Court Opinion

ID: 9693459
Source: CourtListenerOpinion
Date Created: 2023-08-25 16:42:22.833137+00
Date Added: 2024-06-11T18:19:47.176627
License: Public Domain

CAVANAUGH, Judge,
dissenting:
I dissent. The adoption of Rule 2959(e), Pa.R.C.P. has no bearing on the burden placed on the party alleging forgery. A close scrutiny of the rule itself and the comment to it as well as case law supports this view.
As this Court stated in Foerst v. Rotkis, 244 Pa.Super. 447, 450, 368 A.2d 805, 807:
It is axiomatic that one who petitions to open a confessed judgment must act promptly and aver a meritorious defense. Wenger v. Ziegler, 424 Pa. 268, 226 A.2d 653 (1967); Walnut-Juniper Co. v. McKee, Berger & Mansueto, Inc., 236 Pa.Super. 1, 344 A.2d 549 (1975); Chelten*203ham Nat. Bank v. Snelling, 230 Pa.Super. 498, 326 A.2d 557 (1974); Ritchey v. Mats, 227 Pa.Super. 33, 324 A.2d 518 (1974). And it is equally true that such a petition is an appeal to the court’s equitable powers, is addressed to the sound discretion of the court, and a reviewing court will reverse the determination of the lower court only for a clear and manifest abuse of discretion. Triangle Building Supplies and Lumber Co. v. Zerman, 242 Pa.Super. 315, 363 A.2d 1287 (Jacobs, J., filed 9/27/76), Cheltenham Nat. Bank v. Snelling, supra; Bucks County Bank & Trust Co. v. DeGroot, 226 Pa.Super. 419, 313 A.2d 357 (1973).
Because it is admitted that Lehr acted promptly the only question before us is whether the lower court abused its discretion in refusing to open judgment for want of a meritorious defense. The discretion exercised by the lower court must be guided by Pa.R.C.P. 2959(e) which states in pertinent part: “If evidence is produced which in a jury trial would require the issues to be submitted to the jury the court shall open the judgment.”
The Majority notes that the burden of proving fraud or forgery is the same: “[a] party who relies on fraud or forgery has the burden in the first instance of proving the facts upon which the alleged fraud or forgery is based, and these facts must be established by evidence that is clear, direct, precise and convincing.” Carlson v. Sherwood, 416 Pa. 286, 287, 206 A.2d 19, 21 (1965).1 This standard has been *204referred to as the higher equitable standard of proof, see M. H. Davis Estate Oil v. Sure Way Oil, 266 Pa.Super. 64, 403 A.2d 95 (1979), and whether the evidence rises to this standard so to justify its submission to the jury is a question of law for the court. Greenwood v. Kadoich, 239 Pa.Super. 372, 357 A.2d 604 (1976).
Thus it would seem that under Rule 2959(e) the judgment shall be opened when the moving party shows by clear, direct, precise and convincing evidence that a forgery has been committed since only at that point would there be sufficient evidence to justify submitting the issue to the jury. Nevertheless the Majority asserts that this “onerous burden” placed on the moving party has been altered by 2959(e) because under that rule the lower court is no longer permitted to weigh the evidence. In Ritchey v. Mars, 227 Pa.Super. 33, 36 n.4, 324 A.2d 513, 515 n.4 (1974), this court stated in reference to the 1973 Amendment to Rule 2959: “Thus, a court can no longer weigh the evidence in support of the defense, but must only determine whether there is sufficient evidence to allow the issue to go to the jury.” However, this language, when viewed in its proper context, does not compel nor permit the result reached by the Majority-
As noted in Kardos v. Morris, 470 Pa. 337, 368 A.2d 657 (1977), prior to the amendment to Rule 2959 it was established that equitable considerations were of prime importance when considering a petition to open judgment:
... To open judgment, the petitioner must not only aver a valid defense but he must also establish equitable considerations which impress the court with the need for relief. *205Lened Homes, Inc. v. Philadelphia Department of Licenses and Inspections, 386 Pa. 50, 53, 123 A.2d 406, 407. There must be more than mere conflict of evidence “as would persuade the court that, upon submission of the issue to a jury, a verdict in their favor could be upheld.” Ahrens v. Goldstein, 376 Pa. 114, 121, 102 A.2d 164, 167.
