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CAPLAN v. SEIDMAN. (04/14/64)

April 14, 1964

CAPLAN, APPELLANT,
v.
SEIDMAN.



Appeal, No. 85, Oct. T., 1964, from order of County Court of Philadelphia, Sept. T., 1963, No. 5848-C, in case of Joseph Caplan v. Simon Seidman et al. Order affirmed as to judgment against Knob and reversed as to judgment against Seidman.

COUNSEL

Lawrence Goldberg, for appellant.

Jerome E. Furman, for appellees.

Before Rhodes, P.j., Ervin, Wright, Woodside, Watkins, Montgomery, and Flood, JJ.

Author: Wright

[ 203 Pa. Super. Page 171]

OPINION BY WRIGHT, J.

Joseph Caplan has appealed from an order of the County Court of Philadelphia making absolute a rule to strike off a judgment. The factual and procedural situation appear in the following excerpt from the opinion below:

"Judgment was entered on a warrant of attorney contained in a note dated February 11, 1959. The note provided for payment of the sum of $3,900.00 in monthly installments of $53.03. Upon failure to pay any installment when due, the whole debt was to become due and payable. The note and the warrant of attorney to confess judgment upon default was signed by the defendant, Simon Seidman. Immediately under his signature the following appeared: 'For value received we agree to indemnify Joseph Caplan and save him harmless against any loss due to nonpayment of this note' and was signed by Benjamin Caplan and Dale A. Knob.

[ 203 Pa. Super. Page 172]

"The averment of default dated October 14, 1963, sets forth that the defendant, Simon Seidman, defaulted on the installment due on September 11, 1963, and said default has continued from said date whereby the principal sum of $3,112.18 has become due and payable; that guarantor, Dale A. Knob, has been notified of said default and has not made payments in accordance with his obligation".

The court below took the position that the judgment was improperly entered (a) as to Knob because he and Benjamin Caplan had signed a separate agreement of indemnification which did not include any authorization or warrant of attorney to confess judgment; and (b) as to Seidman because of "the inclusion of an unauthorized party". The petition to strike as to Knob averred an alternate ground, namely, that the agreement of indemnification was the joint obligation of Knob and Benjamin Caplan and the latter had not been joined as a defendant. The court below deemed it unnecessary to pass upon this alternate ground.

(1) This appeal does not require consideration of the Act of July 24, 1913, P.L. 971, Section 1, 8 P.S. 1, cited by appellant. Cf. Pennsylvania Company v. Lebanon B. & L. Assn., 337 Pa. 316, 10 A.2d 418. Regardless of whether the agreement signed by Knob and Benjamin Caplan was a contract of suretyship or of indemnity, see E. P. Wilbur Trust Co. v. Eberts, 337 Pa. 161, 10 A.2d 397, it clearly appears that the warrant of attorney to confess judgment was signed only by Seidman and there was accordingly no authorization to enter judgment against Knob: Frantz Tractor Co. v. Wyoming Valley Nursery, 384 Pa. 213, 120 A.2d 303. And see Stewart v. Lawson, 181 Pa. 549, 37 A. 518; Ansley v. George Coal Mining ...


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