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Contracts Keyed to Murray
Germantown Mfg. Co. v. Rawlinson
Facts
Robert Rawlinson (Defendant) was fired from The German town Manufacturing Company (Plaintiff) for embezzling $327,011.22. Rawlinson told his wife, Joan (Defendant), that he had taken about $20,000 from the company. Plaintiff’s representative visited the Defendants’ home and had them sign two judgment notes, consenting to the entry of judgments against them. The first note was for $160,000. The representative told the Defendants that, since they had $160,000 readily available, the judgment was effectively already satisfied. The second note was for an amount established by an affidavit from the president of Plaintiff. The affidavit was not presented to the Defendants. Plaintiff’s representative told the Defendants that Plaintiff had no interest in pursuing criminal prosecution if the Defendants cooperated. Later, the president of Plaintiff completed his affidavit, showing a total amount owed on the second note of $212,113.21, which included over $45,000 in interest. The lower court allowed Joan’s judgment on the second note to be reopened on the grounds of fraud, misrepresentation, duress, and lack of accountability for the amount included in the second note. Plaintiff appealed.
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