CCA Financial, LLC v. Cambridge Housing Authority, LLC et al

Filing 18

MEMORANDUM OPINION. Signed by Judge Ellen L. Hollander on 1/16/13. (dass, Deputy Clerk) (c/m 1/16/13-das)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND
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CCA FINANCIAL LLC ,
Plaintiff,
v.
CAMBRIDGE HOUSING AUTHORITY
LLC, et al.,
Defendants
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Case No.: ELH-12-3724

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MEMORANDUM OPINION
This Memorandum Opinion addresses the Complaint for Confessed Judgment filed by
Plaintiff CCA Financial LLC (“CCA”) against Defendants Cambridge Housing Authority, LLC
(“Cambridge”) and James B. Chaney, Jr. (collectively “Defendants”), ECF No. 1.1 For the
reasons stated herein, I order that the Clerk of the Court enter the confessed judgment.
Local Rule 108.1.a requires that a plaintiff seeking entry of a confessed judgment file a
complaint, accompanied by:
1. the written instrument that
(a) authorizes the confessed judgment; and
(b) entitles the plaintiff to a claim for liquidated damages;
2. an affidavit of the plaintiff or someone on behalf of the plaintiff, stating:
(a) the circumstances under which the defendant executed the written
instrument;
(b) the age and education of the defendant, if known;

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   This case has been referred to me for disposition in accordance with Local Rule 301(6)(ak).  

(c) the amount due under the written instrument; and
(d) the defendant’s post office address (including the street address if
needed to effect mail delivery).
The Court may direct the entry of judgment upon a finding that the documents attached to
the Complaint prima facie establish:
1. the defendant’s voluntary, knowing, and intelligent waiver of:
(a) the right to notice; and
(b) a prejudgment hearing on the merits of the plaintiff’s liquidated
damages claim; and
2. the plaintiff’s meritorious claim for liquidated damages against the defendant.
Loc. R. 108.1.b.
Here, Plaintiff attached to its Complaint several documents constituting “written
instrument[s] authorizing the confessed judgment and entitling Plaintiff to a claim for liquidated
damages.” See Loc. R. 108.1.a. Specifically, with respect to Cambridge, Plaintiff attached a
Promissory Note dated March 30, 2012 (“Promissory Note”). ECF No. 1-3. With respect to Mr.
Chaney, Plaintiff attached a Commercial Guaranty also dated March 30, 2012. (“Guaranty”).
ECF No. 1-4. CCA acquired the loan from the FDIC on October 5, 2012. ECF No. 1-6.
Also attached to Plaintiff’s Complaint is the Affidavit of John S. Crowley, Vice President
of CCA. Crowley Aff. ¶ 1, ECF No. 1-8. Although it does not provide many details regarding
the circumstances under which the documents were signed or the education and age of the
signers, due to the acquisition of the loan after execution, the Affidavit states that Mr. Chaney
executed the Promissory Note and the Guaranty on March 30, 2012. Crowley Aff. ¶ 7.

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The Affidavit states that, as of December 11, 2012, the remaining balance on the
Promissory Note was $78,552.12, plus seven days’ interest in the amount of $90.39.2 Crowley
Aff. ¶ 8. An Amended Declaration of Jan I. Berlage, attorney of record for CCA, states that, as
of December 26, 2012, attorney’s fees and expenses totaled $1,828.50.

ECF No. 15.

Additionally, the Crowley Affidavit provides a mailing address for the Defendants. Crowley
Aff. ¶ 12.

Thus, the Complaint and its accompanying documents substantively meet the

requirements of Local Rule 108.1.a.
The Promissory Note and the Guaranty expressly authorize confessed judgment without
prior hearing, although they do not state verbatim that Defendants voluntarily, knowingly, and
intelligently waive their rights to notice and a prejudgment hearing.

ECF Nos. 1-3, 1-4. The

confessed judgment provision appears in capital letters in each document. Id. Thus, having
reviewed the Complaint, Affidavit, and Exhibits, I find that these documents make a prima facie
showing that Defendants voluntarily, knowingly, and intelligently waived their right to notice
and a prejudgment hearing, and that Plaintiff’s claim for confessed judgment against Defendants
is meritorious. See Loc. R. 108.1.b.

Therefore, I direct the Clerk to enter the confessed

judgment against the Defendants, jointly and severally, in the amount of $80,574.57, which
includes the remaining balance of $78,552.12, interest in the amount of $193.95, and attorneys’
fees and costs in the amount of $1,828.50. I further direct the Clerk to ensure that notice of this
entry is provided to both Defendants at 5665 Federalsburg Highway, Federalsburg, Maryland,
21632-2213.
Dated: January 16, 2013

/s/
Stephanie A. Gallagher
United States Magistrate Judge

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 Fifteen days’ interest is calculated at $193.95, which is the sum sought in the confessed judgment order.  
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