Abuse of Discretion – Failure to Respond

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Civil

WI Court of Appeals – District III

Officials: Stark, P.J., Hruz, J., and Thomas Cane, Reserve Judge.

Abuse of Discretion – Failure to Respond

2014AP2846-FT Marco Araujo, M.D. v. Ronald H. Van Den Huevel

Green Box, N.A. Green Bay, LLC, and its founder and chairman, Ronald Van Den Heuvel (collectively “Green Box”) appeal a judgment awarding Marco Araujo $813,735.34, consisting of $600,000 for damages relating to a breach of contract plus prejudgment interest and costs. The circuit court entered the default judgment after striking Green Box’s answer as a penalty for its noncompliance with a discovery order. Green Box argues: (1) the court erroneously exercised its discretion by imputing Green Box’s former counsel’s conduct to the blameless defendants; and (2) the court erroneously exercised its discretion by not requiring proof of damages and by failing to respond to Green Box’s motion for reconsideration, in which it requested that the judgment be amended to require Araujo to transfer his membership units back to Green Box upon full payment of the judgment. We affirm the decision to strike the answer and grant a default judgment for the liquidated damages identified in the complaint plus interest and costs. We remand the cause with directions to amend the judgment to require Araujo to transfer his membership units back to Green Box upon full payment of the judgment.

Decision

Affirmed in part. Reversed and Remanded in part.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.