Ewing Oil, Inc. v. John T. Burnett, Inc.

441 N.J. Super. 251 (2015)

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Ewing Oil, Inc. v. John T. Burnett, Inc.

New Jersey Superior Court
441 N.J. Super. 251 (2015)

Facts

John T. Burnett, Inc. (JTB) (defendant) owned and operated gas stations. JTB purchased petroleum products from Ewing Oil, Inc. (Ewing) (plaintiff). Ewing required John T. Burnett to execute a personal guarantee for JTB’s financial obligations to Ewing. The guarantee provided that Maryland state courts would have exclusive jurisdiction over any disputes arising under the guarantee, but the guarantee could be enforced in New Jersey state courts. The guarantee further contained a cognovit clause consenting and confessing to a judgment against Burnett in any action brought pursuant to the guarantee. When JTB was in arrears on its account with Ewing, Ewing filed suit against JTB in Maryland state court, obtaining a default judgment against JTB. That same day, Ewing entered a judgment by confession against Burnett, and Burnett was served with the judgment. Ewing then filed the judgment in New Jersey. Burnett died shortly later, and Burnett’s estate (the estate) (defendant) moved to vacate the judgment against Burnett. The lower court denied the motion, and the estate appealed, arguing that because Burnett was not given prejudgment notice of the Maryland judgment, his due-process rights had been violated. Further, the estate argued that the guarantee’s waiver of prejudgment notice was not voluntarily, intelligently, and knowingly made.

Rule of Law

Issue

Holding and Reasoning (Lihotz, J.)

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