Opinion ID: 461326
Heading Depth: 2
Heading Rank: 3

Heading: The Quantum of Damages.

Text: 29 After entering the judgment of default against the appellants, the trial court found damages of $10,001. Appellants argue that it was improper to enter an order for damages following a default judgment without a proper hearing. Generally, imposition of Rule 37 sanctions is governed by an abuse of discretion standard. Emerick v. Fenick Industries, 539 F.2d 1379, 1381 (5th Cir.1976). But in United Artists Corp. v. Freeman, 605 F.2d 854 (5th Cir.1979) (per curiam ), the former Fifth Circuit held that judgment of default awarding cash damages could not properly be entered without a hearing unless the amount claimed is a liquidated sum or one capable of mathematical calculation. Id. at 857. Damages may be awarded only if the record adequately reflects the basis for award via a hearing or a demonstration by detailed affidavits establishing the necessary facts. Id.; accord, Carlucci, 775 F.2d at 1453-54. 30 A hearing was held on November 14, 1984, to consider sanctions. But from the record we find no evidence that the hearing provided the court with any basis to make $10,001 a reasonable estimate of damages. The sole justification offered for the figure was that it would act as a sanction for defendants' demonstrated bad faith and callous disregard of their responsibilities. That is not sufficient to meet the United Artists requirement. It must be clear from the record either that a hearing was held that meaningfully informed the judgment of the court below or that the trial court utilized the mathematical calculations and detailed affidavits of which United Artists spoke. Here neither requirement was met. Accordingly, on that narrow issue, and that alone, we must return this case to the trial court so that it may create a record and make findings adequate to support whatever award of damages it deems appropriate given the factual posture of this case. 31