Opinion ID: 2823845
Heading Depth: 2
Heading Rank: 5

Heading: Damages Hearing

Text: Â¶21Â Â Â Â Â Network Solutions argues that, if we find the trial court erred in setting aside the default judgment, we should remand the case for a hearing on damages. We agree. Â¶22Â Â Â Â Â C.R.C.P. 55(b) permits the trial court to conduct a damages hearing before entering a default judgment. That rule provides: If, in order to enable the court to enter judgment or to carry it into effect, it is necessary to take an account or to determine the amount of damages or to establish the truth of any averment by evidence or to make an investigation of any other matter, the court may conduct such hearings or order such references as it deems necessary and proper. Â¶23Â Â Â Â Â We have interpreted C.R.C.P. 55(b) as requiring the trial court to conduct a hearing if further information is needed to determine damages. âA hearing is unnecessary only in an action for a liquidated amount or a sum calculable by mathematical processes alone.â Kwik Way Stores, Inc. v. Caldwell, 745 P.2d 672, 679 (Colo. 1987). Â¶24Â Â Â Â Â The damages Nickerson alleged in connection with his Motion for Default Judgment were neither liquidated nor âcalculable by mathematical processes alone.â See id. Nickerson alleged damages totaling $65,000, including 40 hours of his time at a rate of $75 per hour; $52,000 in lost business opportunities, calculated as âat least 104â opportunities with an âaverage profitâ of $500 each; and an estimated $10,000 harm to his reputation. Conclusory allegations like these are âinsufficient to serve as a basis for . . . a compensatory damage awardâ in a default judgment. Johnston v. S.W.Â Devanney & Co., 719 P.2d 734, 737 (Colo. App. 1986). Under these circumstances, the trial court should have conducted an evidentiary hearing to verify the amount of Nickersonâs claimed damages and give Network Solutions an opportunity to contest damages. See Kwik Way Stores, 745 P.2d at 679 (â[T]he hearing on damages cannot be a one-sided presentation by the prevailing party. . . .â).