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Frier Levitt Vacates $6.7M Confessed Judgment in Maryland

In early March 2020, a healthcare client approached the firm with a $6.7 million judgment obtained against the client personally and professionally by “Confession.”  Years earlier, the client entered into an agreement with language that, according to the lender, permitted a judgment without any discovery or even a hearing – a “Confession of Judgment.”  This week, Frier Levitt successfully “Vacated” that $6.7M confessed judgment in the Circuit Court in Baltimore County for the State of Maryland originally obtained against multiple Healthcare Provider Defendants. 

During oral argument, Paul H. Juzdan, Esq. with the support of pharmacist-attorney Dae Y. Lee, Pharm.D., Esq., CPBS presented numerous meritorious defenses to the confessed judgment, including contesting both the alleged amount owed and execution of the contract.  Maryland’s statutes allow creditors, in appropriate circumstances, to file a complaint for a “confessed judgment.”  Once issued, the judgment creditors can execute on the judgment debtors’ personal property including bank accounts, garnish wages and obtain a “lien” on real property.  Confessed judgments are ruinous to the economic picture of judgment debtors and defending such confessions of judgment requires specific knowledge of the underlying statutes.

However, many jurisdictions, including Maryland, disfavor confessed judgments because of the potential for abuse by creditors.  Regardless, judgment debtors are inevitably tasked with presenting meritorious defenses in order to successfully vacate a confessed judgment.  It is imperative that judgment debtors vigorously defend confessed judgments and the underlying bases for such claims. 

Frier Levitt’s success in vacating the $6.7M judgment was based on meticulously drafted motion papers, as well as concise and thorough legal argumentation.  If you or your business is facing a confessed judgment, contact Frier Levitt today to speak to one of our attorneys.