LATIN AMERICAN CAFETERIA, INC., APPELLANT,
v.
ZALES MEATS DISTRIBUTORS, INC., APPELLEE

Fla. 3d DCA | 2006-02-22
No. 3D05-1008
Before LEVY, RAMIREZ, and SUAREZ, JJ.
921 So. 2d 768 Florida District Court of Appeal, Third District (2006) Positive Treatment
Cited by 8 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

Latin American Cafeteria appeals the denial of a motion to stay execution of a default judgment and an award of sanctions. The court affirms the default judgment on damages but reverses the attorney's fees award because it was entered without a hearing, and reverses the sanctions award because a justiciable issue existed for the successor judge to address.


Holding

The court affirmed the default judgment on damages because Latin American failed to prove denial of service by clear and convincing evidence. However, the court reversed the attorney's fees award because unliquidated damages such as attorney's fees require notice and an opportunity to be heard before entry of a default judgment. The court also reversed the sanctions award because a justiciable issue (the erroneous attorney's fees) existed for the successor judge to address.


Headnotes

[1] A defendant seeking to set aside a default judgment based on improper service must present clear and convincing evidence to corroborate the claim of denial of service.

[2] A claim of improper entry of a default judgment as to damages, where a jury trial was requested but not waived, is a mistake of law that should be raised on direct appeal…

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Key Quotes

“The attorney's fees prayed for in the complaint are considered unliquidated damages requiring as a condition precedent notice to the defaulting party and an opportunity to be heard.”

Establishes that attorney's fees in default judgments must be preceded by notice and hearing, distinguishing them from liquidated damages

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Facts & Procedural History

Zales Meats Distributors sued Latin American Cafeteria for treble damages based on worthless checks. Latin American failed to respond to the complaint…

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Opinion of the Court
SUAREZ, J.

SUAREZ, J.

Latin American Cafeteria, Inc. (“Latin American”), appeals the denial of an Emergency Motion to Stay Execution of Amended Final Default Judgment in favor of the appellee, Zales Meats Distributors, Inc. (“Zales”), and an award of attorney’s fees as sanctions under section 57.105, Florida Statutes (2004). We affirm in part and reverse in part.

The appellee filed suit against Latin American for treble damages for tendering worthless checks to pay for merchandise. Latin American failed to respond or file any papers and a Default Final Judgment was obtained in the amount of $64,744.28, including principal, treble damages, prejudgment interest and attorney’s fees. The attorney’s fees award was based on an affidavit filed by Zales, without a hearing, in the amount of $1,500.00 for 7-1/2 hours of time and $281.00 in costs.

On April 15, 2005, in an attempt to prevent Zales from executing on the judgment, Latin American filed an Emergency Motion to Stay Execution of Amended Final Default Judgment together with an affidavit by the owner stating that he had not been served with process.

At the hearing on the motion to stay, the process server testified that he had served Latin American by delivering a copy of the summons and complaint to the owner as registered agent. The original attorney for Zales testified as to conversations she had with the owner of Latin American concerning the suit, and the court file contained copies of orders and notices of hearings all certified as being sent to Latin American. The trial judge found that Latin American failed to prove its denial of service by clear and convincing evidence and upheld service. The trial judge also held that entry of the Amended Final Default Judgment without notice was proper, and denied the Motion to Stay Execution.

On April 25, 2005, Latin American filed a second Emergency Motion to Stay, Motion to Set Aside Default Judgment, and Motion to Vacate Default Judgment. Latin American argued that it was entitled to relief from the judgment under Florida Rule of Civil Procedure 1.540, claiming that Latin American never received notice of any hearings in the matter. The successor judge heard the motion, granted the Motion to Stay Execution but refused to hear the Motion to Set Aside and Motion to Vacate Default Judgment on grounds that the issues had already been decided by the original trial judge. The successor judge awarded sanctions under section 57.105, Florida Statutes (2004), against Latin American for causing the appellee to appear for a second time after the issues raised had allegedly already been decided by the prior trial judge.

I.

We affirm the original trial judge’s denial of Latin American’s motion to set aside default and to stay the execution of the Amended Final Default Judgment. The return of service provided by the process server indicated that he had served a copy of the complaint and summons on the owner, as registered agent, of Latin American.

The trial court heard testimony on the issue of the irregularity of service from both sides — including from the owner of Latin American, that he had not been served, from the process server, that he had served the owner as registered agent, and from the original attorney for Zales, that she had numerous conversations with the owner of Latin American concerning the suit.

We find that the trial court did not abuse its discretion in finding that Latin American did not meet its burden of presenting clear and convincing evidence to corroborate its claim of denial of service. See Slomowitz v. Walker, 429 So. 2d 797 (Fla. 4th DCA 1983), and cases cited; see also Winky’s, Inc. v. Francis, 229 So. 2d 903 (Fla. 3d DCA 1969).

We also uphold the Amended Final Default Judgment as to the total damages, other than the award of attorney’s fees. Latin American’s second Emergency Motion to Vacate was brought pursuant to Florida Rule of Civil Procedure 1.540 claiming that the trial court erred in granting a default judgment as to damages and in awarding attorney’s fees where the plaintiff, Zales, had requested a jury trial in the complaint which had not been waived.

