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© 2016 - U.S. Legal Forms, Inc USLegal Pamphlet on Confession of Judgment INTRODUCTION A confession of judgment is a written agreement in which the defendant in a lawsuit admits liability and accepts the amount of agreed-upon damages that must be paid to the plaintiff. It is also referred to as a cognovit note. A cognovit note is a confession of judgment given to a plaintiff, agreeing to pay a certain sum. The defendant acknowledges the claims asserted by a plaintiff against him in a complaint are valid and waives all defenses. It is usually given to avoid the expenses of protracted litigation. Filing a cognovit note with the court allows a judgment to be ordered without the need for filing a lawsuit or waiting for a judge or arbitrator to render a decision. It may be used to get a court judgment for the amount owed and in some cases collect from the signer’s assets, all without giving the signer advance notice. The signer has voluntarily submitted to the jurisdiction of the court and for the entry of judgment without service of process in the event of a default. Laws relating to cognovit notes vary by jurisdiction, and are disallowed in some jurisdictions. Some cognovit notes are enforced by filing an action in court to enforce payment of money, however some contain terms allowing it to be enforced in a method other than by action of court upon a hearing and after personal service upon the debtor. A confession of judgment may be filed as a court judgment against the defendant who does not pay or perform as agreed. Such an agreement attempts to minimize the need to resort to legal proceedings to resolve a dispute. Careful consideration needs to be given to signing an agreement for confession of judgment, since doing so signs away rights to contest a claim in a future dispute. For example, a landlord may ask the tenant to sign a lease with a confession of judgment clause If a tenant signs a lease with this clause, the tenant agrees to let the landlord get a court order against the tenant without giving the tenant notice and a chance for a hearing to tell the tenant's side of the story. The court could order the tenant to pay the landlord money, or evict the tenant from the house or apartment. Confession of judgment clauses may also be found in other kinds of contracts, such as retail sales contracts and loan contracts. The following is an example of a state statute dealing with confession of judgment: "All agreements, contracts, or stipulations to confess judgment in any of the courts of this state, to be sued in any county other than that fixed by the venue statutes of this state, or to authorize another to confess judgment in any of the courts of this state made before the commencement of the action in which such judgments are so confessed shall be void, and all judgments by such unlawful confession, or otherwise taken or had in violation of this section, shall be set aside and annulled on motion if made within six months after the entry of such judgment." ENFORCEABILIT y Confessions of judgment are permitted in many states. However, they are controversial because they may raise due process concerns because of waiving the right to notice and opportunity to be heard. Some states require they be specially labelled or have other procedural requirements. In some states, their use is illegal in consumer transactions, but not in commercial transactions. Local laws should be consulted for requirements in your area. The language of the confession of judgment clause itself must be sufficient to withstand court scrutiny. This includes not only the text of the language, but also the visibility of the confession of judgment clause itself. For the actual text of a confession of judgment, it is best to consult an attorney to determine what language must be included to ensure validity of your confession of judgment clause. Because the signer’s due process rights are significantly affected by this powerful contractual provision, courts strictly construe the language of the clause. Generally, a valid of confession of judgment clause must be noticeable, and the signature of the party who is authorizing judgment to be confessed against them must be in reference to the clause itself. If properly drafted, a valid confession of judgment clause will convey to the court that the signer was aware that he/she was authorizing the other party to enter judgment against them without notice or a hearing. There are special procedural requirements that must be followed when enforcing a confession of judgment clause. The most common method of enforcing a confession of judgment clause is to file a complaint in confession of judgment. Generally, the complaint in confession of judgment must include: 1) the names and addresses of the parties; 2) the original or a reproduction of the instrument showing the defendant’s signature; 3) a statement regarding any assignment of the instrument; 4) a statement that judgment has not been entered in any other jurisdiction; 5) an averment of default or condition precedent, if required by the instrument before the entry of judgment; 6) an itemized calculation of the amount due, including interest and attorneys fees if authorized; 7) a demand for judgment as authorized by the instrument; and 8) signature and verification as required by the rules of civil procedure. This filing allows the court to enter judgment in the amount stated against the named defendant.