Kitchen International, Inc. v. Evans Cabinet Corp.
310 Ga. App. 648
Ga. Ct. App.2011Background
- Evans Cabinet Corporation sued Kitchen International, Inc. in Laurens County for breach of contract and unjust enrichment; a default judgment for $284,378.81 plus interest and costs was entered after Kitchen failed to respond.
- Evans asserted Kitchen failed to pay for manufactured cabinetry and materials; Evans did not attach the contract or invoices to establish the amount owed or that damages were fixed by contract terms.
- Kitchen, a Louisiana corporation with no Georgia-registered agent or authority to transact business in Georgia, was served via the Louisiana Secretary of State under OCGA § 9-10-94 (Long-Arm) after attempts to locate a registered agent failed.
- The Louisiana Secretary of State forwarded copies of the summons and complaint to Kitchen’s addresses; copies were refused or unclaimed; Evans sought default judgment in February 2010.
- The case was removed to federal court by Kitchen, which later moved to remand; upon return to Georgia, the trial court entered default judgment and awarded damages without an evidentiary hearing.
- The Georgia Court of Appeals affirming in part held that service was proper but that damages needed an evidentiary hearing to determine if liquidated or open-account-type damages apply, and whether prejudgment interest is due.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether service of process was proper. | Evans asserts proper service under Long-Arm via Secretary of State. | Kitchen argues improper service due to lack ofGeorgia agent and improper method. | Service proper; long-arm method valid. |
| Whether damages were liquidated and could be awarded without an evidentiary hearing. | Evans contends damages are liquidated and fixed by contract terms. | Kitchen argues damages are not clearly fixed; needs proof. | Damages not shown as liquidated; require evidentiary hearing. |
| Whether prejudgment interest is appropriate given damages not shown as liquidated. | If liquidated, Evans entitled to prejudgment interest; if not, not. | Interest depends on whether damages are fixed and certain. | Prejudgment interest depends on whether sum is fixed; remand for hearing. |
Key Cases Cited
- Vibratech, Inc. v. Frost, 291 Ga.App. 133 (2008) (whether service on a secretary of state may be proper when entity not Georgia-authorized)
- GMC Group, Inc. v. Harsco Corp., 304 Ga.App. 182 (2010) (damages must be certain and fixed to be liquidated; need evidentiary support)
- Hazlett & Hancock Constr. Co. v. Virgil Womack Constr. Co., 181 Ga.App. 25 (1986) (liquidated damages require attachment of invoices/contracts showing amount due)
- Sellers v. Nodvin, 207 Ga.App. 742 (1993) (damages must be ascertainable from pleadings and attached documents)
- Carter v. Ravenwood Dev. Co., 249 Ga.App. 603 (2001) (default damages must be supported by evidence; not merely bare conclusions)
- Those Certain Underwriters at Lloyds, London v. DTI Logistics, Inc., 300 Ga.App. 715 (2009) (prejudgment interest depends on whether damages are liquidated; fixed and certain amount possible)
- Gold Kist Peanuts v. Alberson, 178 Ga.App. 253 (1986) (prejudgment interest and applicability of OCGA 7-4-16 require conditions to be met)
- Imex Intl., Inc. v. Wires Engineering, 261 Ga.App. 329 (2003) (open account damages require invoices demonstrating amount due)