Julius Schifaugh IV Consulting Services, Inc. v. Avaris Capital, Inc.

Avaris Capital, Inc. (Avaris), appeals from an order setting aside its own default and the $342,728.77 default judgment against it obtained by Julius Schifaugh IV Consulting Services, Inc. (Schifaugh). The default judgment was void as beyond the trial court’s jurisdiction because it was in excess of the amount demanded in the complaint. Avaris contends in such situations the exclusive remedy available to the trial court is to reduce the default judgment to the amount pled in the complaint. We disagree and affirm the order.

FACTS

Schifaugh filed a complaint against Avaris for breach of contract and money owed. The complaint alleged Schifaugh and Avaris entered into an agreement whereby Schifaugh would assist Avaris by locating personnel for programming assignments. Schifaugh would be paid 10 percent of the annual salary of each employee it placed with Avaris, not to exceed $6,000 per placement. Avaris failed to pay Schifaugh $6,000 owed for two specific employees placed by Schifaugh. Additionally, Avaris hired other employees introduced to it by Schifaugh, but refused to pay Schifaugh the earned placement fees “in an amount not presently known by [Schifaugh] but which .…