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Boit v. Brookstone Co., Inc.
Citations: 641 A.2d 864; 1994 Me. LEXIS 88
Court: Supreme Judicial Court of Maine; May 24, 1994; Maine; State Supreme Court
Brookstone Company, Inc. appealed a Superior Court judgment awarding Robert S. and Agnes H. Boit $178,995.12 for property damages resulting from a fire caused by a contractor's use of a hot air gun. The default judgment was entered after Brookstone failed to file a timely answer to the complaint, which was delivered to its corporate clerk and subsequently forwarded to its insurer, causing a delay. Brookstone's motion to set aside the default was denied, as was its request for discovery and the opportunity to present evidence at the damages hearing, where it was limited to cross-examination. The court upheld the entry of default but vacated the default judgment, remanding the case for a new damages hearing. The court emphasized that setting aside a default requires showing both a valid excuse for the delay and a meritorious defense, granting considerable deference to the trial court's discretion in such matters. A trial court's finding of no good cause for a delay and its denial of a motion to set aside a default were not deemed clearly erroneous or an abuse of discretion. Brookstone contended that it was wrongfully denied the opportunity to conduct discovery and present evidence before a damages hearing. Although the court had not previously ruled on a defaulted defendant's entitlement to conduct such discovery, it had addressed the extent of participation allowed in damages hearings. The court's discretion in determining the scope of participation is guided by the need to ensure fair damage assessment while minimizing the risk of fraud and error. Other jurisdictions have permitted defaulted defendants to engage in discovery and evidence presentation at damages hearings. In this case, the trial court's refusal to allow Brookstone to conduct discovery and present evidence was deemed an abuse of discretion, especially since Brookstone lacked sufficient information regarding the damages claimed by the Boits. The trial court awarded the Boits $278,995.12, later reduced by $100,000 due to a prior settlement. The complexity of the damage claims, which involved expert testimony regarding valuations, necessitated Brookstone's participation to prevent potential fraud and inaccuracies. It was concluded that while defaulted parties do not universally have the right to discovery or evidence presentation, the complexity of the case increases the need for such rights to ensure fairness. The judgment was vacated and remanded for further proceedings. In Firth, 580 A.2d at 697, the plaintiff sought compensation from the City of Rockland for injuries sustained during arrest. The City faced a default, and its request to present evidence at the damage hearing was denied by the trial court. The appellate court found no abuse of discretion, noting the City did not provide any evidence it wished to present nor did it request reconsideration of the denial. In McNutt, 477 A.2d at 740-41, a default judgment was entered against a landowner in a boundary dispute, and the court similarly found no abuse of discretion in limiting the defendant’s participation to cross-examination only. On remand, Brookstone is entitled to discovery and to present evidence exclusively on damages, with no opportunity to address liability. Discovery and evidence presentation must be narrowly focused. Brookstone also contended that certain invoices were inadmissible hearsay and that photocopied checks were irrelevant, along with claims that the trial court's findings were unsupported by the record. However, these arguments were not addressed as the damages portion of the judgment was vacated and a new hearing on damages was ordered.