Confessed or stipulated judgments are fairly common in the pre-litigation and litigation contexts, and disputes in the cannabis industry are no different. They are slightly different concepts so here’s an overview of both, why they might be the best-case scenario for you, and how to make sure they’re effective (provided a court is willing to accept the filing).
Confession of Judgment
A confession of judgment allows a judgment to be entered for money due or to become due. Once a confession is entered with the court, it is just as enforceable as any other judgment. Amazingly, it can be obtained before a lawsuit is even filed – which makes it an awesome and highly efficient resolution in any dispute setting. However, it is quite rare and difficult to obtain because few defendants (or would-be defendants) will agree to it. In some cases though, we have seen would-be defendants agree to a confession of judgment when they understand that the alternative – litigation – is ultimately not going to be worth it because their chances of success are low, they don’t have the funds to defend a lawsuit, etc.
Of course, because it involves the defendant contracting away its rights