Motion to Enlarge Time – Failure To Answer

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WI Court of Appeals – District III

Case Name: Charles L. Schunk, Jr., v. Rock & Tait Exteriors, LLC

Case No.: 2016AP2497

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Motion to Enlarge Time – Failure To Answer

Rock and Tait Exteriors, LLC (Rock and Tait) appeals a default judgment entered in favor of Charles Schunk, Jr. Schunk sued Rock and Tait, alleging a breach of contract related to Rock and Tait’s replacement of the roof on Schunk’s home. The circuit court granted Schunk a default judgment in the amount of $28,648 after Rock and Tait failed to answer the complaint and instead filed a motion to stay the proceedings and to compel compliance with the contractor notice and opportunity to cure statute, WIS. STAT. § 895.07 (2015-16).  After Schunk filed a motion for default judgment, Rock and Tait filed a motion to enlarge the time to answer the complaint. The circuit court denied Rock and Tait’s motions to stay and to enlarge the time to answer, and it granted Schunk’s motion for default judgment.

Rock and Tait argues the circuit court erred when it: (1) denied Rock and Tait’s motion to enlarge the time to answer and granted Schunk’s motion for default judgment; (2) failed to order Schunk to comply with the mandatory stay provision of WIS. STAT. § 895.07; and (3) awarded damages to Schunk without a hearing. We affirm both the court’s denial of Rock and Tait’s motion to enlarge the time to answer and the entry of the default judgment.  We reverse the award of damages and remand the case for the circuit court to hold an evidentiary hearing to determine the damages to be awarded to Schunk on his breach of contract claim.

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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.