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M & P Management, L.P. v. Williams
937 A.2d 398
Pa.
2007
Check Treatment

*1 BAER, concur. Justice being prohibited considering

This Court facts not Bulger, see Welsh v. record, 504, 581, 548 Pa. 698 A.2d (Pa.1997) v. (citing, McCaffrey Pittsburgh Athletic Associa- tion, (Pa.1972) 293 A.2d (appellate record)), cannot consider is not of the I anything part which curiam per join the Court’s denying Application Order Reargument for of Petitioner Philadelphia Entertainment Partners L.P. Development Casino Philadel- Foxwoods d/b/a/ phia Request Expedited Treatment.

937A.2d 398 MANAGEMENT, L.P., Appellee, M P&

v. WILLIAMS, Appellant.

Michael D.

Supreme Pennsylvania.

Argued March 2007.

Decided Nov. *2 Giles, Esq., David M. Bellingham, Esq., Bruce William Rosen, P.C., for Philadelphia, Michael & Spector Gadon Williams. Meltzer, of Peter E. Law Offices Esq.,

Peter Edward Meltzer, P.C., L.P. Management, for M & P SAYLOR, CASTILLE, CAPPY, C.J., and

BEFORE: BALDWIN, EAKIN, BAER and JJ.

OPINION BALDWIN. Justice determined Pa.R.C.P. Superior

2959(a)(3), that a (providing petition amended in 1996 as must be made within a confessed open strike off notice) intended to of of written was thirty days receipt striking reopening judgments off or potential eliminate rule, regard in the period time announced thirty-day after the void, A or valid. voidable less of whether subject the court lacks arises when void jurisdic- court that lacks from a and a jurisdiction, time. of through passage be made valid tion cannot did not Because the lower reverse. Accordingly, we judg- of the confessed as to the status a determination make of whether case, for a determination in this we remand ment of an and the issuance actually at issue is determination. upon that order based appropriate interpretation intention and question, regarding This 2959(a)(3), separate promissory arises from two P Management, M amounts memorializing *3 bank, by irrevocably empowers Undersigned hereby authorizes and officer, by by attorney, the employee agent, or its or any or authorized of any of record in the Commonwealth protlionotary or clerk of law, by upon the occur- permitted Pennsylvania or elsewhere where default, judgment against appear for and confess rence of a undersigned any jurisdiction which undersigned in in in favor of bank any of or all of any property is located for the amount or liabilities, of its collection together of suit and with actual with the costs fees, costs, including attorneys' with or without declara- reasonable errors, tion, right stay of execution and the of all without with release forthwith, copy doing note or a and for so this to issue execution warrant, hereby undersigned by verified affidavit shall be a sufficient stay or any appraisement, all and releases all relief from and waives any hereinafter enacted. exemption law in state now in force or of by agreeing may confess Undersigned acknowledges that that bank hereunder, prior judicial right in a it waives the to notice liabilities, undersigned rights and proceeding to determine its and judgment against acknowledges may a that bank obtain further knowledge undersigned’s prior or consent and undersigned without off, defense, or opportunity any set counterclaim to raise without undersigned expressly waives undersigned may and other claim have rights explicit part of the consideration. as an and material such against judgment may be exercised under- foregoing power to confess bank elects until the signed time or at different times as the at one discharged. fully liabilities are R. 29, Judgment July of 1997 note: Confession attorney any any irrevocably empowers Borrower authorizes any appear for and confess of court of record to clerk against Note, owing on this Borrower for such sums as are due clauses, and the amendments did not contain express cognovit they did each although incorporation contain language.2 **567On 5, 2001, P, July Appellee M & notified that he in Williams was 28, default promissory under both notes. September On PM & filed a in Complaint Judgment Confession of for both $196,102.12 notes and entered for against It Williams. is not disputed properly Williams was served with writ execution and a notice of sheriffs sale for on properties February 2003. This notice requirements alerted Williams to the specif Pa.R.C.P. that a ically challenge to a Confession of Judgment must be filed thirty days within of service of a notice of execution. 2959(a)(3). § filed a to strike petition