Kardon v. Morris, supra, 470 Pa. at 340, 368 A.2d at 659, quoting Ehnes v. Wagner, 388 Pa. 102, 104, 130 A.2d 171, 172 (1957).
The comment to Rule 2959 explains the impact of the amendment on Pennsylvania practice:
This Rule is amended to provide a major change in Pennsylvania practice.
Historically, it has been the rule in Pennsylvania that the opening of a confessed judgment is a matter within the discretion of the common pleas court court and the appellate courts will not reverse unless there has been an abuse of discretion. This requires the defendant to do more than produce evidence which, if believed, would constitute a defense; it places on him the burden of persuading the court to open the judgment.
Dicta in both Overmyer [D. H. Overmyer Co., Inc. of Ohio v. Frick Co., 405 U.S. 174, 92 S.Ct. 775, 31 L.Ed.2d 124 (1972)] and Swarb [v. Lennox, 405 U.S. 191, 92 S.Ct. 767, 31 L.Ed.2d 138 (1972)]. . . comment critically on this burden and the concurring opinion of Justices Douglas and Marshall refers specifically upon the lesser burdens of proof required under the Ohio system.
The amendment meets these criticisms by adding a new sentence to subdivision (e) of Rule 2959 stating specifically that if the defendant produces evidence, which in a jury trial would require the issues to be submitted to a jury, the court shall open the judgment.
Despite the rule change, a party seeking to open a confessed judgment must still present evidence sufficient to create a jury question. However, the subjectivity permitted by the old rule is replaced by a more objective standard: the judge is no longer permitted to question whether he is persuaded *206by the evidence, but only whether the evidence presented by the defendant, if believed, created a question for the jury. Thus the standard of sufficiency the court must employ is that of a directed verdict. Greenwood v. Kadoich, supra, 239 Pa.Super. at 376, 357 A.2d at 606. Therefore, as when ruling on a motion for a directed verdict, the facts must be viewed in the light most favorable to the petitioner and the court must accept as true all evidence and proper inferences therefrom supporting the defense and must reject the adverse allegations of the party obtaining the judgment. Id.
The Majority states that Rule 2959(e) has been interpreted since its promulgation as prohibiting a court from weighing the sufficiency of the evidence and since convincing evidence by definition requires a weighing of the evidence, the moving party is no longer required to produce such evidence. While admittedly it is difficult to determine what the court in Ritchey meant when it said that Rule 2959(e) prohibits weighing the evidence in support of the defense, it is clear that it cannot mean what the Majority claims it does. According to the Majority even if the evidence is not sufficient to go to a jury the lower court must open the judgment. This is a limitation on the discretion of the lower court not intended by the amendment. Moreover, the Majority’s holding is inconsistent with decisions of this court.
As noted above, the burden on the petitioner alleging forgery is identical to that for fraud. In Greenwood v. Kadoich, supra, a case decided after the amendment, we reversed the lower court’s refusal to open judgment where fraud had been alleged. We stated, “The issue presented here is thus whether appellant’s evidence of fraud and misrepresentation was sufficiently clear and convincing, as a matter of law, to prevent a directed verdict against her,” supra, 239 Pa.Super. at 357 A.2d at 606 (1976). Similarly in a later case, M. H. Davis Estate Oil v. Sure Way, supra, we applied this higher standard of proof in affirming the lower court’s opening of judgment where fraud had been alleged. Both cases also relied on the language in Ritchey v. Mars, supra, that in light of Rule 2959(e) the court can no longer weigh the evidence in support of the defense.
*207This language has been quoted widely in cases governed by Rule 2959(e). Few of these cases, however, are of much help in determining the precise meaning of the phrase. In Foerst v. Rotkis, supra, this court interpreted the phrase as prohibiting the trial judge from making findings of credibility. There the petitioners sought to open a judgment entered against them on the ground that they had violated a restrictive covenant in an agreement of sale which provided that they would not open a similar business within one mile of the purchased premises. We stated:
If the appellant’s statement as to the distance between their and the appellees’ restaurant is accepted as true by a jury then a valid and complete defense to the judgment would have been advanced. The matter is in controversy. The appellants have stated that the distance was less than a mile, the appellees testified that the distance was greater than a mile. . . . The function of our court is not to weigh the evidence in support of the defense, but merely to determine whether there was sufficient evidence to go to the jury. Wolgin v. Mickman, 233 Pa. Super. 218, 222, 335 A.2d 824, 826 (1975) citing Ritchey v. Mars, 227 Pa.Super. 33, 36 n.4, 324 A.2d 513, 515 n.4 (1974).
