Kennedy Funding, Inc. v. Greenwich Landing, LLC
135 Conn. App. 58
Conn. App. Ct.2012Background
- Kennedy Funding filed a strict foreclosure action on a mortgage securing Greenwich Landing’s promissory note; Wahba guaranteed the note.
- The mortgage was executed February 27, 2007, and the note identically secured the loan; Wahba guaranteed the note September 1, 2008.
- The plaintiff accelerated the note after a missed payment and began foreclosure proceedings; title to the property passed to Kennedy in 2010.
- Defendants moved to dismiss claiming Kennedy lacked standing as not owner of the debt and as an agent for undisclosed principals.
- The trial court denied the motion to dismiss; on appeal the issue is whether a holder of a note can foreclose before mortgage assignment when the note names an agent for disclosed principals.
- The court holds that under § 49-17 and RMS Residential Properties v. Miller, the holder may foreclose and is authorized to sue as the creditor-holder despite the note’s agency designation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a note holder has standing to foreclose before mortgage assignment when the note lists disclosed principals. | Kennedy Funding is holder/payee and authorized to enforce. | Lenders’ collection agent lacks authority to sue. | Yes; holder has standing to foreclose. |
Key Cases Cited
- RMS Residential Properties, LLC v. Miller, 303 Conn. 224 (2011) (holder may foreclose before assignment; standing broad under § 49-17)
- Chase Home Finance, LLC v. Fequiere, 119 Conn.App. 570 (2010) (supporting standing analysis prior to RMS decision)
- Second Exeter Corp. v. Epstein, 5 Conn.App. 427 (1985) (collection agent lacking authority to sue in own name)