Confessed Judgment: O’Connell v. Brigham
The Baltimore Medical Malpractice Lawyer Blog examines issues in Maryland medical malpractice cases. In this post, I discuss an unusual circumstance. It involved the failure of the defendants to make payments under a medical malpractice case settlement agreement and the plaintiff’s pursuit of a confessed judgment. A confessed judgment is a legal term that allows a plaintiff to obtain a judgment without a trial, if the defendant fails to make payments as agreed. The case is the United States District Court for the District of Maryland Report & Recommendation in O’Connell v. Brigham, No. 1:23-cv-02208-CCB (October 17, 2023).
Factual Background on Confessed Judgment in Medical Malpractice
The plaintiff, demonstrating a proactive legal strategy, brought a lawsuit for medical malpractice, and the parties reached a settlement during a court settlement conference. The court then dismissed the case, and the parties entered a written settlement agreement. The agreement specifically required the defendants to make eight payments. After making six of the payments, the defendants then failed to make the final two, totaling $27,500. The plaintiff, in response, then filed an amended complaint for confessed judgment. (RR at 1-2, 5).
Provisions
The agreement provided that if the defendant failed to make installments within 15 days of their due date, the plaintiff could confess judgment against the defendants. The relevant provision specifically stated that the defendants:
will be deemed to be in ‘default’ of the outstanding payment installment, and
[Plaintiff] will immediately be entitled to a Confess Judgment with the court
against [Defendants]—the consent for which is hereby expressly provided by
[Defendants]—enumerating and declaring [Defendants’] acceptance and
assumption of responsibility to pay the unpaid balance of the total Settlement
Payment remaining as of the date default occurred, plus any late fees that have
accrued pursuant to the terms set forth above. [Plaintiff] expressly agrees that this
Settlement Agreement may be filed with any pleading necessary to enter or obtain
a Confess Judgment to prove his agreement and consent to said judgment.
(Id. at 4).
The agreement also provided for late fees:
If [Defendants] fail to effectuate payment of any installment of the Settlement
Payment within five (5) days of the due date specified for each installment . . .
[Defendants] hereby agree to pay an additional TWO HUNDRED DOLLAR
($200.00) ‘late payment fee’ to [Plaintiff] for each day thereafter that said payment
installment remains unsatisfied, beginning on the sixth (6th) day after the due date
specified for the outstanding payment installment, and continuing indefinitely until
said payment installment is effectuated and satisfied in full. The accrual and
payment of daily late payment fees under this Provision is understood by the parties
to operate separate and apart from any other payment obligations or requirements
imposed upon either party by any other Section or Provision of this Agreement.
(Id.).
US District Court for the District of Maryland
The court, in a decision that upheld the plaintiff’s rights, found that the plaintiff’s filing satisfied the local rule’s requirements for confessed judgment. The plaintiff attached the necessary documents and required affidavit that showed the plaintiff was entitled to a confessed judgment of $27,500 plus liquidated damages of $78,900. (Id. at 5-6).
Commentary by Baltimore Medical Malpractice Lawyer Mark Kopec on Confessed Judgment
It is unusual for a medical malpractice case settlement to provide for several payments over time, like this case. This payment arrangement likely means the doctor and his practice group did not have insurance coverage for this case.
The plaintiff’s lawyer, demonstrating exceptional legal skill, did an excellent job of protecting the plaintiff in the event of nonpayment. The confessed judgment specifically allowed for a prompt judgment without bringing a separate court case. In addition, the liquidated damages clause was a key part of this case. That clause then provided about 75% of the recovery. The provisions that the plaintiff’s lawyer used in the settlement agreement for confessed judgment are above.
Interestingly, the plaintiff almost had to bring a separate case in state court. The federal court’s diversity requirement, which mandates that the damages sought exceed $75,000 for the federal court to have jurisdiction, is a significant legal concept in this case. Fortunately, for the plaintiff, the liquidated damages clause took them over that total, so they did not have to bring a new case in state court.
Although periodic payments are unusual in medical malpractice cases, this case provides a good example of how to do it from the plaintiff’s lawyer’s perspective.
Mark Kopec is a top-rated Baltimore medical malpractice lawyer. Contact us at 800-604-0704 to speak directly with Attorney Kopec in a free consultation. The Kopec Law Firm is in Baltimore and helps clients throughout Maryland and Washington, D.C. Thank you for reading the Baltimore Medical Malpractice Lawyer Blog.