244 Pa.Super. at 451-52, 368 A.2d at 808. In Greenwood v. Kadoich, supra, after quoting the language of Ritchey v. Mars this Court explained as follows: “Otherwise stated, the judgment should be opened where the evidence produced would be sufficient to ‘prevent a directed verdict against [her].’ (citations omitted).” 239 Pa.Super. at 375, 357 A.2d at 606. Thus if read to prohibit findings of credibility the Ritchey language is consistent with the rule and its implicit requirement that the standard of sufficiency to be employed is that of a directed verdict. Greenwood v. Kadoich, supra. (Therefore, all evidence in support of Lehr must be accepted as true. Id.) The Majority’s reading of this language does not share this consistency.
In view of the above it is clear that the Majority is in error. Although where there is any evidence which alone would justify an inference of the disputed fact, a jury *208question exists, Heffeman v. Rosser, 419 Pa. 550, 554-55, 215 A.2d 655, 657 (1966), there are instances where a higher standard of proof has been required. This higher or “equitable” burden is generally required in cases involving claims, such as fraud or forgery, where a serious danger of deception exists, or cases involving claims that are disfavored on grounds of public policy. See McCormick, Evidence § 340 at 796-98 (2d ed. 1972). As the foregoing analysis disclosed, it was not these cases that prompted the 1973 amendment, nor does the amended rule seek to alter the degree of proof required in such cases.
Now that the standard to be employed has been established, it must be determined whether the petitioner has shown by clear, precise and convincing evidence that a forgery has been committed. In the case of La Rocea Trust, 411 Pa. 633, 640, 192 A.2d 409, 413 (1963), the standard “clear, precise and convincing” was defined:
The witness must be found to be credible, that the facts to which they testify are distinctly remembered and the details thereof are narrated exactly and in due order, and that their testimony is so clear, direct, weighty and convincing as to enable the jury to come to a clear conviction, without hesitancy, of the truth of the precise facts in issue.... It is not necessary that the evidence be uncontradicted . . ., provided it “carries a clear conviction to the mind...” or carries “a clear conviction of its truth...”
Because the standard to be applied is that of a directed verdict, all evidence must be viewed in the light most favorable to Lehr. However, testimony need not be so viewed when it is inherently improbable, or contradicted by unimpeached writings or unquestioned physical facts. Statler v. Pennsylvania Railroad Company, 299 Pa. 321, 149 A. 494 (1930); Lott v. Guiden, 205 Pa.Super. 519, 523, 211 A.2d 72, 74 (1965).
A review of Lehr’s deposition alone reveals several major inconsistencies. Lehr testified that on Sunday, April 23, 1972 he was given a sheath of papers by Dr. Mattioli. Dr. Mattioli informed him that the papers were the material the bank had prepared for the loan. Lehr reviewed the papers, *209but could not recall whether a guarantee was among them. However, in a memo which he wrote to Mattioli on April 25, Lehr unmistakably refers to the guaranty.
In paragraph two Lehr refers to himself as one of “those of us who are signing as Guarantors.” Throughout the memo Lehr expresses his displeasure at what he has read. He states:
Granted, they are lending us a lot of money which must be secured in the best possible way, but decently so. Apparently from time to time the Commonwealth enacts laws designed to prevent unscrupulous bankers from having the right to everything a man may possess, and in my opinion when they ask us to waive this, that, and the other legal rights that may have been placed in the law years ago, the bank is doing something illegal. I haven’t counted them but there are at least lh dozen waivers.
As appellant bank states, although this paragraph only impliedly refers to the guaranty form the following paragraph of Lehr’s memo clearly shows his knowledge of the guaranty and its provisions:
Further, if any one of the Guarantors would be unable to come up with his share of the $3,500,000 pool, any one or all of us would be on the hook to take up the slack.
The guaranty at issue does, in fact, require the guarantors to waive numerous potential rights and also makes each guarantor liable for $3,500,000, the full amount of the loan.
