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Carter v. Ravenwood Dev. Co.

The trial court erred in entering a default judgment for liquidated damages because the proper amount of damages could not be determined without referring to evidence outside the pleadings.

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Sheila Carter and Samuel Evans appeal from a default judgment entered against them after they failed to comply with an order compelling discovery. They contend that the trial court erred by denying their motion to open default and by denying them a trial on the issue of damages. We agree with the second contention but not the first. Therefore, we affirm in part and reverse in part.

Ravenwood Development Co. sued Carter for breach of a contract to build a house, alleging that Carter caused cost overruns and project delays, canceled a draw line on a construction loan, and prohibited Ravenwood from completing construction. Carter filed an answer denying the allegations of the complaint, and she and her husband, Evans,1 filed a counterclaim alleging that Ravenwood breached the contract in various ways.

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