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Civil Procedure Keyed to Field
D.H. Overmyer Co. v. Frick Co.
Facts
Defendant entered a contract with Plaintiff for the manufacture and installation of equipment. Defendant defaulted on its payments and the two parties reached a post-contract agreement whereby Defendant made a partial payment and issued an installment note for the balance owed Plaintiff. Plaintiff completed the work and Defendant accepted it as satisfactory. Defendant again asked for relief on the balance owed to Plaintiff. Attorneys for both corporations participated in the negotiations and created a second note to replace the first. This second note included a “cognovit” clause which allowed Plaintiff to obtain a judgment without notice or hearing to Defendant should Defendant default on interest or principal payments. Defendant later claimed a breach of contract and stopped making payments on this second note. Plaintiff used the cognovit clause to obtain a judgment against Defendant without notice or a hearing. Defendant moved to vacate the judgment and the trial court denied the motion. The state appellate court affirmed and the U.S. Supreme Court granted certiorari.
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