Underwood Farmers Elevator v. Leidholm
North Dakota Supreme Court
460 N.W.2d 711 (1990)
After drought prevented Leidholm (defendant) from delivering contracted oats to the Elevator (plaintiff), a delay in allowing him to buy out the contract ballooned his liability from roughly $750 to $29,750 as market prices rose; Leidholm signed a confession of judgment for that amount after allegedly being told by the Elevator's manager it was a mere accounting formality with repayment terms to be worked out, and when judgment was later entered and enforced, the trial court denied his motion to vacate without a hearing.
Whether a confession of judgment is valid without evidence that the allegedly liable party's waiver of pre-judgment notice and a hearing was voluntary, knowing, and intelligently made.