KPS & Associates, Inc. v. Designs by FMC, Inc.

KPS & Associates, Inc. (plaintiff) sued Designs by FMC, Inc. (defendant) for unpaid commissions, with the complaint describing $131,033 in damages in its body but claiming $183,577 in the ad damnum clause. After contentious motion practice, KPS obtained entry of default when FMC failed to answer. FMC's attorney, Schrader, blamed a temporary secretary's mistake and moved to set aside the default a week later, but the district judge found this explanation fabricated based on Schrader's history of "stonewalling" and duplicitous conduct, entered default, and treated damages as a sum certain established by the complaint. A magistrate later found double damages warranted under state law, and the district judge awarded $367,154. FMC appealed on grounds the default was not willful, FMC had a valid defense, and KPS suffered no prejudice.