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HomeMy WebLinkAbout95-00851 , . plaintiff . . IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW_. jl NO. q:F- ~ Ct.~VLA-1'^- FARMERS BANK AND TRUST COMPANY . . . . . , v. CONFESSION OF JUDGMENT CORNER STORE, INC. Defendant CONFESSION OF JUDGMENT By virtue of the authority conferred by the Suretyship Agreement, a copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in favor of the plaintiff and against the Defendant for the sum of $233,800.31, together with interest as may hereafter accrue and costs of suit. Eugene E. sky, Jr. Attorney for efendant by virtue of the authorization contained in suretyship Agreement FARMERS BANI< AND TRUST COMPANY Plaintiff . . . . IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW v. CORNER STORE, INC. NO. CONFESSION OF JUDGMENT Defendant COMPLAINT 1. Plaintiff Farmers Bank and Trust Company is a state banking institution with its offices at 13 Baltimore Street, Hanover, Pennsyl- vania 17331. 2. Defendant Corner Store, Inc. is a corporation with offices at 4 Evergreen Circle, Westford, MA 01886. 3. On or about AprilS, 1993, Defendant, for good and valuable consideration made, executed and delivered a Suretyship Agreement to Plaintiff in the amount of Two Hundred Fifteen Thousand Dollars ($215,000) plus interest thereon. A true and correct copy of said Suretyship Agreement is attached hereto, made a part hereof and marked Exhibit "A". 4. The Suretyship Agreement referred to in Paragraph 3 above has not been assigned by Plaintiff to any person or organization. 5. Judgment has not been entered on the suretyship Agreement referred to in Paragraph 3 above in any jurisdiction. 6. The suretyship Agreement provides that Plaintiff may confess judgment against Defendant for the above sum (of TWo Hundred Fifteen Thousand Dollars ($215,000)] with costs of suit and with fifteen percent (15') added for collection fees. 7. The total liability of the Defendant on and under the Suretyship Agreement is $203,304,62. Fifteen percent (15t) of said principal sum is $30,495.69. WHEREFORE, plaintiff demands judgment against Defendant in the sum of $233,800.31, together with interest as may hereafter accrue and costs of suit. Date: February 14, 1995 By: Eu Attorne .D. #23702 210 Walnut Street P.O. Box 11963 Harrisburg, PA 17108-1963 (717) 255-8051 Attorneys for Farmers Bank and Trust Company -2- tiuretY6hlp Agreement C> I ::; :--~ 1"1 - "10:} I ~~Farmer5 . U.~Bank --'" Dale. The UndersIgned. indiVidually and 1010lly. hereby unconditionally agree to make prompl payment 01 all obligations. Indebtedness and habll.ucs due Farmers Bank and Trusl Company 0' Hanover, hereinafter called "Bank," of ony kind. whether now eXisting or hereallet arising. due or which mil,! beeD,: due. whether I2Y acceleration or otherwise. absohLte or conll~gen1-Jolnt or several. direct or Indirect. secured or unsecured _ DANI~L E. SPEALMAN ana JOANN ~. SPEALMAN hereinaher called "Borrowe,," all such obligations being hereinaher further described and COUStllvely called Ihe "Liabilities," and Iht UnderSlgnc. Igroe(s)10 PlY III I.penses (includIng IlIornqys' lies Ind legll e'plnses) paid or Incurred by Ihe Blnk In endelvorlng 10 collecllhe Lieblhloes, 0 any part lhereol. whether or not bankruptcy has been declared. Bnd In enforcing Ihis Surelyship Agreement. The UnderSigned hereby waive all notices of any characler whatsoever Wllh respecllo this Suretyship Agreemenl and Ihe Liablldies 0' the BOHl,. er for which the Suretyship