Default with the judgment was double recovery

In Grisaffi v. Rocky Mountain High Brands, the Fifth Court reversed and remanded a default judgment after identifying an impermissible double recovery on the key issue: “Although Grisaffi committed numerous wrongful acts against Rocky Mountain, the default judgment awards Rocky Mountain $3.5 million as compensation for ‘funds obtained through fraud, breach of fiduciary duty and conversion with respect to Series A Preferred Stock . . . .’ The default judgment further awards Rocky Mountain declaratory relief to void the issuance of that Series A Preferred Stock. Thus, both the monetary and declaratory relief awarded to Rocky Mountain compensate it for the single injury of the wrongful issuance of Series A Preferred Stock caused by Grisaffi.” No. 05-18-01020-CV (Feb. 27, 2020) (mem. op.)