PIC Associates, LLC v. Greenwich Place GL Acquisition, LLC
2011 Conn. App. LEXIS 201
Conn. App. Ct.2011Background
- PIC Associates, LLC and Greenwich Place GL Acquisition, LLC are successors in interest to a 50‑year ground lease for Putnam Green in Greenwich, housing 48 apartment units on the premises.
- Antares Putnam Green IV, SPE, LLC, as former lessee, allowed numerous mechanic's liens on the premises; PIC claimed default due to those liens in December 2007.
- In January 2008, Antares’s assignment to Greenwich Place occurred; Radco Management, LLC began managing for the defendant, which posted a $2,108,733 surety bond for liens on January 24, 2008.
- Rent for January 2008 was not paid on time; February 2008 rent followed after a notice to quit was issued on February 1, 2008.
- Counts 1 and 2 alleged entitlement to possession for nonpayment of January 2008 rent and failure to discharge mechanic's liens, respectively; defendant pleaded equitable nonforfeiture as a defense.
- Trial court found negligence, not wilful or gross negligence, in the rent nonpayment and in bonding the liens, concluded equitable nonforfeiture applied, and entered judgment for defendant.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether equitable nonforfeiture applies to rent nonpayment | PIC argues nonforfeiture not proven; rent delay was wilful or grossly negligent. | Greenwich Place argues delay was negligence, not gross negligence, and equity favors nonforfeiture due to improvements and reparable harm. | Yes; equitable nonforfeiture proven for rent nonpayment. |
| Whether equitable nonforfeiture applies to mechanic's liens | PIC contends bond was inadequate and delay harmed landlord; no renewal in equity. | Greenwich Place contends bond and efforts to cure liens were reasonable; delay reparable and not grossly negligent. | Yes; equitable nonforfeiture proven for liens. |
| Whether the court erred in treating the rent delay as negligence rather than gross negligence | Delay constituted gross negligence or wilful failure. | Delay was negligence, not wilful or gross; appropriate under nonforfeiture doctrine. | Negligence, not gross negligence; supports nonforfeiture. |
| Whether any delay in bonding off liens was slight or attributable to landlord conduct | Delay was not slight and largely caused by defendant. | Delay partly caused by plaintiff's failure to respond; defendant acted promptly to cure liens. | Delay not purely slight; landlord contributed; no abuse of discretion. |
| Whether the tripartite standard governs this case | Tripartite standard should apply to lien issue. | Tripartite standard is inapplicable; equitably tailored standard applies to each basis of default. | Tripartite standard inapplicable to these facts. |
Key Cases Cited
- Cumberland Farms, Inc. v. Dairy Mart, Inc., 225 Conn. 771 (1993) (equitable nonforfeiture requires limited harm, reparability, and nonwilful breach)
- Hanks v. Powder Ridge Restaurant Corp., 276 Conn. 314 (2005) (gross negligence defined as very great negligence or lack of due care)
- 19 Perry Street, LLC v. Unionville Water Co., 294 Conn. 611 (2010) (equitable relief when delay is due to good faith and remedies are available)
- F.B. Fountain Co. v. Stein, 97 Conn. 619 (1922) (delay in fulfilling a condition precedent may be relieved in equity if slight and reparable)
- Elliott v. South Isle Food Corp., 6 Conn.App. 373 (1986) (distinguishes landlord’s remediation of liens and equity relief based on conduct)
- HUD/Willow Street Apartments v. Gonzalez, 68 Conn. App. 638 (2002) (summary process must be narrowly construed; equity defenses available)
- Cumberland Farms, Inc. v. Dairy Mart, Inc., 225 Conn. 771 (1993) (landlord’s delay may be offset by tenant’s good faith and reparability of loss)
- 19 Perry Street, LLC v. Unionville Water Co., 294 Conn. 611 (2010) (emphasizes balancing equity in nonforfeiture context)