Agreement has been executed, including but nOllimlted to nollce of Ihe acceptance hereol and reliance hereon and "(1 hce of deflull by Ihe Borrower. The Underlignld hereby consenllo the liking 01, or lailure 10 like, 'from hme 10 lime, wilhout nolice to Ihe Undersigned. Iny achon 01 eny nllu'. whatsoever with respect to Ihe Liabilities of the Borrower, with respecllo any rights against any person or persons. including the BaHower and 8m of the UnderSigned, In any property, including, bul not limited 10, any postponements, compromises, Indulgences, waivers, extensions. a_changes. releases, and lalisfaclions. The Undersigned shall remain fully liable on this Suretyship Agreemenl, notWithstanding any of the foregoing This Suretyship Agreemenl shall In all respects be a continuing, absolute and unconditional one, and shall remain Ir, full force and effect (nolWln, .standing without Iimilalion, the death, lncompelency or diSsolution 01 any of the Undersigned or that 81 any time or from time to lime all Llablhlles may have been paid In full) ThIS SuretYShip Agreement is subjecl 10 dlsconflnuance as to any of the UnderSigned only upon actual receipl by Ihe Sank of written nollce Irom such Undersigned, or any person duly authorized and acling on behalf of such Undersigned, of the disconlinuance here. 01 as to such Undersigned; provided, however, that no such notice of discontinuance shall affect or Impair any of the agreemenls and obligations or luch Undersigned hereunder wllh respecllo (I) Iny Ind all Lllbililies e.lsting prior 10 the lime ot lelual receipl 01 such notice by Ihe Bank. (b) any and III LIabilities created or acquired thereatler pursuant to any previous binding commitments made by the Sank, (c) any and all extensions or renewals of any or the foregoing, (d) any and alllnlerest on any 01 the foregoing, and (e) any and all expenses paid or incurred by Ihe Bank in en. deavoring to collect any 01 the foregoing and In enlorcing this Suretyship Agreement against such UnderSigned. All obligations of the Undersigned under this Suretyship Agreement shall. notwllhslanding any such notiCe of discontinuance, remain fully in effect until IlIllabUilies not subject to an eH&Ctive notice of discontinuance (including any extensions or renewals of any thereof) and all such Interest and expenses shall have been paid in full. Any notice of disconllnuance by or on behalf 01 anyone of the Undersigned shall nol aUecl or Impair Ihe obligalJons hereunder of any olher 01 the UnderSigned. Allhe opllon 01 Blnk, III Llabilllles 01 Borrower Ihlll become Immedlllely due Ind PlYlble by the Underslgnld wllhoul demlnd or nOllce In Ihe event any or Ihe following shall OCcur: (a) Borrower shall fail to make any payment or meet any other liability when due; (b) Borrower or the Under. signed shall fail to observe or perform any obligation, term, condition or provision of Borrower under any documenl evidenCing or securing the lia. billties, this Suretyship Agreement or any other agreement, document. certificate, instrument of securily, suretyship or guaranty given by Borrower 10 Bank: Ic) Any representallon, Warranly or certificate made or furnished by Borrower to Bank in conneCtion with the L1abllilies or any other agree. menl. document. certificate. instrument 01 security, suretyship or guaranty given by Borrower to Bank in connection With the liabllllies or any olher agreement, document, certificate, instrument of security, suretyship or guaranty given by Sorrower to Bank or in any certificale. 