Germantown Mfg. Co v. Rawlinson

491 A.2d 138 (1985)

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Nature of the Case

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Facts

Robert was an outstanding husband to Mrs. Joan Rawlinson. He embezzled $327,011.22 from his company, Germantown, where he worked. Robert was discovered on May 21, 1982, and was fired. Robert did not tell his wife. Joan eventually became suspicious when secretive conversations were heard between Robert and company officials and an insurance adjuster. Eventually on May 24^th when confronted, Robert confessed his crimes to Joan and demanded to know if she wanted a divorce. Joan was having a tough time in the first instances because she had just suffered a miscarriage in April and had been already tired and depressed when she learned of Robert’s crimes. A Mr. Kulaski called the next day representing an insurer and Joan learned that he was coming to the house to discuss documents. Joan was not told he wanted her to sign two judgment notes nor was she told of the amounts. The children of the family were kept from knowing the purpose of the meeting. The notes in question were cognovit notes that allowed any attorney to confess a judgment in the favor of Germantown. Joan was surprised to see her name on the documents. Joan asked if they would need an attorney and the representative told her that if they cooperated in good faith, there was no such need and that Germantown was not interested in prosecution as long as they cooperated. Joan understood this to mean that if she signed the notes, Robert would not go to jail. Joan had never seen such a document, and while she read them, she was crying and believed that she was only signing a note for $160,000. Joan signed because she knew that her husband had a check for $150,000 and another $10,000 would not be difficult to obtain and with the representations of the representative it was practically a resolved manner with the $150,000 and just the $10,000 more. The second note contained an affidavit that was to be completed by Germantown as for any additional sums owed. Germantown completed the affidavit on the second note, and the total amount owed on this note was $212,113.21. The first note had been satisfied. The only issue on appeal was whether the lower court abused its discretion in opening judgment on the second note with respect to Joan.