174 Conn. App. 153
Conn. App. Ct.2017Background
- Plaintiffs Reserve Realty, LLC and Theodore Haddad, Sr., executor of Jeanette Haddad’s estate, claim a $1,000,000 broker’s lien on Windemere Reserve, LLC’s parcel 15 based on a purchase and sale agreement and related exclusive listing agreements.
- Plaintiffs recorded the broker’s lien on May 10, 2013 and filed this foreclosure action on May 8, 2014.
- In a related breach of contract action, the trial court held the agreements between the parties invalid and unenforceable; that decision is reported at Reserve Realty, LLC v. Windemere Reserve, LLC.
- The parties in the present action stipulated that the prior memorandum of decision meant plaintiffs could not show probable cause to sustain the lien under Conn. Gen. Stat. § 20-325e; the trial court discharged the lien per that stipulation.
- Plaintiffs reserved appellate rights and appealed, advancing three claims that mirror their challenges in the prior appeal.
- The trial court later allowed substitution of the broker’s lien with a surety bond; that substitution does not affect the appellate outcome.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the purchase and sale agreement was an illegal tying arrangement under the Connecticut Antitrust Act | The agreement illegally tied purchase to listing/commission obligations, so it is enforceable for fees | The agreement constituted an illegal tying arrangement and is invalid | Court affirmed that the agreement was illegal tying and not enforceable |
| Whether the listing agreements complied with Conn. Gen. Stat. § 20-325a | Listings satisfied statutory formalities and should support the lien | Listings failed to comply with § 20-325a and are invalid | Court held the listings did not meet statutory requirements and were unenforceable |
| Whether the listing agreements were personal to Jeanette Haddad and thus unenforceable by plaintiffs (estate/Reserve Realty) | Plaintiffs asserted rights to enforce commissions despite personal nature | Defendant argued agreements were personal to Jeanette Haddad and not assignable/enforceable by others | Court held agreements were personal and plaintiffs could not enforce them |
Key Cases Cited
- Reserve Realty, LLC v. Windemere Reserve, LLC, 174 Conn. App. 130 (Conn. App. 2017) (prior appellate decision holding the parties’ agreements invalid and unenforceable)