Sharon P. Talbot v. Margaret A. Rosenbaum
142 So. 3d 965
Fla. Dist. Ct. App.2014Background
- Rosenbaum loaned $75,000 to a third party to purchase sports-memorabilia inventory and equipment; the loan was secured by a security agreement.
- The third party defaulted, moved the inventory to Palm Beach County, and gifted it to Sharon’s Sportsplex, Inc., co-owned by Talbot.
- Rosenbaum demanded return of the property; Talbot stored the items and later disposed of them and failed to comply with discovery and court orders.
- Trial court struck Talbot’s pleadings for discovery violations, entered default, and later entered a default final judgment awarding Rosenbaum $76,800 plus pre-judgment interest.
- Talbot appealed, arguing the damages were unliquidated and required an evidentiary hearing to determine the market value of the converted property.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether damages were liquidated or unliquidated | Rosenbaum: damages were liquidated because the loan amount ($75,000) established the amount owed with exactness | Talbot: damages were unliquidated; market value of converted property required proof and a hearing | Court: Damages were unliquidated; default could not substitute for an evidentiary hearing on value, so award vacated as to unliquidated damages and remanded for determination |
Key Cases Cited
- Matejka v. Dulaney, 40 So. 3d 865 (Fla. 4th DCA 2010) (defines liquidated damages as determinable with exactness from the pleaded cause of action)
- Bowman v. Kingsland Dev., Inc., 432 So. 2d 660 (Fla. 5th DCA 1983) (damages are unliquidated if court must receive testimony to ascertain amount)
- Bodygear Activewear, Inc. v. Counter Intelligence Servs., 946 So. 2d 1148 (Fla. 4th DCA 2006) (default admits entitlement to liquidated but not unliquidated damages; defendant entitled to hearing on unliquidated damages)
- Watson v. Internet Billing Co., 882 So. 2d 533 (Fla. 4th DCA 2004) (when complaint alleges only general damages without a specific amount, damages are unliquidated)
- BOYI, LLC v. Premiere Am. Bank, N.A., 127 So. 3d 850 (Fla. 4th DCA 2013) (reiterates need for evidentiary hearing on unliquidated damages following default)
- Exxon Corp. v. Ward, 438 So. 2d 1059 (Fla. 4th DCA 1983) (measure of damages in conversion is market value of property on date of conversion)
- Heritage Circle Condo. Ass’n v. State, Dep’t of Bus. & Prof’l Regulation, 121 So. 3d 1141 (Fla. 4th DCA 2013) (damages requiring testimony are unliquidated and require hearing)