'lnancial statement or separale assignment made thereunder shall be materially false; (d) Borrower or any of the Undersigned shall make an assignment for the benefit or creditors; (e) Proceedings in bankruptcy or for reorganization of Borrower or any of the Undersigned or lor Ihe readjustment of any 01 their debts under Ihe Bankruptcy Act. as amended. or In any part thereo', or under any other act or law, whelher stale or rederal. for the relief of debtors now or hereaher existing. shall be commenced by or against Borrower or Ihe Undersigned; (I) A receiver 01 Irustee shall be appointed lor Borrower or any or the UnderSigned or for any substantial part of their assets; or any proceedings are instituted lor the dlssolulion. or the lull or partial liqu;da- tion, of Borrower or any of the Undersigned; (0) Material adverse changes in Ihe financial condition of the Borrower or any of Ihe Undersigned; (h) A death of Borrower or any of the Undersigned or, if Borrower or Ihe Undersigned Is a partnership, the death 01 any general panner; or (i) Borrower ceases dOing business as a going Concern. As seCuflty for Ihe liabilities hereunder. the Undersigned hereby grants Bank a securily interest In the following: 1) Collateral as set forth in Security Agreement - General of even date herewith: 2) Collateral as set forth in Security Agreement Inventory & Accounts Receivable of even date herewith. Togelher with a righi, without demand or notice 01 ar:ty kind, at any lime and Irom time to time when any amount shall be due and payable by the Undersigned hereunder Bnd in such order of application as Ihe Bank may elect, to set.oH againsl all monies, deposits or other property 01 any kind, Without limitation, owned by the Undersigned or in which Ihe Undersigned has a joint or Contingent interesl and which are in possession 01 Sank for any reason whatsoever. The UnderSIgned further agree thai. if al any time. any part of any payment theretofore applied by the Sank to any of the llabllllles IS or mUSI be relurned by Ihe Bank for any reason whatsoever (including, without Iimilatlon, the inSOlvency, bankruptcy or reorganization 01 the Borrower), such liabilities shall, for the purposes of this Suretyship Agreement, to Ihe exlent that such pavmentls or must be rescinded or relurned, be deemed 10 have continued in exislence, notwithstanding such application by the Bank, and this Suretyship Agreement shall continue to be ellechve or by reIn. stated. as the case may be as to such liabilities, all 8S though such application by the Bank had not been made. The Bank may. Irom lime to time, whether before or alter any discontinuance of Ihls SuretYShip Agreement, at ilS sole discretion and without no- lice to the Undersigned (or any of them). lake any or all of the following actions: (a) relaln or obtain a securily interesl in any propenv to secure any or Ihe liabililies or any obligahon hereunder; (b) retain or obtain the primary or secondary obligation of any obligor or obligors In addition to Ihe Un. derslgned, With respect to any 01 the liabilitiel; (c) eXlend or renew lor one or more periods (whether or nollonger than the oflginal pelled), aller or ..change any of the Liabilities. or release or compromise any obligation of any of Ihe Undersigned hereunder or any obligation 01 any nalure of any other Obligor with respect to any of Ihe liabilities; (d) release ils security Interest in, or surrender, release or permit any substitulion or exchange for, all or any pan 01 any property securing any of