Court Opinion

ID: 2966402
Source: CourtListenerOpinion
Date Created: 2015-09-22 00:31:04.940769+00
Date Added: 2024-06-11T15:01:48.037232
License: Public Domain

PUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

G. DAVID BROYLES; EMILY BROYLES;
CITIZENS BANK OF MARYLAND,
Plaintiffs-Appellees,
                                                                      No. 94-2584
v.

ROGER SCHLOSSBERG, Trustee,
Defendant-Appellant.

Appeal from the United States District Court
for the District of Maryland, at Greenbelt.
Alexander Williams, Jr., District Judge.
(CA-93-3921-AW, BK-92-1-120-SD)

Argued: July 12, 1995

Decided: April 1, 1996

Before LUTTIG and WILLIAMS, Circuit Judges, and NORTON,
United States District Judge for the District of South Carolina,
sitting by designation.

_________________________________________________________________

Affirmed by published opinion. Judge Williams wrote the opinion, in
which Judge Luttig and Judge Norton joined.

_________________________________________________________________

COUNSEL

ARGUED: Roger Schlossberg, SCHLOSSBERG & ASSOCIATES,
Hagerstown, Maryland, for Appellant. John Sears Simcox, SIMCOX
& BARCLAY, Annapolis, Maryland, for Appellee.

_________________________________________________________________
OPINION

WILLIAMS, Circuit Judge:

After oral argument, we certified the following question to the
Court of Appeals of Maryland:

          Pursuant to Maryland Rule 2-611(d), what is the effect on
          the lien status of a confessed judgment when the state court
          "opens" the judgment for a hearing on the merits without
          affirmatively stating that the judgment lien is preserved[?]

Agreeing with the well-reasoned opinion of the bankruptcy court, the
Court of Appeals of Maryland concluded that opening a confessed
judgment does not destroy the validity of the underlying judgment
lien:

          We hold that opening a confessed judgment is a procedure
          that allows the court to consider the merits of the defen-
          dant's defense to the action without destroying the judg-
          ment's validity. The judgment, and any judgment lien
          derived from it, remain in effect while the court considers
          the merits of the defense.

....

          We reject the Trustee's contention that opening a con-
          fessed judgment destroys the validity of the underlying
          judgment lien unless the court order contains express affir-
          mative language preserving the judgment.

Schlossberg v. Citizens Bank of Md., No. 25, slip op. at 8-9 (Md. Mar.
7, 1996). Because the priority status of the judgment lien is unaffected
by its opening, we hold that the district court properly affirmed the
bankruptcy court's lifting the automatic stay to permit the Circuit
Court for Prince George's County to determine the validity and
amount of the confessed judgment. The judgment of the district court,
therefore, is affirmed.

AFFIRMED