Wilmington Savings Fund v. Patel, P.

CourtSuperior Court of Pennsylvania
DecidedMarch 18, 2025
Docket2903 EDA 2023
StatusUnpublished

This text of Wilmington Savings Fund v. Patel, P. (Wilmington Savings Fund v. Patel, P.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilmington Savings Fund v. Patel, P., (Pa. Ct. App. 2025).

Opinion

J-S28014-24

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

WILMINGTON SAVINGS FUND : IN THE SUPERIOR COURT OF SOCIETY, FSB : PENNSYLVANIA : : v. : : : PANKAJ PATEL : : No. 2903 EDA 2023 Appellant :

Appeal from the Order Entered October 13, 2023 In the Court of Common Pleas of Bucks County Civil Division at No: 2022-04492

BEFORE: STABILE, J., MURRAY, J., and LANE, J.

MEMORANDUM BY STABILE, J.: FILED MARCH 18, 2025

Appellant, Pankaj Patel (“Patel”), appeals from an order denying his

petition to strike or open a judgment by confession in the amount of

$1,242,821.50 entered in favor of Wilmington Savings Fund Society, FSB. We

affirm.

On August 4, 2015, The Bryn Mawr Trust Company 1 extended a

commercial construction loan to Willington Equities LLC (“Borrower”), as

borrower, in the principal amount of $1,370,000.00, evidenced by a

construction loan agreement and a promissory note bearing the same date.

Patel executed the loan agreement and note in his capacity as a member of

Borrower. The loan was secured by an open-end construction mortgage and ____________________________________________

1 Effective January 1, 2022, the Bryn Mawr Trust Company merged with Wilmington Savings Fund Society, the appellee in this appeal. We refer collectively to the Bryn Mawr Trust Company and Wilmington Savings Fund Society as “Lender”. J-S28014-24

security agreement granted by Borrower to Lender on real properties located

at 1702 and 1704 Cecil B. Moore Avenue in Philadelphia. The note included a

confession of judgment clause 2 that provided in capital letters:

CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND A REASONABLE ATTORNEY’S COMMISSION FEE FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE THOUSAND DOLLARS ($5,000.00) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIES BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER’S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL.

Commercial Guaranty, 8/4/15, at 4.

The loan also was secured by a guaranty signed by Patel in his individual

capacity in which he agreed unconditionally to guarantee the full payment, ____________________________________________

2 Also known as a “warrant of attorney” or “cognovit clause.”

-2- J-S28014-24

performance and satisfaction of the loan. The guaranty included a warrant of

attorney for confession of judgment that provided in capital letters:

CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, TOGETHER WITH COSTS OF SUIT, AND A REASONABLE ATTORNEY’S COMMISSION FEE FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE THOUSAND DOLLARS ($5,000.00) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIES BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR’S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL.

Commercial Guaranty, 8/4/15, at 4. Patel signed the guaranty on the same

page as the confession of judgment clause.

On the same date, Patel signed a separate form of disclosure for

confession of judgment that stated he understood the guaranty contained a

-3- J-S28014-24

confession of judgment provision that would permit Lender to enter judgment

against him after a default on the guaranty.

Six years later, on September 17, 2021, Borrower and Lender executed

an amendment to the note that extended the loan’s maturity date to June 30,

2022 and modified the note’s payment and prepayment penalty paragraphs. 3

The amendment to the note incorporated by reference and ratified the terms

of the original loan documents, including the note, and reaffirmed the

confession of judgment clause in the original loan documents. The

amendment to the note provided in relevant part:

THIS AMENDMENT TO NOTE (“Amendment”) is entered into this 17th day of September, 2021, by and among WILLINGTON EQUITIES LLC, a Pennsylvania limited liability company (the “Borrower”) and THE BRYN MAWR TRUST COMPANY, a state chartered bank and trust company (the “Lender”).

WITNESSETH:

A. The Borrower and the Lender entered into that certain Promissory Note dated August 4, 2015, as amended, restated or modified from time to time, which Lender agreed to provide a loan ____________________________________________

3 The payment schedule in the original note required “interest only” payments

at a variable rate during the first twelve months and “principal and interest” for payments after the first year under a formula prescribed in the note. The payment schedule in the Amendment To Note required nine payments of $7,711.33 and one irregular last payment of all principal and all accrued interest not yet paid.

The prepayment penalty in the original note was four percent of the outstanding balance of the loan for the first twelve and reduced rates for succeeding twelve-month intervals with no penalty for prepayments during months 46 through 48. The prepayment penalty in the Amendment To Note was one percent of the outstanding balance with no penalty for prepayments within ninety days of the maturity date.

-4- J-S28014-24

to the Borrower in the original principal amount of One Million Three Hundred Seventy Thousand and 00/100 Dollars ($1,370,000.00) (the “Note”). The Note and any and all other documents executed from time to time in connection therewith, as the same may be amended, are collectively referred to as, the “Loan Documents”.

B. Borrower has requested that Lender extend the maturity date of the Loan, and Lender has agreed to do so in accordance with the terms and conditions set forth herein.

* * *

1.

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Bluebook (online)
Wilmington Savings Fund v. Patel, P., Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilmington-savings-fund-v-patel-p-pasuperct-2025.