Jones, Wolf & Kapasi, LLC ("JWK") defeated a motion to strike our client's, H.P. Property One, LLC's, confession of judgment in the Court of Common Pleas, Mercer County, Pennsylvania. The decision was premised on a confession of judgment (in a promissory note) our client filed related to obligations of Defendant, William C. Weiss ("Defendant") with respect to the remaining balance of a four million ($4,000,000.00) dollar loan, owed to our client as purchaser of the balance.
Defendant argued that he did not sign the promissory note, our client's confession of judgment was improper, and should be stricken. JWK argued that Defendant was a sophisticated real estate investor, who, although did not sign the promissory note, did sign a Limited Guarantee Agreement (which contained its own confession of judgment) and a Power to Judgment on the very same day the promissory note was executed. JWK averred that the promissory note is not read in a vacuum but as part of a larger real estate transaction including the Limited Guarantee Agreement and Power to Confess Judgment. The Court agreed.
In accepting our argument and ruling in our client’s favor, the Court opined as follows:
The Amended Complaint in this matter, and all documents attached thereto, clearly establish Petitioner’s knowledge of, and consent to be bound by, the confession of judgment provisions set forth in the promissory note. The matter before this Court is not a situation in which confession of judgment clauses are contained in fine print, on the back of documents which are only signed on the front, or the confession of judgment provisions were foist upon Petitioner by implication or “general non-specific” reference. The Disclosure expressly identifies the Promissory Note.
The case is H.P. Properties One, LLC v William C. Weiss, No. 2020, (Ct. of Common Pleas, Mercer County, PA June 23, 2020) and the Opinion and Order can be read here.
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