Legal Definitions - warrant of attorney

A warrant of attorney is a legal document, now largely considered archaic in many jurisdictions, that grants a specific type of authority to a lawyer. Historically, it was a written authorization given by a client to a lawyer allowing that lawyer to appear in court on the client's behalf and "confess judgment" in favor of a particular party, typically a creditor. This meant the lawyer could admit the client owed a debt or was liable, leading to a judgment being entered against the client without the need for a full trial or legal dispute.

This power was usually given as a form of security for an obligation, such as a loan. Its purpose was to allow the creditor to obtain a judgment quickly and efficiently if the debtor defaulted, bypassing the time and expense of a traditional lawsuit. The warrant often specifically instructed the attorney not to take any actions that might delay the judgment.

Here are some examples illustrating how a warrant of attorney might have been used:

• Business Loan Agreement: Imagine a small business owner, Sarah, needed a loan to expand her bakery. When she secured a loan from a private lender, the loan agreement included a clause for a warrant of attorney. This meant that if Sarah's business failed to make its loan payments, the lender could present the warrant of attorney to a court. A lawyer, pre-authorized by Sarah through the warrant, would then appear and "confess judgment," acknowledging the debt on Sarah's behalf. This allowed the lender to obtain a court order for repayment much faster than if they had to file a lawsuit and go through a full trial process.
• Promissory Note for a Personal Debt: John borrowed a significant sum of money from a friend, Lisa, and signed a promissory note outlining the repayment terms. To provide Lisa with extra assurance, John also signed a warrant of attorney as part of the agreement. If John later defaulted on the loan, Lisa could use this warrant to have a lawyer confess judgment against John, allowing her to quickly secure a court order for the outstanding amount without needing to prove the debt in a contested court hearing.
• Commercial Lease Agreement: A company, "Tech Innovations Inc.," leased office space in a commercial building. The lease agreement included a warrant of attorney clause. If Tech Innovations Inc. failed to pay rent for several months, the landlord could invoke this warrant. A lawyer, acting under the authority granted by the warrant, would confess judgment for the unpaid rent on behalf of Tech Innovations Inc. This streamlined the process for the landlord to obtain a judgment for the owed money, potentially allowing them to pursue collection actions more swiftly than if they had to initiate a standard lawsuit for breach of contract.