Ohio Loan & Discount Co. v. Benedum

209 N.E.2d 500, 3 Ohio Misc. 1, 32 Ohio Op. 2d 124, 1965 Ohio Misc. LEXIS 321
CourtTuscarawas County Court of Common Pleas
DecidedMarch 5, 1965
DocketNo. 37287
StatusPublished

This text of 209 N.E.2d 500 (Ohio Loan & Discount Co. v. Benedum) is published on Counsel Stack Legal Research, covering Tuscarawas County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Loan & Discount Co. v. Benedum, 209 N.E.2d 500, 3 Ohio Misc. 1, 32 Ohio Op. 2d 124, 1965 Ohio Misc. LEXIS 321 (Ohio Super. Ct. 1965).

Opinion

Lamneck, J.

On February 9, 1965, at 10:57 a. m. the plaintiff was granted a judgment in this court in the sum of $938.88 with interest at the rate of 6% from February 9, 1965. The judgment was obtained on a promissory note signed by the defendants in favor of “So-Soft of Ohio, Inc.” dated February 6, 1963, by virtue of a provision in the note which reads as follows:

“The undersigned and each of them and any endorser or guarantor hereby authorize any attorney at law to appear in any court of record in the state of Ohio, or in any other state in the United States, after this note becomes due by maturity or declaration, and waive the issuing and service of process, and confess a judgment against the undersigned and each of them jointly and severally in favor of the holder hereof, for the amount of said note, together with the costs of suit. ’ ’

This note was assigned to the plaintiff without recourse by endorsement on the back of the note, no date being noted.

By virtue of the warrant of attorney, Frank F. Fitzpatrick, an attorney practicing in this county, appeared in court with the attorney for the plaintiff, entered an appearance for the defendants, and confessed judgment for the plaintiff against the defendants in the sum of $938.88.

[3]*3Thereafter on Febrnary 15, 1965, and within term, the defendants by their attorneys, Bowers & Bowers, filed a motion for an order vacating the judgment on nine alleged grounds as follows:

1. Said judgment was rendered on an alleged cognovit promissory note, a copy of which was attached to plaintiff’s petition and marked exhibit “A,” and the said judgment was intended to be confessed against these defendants by virtue of the power of attorney set forth in said note, no summons or other proceedings having been served upon these defendants.

2. That the judgment rendered against these defendants on said note was not rendered in open court.

3. That the judgment taken by the plaintiff in this action upon warrant of attorney set forth in said note is for more than was due to plaintiff and that these defendants were not summoned or otherwise legally notified of the time and place of taking said judgment.

4. That said note was given as consideration to a certain written contract of sale for which contract of sale there has been a failure of consideration.

5. That these defendants were fraudulently induced to enter into said contract of sale by the plaintiff and by So-Soft of Ohio, Inc., an Ohio corporation.

6. That this plaintiff and So-Soft of Ohio, Inc., acting in conspiracy and in collusion fraudulently conspired and induced these defendants to enter into said contract of sale and to sign said note.

7. That said note was made and executed contrary to Section 1317.08, Revised Code.

8. That said judgment was rendered in contravention of Section 1317.09, Revised Code.

9. That the execution of said contract of sale constituted the issuance of a security as defined by Section 1707.01, Revised Code, by the plaintiff and by So-Soft of Ohio, Inc., acting jointly and that said contract of sale is therefore void.

In support of the defendant’s motion a copy of a certain “referral agreement” contract, marked defendant’s exhibit 1, and a copy of a “security agreement” of which the note in question is a part, marked defendant’s exhibit 2, were introduced into evidence by agreement of the parties.

[4]*4The plaintiff contends that it is an innocent purchaser for value.

The judgment in question was taken in the office of the judge which is adjacent to and opens into the room generally used as a courtroom connected by a door, and is marked ‘ ‘ Court Eoom Number One.” It is contended that this procedure makes the judgment void for the reason that it was not taken in “open court” as required by the Constitution of Ohio and the statutes enacted thereunder.

The jurisdiction of the Common Pleas Court is limited to that authorized by law.

Section 4, Article IV of the Constitution provides that “the jurisdiction of the Courts of Common Pleas and the judges thereof shall be fixed by law,” and Section 18, Article IV provides that “the several judges of the Supreme Court, of the Court of Common Pleas, and such other courts as may be created, shall respectively have and exercise such power and jurisdiction, at chambers, or otherwise, as may be directed by law.”

Judgment by confession is so old that the date of its origin is unknown. It was well known under the common law. The common law still governs the power to confess judgment by power of attorney, except in so far as modified by statute or by courts of last resort. (See 30 A. American Jurisprudence, page 261, Section 156.)

Statutes governing judgments by confession under warrant of attorney are few in number in Ohio.

Section 2323.12, Revised Code, reads as follows:

“A person indebted, or against whom a cause of action exists, may personally appear in a court of competent jurisdiction, and, with the assent of the creditor, or person having such cause of action, confess judgment; whereupon judgment shall be entered accordingly.
“The debt or cause of action shall be briefly stated in the judgment, or in a writing to be filed as pleadings in other actions.
“Such judgment shall authorize the same proceedings for its enforcement as judgments rendered in actions regularly brought and prosecuted. The confession shall operate as a release of errors.”

Section 2323.13, Revised Code, reads as follows:

[5]*5“An attorney who confesses judgment in a case, at the time of making such confession, must produce the warrant of attorney for making it to the court before which he makes the confession, which shall be in the county where the maker resides or in the county where the maker or any one of several makers signed the warrant of attorney authorizing confession of judgment, any agreement to the contrary notwithstanding; and the original or a copy of the warrant shall be filed with the clerk/’

Under Section 2323.12, Revised Code, the defendant either by person or attorney “must appear in court” and under Section 2323.13, Revised Code, the attorney making the confession must produce the warrant “to the court ”

Was the judgment in this case taken “in court,” and was the warrant of attorney presented “to the court,” when the judgment was signed in the judge’s office?

Rule 13 of the Rules of Practice of this Court, adopted January 2, 1961, reads as follows:

“Cognovit judgments may be taken in open court at the beginning of a session, or in chambers at the convenience of a judge, and attorneys for both plaintiff and defendant must be present.”

In 14 American Jurisprudence 269, Section 38, the following appears:

“It has been said that there is no special sacredness in the atmosphere of a courthouse or the walls or furnishings of a courtroom which requires that sessions of the court be held there, and not elsewhere, if otherwise the forms of law governing the trial of causes are observed.

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Cite This Page — Counsel Stack

Bluebook (online)
209 N.E.2d 500, 3 Ohio Misc. 1, 32 Ohio Op. 2d 124, 1965 Ohio Misc. LEXIS 321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-loan-discount-co-v-benedum-ohctcompltuscar-1965.