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decided: December 13, 1971.


Appeal from order of Court of Common Pleas, Trial Division, of Philadelphia, Jan. T., 1970, No. 4037, in case of G. A. C. Credit Corporation v. Acme Accordion Studios, Inc., t/a Holiday Music Centre.


Melvin Rubin, for appellant.

Thomas F. Wilson, with him William G. Giltinan and Wilson and Giltinan, for appellee.

Wright, P. J., Watkins, Montgomery, Jacobs, Hoffman, Spaulding, and Cercone, JJ. Opinion by Spaulding, J.

Author: Spaulding

[ 220 Pa. Super. Page 149]

This is an appeal from an order of the Court of Common Pleas of Philadelphia County opening a judgment of $15,213.36 confessed against the corporate appellee Acme Accordion Studios, Inc., in January 1970.*fn1

The appellant corporation, which is engaged in the business of lending money, financed appellee's purchases of musical instruments, television sets, and related electrical equipment from Sylvania Electric Products, Inc. Appellee executed documents evidencing the debt, providing security in the form of trust receipts, and authorizing confession of judgment in the event of

[ 220 Pa. Super. Page 150]

    default. Arrangements for this financing were made by Sylvania so that appellee could become one of its franchised retail dealers. After some time, appellee and Sylvania terminated their arrangement, at which time there was a balance due appellant for merchandise sold by appellee out of trust. Pursuant to the signed authorization, when appellee refused to pay, appellant confessed judgment for the unpaid balance.

When a sheriff's levy on appellee's inventory and posting produced no response, appellant commenced garnishment proceedings and attached a bank account of appellee. This resulted in appellee's filing a petition to strike or open judgment, on which the case was heard in the court below. Appellee admits the indebtedness and amount owed appellant and has stipulated to the fact that there is no legal relationship between Sylvania and appellant, which admittedly finances many other similar purchases of merchandise from numerous other manufacturers under analogous financing agreements.*fn2 Appellee maintains that all of its financing arrangements with appellant*fn3 were made through Sylvania and that it therefore should be able to assert as defenses unliquidated claims which it allegedly has against Sylvania for credits and breach of contract.

A petition to open judgment is an appeal to the equitable side of the court and to the court's discretion. Fox v. Mellon, 438 Pa. 364, 366, 264 A.2d 623 (1970),

[ 220 Pa. Super. Page 151]

In Harrison v. Stoeckert, supra, mortgage debtors sought to assert as a defense a claim which they allegedly had against the mortgagee's father, with whom they claimed they had all dealings concerning the mortgage. The Court held: "If defendants' testimony is true, they may have a remedy elsewhere, but they cannot be permitted to disturb a judgment entered on an admittedly valid mortgage . . . ." 369 Pa. at 146. The same holds true in the instant case where the debt is admittedly valid; the judgment in favor of appellant G.A.C. should not be disturbed because appellee has a claim against Sylvania.

The order of the court below opening the judgment is reversed.


Order reversed.

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