Confession of Judgment

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CONFESSION OF JUDGMENT

Sebastian: Confession of judgment has 2 forms: (this two are valid)


1) cognotiv actionem "he has confessed action." (– a stipulation whereby defendant authorizes
plaintiff or his counsel to confess judgment for the sum being claimed by the plaintiff . In this
case, the decision is rendered by the court immediately because the debtor is empowered to
confess to a judgment on his behalf.
2) relicta verification "his pleading being abandoned." – after a plea of not guilty is made, one
withdraws it and judgment is immediately promulgated.

Confession of judgments are void under Philippine Law.


Confession of judgment. — A confession of judgment enables the holder to obtain a judgment
wiihout the delay usually incident to a law suit, as it eliminates the necessity of a trial. It is a
written statement signed by the defendant, setting forth the basis of liability and authorizing the
entry of judgment thereon.
"For value received, I promise to pay P or order the sum of P10,000.00 with interest at 15% per
annum and I hereby authorize my attorney-at-law to appear in any court of record after the
obligation becomes due and waive the issuing and service of process and confess a judgment
against me in favor of the holder of the note for such amount as may appear to be unpaid thereon,
together with costs of suit and 12% attorney's fees, and thereupon to waive all errors in any such
proceedings and waive all rights of appeal."

PNB v Manila Oil Refining and By-Products Co. Inc. (43 Phil 444) – Section 5(b) of the
Negotiable Instrument Law providing that the negotiable character of an instrument otherwise
negotiable is not affected by a provision which authorizes a confession of judgment if the
instrument cannot be paid at maturity, cannot be taken to sanction judgments by confession
because it is a portion of a uniform law which merely provides that, in jurisdictions were judgment
notes are recognized, such clauses shall not affect the negotiable character of the instrument.
Moreover, the same section of the Negotiable Instruments Law concludes with these words: “But
nothing in this section shall validate any provision or stipulation otherwise illegal.”
The judgment note was held to be void as against public policy, because they enlarge the field of
fraud, because under these instruments the promissory bargains away his right to a day in court,
and because of the effect of the instrument is to strike down the right of appeal accorded by statute.
The Court was of the opinion that warrants of attorney to confess judgment are not authorized nor
contemplated by our law. We are further of the opinion that provisions in notes authorizing
attorneys to appear and confess judgments against makes should not be recognized in this
jurisdiction by implication and should only be considered as valid when given express legislative
sanction.
This is void as against public policy as it denies a person his day I court.

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