320 Conn. 103
Conn.2016Background
- Albert L. Hadley executed a will (Sept. 22, 2010) specifically devising real property at 504 Pequot Ave. to Southport Congregational Church (the church).
- On March 21, 2012 Hadley signed a standard form contract to sell the property to Evelyn Winn; the contract contained a 21‑day mortgage contingency allowing Winn to void the contract if she could not obtain financing by April 16, 2012.
- Hadley pledged the sale proceeds to Cheekwood Botanical Garden by letter dated March 6, 2012. Hadley died March 30, 2012, before the contingency expired or financing was obtained.
- The coexecutors sought probate authorization to sell the property; the church objected, asserting the property passed to it by devise because equitable conversion had not occurred.
- The trial court authorized sale; the Appellate Court reversed, holding the mortgage contingency prevented equitable conversion. The Supreme Court granted certification on whether title passed to the buyer at contract signing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did equitable conversion occur at contract signing despite an unexpired mortgage contingency? | The mortgage contingency was a condition precedent that prevented the contract from being enforceable at signing, so the decedent retained title and the devise to the church was not adeemed. | The contingency was a condition that benefitted the buyer (i.e., a condition subsequent or waiverable buyer protection); the contract was enforceable against the seller at signing, so equitable title passed to the buyer. | The Court held equitable conversion applied: the clause did not make the seller's duty to convey conditional, so equitable title passed to Winn at signing. |
| Does the seller’s waiver of specific performance clause defeat equitable conversion? | Church: waiver of specific performance shows contract was not specifically enforceable, so equitable conversion cannot apply. | Coexecutors/Cheekwood: only specific enforceability against the seller is required; buyer retained specific performance remedy, so doctrine can apply. | The Court held specific performance against the seller was available (buyer retained that remedy), so the waiver did not bar equitable conversion. |
Key Cases Cited
- Salce v. Wolczek, 314 Conn. 675 (Conn. 2014) (equitable conversion vests equitable title in purchaser under executory land sale contract)
- Walpole Woodworkers, Inc. v. Manning, 307 Conn. 582 (Conn. 2012) (applying plenary review to equitable‑doctrine questions)
- Anderson v. Yaworski, 120 Conn. 390 (Conn. 1936) (equitable conversion rests on an enforceable duty of the seller to convey)
- Grant v. Kahn, 198 Md. App. 421 (Md. Ct. Spec. App.) (mortgage contingency treated as condition subsequent; equitable conversion still applied)
- Parson v. Wolfe, 676 S.W.2d 689 (Tex. App. 1984) (mortgage contingency did not prevent equitable conversion when seller died before closing)
- Francini v. Farmington, 557 F. Supp. 151 (D. Conn.) (distinguishing contingencies that operate as conditions precedent to enforcement)
