United States District Court, N.D. Illinois, Eastern Division
PAINTERS' DISTRICT COUNCIL NO. 30, INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES, AFL-CIO, Plaintiff,
v.
ROCK-IT INTERIORS, INC., and EZEQUIEL HERNANDEZ, Defendants.
Charles P. Burns Attorney for Plaintiff Brandon Anderson
Charles Burns JACOBS, BURNS, ORLOVE & HERNANDEZ
PLAINTIFFS' MOTION FOR ENTRY OF JUDGMENT BY
CONFESSION
Plaintiffs
respectfully move this Court for entry of judgment by
confession against Defendant Rock-It Interiors, Inc.
(“Rock-It”). In support of this motion,
Plaintiffs state as follows:
1. On
April 5, 2019, Plaintiffs filed the above-captioned action
pursuant to Section 301 of the Labor Management Relations Act
(“LMRA”), 29 U.S.C. § 185, as amended,
seeking confirmation and enforcement of a labor arbitration
award, and pursuant to Illinois law to collect on a
delinquent promissory note.
2. In
October 2019, the parties entered into a settlement agreement
(“Agreement”) that would ultimately have disposed
of the action. A copy of the Agreement is attached hereto as
Exhibit A.
3.
Pursuant to the Agreement, Rock-It agreed to pay Plaintiffs a
total of $51, 901.75, payable in a lump-sum payment of $15,
000 on October 15, 2019, followed by a series of monthly
payments from November 1, 2019 through October 1, 2020. (Ex.
A at ¶ 1) The Agreement provides that Plaintiffs will
move to dismiss the Complaint within seven days of their
receipt of the October 15, 2019 payment. (Ex. A at ¶ 3)
4. The
Agreement also provides that Rock-It shall be in default if,
inter alia, it fails to make any payment required by
the Agreement, subject to a five business day period in which
it can cure any such failure. In the event of a default,
Rock-It agreed and authorized any attorney to appear for
Rock-It and confess judgment for the full balance remaining
due under the Agreement. (Ex. A at ¶ 5) The Agreement
further provides that if Rock-It is in default, and
Plaintiffs take steps to enforce the Agreement through
litigation or otherwise, Rock-It shall pay Plaintiffs'
reasonable attorneys' fees incurred in enforcing the
Agreement. (Ex. A at ¶ 6)
5.
Rock-It failed to make the $15, 000 payment required by the
Agreement on October 15, 2019. Rock-it further failed to make
the $3, 075.15 payment required on November 1, 2019.
6.
Between October 15, 2019, and October 31, 2019, Plaintiffs
notified Defendant on at least two occasions that the October
15, 2019 payment had not been received. Nevertheless,
Defendants did not deliver the required payment.
7. On
November 1, 2019, Plaintiff's counsel formally notified
Rock-It via email that it had not made the October 15, 2019
or November 1, 2019 payments required by the Agreement, and
that it had five business days in which to cure its
delinquency. A copy of Plaintiffs' counsel's email is
attached to this Motion as Exhibit B.
8. To
date, Rock-It has not made either required payment, and is in
default.
9.
Confession of judgment clauses (or “cognovit
notes”) are enforceable in federal court and under the
U.S. Constitution. IFC Credit Corp. v. United Bus. &
Indus. Fed. Credit Union, 512 F.3d 989, 994 (7th Cir.
2008) (“Even confession-of-judgment clauses in
cognovits notes are enforceable”) (citing D. H.
Overmeyer Co., 405 U.S. 174 (1972)); Soc'y of
Lloyd's v. Ashenden, 233 F.3d 473, 479 (7th Cir.
2000) (enforcing confessed judgment).
10.
Similarly, Illinois law recognizes the enforceability of a
confession of judgment provision by expressly authorizing by
statute that “any person for a debt bona fide due may
confess judgment by himself or herself or attorney duly
authorized, without process.” 735 ILCS 5/2-1301 (West
2016).
11.
Because the Agreement, signed by Rock-It, expressly provides
that any attorney may appear for Rock-It and confess judgment
without process, Plaintiffs are entitled to immediate ...