Friedman, R. v. Pascotti, J. & L'Equip, Inc.
237 MDA 2016
| Pa. Super. Ct. | Oct 3, 2016Background
- L’Equip, a corporation, borrowed $500,000 from Commerce Bank in 2000; the promissory note (signed by Pascotti as president) contained a confession-of-judgment clause applicable to the borrower and stated obligations were joint and several.
- A separate 2000 business loan agreement identified Pascotti and Friedman as guarantors and made them jointly and severally liable; separate guarantees signed by each guarantor included confession-of-judgment clauses.
- Commerce Bank later modified the loan (2008 change-in-terms) and, in 2013, Friedman paid $148,460.70 to Commerce Bank and received an assignment of the loan documents from the bank.
- In September 2014 Friedman confessed judgment against Pascotti and L’Equip for roughly $189,149 (purchase price plus fees). Pascotti and L’Equip timely petitioned to strike/open the confessed judgment.
- Friedman stipulated to admission of bank records showing Commerce Bank treated the loan as paid off/closed on 1/11/13 and that Friedman had paid the purchase price; the trial court struck the confessed judgment on the ground that Commerce Bank had no confession right to assign because the loan had been satisfied.
- Friedman appealed; the Superior Court held the order striking the judgment was immediately appealable and affirmed the trial court because an assignee takes no greater rights than the assignor and Commerce Bank had no confession rights after the loan was satisfied.
Issues
| Issue | Plaintiff's Argument (Friedman) | Defendant's Argument (Pascotti / L’Equip) | Held |
|---|---|---|---|
| Whether the order striking the confessed judgment is immediately appealable | The order disposes of all claims/parties and is a final order under Pa.R.A.P. 341 | The order merely returns parties to pre-judgment position and is not final | Court: Order is immediately appealable because it effectively ended the stand‑alone confession action |
| Whether the confessed judgment should be stricken for a fatal defect on the record | The confession was valid; Friedman sued the guarantor (not himself) and purchased assignment from bank | Bank records show loan was paid off before assignment; assignee cannot have greater rights than assignor, so confession right was extinguished | Court: Judgment properly stricken — assignment conveyed no confession right because Commerce Bank treated the loan as paid in full |
Key Cases Cited
- UPS v. Hohider, 954 A.2d 13 (Pa. Super. 2008) (order striking judgment appealable when it requires a new action and effectively ends existing litigation)
- Hazer v. Zabala, 26 A.3d 1166 (Pa. Super. 2011) (standards for petitions to strike or open confessed judgments; review normally limited to record but admissions post‑confession may be considered)
- Peterson v. Schultz, 58 A.2d 360 (Pa. Super. 1948) (a judgment may be stricken when the factual basis for striking is admitted or uncontroverted)
- Crawford Cent. Sch. Dist. v. Commonwealth, 888 A.2d 616 (Pa. 2005) (assignee acquires no greater rights than assignor)