BLI recently scored a significant victory in securing a confessed judgment by successfully opposing a motion to vacate in the Circuit Court of Maryland. BLI was able to successfully enforce the confessed judgment provision of a promissory note agreed to in the acquisition of a Washington, DC area company after the acquiring party failed to make payments pursuant to the financing provided by the seller.
The court, relying on the Court of Special Appeals’ decision in NILS, LLC v. Anetezana, 171 Md. App. 717 (2006), determined that because the defaulting defendants failed to proffer a valid defense challenging either the execution of the promissory note or the amount due on the note, BLI’s client was entitled to a final judgment on the outstanding principal balance. In NILS, LLC, the Court of Special Appeals held that a debtor cannot open, vacate, or modify a confessed judgment by attacking the validity of the debt underlying the debt instrument. Instead, the debtor must prove that there is a meritorious defense to the execution of the instrument or the amount of the confessed judgment.
The BLI legal team included Zack Bluestone and Gabe Bluestone.