Aaronian
Federal Deposit Insurance v. Aaronian
Opinion
Lead Opinion
Hall, J.
The question presented is whether a court in which a judgment was registered erred in determining that the judgment was constitutionally entered by confession. We have jurisdiction in this diversity appeal and affirm.
I
The case centers on the enforcement mechanisms of a loan agreement. On December 31,1985, the appellant, Rick S. Aaro-nian, executed a promissory note in favor of Atlantic Financial Savings, F.A.,. for $130,-050.17. Aaronian intended to invest the money in a tax-favored windmill project.
The note contained a confession of judgment, or cognovit actionem, clause.
D.H. Overmyer Co., Inc. of Ohio v. Frick Co., 405 U.S. 174, 176 , 92 S.Ct. 775, 777-78 , 31 L.Ed.2d 124 (1972). In the states which permit its use, the cognovit note
Id. at 176 n. 2, 92 S.Ct. at 777 -78 n. 2 (quoting Jones v. John Hancock Mutual Life Ins. Co., 20 Ohio Misc. 227 , 289 F.Supp. 930, 935 (W.D.Mich.1968), aff'd, 416 F.2d 829 (6th Cir.1969)).
After the note’s execution, the Resolution Trust Corporation was appointed as receiver for Atlantic Savings and Loan. The RTC took possession of all Atlantic’s assets, including Aaronian’s note.