Williams the confessed judgment later, 24, 2005, years February two on claiming that was void because the amended notes did filed, suit, stay with or without declaration costs of without greater execution and with an amount not to exceed the of fifteen (15%) $5,000 percent principal of the amount of such Note, copy by added for collection fees. If a of this verified affidavit bank, action, by or on behalf of shall have been filed in such it shall Note, necessary original not be to file authority granted of this hereby by shall not be exhausted the initial exercise thereof and be exercised Bank from time to time. There shall be excluded any judgment solely from the lien of pursuant obtained to this paragraph improved any having all real estate in area identified as special regulations promulgated flood hazards under under the Flood community Disaster Protection Act of if the in which such area participating is located is Program. the National Flood Insurance Any upon property such exclusion shall not affect lien not so excluded. R. 84. *4 10, Incorporation 2. clause from June 1993 amendment: "In all other respects, hereby the Note is ratified and confirmed.” R. 56. 5, 5, The April last three clauses from the June 1992 amendment to the promissory 1991 note state: 5. part This instrument shall be deemed to be a Note. 6. All to in Payee references the Note documents delivered to the (as connection with the Credit Accommodations defined in the Agreement Payee Amendment to Loan between the Maker and the hereof) dated the date shall be deemed references Note as amended herein. respects, hereby In all other the Note is ratified and confirmed. R. 97. not contain confession of clauses. According Williams, Estate, Egyptian Sands Real Inc. v. Polony, 315, (1972) Pa.Super. Fox, 294 A.2d 799 v. Jordan Roths- child, Frankel, (3d Cir.1994) O’Brien & 20 F.3d 1250 stand for the proposition valid, in order to still be cognovits a clause must be expressly contained in any amendment to a document containing original cognovit clause.

M & P countered stating the thirty-day limitation period for striking confessed judgment, contained in Pa.

R.C.P. makes Williams’ petition to strike the judgment untimely and thus the court should dismiss without reaching the merits.

The trial court agreed P, Mwith & and dismissed petition as untimely without inquiring into the judg- whether void, ment was finding void, Pa.R.C.P. 2959 conclusive for voidable, and judgments. affirmed, valid Superior Court acknowledging that at common law void confessed time, could be stricken at any but determining that 2959(a)(3) amendment to Rule intended to create a thirty-day time limit for petitions to open strike all judg- ments, void, voidable, whether or valid.3 that,

As the Superior recognized prior at least 2959(a)(3), amendment to Rule valid or voidable judgments of any kind could be struck reopened within a reasonable King time. Athletic Goods Co. v. Redevelopment Auth. of (“The Philadelphia, 481 Pa. A.2d general rule is that if a judgment is sought to be stricken off Saylor's 3. Justice concurring dissenting opinion would have us affirm the decision of the trial court on the basis that the cannot be void based on the record Concurring before us. and Dissent- ing Opinion, slip op. at 4. We decline to so rule because of the procedural status of the case and the record that steins from it. There Judgment were Confessions of Pennsylvania’s filed. Pursuant to Rules Procedure, prothonotary of Civil entered on the confes- sion. Pa.R.C.P. 2951. hearing There was a short on the Petition to Judgment, Strike the hearing at which no witnesses testified and no documents were examined or entered into evidence. R.220-52. At the hearing, judge close of the the trial ruled that the Petition to Strike was documents, Evaluating denied. R.251. particularly contractual those evidence, accepted that have never province been into 539, is the of a trial Cook, (1887). court. Folsom v. 9 A. 93

494 nature, merely which jurisdictional' not irregularity,

for an voidable, to strike off the application judgment renders time, will irregularity or the a reasonable must be made within waived.”) Practice Ch. Pennsylvania (citing 7 Standard held be bring- for (1961)). requirement time The reasonable 30, § 196 a confessed was open off or an action to strike ing Bus. Funds of laches. See the doctrine upon based for 281, 287, A.2d 925 Maraldo, Pa. 278 Growth, 443 Inc. v. (“the opening (1971) applied laches be doctrine of long and unreasonably is delay of a when However, judg- confessed historically void unexplained”). they at time as opened off or be stricken ments could the court lacked nullity because legal a considered were Romberger v. the matter. jurisdiction matter over (a (1927) 454, 457, A. void Romberger, record, it is the “mere blur on the which is a off, its motion strike whenever the court of its own duty of Clarion, it”); & P. R. v. Hamil- M. Co. is called to attention (1889) (“a is no ton, 1, 3, Pa. 17 A. 752 all”). disparate this reasons behind policy judgments for in the interest public are clear: is treatment cannot create However, policy public final. sound to be jurisdiction, lacked the court Accordingly, where jurisdiction. that court judgment, confessed it enters void as it does when much time has no how judgment, enter a valid cannot passed. questions because of comes to us dispute

The instant Pennsylvania Rules amendment to from a 1996 arising including judgments, confessed dealing with Procedure Civil express created an time The amended rule with striking off opening period In of notice. upon receipt requirement triggered the timing to read: Rule 2959 amended part, pertinent Procedure Pleadings; Judgment; Striking Opening Off (a)(1) by petition. Relief shall be made pursuant petitioner upon notice is served If written 2973.1(c), shall 2956.1(c)(2) petition or Rule to Rule *6 the Unless service. after such thirty days filed within for the de- reasons compelling can demonstrate defendant denied. shall be timely not filed petition a lay, there is no This judgment; notice of the by triggered rule is change to intended this rule was mention of whether express void, and as as voidable well rule and cover the common law valid, judgments. confessed intent any as to are silent to the rule likewise

The comments rule: the common law to overturn petition file a 2959(a)(3), must a defendant Rule

Under new to obtain relief notice of the thirty days of service within thirty After execution. or to judgment prevent from there are relief unless is barred the defendant days delay.” reasons for the “compelling (1996). interpreted could This silence 2959 cmt.

