## Facts

- Deborah Sass sued Theodore Cohen in California superior court, asserting an accounting claim and alleging a proportional ownership interest in specified real estate investments.
- Cohen did not answer, and the clerk entered his default.
- After a default prove-up hearing, the trial court entered a default judgment awarding Sass monetary damages calculated from her alleged proportional interests, despite the complaint not stating any dollar amount of damages.
- Cohen moved to set aside the default judgment as void under California Code of Civil Procedure § 580(a), arguing the judgment exceeded the relief demanded in the complaint; the trial court denied the motion.
- The Court of Appeal affirmed, reasoning that the nature of an accounting claim permitted a monetary award in default without a specific dollar demand.
- The California Supreme Court granted review to determine how § 580(a)’s limit on default relief applies to accounting claims seeking monetary recovery.

## Issues

1. Whether, under Code of Civil Procedure § 580(a), a default judgment may award monetary damages on an accounting cause of action when the complaint does not state a maximum dollar amount of monetary relief.

## Decision

- The California Supreme Court reversed.
- The Court held that when a plaintiff seeks monetary relief, pleading an accounting cause of action does not excuse the requirement that the defendant receive notice of the maximum dollar amount sought before a default money judgment may be entered.
- Because Sass’s complaint did not demand monetary relief “in terms of dollars,” the default judgment was void to the extent it awarded monetary damages beyond what was demanded.
- The Court stated it was not deciding the specific method for comparing the amount awarded in default with the amount demanded.

## Legal Principles

- In default, “the relief granted to the plaintiff … cannot exceed that demanded in the complaint.” (Code Civ. Proc. § 580(a).)
- The demand in the complaint sets a ceiling on recovery in default; a default judgment awarding relief beyond that ceiling is void for excess of jurisdiction.
- When monetary recovery is sought, § 580(a) requires notice of a maximum dollar amount in the operative pleading (or a properly served amendment or other authorized statement) as a prerequisite to a default money judgment.
- The notice function of § 580(a) protects due process by enabling a defendant to assess maximum financial exposure when deciding whether to appear and defend.
- Practical uncertainty associated with accounting claims does not eliminate the requirement to provide dollar-amount notice for monetary relief in default.

## Conclusion

The court held that a plaintiff cannot obtain a default money judgment on an accounting claim without having provided the defendant notice of a maximum dollar amount of monetary relief in the pleadings (or a properly served authorized statement); any default award exceeding the demanded relief is void under Code of Civil Procedure § 580(a).


Sass v. Cohen, 10 Cal. 5th 861 (Cal. 2020)