143 Conn. App. 318
Conn. App. Ct.2013Background
- Plaintiff John J. Doran borrowed $270,400 from Wells Fargo and obtained a construction loan of $925,000 from First Connecticut Capital, secured by a mortgage on land in Deep River.
- Disbursement under the construction loan followed a draw schedule; a July 24, 2007 request for $130,850 was denied due to alleged interest-default.
- Plaintiff's house was never completed; he filed a three-count complaint alleging breach of fiduciary duty, breach of contract, and a CT Unfair Trade Practices Act violation.
- Defendants asserted res judicata and collateral estoppel as defenses; they moved for summary judgment on these defenses on February 10, 2012.
- In a prior foreclosure action (First Connecticut Capital, LLC v. Doran), the record showed a default as of June 1, 2007, and a foreclosure by sale was ordered; the current court found collateral estoppel applied to bar relitigating the default.
- The trial court granted summary judgment for defendants on September 20, 2012, and the appellate court affirmed, concluding the plaintiff was collaterally estopped from relitigating default as of June 1, 2007.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether collateral estoppel bars relitigation of default as of June 1, 2007 | Doran contends collateral estoppel does not apply to foreclose relitigation of default. | Defendants argue the foreclosure judgment decided and required the default as of June 1, 2007, precluding relitigation. | Collateral estoppel applied; default was litigated and necessary in the foreclosure. |
| Whether the foreclosure judgment was a valid basis for estoppel of the current claims | Doran argues the prior action did not determine the precise issues here. | Foreclosure judgment resolved default as of June 1, 2007 and foreclosed further arguments. | Yes; the foreclosure judgment validly estops relitigation of default. |
Key Cases Cited
- Marques v. Allstate Ins. Co., 140 Conn. App. 335 (Conn. App. 2013) (plaintiff bears burden on collateral estoppel questions; appellate review is plenary)
- Himmelstein v. Bernard, 139 Conn. App. 446 (Conn. App. 2012) (collateral estoppel is a question of law for plenary review)
- Coyle Crete, LLC v. Nevins, 137 Conn. App. 540 (Conn. App. 2012) (elements of collateral estoppel: actual litigatio n and essential necessity)
- Jackson v. R. G. Whipple, Inc., 225 Conn. 705 (Conn. 1993) (full and fair opportunity to litigate; finality of judgments)
- Virgo v. Lyons, 209 Conn. 497 ( Conn. 1988) (collateral estoppel requires actual determination and necessity to the judgment)
- Mazziotti v. Allstate Ins. Co., 240 Conn. 799 (Conn. 1997) (protects finality and prevents wasteful relitigation)