Watch Attorney John Fiorillo as he describes a Confession of Judgment.
Owners of commercial property and commercial lenders should watch this informative video that briefly describes a confession of judgment. PA businesses and property owners benefit from unique laws. Contact John Fiorillo for more information on state specific collection procedures and other laws that may apply to your business.
By: Nancy J. Glidden
Pennsylvania’s liberal rules concerning the amendment of pleadings aren’t so liberal in the context of complaints for confession of judgment. When filing a complaint in confession of judgment, if a mistake is made in calculating the amount of damages or the time period in which damages accrued, an attorney cannot rely upon Pa. R.C.P. 1033 to make corrections by amendment. So held the Pennsylvania Superior Court in TCPF Limited Partnership v. Skatell, 976 A. 2d 571 (Pa. Super. 2009). For a fuller discussion of the case click here.
In these challenging economic times, commercial landlords need to be mindful of the advantages of Confession of Judgment Clauses. These clauses permit a landlord to obtain a judgment either for money damages or for eviction against defaulting tenants without the need of a trial.
Additionally, priority of the judgment is established as of the date the judgment is confessed. As a result, at the time of entry into new leases, landlords should attempt to obtain clauses permitting Confessions of Judgment for both money damages and in ejectment. Similarly, in the event a landlord is confronted with a defaulting tenant, the landlord should review the lease agreement and determine whether he or she has a Confession of Judgment Clause contained therein. If it is available, it can prove a very effective mechanism or collecting money and/or possession of property.
Whether initially drafting such clauses or seeking to enforce them, extreme care must be taken by the landlord. Because these provisions provide prompt mechanisms for executing upon a judgment and without need for a trial, the courts routinely require strict adherence to Pennsylvania Law and its civil procedure with respect to their interpretation and enforcement. In summary, if carefully drafted and strictly followed, these clauses provide a landlord with one of the more effective remedies available to him or her when dealing with a defaulting tenant.
For more information about Confessions of Judgment, contact our office.