We affirm that portion of the successor judge’s order denying Latin American’s motion to set aside the default judgment as to general damages. Any error in the trial court’s determination of damages without a hearing when the right to a jury trial had not been waived was a mistake of law which should have been raised on appeal and was not subject to relief under Rule 1.540(b).

Curbelo v. Ullman, 571 So. 2d 443 (Fla.1990).

As in Cur-belo, this appellant had knowledge of the Motion for Entry of Final Default Judgment, Motion to Amend Final Default Judgment and the Final Default Judgment by service of pleadings and also from contact with the appellee. As in Curbelo, the judgment is not void and could not have been properly set aside under Rule 1.540(b), as the proper vehicle for remedy would have been an appeal.

Therefore, we uphold the award of damages.

We reverse that portion of the order granting a default award of attorney’s fees. The attorney’s fees prayed for in the complaint are considered unliquidated damages requiring as a condition precedent notice to the defaulting party and an opportunity to be heard. Bowman v. Kingsland Dev., Inc., 432 So. 2d 660 (Fla. 5th DCA 1983), and cases cited. Relief from that portion of the Amended Final Default Judgment awarding attorney’s fees was properly raised pursuant to Rule 1.540. It should have been granted and an evidentiary hearing should then have been held as to the amount of attorney’s fees. Bowman.

Therefore, the original trial judge’s denial of the Emergency Motion to Stay is affirmed along with the damages awarded pursuant to the Amended Final Default Judgment with the exception of the attorney’s .fees which were awarded without a hearing and an opportunity to be heard. See Curbelo v. Ullman, 571 So. 2d at 443; Bowman v. Kingsland Dev., Inc., 432 So. 2d at 660; Slomowitz v. Walker, 429 So. 2d at 797; Winky’s, Inc. v. Francis, 229 So. 2d at 903.

II.

Since there was a justiciable issue presented to the successor trial judge on the second Motion to Stay, Motion to Set Aside Default Judgment, and Motion to Vacate Default Judgment — that the attorney’s fees were awarded in error in the Amended Final Default Judgment — the trial court’s granting of fees as a sanction under section 57.105, Florida Statutes (2004), is reversed. See Connelly v. Old Bridge Village Co-Op, Inc., 915 So. 2d 652 (Fla. 2d DCA 2005); Mercury Ins. Co. v. Coatney, 910 So. 2d 925 (Fla. 1st DCA 2005); Brockway v. Town of Golfview, 675 So. 2d 699 (Fla. 4th DCA 1996); Lambert v. Nelson, 573 So. 2d 54 (Fla. 1st DCA 1990).

We affirm the Amended Final Default Judgment with the exception of the attorney’s fees award which is subject to a hearing upon remand to determine the amount. We reverse the 57.105 fees ordered by the successor trial judge.

Affirmed in part, reversed in part and remanded with directions.


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  • Cellular Warehouse, Inc. v. GH Cellular, LLC, 957 So. 2d 662 (Fla. 3d DCA 2007)
    …taking of testimony to ascertain facts upon which to base a value judgment.” Id. at 663. Claims for reasonable attorney’s fees are considered un-liquidated damages. See id.; see also Latin American Cafeteria, Inc. v. Zales Meats Distributors, Inc., 921 So. 2d 768, 771 (Fla. 3d DCA 2006). In this case, the trial court awarded $3,500 in attorney’s fees. In addition to attorney’s fees, GH Cellular also sought damages for lost business profits, stolen assets, and operating expenses. These damages were not estab…
  • Phenion Dev. Grp., Inc. v. Love, 940 So. 2d 1179 (Fla. 5th DCA 2006)
    …ror, “such as a mistaken view of the law,” that should have been corrected by direct appeal or by motion under Florida Rule of Civil Procedure 1.530.3 Curbelo, 571 So. 2d at 444-45; see also, Latin Am. Cafeteria, Inc. v. Zales Meats Distribs., Inc., 921 So. 2d 768 (Fla. 3d DCA 2006); Skinner v. Skinner, 579 So. 2d 358 (Fla. 4th DCA 1991); Fiber Crete Homes, Inc. v. State, Dep’t of Transp., 315 So. 2d 492 (Fla. 4th DCA 1975). Therefore, if the issue had been squarely presented to the trial court, for example,…
  • Aventura Beach Club Condo. Ass'n, Inc. v. Blaustein, 997 So. 2d 1185 (Fla. 3d DCA 2008)
    …t had been served with process. The trial court’s factual determination is supported by competent substantial evidence. See Emmer v. Brucato, 813 So. 2d 264, 266 (Fla. 5th DCA 2002); see also Latin Am. Cafeteria, Inc. v. Zales Meats Distribs., Inc., 921 So. 2d 768 (Fla. 3d DCA 2006). We therefore affirm the trial court’s order which determined that the registered agent had been properly served. We note that in the proceedings below, the association filed an addendum to its motion to set aside the default. T…

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