment must be reversed to the extent the court failed to make such an

award, and the case must be remanded for a determination of the proper amount of

the fee award.

Background

The relevant facts, which are either undisputed or deemed admitted by virtue

of the default judgment, see OCGA § 9-11-55 (a),1 are as follows. The Cotto Law

Group is a Duluth law firm specializing in immigration and personal injury law. In

2017, Vanessa Benevidez was hired as an associate attorney to handle the firm’s

1 Under this Code section, an entry of default judgment generally has the effect of deeming “every item and paragraph of the complaint” to be “supported by proper evidence.” See Division 2 below.

2 personal injury matters. While at Cotto, Benevidez established an account for the firm

with Dropbox, an online file-sharing network, to maintain client files. She also

arranged for the installation of a fax line for communicating with insurers in these

personal injury matters.

In January 2019, Benevidez and Mayra Lazano, a paralegal who worked

closely with Benevidez, resigned from their employment with the firm by emailing

the firm’s principal, Isaac Cotto, notifying him of their immediate resignation.2 On

Benevidez’s departure, the firm no longer had access to its Dropbox account, its fax

line, or her firm email account.3 Three days after the resignations, the firm received

letters from two clients, terminating the firm’s services.

The next day, Cotto filed suit, claiming that Benevidez and Lazano had

“converted [its] client files . . . [and] stole[n], tortiously interfered with[,] and

2 Benevidez’s email describes her resignation as “forced,” as a result of her learning that Mr. Cotto was soliciting job applicants for her position. 3 Although the verified complaint avers that Benevidez changed the Dropbox and email passwords and “altered the contact information” for the fax line to prevent the firm from accessing these accounts, it is unclear to what extent Benevidez actually altered passwords or other information, as opposed to simply leaving without providing the credentials necessary to access these accounts. Either way, it is undisputed that, at least initially, without Benevidez, the firm was unable to access these accounts.

3 otherwise obstructed [the firm’s] access to its client files” in violation of various

Georgia statutes. The complaint sought injunctive relief as well as “compensatory,

consequential, special, nominal, punitive, and exemplary damages,” and attorney fees

under OCGA § 13-6-11.

In the months that followed, the trial court granted Cotto temporary injunctive

relief. And although Benevidez appeared at the interlocutory injunction hearing, she

failed to file a timely answer.4 Cotto moved for a default judgment, and, although

Benevidez then filed an untimely answer and moved to open the default, the trial

court rejected these efforts and granted Cotto’s motion for default judgment.

A bench trial on damages followed.5 Cotto presented two witnesses to testify

on damages. First, Cotto called Erika Quiroz, the firm’s marketing director, who

testified that, as a result of Benevidez’s departure and the firm’s lack of access to its

electronic files, she had to “stay in the office and do office work” instead of her usual

business development work outside the office. For roughly a month, Quiroz was

sidelined from her marketing duties to help “reorganize . . . the operation of the law

firm”; she testified that “there were files everywhere in the office and I had to start

4 Lazano had by that point been dismissed from the case. 5 Benevidez waived her demand for a jury trial.

4 calling the clients and . . . [let] them know that Ms. Benevidez wasn’t there anymore.”

Quiroz testified that she worked 122 hours on this “reorganization” work and that her

salary at the time was $15 per hour. She testified further that, in a typical month, she

brought in between 20 and 35 new cases and that, during the month she was diverted

from her marketing duties, she brought in only ten new cases. On cross-examination,

Quiroz admitted that, because Benevidez had been the firm’s only personal injury

attorney, it was inevitable that, if she were ever to leave the firm, someone would

have to “tend to those files that she was no longer handling.” On redirect, Quiroz

agreed that the “real reason” she had to step in to help was that Benevidez had left

without providing access to her email and the Dropbox files.

Cotto’s other witness was Isaac Cotto. Mr. Cotto testified that, because

Benevidez had effectively blocked the firm’s access to her email, the Dropbox

account, and the fax line, “we had to go, basically, manual labor and physically go

through every single file to communicate with providers and clients.” He testified that

he asked Benevidez for the Dropbox information but she never gave it to him, and

that ultimately his staff had to figure out the password “through trial and error.” He

also testified that five of the firm’s personal injury clients left “within 24 hours” to

go with Benevidez. As to the value of those clients’ cases, Mr. Cotto testified that,

5 while he could not “give a dollar amount,” a typical personal injury case “can range

from $2,000 to $10,000”; he also opined that Benevidez “would not have taken a case

of low value.” Mr. Cotto also testified that the firm had suffered reputational damage

with clients and referral sources.

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