Pa.R.C.P. to all is applicable limitation time mean that new voidable, void, or How- valid. judgments, whether confessed apply it cannot to believe ever, good there are reasons judgments. void one that discussed, is judgment a void previously

As It cannot become to enter. the power does not have Comm, Penland v. ex rel. of time. lapse through valid (“It certainly is 337, 341, Ashe, 19 A.2d at as no bemay regarded a true that void on its void, clearly appears all; is which every judgment and having no a court pronounced to have been own face matter.”). While subject in the authority or jurisdiction there is in a context where this question instant case raises judgment, the confessed status of as to the question serious valid, example a void, different i.e., it is voidable whether mistakenly is clear. If a confessed makes this relationship with had any never against person a who entered that that to believe holder, be absurd it would fact, merely valid in law becomes no basis judgment, with Although elapsed. thirty days given notice was because M & P is correct in asserting that providing finality to judgments worthy is a one that goal, agree we is achieved judgments valid and voidable through the 1996 amendments to we cannot provide finality to a judgment when jurisdiction court lacked over the underlying dispute. Void judgments are to be treated in the same way law, that they i.e., were treated at common time that a brought court, is to the attention of the it must Clarion, Co.; be stricken. Romberger; M. & P. R. Penland.

M P repeatedly & that the argues confessed judgments this case are not void. What M P appreciate & fails to is that that question is not before this Court. The trial court as- sumed, without that the deciding, were *7 and still relief, determined that Williams was not due any he because had failed to raise the issue within thirty days of notice receiving required by as rule 2959. Because we dis- conclusion, agree with this and determine that the confessed if void, judgments are then they may time, be at challenged any remand this we case for a determination of the status confessed judgment underlying this dispute.

Jurisdiction relinquished. joins

Justice BAER the opinion. Chief Justice CAPPY files in concurring opinion which Justice join. CASTILLE and BAER

Justice SAYLOR files a concurring dissenting opinion in joins. which Justice EAKIN CAPPY,

Chief Justice concurring. I agree the majority with that the time limit set forth in 2959(a)(3) Pa.R.C.P. No. does not to a apply petition seeking relief from a by confession that is allegedly void. This conclusion is a matter of rule construction. See Pa. 127(a), view, R.C.P. No. 101. In my the intent of this 2959(a)(3) in adopting Court No. Pa.R.C.P. to continue the long-standing distinction under the common law between void- able judgments, and void confessed and to retain the rule that petitions challenging while the former are laches, petitions doctrine of the latter challenging may brought any Romberger at time. See v. 139 A. Romberger, (1927). indicates, That is not to say, majority as the that this not the authority Court did have to extend the time 2959(a)(3) limit in No. to petitions seeking relief from a alleged confessed that is to be I void. know of no principle prevented would have this so, if that our doing had been intent. join

Justice and BAER concurring CASTILLE this opinion. SAYLOR, concurring

Justice and dissenting. I agree position with the Chief Justice’s this Court fashion a rule that elevates the interests of finality over as validity regards range at least some “void,”

that would otherwise be deemed so long as notice and other process requirements relevant due are satisfied. 496-97, Concurring Opinion, Op. See at 937 A.2d at 402 C.J.). I (Cappy, also concur with the majority’s determination that this Court’s adoption Civil Procedural Rule 2959 was not intended to modify void-versus-voidable distinction as in developed the cases. do, however, that, least,

I believe prospectively, this Court should consider developments the law that have occurred since that appeared, doctrine first particularly as *8 such seems in overly rigid framework subordinating the inter- ests of finality validity. to See generally Hodge v. Hodge, (3d (“The Cir.1980) F.2d problem always has been one of balancing judicial concerns for finality against for those validity judgments. of Although traditional doctrine empha- sized the of importance validity, the modern trend accords substantially greater to weight finality.”); Jones v. Seymour, (“The (1983) 35 n. Pa.Super. 467 A.2d 880 n. 1 problems engendered by the rule that laches cannot run against judgment ‘void’ has been subject the of much thoughtful note commentary.... We that while there are rule, ... the the applie[d] this court cases which

