Back to News

Warrants of Attorney Now More Powerful in Lending Documents

Published on

June 22, 2020

Commercial lenders can enforce “warrants of attorney” to seek outstanding funds from debtors, even if one of the debtors included in the warrant is deceased.

That’s according to a Pennsylvania Commonwealth Court case which found in favor of the creditor after the wife of the deceased claimed the warrant of attorney could be asserted only against both her and her deceased husband together. The wife claimed she could not be individually liable since she and her husband signed the warrant in the same document as joint debtors.

The Commonwealth Court took up the case after a lower court agreed with the surviving wife.

However, on appeal, the Commonwealth Court reversed the trial court’s order, holding that it does not matter whether the language of the guaranty imposed joint and several liability or merely joint liability. When one joint creditor passes, the liability remains with the living and remaining debtors.

A warrant of attorney in Pennsylvania allows the creditor to proceed directly to judgment when default occurs. The language of the warrant of attorney and the procedure for confessing judgment are strictly scrutinized by the courts and any deviation from the requirements under the Pennsylvania Rules of Civil Procedure or established case law can result in opening or striking the confessed judgment.

If you have any questions about warrants of attorney and how you can use it in commercial lending documents, please contact me or any member of the Barley Snyder Finance & Creditors’ Rights Practice Group.

Related News

View More News
News Alert
December 4, 2023

Protecting Your Interests in the World of Digital Assets

With the recent news surrounding Binance, the world’s largest cryptoc...

Learn More
Press Release
November 14, 2023

Barley Snyder Adds Two Attorneys in Lancaster

For Immediate Release Lancaster, Pa. – Barley Snyder continues to grow an...

Learn More
Press Release
October 31, 2023

Barley Snyder Further Expands Gettysburg Office 

For Immediate Release Gettysburg, Pa. – Barley Snyder is excited to annou...

Learn More

Other Upcoming Events

View All Upcoming Events
3:30 pm
6:00 pm

Barley Snyder’s Reading Open House!

Learn More
4:30 pm
6:30 pm

Barley Snyder’s Gettysburg Open House!

Learn More
12:00 pm
1:00 pm

Complying with FinCEN’s Beneficial Ownership Reporting Rule Under the Corporate Transparency Act Webinar

Learn More

Get in Touch

Our attorneys, paralegals and staff look forward to hearing from you. Please reach out to let us know how we can help.

Get In Touch
Super Lawyers
Best Law Firms US News
Best Lawyers