188 Conn. App. 36
Conn. App. Ct.2019Background
- Town of Canton petitioned under Conn. Gen. Stat. § 12-163a for appointment of a receiver of rents after owner Cadle Properties failed to pay property taxes on contaminated commercial property occupied by M & S Associates (a Volkswagen dealer).
- Court appointed Boardwalk Realty Associates, LLC as receiver to collect rents/use-and-occupancy and to apply funds in statutorily ordered priority.
- Receiver served M & S with a notice to quit and sought authority to collect past-due rent; M & S intervened and challenged receiver actions and later objected to the receiver’s interim accounting.
- M & S claimed § 12-163a required the receiver to pay all utilities supplied after the receiver’s appointment, including utility costs the tenant (M & S) had been paying post-appointment, and sought reimbursement of about $25,000.
- Trial court approved the receiver’s updated interim accounting and held the receiver must pay utilities only if they are the owner’s obligation (e.g., common-area utilities), not tenant-incurred utilities. M & S appealed.
Issues
| Issue | Plaintiff's Argument (Town/Receiver) | Defendant's Argument (M & S) | Held |
|---|---|---|---|
| Whether § 12-163a requires the receiver to pay utilities incurred by tenants after appointment | §12-163a should be read to require payment only of utilities that are the owner’s obligation (e.g., common areas) to preserve funds for taxes and receiver costs | The statute’s plain text requires payment of all enumerated utilities supplied on/after appointment, without distinguishing owner vs. tenant obligations; receiver must reimburse tenant-paid utilities | Receiver is required only to pay utilities that are the owner’s obligation; tenant-incurred utility costs need not be reimbursed |
| Whether literal reading of § 12-163a controls or extratextual evidence may be used | Extratextual evidence and legislative intent support limiting receiver’s utility payments to owner obligations when literal reading produces unworkable/absurd results | Plain meaning is clear and must be followed; receiverships are sui generis and strictly construed | Where literal text yields unworkable result, courts may consult legislative history; legislative purpose shows §12-163a modeled on §16-262f and was not meant to make receivers pay tenant utilities |
Key Cases Cited
- Canton v. Cadle Properties of Connecticut, Inc., 316 Conn. 851 (Conn. 2015) (prior appeal addressing scope of receiver’s authority under §12-163a)
- Rivers v. New Britain, 288 Conn. 1 (Conn. 2008) (use of §1-2z to consult legislative history when plain text yields unworkable result)
- Southern Connecticut Gas Co. v. Housing Authority, 191 Conn. 514 (Conn. 1983) (purpose and limits of utility-related receivership statute §16-262f)
- Connecticut Light & Power Co. v. DaSilva, 231 Conn. 441 (Conn. 1994) (treatment of statutory rent receiverships as sui generis)
