182 Conn. App. 483
Conn. App. Ct.2018Background
- Deutsche Bank (as trustee for a New Century trust) sued Alvin Pollard to foreclose a mortgage on his Bloomfield residence; Pollard answered with special defenses and a six-count counterclaim.
- Pollard’s counterclaim alleged, among other things, that Deutsche Bank lacked standing and that the mortgage lien and debt were discharged in his Chapter 7 bankruptcy.
- Deutsche Bank moved for summary judgment as to liability on the complaint and on Pollard’s counterclaim; the trial court granted summary judgment and later denied Pollard’s motion to reargue.
- On appeal, this court dismissed the challenge to summary judgment on the complaint for lack of a final judgment, leaving only review of the ruling on the counterclaim.
- The trial court (and the appellate panel) applied the Practice Book §10-10 “transaction test” and concluded Pollard’s counterclaims did not sufficiently relate to the making, validity, or enforcement of the note or mortgage.
- The court also rejected Pollard’s contention that his Chapter 7 discharge eliminated the mortgage lien, explaining secured liens survive discharge unless avoided by the bankruptcy court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Pollard’s counterclaim satisfies the transaction test (i.e., relates to the making, validity, or enforcement of the note/mortgage) | Deutsche Bank: counterclaim lacks sufficient nexus to the note or mortgage and is legally insufficient | Pollard: trial court construed the transaction test too narrowly; his claims are related to the mortgage and therefore survive | Court: affirmed — counterclaim fails the transaction test; no abuse of discretion in concluding insufficient nexus |
| Whether Pollard’s Chapter 7 discharge eliminated the mortgage lien on the property | Deutsche Bank: secured lien survives the debtor’s discharge unless avoided/eliminated by the bankruptcy court | Pollard: discharge relieved him of the underlying obligation and thus the mortgage lien | Court: rejected Pollard’s claim — bankruptcy discharge does not automatically eliminate a secured creditor’s lien absent avoidance/elimination by the bankruptcy court |
Key Cases Cited
- U.S. Bank Natl. Assn. v. Sorrentino, 158 Conn. App. 84 (Conn. App. Ct.) (transaction test and review of summary judgment explained)
- Morgera v. Chiappardi, 74 Conn. App. 442 (Conn. App. Ct.) (trial court’s transaction-test discretion reviewed for abuse)
- CitiMortgage, Inc. v. Rey, 150 Conn. App. 595 (Conn. App. Ct.) (illustrates that a counterclaim may satisfy the transaction test even if it does not directly attack the mortgage or note)
- Danbury v. Hovi, 34 Conn. App. 121 (Conn. App. Ct.) (appeal dismissed for lack of final judgment when only liability was decided)
- Essex Savings Bank v. Frimberger, 26 Conn. App. 80 (Conn. App. Ct.) (same principle regarding finality of summary judgment on liability)