the L1abililles or any obligation hereunder, or extend or renew lor one or more periods (whether or not longer than Ihe original periOd) or release, compromise, aller or exchange any obligations of any nature or any obligor WJlh respect to any such propeny; and (e) resort to Ihe Undersigned (or any 0' them) for payment 01 any of the liabilihes, whelher or not the Sank shall have resorted to any property securmg any 01 the Liabihties for payment 01 any or the Liabilities, or any obligation hereunder or shall have proceeded againsl any other or the UnderSIgned or .1ny other obligor primarily or secondarily obligated with respect to any of the liablhhes. I CA \\ Anv amounls received by the Bank from whatsoever source on accounl or the liabilities may be applied by Sank toward the pavmenl 01 such or the liabilitIes and In nuch order or application, as the Bank may from time 10 lime elect and, nOlwlthstandmg any payments made by or lor the ac. count or Ihe UnderSigned pursuanl 10 this Surelyship Agreemenl. the Undersigned shall nor be subrogaled 10 any rights 01 the Bank unhl suCh lime as thiS SuretYShip Agreemenl shall have been dIscontinued as to all 01 the UnderSIgned and Ihe Bank shall have received payment ollhe full amount 01 all Llablhtles and 01 all obllgahons or Ihe UnderSIgned hOteunder. The Bank shall nOI be obligated under any theory of law relaling 10 the marShalling 01 pavment received or SeCuufy lnt("f('st Cl,anled unc1J:>r Hw frorme:, ~f lhlt; Sll'''!V..h,.... A....n.-....."... ~. , The Bank may. trom hme 10 t,me, whether before or aher any dIscontinuance a. thie Suretyship Agr.ement, WIthout nohce to the Und.r. .ny ollh.ml, 'sslgn or u.n.l.r .ny or .It ollh. LI.blh".' or .ny ,nl.r.OIlh.r.,n; .nd. nOIWllh.l.ndlng .ny .uch ....gnm.nl or ".n.l.r 0":',,--;, .equ.nl 'SSlgnm.nl or tr.n.t.r Ih.r.ol. .uch Lllblh".. .h.1I b. .nd r.m.,n LI.blh".' lor Ih. pur po.. ollh.. Sur'ly.hIP Ag,..m.nl .nd ..c~ .~:;. evury ImmedIate and successive aSSigneD or ''',"S'ere8 ot any 01 the Llabllltles or at any interest therein shall, 10 the I.t,nl 01 the Inl.'8.1 01 luch ';Slgnee or u.n.l.r.. ,n Ih. LI.b.h"", ba .nllll.d 10 Ih. b.n.hll o'lh'. Sur.ly.hlp Agr..m.nllo Ih. ..m. ..I.nl .. 'I .uch ""gn.. or u.n.'.r.. .... were the Bank; provide<:. however, thai. unless the Bank Ihall othorwlse consent 10 writing, the Bank shall ha'le an unimpaired fllJht prior and IU' per,or to that 01 uny such assignee or "anS'.'.8. 10 entorce this Suretyship Agreement tor the boneH 0' the Bank. 8& to those at the llablllhes ",hlth the Bank has not assigned or transleHed. No modlhcatlon or waive' 01 any 01 the prOVisions of this Suretyship Agreement shall be binding upon the Bank except as 8xpresaly 581 forth In · ,,"tlng d"ly .,gnod by ..ch of Ih. Und...ign.d .nd Ih. B.nk. No .clion ollhe B.nk p.rmilt.d h.reuno.r .hlll,n .ny w.y .",cl or ,mp." Ih. IIghl' 01 Ihe tl...~. .rd Ih. obllg.lion ollh. Und.r.,gn.d und.r Ihll Sur.ty.hip Agr..m.n\. For lhe p"rpo... ollhi. Sur.ly.h'p Agr..m.nl. LI.blh".. .h.1I i:"cluoJe 1I1~ obligatIOns 01 tha Borrower to the Bank, notwithstanding any right or power of the Borrower or anyone else to 8slert any claim or n.t.n.. .. " Ih. inv.lidlly or unanlorc..bihIY 01 ony .uch rblig.lion .nd no .uch cl.im or d.l.n.. .h.1i .".CI or imp." Ih. obhg.lion. ollh. Un. dersigned l~ereund8r. Th. Li.~IIIly 01 tho Und...i ned lor Li.bilili.' 