Sass v. Cohen

A default judgment may not be entered for an amount in excess of the demand in the operative pleadings when the plaintiff seeks an accounting or valuation of a business. A comparison of whether a default judgment exceeds the amount of compensatory damages demanded in the operative pleadings are to be examined on an aggregate basis, rather than on a claim-by-claim or item-by-item basis.The Court of Appeal held, in this case, that the default judgment awarding compensatory damages of $2,806,532 exceeded the $987,500 in compensatory damages specified in the operative complaint. Therefore, the default judgment was void to the extent of the coverage. The court remanded for the trial court to determine whether to give plaintiff the option to accept a modified default judgment in this reduced amount or to amend her complaint to demand greater relief. View "Sass v. Cohen" on Justia Law