162 Conn.App. 460
Conn. App. Ct.2016Background
- Defendants executed a 2002 home equity line of credit secured by their home; property vacated March 2008 due to separate foreclosure.
- Foreclosure action filed May 4, 2012; default for failure to plead granted August 2, 2012.
- Judgment of strict foreclosure entered September 3, 2013; debt $551,537.51; FMV $450,000; law day October 7, 2013.
- Title vested in plaintiff on October 8, 2013; deficiency action sought under §49-14 and Practice Book §23-19.
- Defendants objected to deficiency judgment in January 2014, raising laches; hearing held June 10, 2014 with stipulated values.
- Trial court held laches did not apply to deficiency proceeding; deficiency of $167,022.23 awarded; appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether laches is a ground for defense in a deficiency proceeding | TD Bank argued laches not relevant to deficiency hearing | Doran/Chase argued laches barred the action | Yes, laches not relevant; affirmed |
Key Cases Cited
- Barclays Bank of New York v. Ivler, 20 Conn. App. 163 (1989) (deficiency process limited to value and debt; not relitigated issues)
- National City Mortgage Co. v. Stoecker, 92 Conn. App. 787 (2006) (strict foreclosure reduces debt by property value; deficiency hearing limited)
- First Bank v. Simpson, 199 Conn. 368 (1986) (strict foreclosure extinguishes rights except for deficiency procedure)
- Citicorp Mortgage, Inc. v. D’Avanzo, 31 Conn. App. 621 (1993) (deficiency hearing determines value as of vesting; issues not relitigated)
- Florian v. Lenge, 91 Conn. App. 268 (2005) (laches and prejudicial delay: factual, reviewed for clear error; legal question on applicability)
- Federal Deposit Ins. Corp. v. Voll, 38 Conn. App. 198 (1995) (deficiency proceeding has limited purpose; defenses like laches not raised)