01 Borrow.r Incurred on or. prior 10 Ih. d.l. h.r.ol .h.1i nol ..c.ed, II .ny Iim., Ih. .ggr.g.l. princl I mnunlol ' 0 EO FIF EE OUS NO DOLL RS---------------------------- 1$ _), plu, inl.r.sl .. .1.led In Ihe .vid.nc. 01 Ind.bledne.. giy.n by Borrow.r 10 B.nk .nd fill..n p.rc.nl (15%) .lIorn.y.' comml..lon; provided Ih.llhi. 5ur.ly.hip Agr..m.nl .h.1I silO b. .ppllc.bl. 10 .nd .'I.nd 10 .ny Ind .Ii LI.bilili.., plu. Inl.r..1 and costs 8S aforesaid, of Borrower arising after the date hereof even If the lotal olluch Liabilitiel plus the L1abilili8S outstanding on or prior to the d.'. h.reol e.c.ed Ih. .Ior.m.nlion.d .ggr.g.l. pllncip.1 .moun\. " no IImll.lion I.in..rt.d in Ihi. p.r.greph, Ih.r. I. no limillo Ih. II.0lhly 01 tho Und.ralgned 10 Ih. B.nk. The creation or existence from time to lime 01 Liabilities in excess of any amount to which the right 01 recovery under U:;$ Suretyship Agreement is limited is hereby authorized, without nolice to the Undersigned (or any 01 them), and ahallln no way a<<ect or impair the rightl 01 the Bank and the obligation of the Undersigned under this Suretyship Agreement. The Undersigned, individually and jointly, do hereby authorize and empower any prothonotary or clerk or attorney 01 any coun of record 01 Penn. .ylv.nl. or .I..wh.r., 10 .pp..r lor .nd conl...judgmenl .g.insl .ny or ell ollh. Underalgn.d .nd ,n I.vor 01 B.nk lor Ih. 101.llilbihlY ollh. Un. derslgned as set forth herein together with Interest thereon, with or without declaration, with costs of suit. release 01 errors, without Itay of IXlcullon and Wllh hheen percent (15%) lor collection fees, and waive the right at Inquisition, and the benefit 01 all exemption laws now or hereinaher enact. ed, and sgreeto condemnation and the sale of real estate or personal property. or a writ at execution. In the event the Bank acquires any property securing this Suretyship Agreement aher a foreclosure lale as to real property or a publiC auction s.l. ..10 p.rlOn.1 prop.rty, Ihe Und...lgn.d .gr... 10 Ind.mnlty .nd hold Ih. B.nk h.rml...lrom .ny 10... co.II, or ..pen.. which Ih. Blnk m.y susl.ln .. a r..ult 01; (.) ..lIing Ih. r..1 or person.1 property .0 .cqulr.d lor I... Ih.n Ih. 101.1 .um. ow.d by Ih. Borrow.r 10 Ih. B.nk, provid.d, how.ver, Ih.t .ny .uch ..I. by Ih. B.nk I. don. In a comm.rci.lly r..lOn.bl. mann.r or Ib) .ny .clion broughl .g.lnlllh. B.nk und.r ~S48 or ~S44{b) ollh. Unlled 51.1.. B.nkruptcy Cod., .. am.nd.d, on Ih. ground Ih.llh. con.ld.r.lion p.id by Ih. B.nk lor Ih. r.11 or perlOn.1 prop.rty w.. nol "'air .qulvalenl v.lu.,.. wilhln tho conl.mpl.lion 0' ~S44(b) olth. Unil.d Sial.. B.nkruptcy CodD. .. .m.nded. or .ny .pphc.bl. state fraudulent conveyance act. The Undersigned waive and release the Bank from any damages which the Undersigned may Incur as a result at any Intentional or unlntenltonBI or negligent action or Inaction 01 the Bank Impairing, diminishing. or destroying any 01 the Undersigned's rights 01 subrogation which the Under. signed may have upon payment 01 any of the Borrower's obligations. Th. und.rSlgned h.r.by .gr... lh.llhis Sur.ly.hlp Agr..m.nl .h.1I .pply 10 .ny oblig.tion which Ih. B.nk m.y Incur .. Ih. r..ult 01 .ny p.y. ment to Bank by or on behalf ot the Borrower which is determined to be a preference payment beneflling the undersigned. II. phOIO.I.lic copy h.reol sh.1t h.v. ba.n tiled In .ny 01 aaid proc..ding., II sh.1I nol b. n.c....ry 10 "1.lh. orlgin.1 .. · w.rr.nl 01 ."orn.y. The loregolng warrant and power to confess ludgment shall not be deemed to have been exhausted by any single exercise therIOt, whether or not .ny .uch ...rcls. ah.1t b. h.ld by eny (ourtlO b. Inv.lid, void.bl. or