Missed notice costs Wilberforce University its $1.2 million default judgment
The project was supposed to wrap within 75 days. It did not. By September 2023, according to Wilberforce’s claims, Project One had not obtained construction permits but had already received $480,160 in cash and property. Wilberforce alleged Project One diverted $112,508.10 to unrelated work.
After terminating the contract, Wilberforce demanded $1,200,067.50 in liquidated damages under Ohio’s civil theft statutes. The university sued in June 2024, alleging My Place Finance was a “mere facade” controlled by its president, and sought to pierce the corporate veil to hold him personally liable for fraud, breach of surety contract, and theft.
The president was served in July 2024. He did not respond within 28 days. After Wilberforce moved for default judgment that November, he filed a pro se “rebuttal to claims” and motions challenging jurisdiction. Too late, the trial court decided – granting default judgment in June 2025.
The Second District agreed the filings were untimely. But it found a different problem. Once the president filed his rebuttal on November 22, 2024, he had made an “appearance.” Under Ohio Civil Rule 55(A), that entitled him to seven days’ written notice and a hearing before default judgment. The trial court gave him neither.
“By its plain language, Civ.R. 55(A) prohibits a default judgment against a party who has ‘appeared in the action’ unless that party receives written notice of the application for judgment at least seven days prior to the hearing on the application,” the court wrote.
