Pederson v. Potter

George and Sula Potter and Marvin and Terri Pederson executed a settlement and release as the *66result of the Pedersons’ inability to meet their obligations to the Potters with respect to the sale of a business. The Pedersons failed to meet their obligations under the release, thereby permitting the Potters to execute a confession of judgment. The Pedersons thereafter sued the Potters for damages resulting from the initial sale. The Potters moved to dismiss the suit on the basis of res judicata. The court denied the motion, finding res judicata did not apply because the confession of judgment…