174 Conn. App. 150
Conn. App. Ct.2017Background
- Plaintiffs Reserve Realty, LLC and Theodore Haddad, Sr. (executor of Jeanette Haddad's estate) claimed a 3% broker's commission and recorded a broker's lien on parcel 13 based on listing agreements and a purchase and sale agreement with BLT Reserve, LLC (BLT).
- Plaintiffs sued to foreclose the broker's lien after earlier filing a separate breach of contract action concerning the same purchase and sale and listing agreements.
- In the prior breach of contract action the trial court held the listing agreements were invalid and unenforceable; that decision was reported at Reserve Realty, LLC v. Windemere Reserve, LLC.
- Following that decision, parties stipulated in the foreclosure action that plaintiffs could not show probable cause to sustain the lien under Conn. Gen. Stat. § 20-325e, but plaintiffs reserved appellate rights.
- The trial court entered judgment discharging the broker's lien; plaintiffs appealed, raising the same three claims decided against them in the earlier appeal.
- The appellate court held the present appeal must be governed by the prior decision and affirmed the judgment discharging the lien.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the purchase and sale agreement was part of an illegal tying arrangement under the Connecticut Antitrust Act | The agreement constituted an illegal tying arrangement, invalidating the sale terms that defeated their commission claim | The agreement did not constitute illegal tying; prior ruling foreclosed plaintiffs' claim | Court affirmed that the prior decision controlled and rejected plaintiffs' tying claim |
| Whether the listing agreements complied with Conn. Gen. Stat. § 20-325a | Listing agreements complied with statute and supported the broker's lien | Listing agreements failed to meet statutory requirements and thus were invalid | Court held listing agreements were invalid as decided in the prior case |
| Whether the listing agreements were enforceable or personal to Jeanette Haddad | Plaintiffs asserted the agreements were enforceable and assignable to Reserve Realty/the estate | BLT argued the agreements were personal to Jeanette Haddad and not enforceable by plaintiffs | Court agreed the prior ruling that the agreements were unenforceable by plaintiffs |
| Whether the foreclosure action could proceed given the prior judgment and stipulation | Plaintiffs argued they retained appellate rights and the lien should survive absent final determination | BLT argued the prior judgment and stipulation required discharge of the lien | Court affirmed discharge of the lien, applying the prior decision as controlling |
Key Cases Cited
- Reserve Realty, LLC v. Windemere Reserve, LLC, 174 Conn. App. 130 (Conn. App. 2017) (appellate decision holding the listing agreements invalid and unenforceable, which controlled disposition of the foreclosure appeal)