Catjen, LLC v. Hunter Mill West, L.C.

The Supreme Court vacated in part and reversed in part the decision of the circuit court reducing the amount due on a deed of trust note (note) and entering a confessed judgment for the reduced amount without the agreement of Catjen, LLC.Hunter Mill West, L.C. (HMW) executed the note payable to the predecessor in interest to Catjen. HMW failed to repay the note in full by the date of maturity and filed for Chapter 11 bankruptcy protection. Catjen’s predecessor filed a claim for the amount it asserted was due on the note. The bankruptcy court sustained HMW’s objections to the claims and accepted HMW’s calculations. Catjen subsequently foreclosed on the property that was used as collateral for the note. The attorney in fact then confessed judgment against HMW in favor of Catjen. Citing Va. Code 8.01-433, HMW moved to set aside the confessed judgment. The trial court modified the confessed judgment, awarding Catjen the amount based on HMW’s calculations despite Catjen not agreeing to the amount due. The trial court denied the motion. The Supreme Court vacated the confessed judgment and reversed the trial court’s judgment on the amount due, holding that the trial court erred by failing to place this case on the docket for a trial on the merits. View "Catjen, LLC v. Hunter Mill West, L.C." on Justia Law