void, but may b. ...rcis.d Irom lim. 10 11m.. sa on.n sa th. B.nk .h.1I .Iocl, unlil .11 .uma p.y.bl. or Ih.t m.y become p.yabl. by ..ch ollh. Und...lgn.d h.v. b..n p.,d In lull. A subsequent guaranty or suretyship by the Undersigned or any other guaranlor or surety of the Borrower's Liabilities given to the Bank shall not b. d..med 10 b. In Ii.u 01 or 10 .uperaed. or l.rmin.l. Ihl. Sur.lyshlp Agr..m.nl but .h.1I ba conllru.d 10 b. .ddltlon.1 or .uppl.m.nllry unl... otherwise expressly provided therein; and in the event the Undersigned or any other guaranlor or surety has given to the Bank a previous guaranty or Suretyship Agreement, this Suretyship Agreement shall be construed to be additional or supplementary, and nol to be in lieu thereol or to ter. minate such previOUS Suretyship Agreement, guaranty or guaranlies unless expressly so provided herein. Thl. Sur.lyahip Agreem.nl .h.1I b. binding upon Ih. Und.rsign.d, .nd upon Ih. h.lrs, t.g.1 r.pr...nl.llv.., ,uCC.'I011 .nd ...Ign. ollh. Un- dersigned, and to the extent that the borrower or any of the Undersigned is either a partnership or a corporahon, all relerences herein to tho bar. rower and to the Undersigned, respectively, shall be deemed '0 Include any successor or successors, whether Immediate or remole, to such partnership or corporation. II mare than one party shall execute this Suretyship Agreement. the term "UnderSIgned" as used hereIn shall mean all parties executing the Suretyship Agreement and each 0' them, Bnd all such parties shall be jointly and severally obligated hereunder. This Suretyship Agreement shall be 'Construed in accordam;:e with and governed by the laws ot the State 01 Pennsylvania. Wherever possible each provision of this Suretysl1lp Agreement shall be inlerpreted In such manner as to be e<<ectlvB and valid under applicable taw but if any provision 01 this Suretyship Agreement shall be prohibited by or Invalid under such law. such provision shall be Ine"echve 10 the extent 01 such prohibition or In. validity, without Invalidating the remainder 01 such provision or the remaining provisions of this Suretyship Agreement. INTENDING TO BE LEGALLY BOUND HEREBY,lh. Und.rsign.d h.v. .ellh." r..pec"v. h.nds and s..I.lh. d.y .nd y..r llral .bov. wIIII.n. WITNESS OR ATTEST: /'I.I4/Jl c.I.(Jb(fM-Y/14'/ Tllki: - f\..; '. ,..a.~,~ v::... c:; D -12. .. Till.: (SURETY) CORNER STORE, INC. By: Q..- \ !.2:-fi:.~ 12 (SEAL) Till.: Da~:~l / . e~lman~ President .~{ ~ './ C . c L "If..! /I . ~ 1(./ (SEAL) JoAnn G. Spealman, Secretary By: Till.: .... By: Till.: (SEAL) Till.: .::tf:" tJ/5S5""'1 j 8~2 F.L.176 TOI Corner store, Inc, You are hereby notified that on February~, 1995, judgment by confe..ion was entered against you in the sum of $233,800,31 in the above-captioned case. DATE I February ~, 1995 rotho " YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY LAWYER REFERRAL SERVICE COURT ADMINISTRATOR 4th Floor, Cumberland county courthouse carliSle, PA 17013 (717) 240-6200 I hereby certify that the folowing is the address of the de fen- dant(s) stated in the certificate of residence. Corner Store, Inc. 4 Evergreen circle Westford, MA 01886 ~ ~~ ..t~~~ ~ ....,t,~,7i:~ " 2~t;;r: In :-::~.",).:-: - Q~X--I - . c.~...... ~.~..j"'t L.l.Ja"t:,.;r. c...o i-::~~j~:'~ -= t::!.,. ~ ~...:. ~ ~ is .j ~ ~. ~~:i: {}. . ~ i , ~ ~'\', (\..J ~ t', r-...':J. .,<:>,' . ~ \,'-l~~ ~ .~.. " ~".. . ...." ...,--> ..,. ,- i:,-: C',' r;_: - '. .- Ld - ( I , i:";: \ 0": l.o.-l C: ~ Co. U - Ii .. .- ; 'J , , I . ,., ;~ ( l." .~