recent fairly rule are old. fashioned the cases which Supreme Court the review ripe Supreme The time omitted)). (citations In appropriate.” the rule is still whether the second Restatement of notes that Appellee this regard, concept judgment” modification of the “void favors Judgments the finality and methodology emphasizing of a and adoption the circumstances. See Supplemental Appellee’s totality of 12, in indicates: particular, Brief at 5. Section in a contested judgment rendered a a court has When action, litigating the precludes parties the judgment jurisdiction in subject matter of the court’s question the (1) matter of subject if: The litigation except subsequent jurisdiction that the court’s plainly beyond action was so the of authori- a manifest abuse entertaining the action was its (2) substantial- the to stand would Allowing ty; agency another tribunal or of authority the of ly infringe rendered a court government; an informed determi- adequately to make lacking capability and as a concerning jurisdiction its own question nation of a seeking to avoid party of fairness procedural matter attack the belatedly to should have opportunity jurisdiction. subject matter court’s Judgments to this provi- § 12. The comment (Second) Rest. explains sion premise rests on the finality of principle law, in the rules of expressed the sanction of had

proceeding [jurisdictional] ques- If the jurisdiction.... subject matter is and a allowed erroneously, decided tion is lacked the fact that the court in the face of stand validity compro- of is jurisdiction, principle then the hand, remains indefi- if the the other mised. On jurisdiction, defect of then subject to attack for a nitely compromised. of is finality principle one of selecting is therefore which problem The essential Tradi- greater emphasis. is to be given principles two principle greater emphasis gave tional doctrine of tribunals limited at least validity, when *9 499 of a concerned, that a asserting jurisdiction were jurisdiction was “void” and subject matter lacking subject forever to attack.... doctrine that] traditional [included

The difficulties with finali- and validity between primacy the problem resolved not, refer to other overtly, at least in terms that did ty principles of the two that determine which might interests If the situation. specific effect in a given greater was recognized are as both validity finality principles fundamental, way choosing the sensible only then being other to be in terms of such appear them between would interests. Co., Ins.

Id., a; also Tice v. Nationwide Cmt. see Official J., 229-30, (Spaeth, A.2d Pa.Super. “the drafters of the Restatement (observing that

concurring) (Second) if requirements that the express opinion avoidance, met, to judgment may be validity are not on not, however, depending but consequence, as an automatic defect, complaining of the opportunity the nature of the defect, and on there has been challenge whether party opining develop- on judgment,” “[t]hese reliance to take the of the encourage in the should us view ments law (Second)”). Restatement sum, procedural

In the framework of rules even within to be attacked after an potentially allow invalid period apply, of the limitation that would otherwise expiration I favor procedural rulemaking likely as a matter of would validity finality only over where giving preeminence debtor, such as where equities clearly favored manifestly and it personal jurisdiction lacking would Pennsylva- himself in a require unfair to the debtor to defend nia court. not under

Finally, Appellant may prevail it seems clear that existing Appellant of the rule. any reasonable construction be stricken off on the that the confessed requested not notes did promissory basis that the amendments Defendant’s Motion to cognovit restate the clauses. See ¶ 33; 20; Majority Opin- RR. Judgment Confessed Strike *10 ion, 1-2, at 490-93 nn. 937 A.2d at 398-400 & nn. 1-2. op. & jurisdictional fall This asserted defect does not into the plainly majority delineated in order for the confessed category by to be considered See id. at 937 A.2d at judgments void. (“A subject arises the court lacks when well, jurisdiction^”). matter as Notably parties have briefed the issue and do not contend that the trial court lacked circumstances, jurisdiction. Under these can, trial court’s decision not to off the judgments my strike view, juncture. majori- be affirmed at this outright While declines to this effect on ty Appellee’s argument address Court, Majori- that the issue is not before the see premise 494-96, 401-02, ty A.2d at such Opinion, op. reasoning an appellate may overlooks that affirm a valid or verdict for reason as of record. See any appearing Com- Parker, 526, 534-35, monwealth v. 919 A.2d (2007). Therefore, Appellee as is clear from the record that (and prevail will on remand indeed would be entitled to prevail 2959(a)(3)’s regardless of whether Rule time limitation could be applied “void” as term is used I affirm the majority), simply would of the trial jurisdiction court and to that relinquish tribunal proceedings further in the case. necessary joins concurring Justice EAKIN this and dissenting opinion.

937 A.2d 404 D’ALESSANDRO, Appellee, Ronald

v. POLICE, Appellant. PENNSYLVANIA STATE Supreme Pennsylvania. Court of

Argued Sept. 2006. Decided Nov. notes owed & (“Williams”) (“M P”) D. by Michael Williams L.P. & Both notes. promissory amendments to those subsequent (or judgment) confession cognovit notes contained original however, amended clauses;1 subsequently notes were both Judgment 1993 note: clause from June 1. Confession

Case Details

Case Name: M & P Management, L.P. v. Williams
Court Name: Supreme Court of Pennsylvania
Date Published: Nov 20, 2007
Citation: 937 A.2d 398
Docket Number: 41 EAP 2006
Court Abbreviation: Pa.
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