Citibank, N.A. v. Lindland
131 Conn. App. 653
| Conn. App. Ct. | 2011Background
- Foreclosure by sale proceeded under a mistaken equity analysis; IndyMac's priority mortgage was not disclosed to buyers.
- Sale occurred October 8, 2008; Olsen was the successful bidder and later deeded title to LLC.
- Title vested in Olsen on January 21, 2009, prior to any open/vacate motion dispute.
- Olsen later learned IndyMac had a priority mortgage; the court's notices omitted IndyMac from lien priorities.
- Olsen and LLC sought to intervene and/or open the judgment after title vested; Citibank opposed; court granted opening, which is reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to open after title vested | Citibank asserts court lacked authority once title vested | Olsen asserts equitable relief and court discretion justify opening | Court lacked authority to open after title vested; reversal of opening judgment |
| Standing to intervene in supplemental proceedings | Citibank contends no proper standing for Olsen/LLC to seek refunds | Olsen/LLC claim direct injury from process errors and seek relief | Neither Olsen nor LLC had standing to intervene; remand to deny motion to open |
Key Cases Cited
- Citicorp Mortgage, Inc. v. Burgos, 227 Conn. 116 (1993) (success bidder could seek undoing sale but title not vested yet)
- New Milford Savings Bank v. Jajer, 244 Conn. 251 (1998) (court authority to open judgments; scope of authority when title issues arise)
- New Milford Savings Bank v. Mulville, 56 Conn.App. 521 (2000) (appeal jeopardized bidder's right to purchase subject property)
- Kim v. Magnotta, 249 Conn. 94 (1999) (timeliness vs. substantive authority for opening judgments)
- Connecticut Savings Bank v. Howes, 9 Conn. App. 446 (1987) (title considerations post-foreclosure; equity considerations)
- Falls Mill of Vernon Condominium Assn., Inc. v. Sudsbury, 128 Conn. App. 314 (2011) (discretionary review of open judgments; four-month limit nuances)
- Moran v. Morneau, 129 Conn.App. 349 (2011) (supplemental proceedings and distribution of sale proceeds)
- Connecticut Savings Bank v. Obenauf, 59 Conn. App. 351 (2000) (review of equitable relief in foreclosure context)
- New Milford Savings Bank v. Mulville, 56 Conn.App. 521 (2000) (appeal jeopardized bidder's right to purchase subject property)