Equibank v. Schneider Inc.

5 Pa. D. & C.4th 585, 1990 Pa. Dist. & Cnty. Dec. LEXIS 358
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedJanuary 4, 1990
Docketno. GD 89-1029
StatusPublished

This text of 5 Pa. D. & C.4th 585 (Equibank v. Schneider Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equibank v. Schneider Inc., 5 Pa. D. & C.4th 585, 1990 Pa. Dist. & Cnty. Dec. LEXIS 358 (Pa. Super. Ct. 1990).

Opinion

WETTICK,, A.J.,

On January 20, 1989, a judgment by confession in excess of $11 million was entered against defendants. On February 22, 1989, defendants filed a petition to strike and/or open and for other relief from judgment by confession. On this same date, this court issued a rule upon Equibank to show cause why the judgment should not be opened and/or stricken and why other relief from judgment should not be granted. Equibank filed an answer to the petition.

On August 16, 1989, Equibank took a rule on defendants to show cause why they should not proceed to take depositions on disputed issues of fact or order the cause for argument on petition and answer. Immediately thereafter, defendants served on Equibank a motion to produce documents and scheduled a series of depositions.

Thereafter, Equibank served upon defendants a set of interrogatories, a request for production of documents and a notice scheduling the deposition of the principal of defendant corporations. Defen[586]*586dants filed a motion for a protective order that seeks to bar Equibank from proceeding with any discovery until the court has taken final action on the February 22, 1989 rule to show cause. This motion is the subject of this opinion and order of court.

Defendants base their motion for a protective order on their contention that the Rules of Civil Procedure do not provide for a respondent to engage in any discovery in connection with a court’s consideration of a rule to show cause why a confessed judgment should not be opened. Neither party cited any case law that has addressed this issue. Our research failed to reveal any case law. Consequently, we address this issue by looking to the Rules of Civil Procedure governing discovery and governing the opening of a confessed judgment.1

The scope of the Rules of Civil Procedure governing discovery are set forth at Pa.R.C.P. 4001(a)(1). This provision states that the Rules of Civil Procedure governing discovery apply “to any civil action or proceeding at law or in equity brought in or appealed to any court which is subject to these rules.” This language, if given its ordinary meaning, covers any proceeding governed by the Rules of Civil Procedure. Explanatory Note -. 1978 to rule 4001 states that these rules governing discovery are intended to “embrace every conceivable form of action.”2

[587]*587The scope of discovery is set forth in Pa.R.C.P. 4003.1. The relevant portion of this rule reads as follows:

“Subject to the provisions of rules 4003.2 to 4003.5 inclusive and rule 4011, a party may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action, whether it relates to the claim or defense of the party seeking discovery or to the claim or defense of any other party, including the existence, description, nature, content, custody, condition and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of any discoverable matter.”

Defendants’ first contention is that no provisions within the Rules of Civil Procedure allow Equibank to engage in discovery. We find no merit to this contention.

This is a proceeding covered by the Rules of Civil Procedure so the rules of discovery apply according to rule 4001(a)(1). Thus, under rule 4003.1, Equibank may engage in any discovery that is relevant to the subject matter involved in the pending action.

Defendants’ next contention is that the opening of a confessed judgment is a post-judgment proceeding and that the Rules of Civil Procedure governing discovery are not applicable to such proceedings. This contention is also lacking in merit because the broad language of rule 4001(a)(1) governs post-judgment proceedings.

In Noris v. Jonnett, 23 D.&C. 3d 155 (1982), this court rejected the judgment debtor’s contention that the Rules of Civil Procedure governing discovery did not apply to proceedings to enforce a money judgment because the right of the judgment cred[588]*588itor to obtain discovery is specifically dealt with by rule 3117(a) of the Rules of Civil Procedure governing the enforcement of a money judgment. We concluded that the rules of discovery applied because of the broad language of rule 4001(a)(1), because rule 3117 was not adopted as a limitation on discovery but rather as part of an overall procedural structure for enforcing a money judgment and because there would be no rational justification for limiting a judgment creditor’s use of methods of discovery that are available to parties prior to the entry of the judgment. The same rationale applies to the present situation.

Defendants next argue that Equibank’s discovery at this stage of the proceedings is unnecessary and will cause unreasonable burden and expense to defendants. There is no discovery, according to defendants, that would be useful to a respondent in its efforts to defeat a petition to open a confessed judgment. Therefore, there is no reason why a petitioner should be required to undergo the burden and expense of responding to such discovery until it is certain that the case will be tried on its merits.

While there may be limited instances in which discovery relevant only for a trial on the merits of the action should be permitted while proceedings to open a confessed judgment are pending, we agree with defendants that such discovery ordinarily should not be permitted for the reasons that defendants advance. See rule 4011(b) which bars discovery that would cause unreasonable burden or expense. We, therefore, address defendants’ contention that there is no discovery that can be useful to a respondent in defeating a petition to open a confessed judgment.

Defendants base their contention on Pa.R.C.P. [589]*5892959(e) which describes the evidence a court shall utilize in opening a confessed judgment and the standard it shall apply.

“(e) The court shall dispose of the rule on petition and answer, and bn any testimony, depositions, admissions and other evidence. The court for cause shown may stay proceedings on the petition insofar as it seeks to open the judgment pending deposition of the application to strike off the judgment. If evidence is produced which in a jury trial would require the issues to be submitted to the jury the court shall open the judgment.”

The only issue for the court to decide, according to defendants, is whether the petitioner has presented evidence that would preclude a nonsuit. The petitioner has the burden of presenting such evidence. If the petitioner fails to do so, the court shall not open the judgment. Lazzarotti v. Juliano, 322 Pa. Super. 129, 469 A.2d 216 (1983). If the petitioner produces such evidence, on the other hand, the court must open the judgment. The case law is clear that the court may not weigh the evidence — the judgment must be opened where the evidence produced would be sufficient to prevent a directed verdict against the petitioner. Continental Bank v. Axler, 353 Pa. Super. 409, 510 A.2d 726 (1986).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lazzarotti v. Juliano
469 A.2d 216 (Supreme Court of Pennsylvania, 1983)
Continental Bank v. Axler
510 A.2d 726 (Supreme Court of Pennsylvania, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
5 Pa. D. & C.4th 585, 1990 Pa. Dist. & Cnty. Dec. LEXIS 358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equibank-v-schneider-inc-pactcomplallegh-1990.