Park National Bank v. 3333 Main, LLC
127 Conn. App. 774
| Conn. App. Ct. | 2011Background
- Defendant 3333 Main, LLC executed a $748,000 promissory note payable to GreenPoint Mortgage Funding on April 27, 2007, secured by a mortgage on Stratford property.
- Plaintiff Park National Bank filed a foreclosure complaint on October 31, 2008 alleging default began June 1, 2008.
- Gruner affidavit (first) claimed GreenPoint assigned the note and mortgage to plaintiff via May 4, 2008 assignment recorded June 23, 2008 and a March 2, 2009 corrective assignment, but the 2009 corrective assignment was not properly dated.
- Defendant argued plaintiff lacked standing because the record did not show plaintiff owned the note at filing time (October 2008).
- Plaintiff later asserted (second Gruner affidavit) that it purchased the note on March 17, 2008, claimed possession of the original note and that an undated endorsement to plaintiff existed, with the 2008 assignment reflecting a February 29, 2008 date not notarized until May 4, 2007 and recorded June 23, 2008.
- Trial court granted summary judgment as to liability on January 22, 2010 and entered a judgment of strict foreclosure.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiff had standing to foreclose | Plaintiff was owner/holder of the note at filing time | Record evidence showed plaintiff lacked holder status at filing | Judgment reversed for evidentiary hearing on standing |
| Whether the court should resolve standing before merits | No need to reargue standing; merits proceed | Standing must be resolved first | Remand for hearing to determine plaintiff's status as holder at filing |
| What procedure is appropriate when there is a fact dispute about note ownership | Sufficient evidentiary record supports ownership | Factual disputes require an evidentiary hearing | Evidentiary hearing required to determine ownership/holder status |
Key Cases Cited
- Ajadi v. Commissioner of Correction, 280 Conn. 514 (2006) (subject matter jurisdiction may be raised at any time)
- Equity One, Inc. v. Shivers, 125 Conn.App. 201 (2010) (jurisdiction hinges on factual determination of holder status; hearing required)
- Deutsche Bank National Trust Co. v. Bialobrzeski, 123 Conn.App. 791 (2010) (standing issues affect jurisdiction and merits)
- LaSalle Bank, National Assn. v. Bialobrzeski, 123 Conn.App. 781 (2010) (standing determination necessary prior to merits)
- Seymour v. Region One Board of Education, 274 Conn. 92 (2005) (burden on plaintiff to prove standing)
- Blakeney v. Commissioner of Correction, 47 Conn.App. 568 (1998) (lack of standing yields lack of subject matter jurisdiction)
- Fleet National Bank v. Nazareth, 75 Conn.App. 791 (2003) (statutory implications of possession and foreclosure rights)