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BOYI, LLC v. Premiere American Bank, N.A.

Citations: 127 So. 3d 850; 2013 WL 6244182; 2013 Fla. App. LEXIS 19194Docket: No. 4D12-2084

Court: District Court of Appeal of Florida; December 3, 2013; Florida; State Appellate Court

Narrative Opinion Summary

The case involves appellants, BOYI, LLC and Eduardo Bozo, contesting two orders from a trial court which arose after their default on a commercial loan from Florida Community Bank, N.A. The key issue on appeal was the trial court's refusal to vacate the section of the default final judgment that awarded $2,845.00 in unliquidated damages. The appellants argued that this award was improper because they were not provided the requisite thirty-day notice for a trial to contest these damages, a requirement under Florida Rule of Civil Procedure 1.440(c). The appellate court concurred with the appellants, determining that while a default judgment concedes entitlement to liquidated damages, it does not do so for unliquidated damages without appropriate notice and a chance for the defaulting party to be heard. Consequently, the appellate court reversed the unliquidated damages award, remanding for further proceedings to ascertain the correct amount, while affirming the remainder of the judgment related to liquidated damages. The decision was affirmed in part, reversed in part, and remanded for further proceedings regarding the unliquidated damages.

Legal Issues Addressed

Default Judgment and Unliquidated Damages

Application: The court found that the trial court erred by awarding unliquidated damages without providing notice and an opportunity to contest these damages to the defaulting party.

Reasoning: The appellants argued that they did not receive the required thirty-day notice for a trial on these damages, violating Florida Rule of Civil Procedure 1.440(c), and were not given the chance to contest the damages or see proof of them.

Notice Requirement under Florida Rule of Civil Procedure 1.440(c)

Application: The appellate court held that failure to provide thirty-day notice for a trial on unliquidated damages contravenes Florida Rule of Civil Procedure 1.440(c), warranting reversal and remand.

Reasoning: The court agreed with the appellants, referencing legal precedents which establish that a default judgment admits entitlement to liquidated damages but not unliquidated damages without proper notice and an opportunity for the defaulting party to be heard.

Reversal and Remand for Unliquidated Damages

Application: The court reversed the portion of the judgment awarding unliquidated damages and remanded the case for a hearing to establish the correct amount.

Reasoning: Consequently, the court reversed the portion of the final judgment awarding unliquidated damages and remanded the case for a hearing to determine the appropriate amount of those damages.