Premise, Inc. v. Withlacoochee River Electric Cooperative, Inc.
215 So. 3d 123
Fla. Dist. Ct. App.2017Background
- Premise, Inc., Stay Secure Solutions, LLC, and Robert G. Nowels (collectively "Premise") contracted to sell and maintain computer hardware/software to Withlacoochee River Electric Cooperative, Inc. (WREC), including a five-year IBM support plan.
- Premise allegedly failed to provide the support plan beginning in year three.
- WREC sued for breach of contract and pleaded that its "damages are at a minimum the cost of the line item Defendants failed to provide, which totaled $47,994.85 ($44,855 plus 7% tax)."
- Premise did not respond; default was entered and the trial court entered final judgment awarding damages without an evidentiary hearing, treating the claimed amount as liquidated.
- Premise moved to set aside the default judgment and requested an evidentiary hearing, arguing the damages were unliquidated; the trial court denied relief.
- The district court reversed, finding the trial court erred in treating the pleaded amount as liquidated and in awarding damages without a hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether damages pleaded as a minimum line-item amount are liquidated | WREC: pleaded specific line-item amount, so default admits and liquidates damages | Premise: phrase "at a minimum" shows amount is not final and requires proof | Court: Not liquidated; phrase shows amount is a minimum and an evidentiary hearing is required |
| Whether a hearing is required before entering a default judgment for unliquidated damages | WREC: no hearing needed because pleaded sum is determinable from contract | Premise: rule requires hearing for unliquidated damages under Fla. R. Civ. P. 1.440(c) | Court: Fla. R. Civ. P. 1.440(c) requires hearing for unliquidated damages; failure is reversible error |
Key Cases Cited
- Wells Fargo Bank, Nat'l Ass'n v. Sawh, 194 So. 3d 475 (Fla. 3d DCA 2016) (specific sum alleged as a minimum is not liquidated)
- Medcom USA, Inc. v. Ryder Homes & Groves Co., 847 So. 2d 594 (Fla. 2d DCA 2003) (damages are unliquidated when their ascertainment requires testimony)
- Bodygear Activewear, Inc. v. Counter Intelligence Servs., 946 So. 2d 1148 (Fla. 4th DCA 2006) (liquidated damages are certain without need for evidentiary hearing)
- Pierce v. Anglin, 721 So. 2d 781 (Fla. 1st DCA 1998) (liquidated damages can be determined by pleaded agreement or arithmetic)
- Ciprian-Escapa v. City of Orlando, 172 So. 3d 485 (Fla. 5th DCA 2015) (specific damages alleged may be admitted by default but must be definite and final)
- Maggiano v. Whiskey Creek Prof'l Ctr., LLC, 160 So. 3d 535 (Fla. 2d DCA 2015) (default admits specific damages but does not convert uncertain amounts into liquidated damages)