Summary
finding loan agreement stating plaintiff may confess attorneys' fees in the amount of 15% of the total indebtedness "unreasonably operate[d] as a penalty, which makes them unenforceable"
Summary of this case from Republic First Bank v. 240/242 Franklin Ave LLCOpinion
CIVIL ACTION NO.: 10-cv-1009, CIVIL ACTION NO.: 10-cv-1768, CIVIL ACTION NO.: 10-cv-1769.
September 14, 2011
ORDER
AND NOW, this 14th day of September, 2011, after review of the Report and Recommendation of United States Magistrate Judge Lynne A. Sitarski, and any objections filed thereto, IT IS ORDERED that:
1. The Report and Recommendation is APPROVED and ADOPTED.
2. Defendants Stephen S. Jemal's and Sharon Jemal's Motion to Open and/or Strike Confessed Judgment and Motion for Stayed Execution is DENIED;
3. Defendant SSJ Development of Cape May LLC's Motion to Open and/or Strike Confessed Judgment and Motion for Stayed Execution is DENIED;
4. Defendant SSJ Development of Cape May County LLC's Motion to Open and/or Strike Confessed Judgment and Motion for Stayed Execution is DENIED.
5. The Court having concluded the amount of the confessed judgment may need to be reformed to accurately reflect the amount of remaining indebtedness owed to Plaintiff Republic First Bank, and to reflect reasonable attorneys' fees, IT IS ORDERED THAT a hearing for the limited purpose of receiving evidence and argument on those issues will be scheduled by separate order. The Court will thereafter modify the judgments, if necessary, by separate order.
6. IT IS FURTHER ORDERED THAT execution on the confessed judgment is STAYED until the Court conducts the hearing to which reference is made in this Order and modifies the confessed judgments, if necessary, to accurately reflect the amounts of Defendants' remaining indebtedness to Republic First Bank, and to provide for reasonable attorneys' fees