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Lucas v. Clark

Eonic Creations Inc. and its founder, James Jolly Clark, sued investor C. Michael Lucas, alleging breach of contract and various claims of tortious conduct. When Lucas failed to respond to the appellees' petition, the trial court issued a default judgment in favor of the appellees and awarded unliquidated damages of $75,000 to James Jolly Clark and $9,925,000 to Eonic Creations. Lucas appeals. No evidence other than an overly broad request for admission exists supporting the appellees' claims for unliquidated damages or proving the foreseeability of such damages. No objection was necessary to reach the merits of the issue. The evidence is legally and factually insufficient to support the trial court's damages award. The default judgment is affirmed in part, that portion of the default judgment awarding the appellees unliquidated damages is reversed, and the case is remanded. San Antonio Court of Appeals, No. 03-10-00474-CV, 06-15-2011.

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OPINION

Eonic Creations, Inc. and its founder, James Jolly Clark, (collectively, the “Appellees”) sued investor C. Michael Lucas for breach of contract and various claims of tortious conduct. When Lucas failed to respond to the Appellees’ petition, the trial court issued a default judgment in favor of the Appellees and awarded unliquidated damages of $75,000 to James Jolly Clark and $9,925,000 to Eonic Creations. Lucas appeals, claiming that the absence of a reporter’s record from the default judgment hearing deprived Lucas of the ability to review the trial court’s awards, that the trial court’s unliquidated damages awards are not supported by sufficient evidence, and that the use of requests for admissions embedded within a petition to support the no-answer default judgment awards of unliquidated damages was “inappropriate” and undermined Texas Rule of Civil Procedure 243. We affirm the issuance of the default judgment, reverse that portion of the default judgment awarding unliquidated damages, and remand the case to the trial court for further proceedings consistent with this opinion.*fn1

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