Category Archives: Business & Corporate

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PA Superior Court Relaxes Formerly Strict Circumscription of Confession of Judgment Clauses

Posted in Business & Corporate

The Pennsylvania Superior Court recently relaxed the Pennsylvania Courts’ trend of scrupulously constraining the use of warrants of attorney, also known as “confession of judgment” clauses in non-consumer credit transactions. In Graystones Bank v. Grove Estates, LP., 2012 Pa.Super. 274 (2012), affirmed at 2013 Pa. LEXIS 2855 (Pa. 2013) a debtor made a Promissory Note in favor of the creditor, which contained a warrant of attorney. After some time, the debtor began to have trouble making payments under the Note. The creditor then required the debtor to establish an interest reserve and pledge additional real property as collateral, and to enter a “Change in Terms Agreement.” The Change in Terms Agreement did not itself include a warrant of attorney.

Pennsylvania Superior Court Rules on Venue for Confessed Judgments

Posted in Business & Corporate

Many commercial credit agreements contain Confession of Judgment or “Warrant of Attorney Clauses.” In general terms, a Warrant of Attorney permits a creditor to enter judgment against a debtor without first giving notice and an opportunity to defend the case against him. Usually, the debtor will first become aware that judgment has already been entered against him by receipt of a notice.

Starting a Minority, Women, Veteran or Service-Disabled Veteran Business Enterprise in Pennsylvania

Posted in Business & Corporate

Are you a minority, woman, veteran or service-disabled veteran starting or currently running a business in Pennsylvania? If so, your business may be eligible for classification as a Minority Business Enterprise (MBE), Women Business Enterprise (WBE), Veteran Business Enterprise (VBE), or Service-Disabled Veteran Business Enterprise (SDVBE).

What to Do After Receiving a Judgment From the Small Claims Court

Posted in Business & Corporate

“I have a judgment from the small claims court. Now what?”
One call that we receive quite often follows a lay person’s successful prosecution of a case in small claims Court – formally called either the Magisterial District Justice Courts or the Philadelphia Municipal Court. The caller will have organized all of the documents and witnesses, and made a convincing case before the Judge, and gotten a judgment against another person or business. Contrary to popular beliefs and expectations, the defendant isn’t required to write a check on the spot to satisfy the judgment.

Pennsylvania Senate Amends Procurement Code to Provide for Verification of Legal Employment Status

Posted in Business & Corporate, Employment, Real Estate

The Pennsylvania Senate approved legislation on Tuesday, May 24, 2011 that would require contractors and subcontractors to verify legal employment status for all employees working on public building projects. Senate Bill 637, which passed 47-7, makes use of the federal E-Verify system, operated by the Department of Homeland Security, mandatory to confirm that all employees are eligible to work in the U.S.

Pennsylvania: A Debtor’s Paradise for the Married

Posted in Business & Corporate

Pennsylvania is part of the small minority of states that provides for a peculiar form of ownership of property between a husband and wife which often frustrates the creditors of one spouse. Known as a “tenancy by the entireties,” this estate in property is founded upon the idea that when spouses marry, they become a single legal entity or person. Therefore, when a husband and wife purchase a house or other real or personal property, each is deemed to acquire a one hundred percent undivided interest in the property which cannot be severed or encumbered by the acts of only one of the spouses. This form of ownership is presumed in Pennsylvania upon conveyance to a husband and wife unless there is an affirmative effort to title the property in another matter.