From a review of the memo it can be concluded that Lehr was not only aware of the guarantee at issue, but that he intended to sign it. In expressing his displeasure at signing, he states, “.. . I understand why you waited so long to ask for my signature, because if I had been the first one I would have refused.” The memo further states:
I don’t suppose there’s any need for me to submit these documents to my attorney—the only thing I could get as a result would be a big bill because these documents tie everything up so tight that the best lawyer in the land couldn’t help and personally I would be ashamed to let Mr. Thornton know I was signing a thing of this kind.
*210Lehr claims that he signed nothing on April 25, the date appearing on the guarantee upon which judgment was confessed. However, his testimony was at best equivocal as to whether he signed a guarantee during Dr. Mattioli’s brief visit to his office which Lehr claimed took place on April 28. Although he could not recall signing a guaranty, he signed whatever Mattioli handed him and read nothing.
Moreover, in subsequent dealings with the bank Lehr did not dispute that he was a guarantor. In October, 1974 Lehr attended a meeting of the guarantors in the bank office. Later, in 1975 negotiations were underway to modify the loan agreement. Lehr testified concerning this in his deposition:
Q. Are you aware of an agreement between the Raceway and First Pennsylvania to modify the loan agreement?
A.' Am I aware of it? Oh, yes, I am aware of it.
Q. Were you asked at any time by First Pennsylvania or anyone else to reaffirm the guaranty that you say you signed?
A. Well, yes, during the summer of 1975 I had a written communication from Dr. Mattioli which included copies, presumably, that were similar to the papers that had been signed in 1972, guaranteeing the bank individually—I forget what they call these various guaranties and indemnifications and all that sort of thing, and they wanted a reaffirmation of these things. In other words, they wanted us to sign it again.
In essence Lehr’s evidence of forgery amounts to nothing more than a bare assertion that he did not sign “Carl Lehr” to the guaranty on which judgment was entered. He does not claim that he did not sign the guaranty; he does assert that he signed nothing on April 25. Lehr offers no testimony or other evidence to corroborate his allegations of forgery. It is an abuse of discretion to open a judgment where only uncorroborated evidence of forgery or fraud has been presented. Carlson v. Sherwood, supra; M. H. Davis Estate Oil Company v. Sure Way Oil Company, supra. The fact *211that Dr. Mattioli may not have actually witnessed Lehr signing the document in no way advances Lehr’s argument. Moreover, Lehr admits that his signature appears on the pledge and subordination agreements which were also required by the bank. Also the record discloses that the guaranty in issue is identical to the guaranties signed by the six remaining guarantors.
In view of the foregoing, it is clear that Lehr has failed to show forgery by clear, precise and convincing evidence so as to warrant the opening of judgment.2 I would affirm the lower court.

. In Carlson v. Sherwood, supra, 416 Pa. at 289, 206 A.2d at 21, the court explained the shifting burden of proof in forgery cases:
It is true that where a judgment on a note is attacked on the ground of forgery, the note itself is of no weight and from its mere existence no presumption of valid execution arises: Yank v. Eisenberger, 408 Pa. 36, 182 A.2d 505 (1962). Under such circumstances, the burden of proof shifts to the judgment holder to establish the genuineness of the signature on the note. However these principles apply only where the judgment debtor offers clear, direct, precise and convincing evidence in the first instance that the signature is a forgery.
See also Ritchey v. Mars, supra. The Carlson court resolved an apparent conflict between its holding and that of Yank v. Eisenberg, supra. Although neither Yank nor the more recent case of Wolgin v. Mickman, 233 Pa.Super. 218, 335 A.2d 824 (1975), outline the burden to be imposed on the party alleging forgery, the burden was met in *204both cases by clear and convincing evidence, in Funds for Business Growth v. Maraldo, 443 Pa. 281, 285, 278 A.2d 922, 924 (1971) it was stated that “... when dealing with a claimed forged signature upon a judgment note ... the burden is put upon the holder of the note to prove the genuineness of the signature, and if affirmative evidence of the forgery remains uncontradicted, the judgment must be opened. Industrial Valley Bank & Trust Company v. Ply Mar Furniture and Carpet Company, Inc., 215 Pa.Super. 430, [258 A.2d 686] (1969).” And as established in Carlson the affirmative evidence of forgery offered in the first instance must be clear, precise and convincing.

. Although the Majority states that Lehr has raised three issues on appeal, in his brief appellant addresses only the issue of forgery. Therefore, he has abandoned the argument that his signature was obtained through fraud and duress and coercion.