Airs Aromatics, LLC v. CBL Data Recovery Techs., Inc.

*1016 CBL Data Recovery Technologies, Inc. (CBL) appeals an order denying its motion to set aside a default judgment entered in favor of Airs Aromatics, LLC (Airs). CBL argues the default judgment was void pursuant *658 to sections 580, subdivision (a) and 585, subdivision (c) of the Code of Civil Procedure because the trial court awarded damages in excess of that demanded in the complaint. 1 We agree and conclude the default judgment must be vacated.

FACTUAL AND PROCEDURAL BACKGROUND

Airs sued CBL for breach of contract in 2011. The operative complaint alleged that Airs "suffered damages in an amount to be proven at trial, but estimated to exceed $25,000.00." The prayer likewise requested "damages in an amount to be proven." There was no other allegation in the complaint as to the amount of damages sought.

CBL filed an answer and engaged in discovery. The parties participated in a settlement conference in which Airs demanded $5 million to settle all claims. In August 2012, the parties stipulated to withdraw CBL's answer and allow Airs to obtain a default. A month later, Airs filed a Request for Court Judgment seeking over $3 million in damages. It also filed a document…