Bender v. BenderBender v. Bender
Opinion
The defendants, Edward Bender and Clara Bender, in their capacity as executors of the estate of Edward Stebner (decedent), appeal 1 from the judgment of the trial court in favor of the plaintiffs, John Bender and Carl Bender, on their claim for specific performance of a contract for the sale of real property held by the estate. The principal issue in this appeal is whether res judicata barred the plaintiffs from bringing an action in the Superior Court for breach of contract and specific performance of the contract after the Probate Court had denied the plaintiffs’ petition for an order for specific performance of the contract. The defendants also challenge the trial court’s conclusions that the action could proceed without the residuary beneficiaries of the decedent’s will, that there was a valid contract of sale, and that the contract could not be avoided under any of the defenses raised. We conclude that, because the Probate Court lacked jurisdiction over the claims brought in the Superior Court, res judicata did not bar the present action. In addition, we conclude that the trial court properly ordered specific performance of the underlying contract. Accordingly, we affirm the judgment of the trial court.
The record reveals the following procedural history and undisputed facts. On July 16, 2002, the decedent died testate, leaving a will naming the defendants as executors. 2 In addition to specific devises of personal property to the defendants, the will named as residuary beneficiaries the defendants’ five grandchildren and the Ebenezer Lutheran Church of Willimantic. The decedent’s estate included a parcel of undeveloped land in Hampton (property), which was not specifically devised to any beneficiary. The will expressly authorized the defendants, as executors, to make any division of the estate required therein, to determine what property should be included in each share, and to sell the decedent’s real property without the permission or oversight of the Probate Court or any other court.
The plaintiffs then filed a petition for an “order of sale of real property” in the Probate Court, seeking to compel the defendants in their capacity as executors to conduct a closing and convey the property. The Probate Court denied the petition.
The plaintiffs did not appeal from the Probate Court’s judgment, but instead filed a two count complaint in the Superior Court seeking specific performance and damages for breach of contract. The defendants filed an answer denying that they had entered into a contract and advancing numerous special defenses. Thereafter, the defendants filed a motion for summary judgment on the grounds that: (1) the Superior Court lacked subject matter jurisdiction because the plaintiffs were not before it pursuant to an appeal from the Probate Court’s judgment; (2) the plaintiffs’ claims were barred by res judicata in light of the previous Probate Court judgment; (3) the defendants lacked authority to complete the real estate transaction; and (4) the plaintiffs had failed to join the decedent’s residuary beneficiaries as indispensable party defendants.
The trial court, Martin, J., denied the motion for summary judgment on all grounds. With respect to the defendants’ jurisdictional and res judicata claims, the court first concluded that the plaintiffs’ claim for breach of contract, which sought damages, was a distinct action from the plaintiffs’ claim for specific performance, which sought an equitable remedy. The trial court concluded that res judicata did not bar a Superior Court action on the breach of contract claim because the Probate Court could not award damages. The trial court further concluded that the Probate Court was not a court of competent jurisdiction for the plaintiffs’ specific performance claim because that court has no equitable jurisdiction unless such a claim arises in the context of another matter properly pending before it, which was not so in the present case. The trial court therefore concluded that res judicata did not bar the plaintiffs’ claim for specific performance, and, as a result, the plaintiffs were not required to appeal from the Probate Court judgment in order for the Superior Court to have jurisdiction.
After a trial to the court, the trial court,
Robaina, J.,
issued a decision dismissing the plaintiffs’ count seeking damages for breach of contract because the plaintiffs had offered no evidence as to damages from the alleged breach, but rendering judgment in favor of the plaintiffs on the count for specific performance.
3
In addressing the defendants’ res judicata and jurisdictional defenses, Judge Robaina adopted Judge Martin’s decision denying summary judgment as the law of the case. Regarding the merits of the plaintiffs’ specific
On appeal, the defendants raise legal and factual challenges to the trial court’s judgment that fall into essentially the following three categories. First, they claim that the trial court improperly concluded that the plaintiffs could proceed on their action in light of the res judicata effect of the Probate Court judgment and the plaintiffs’ failure to appeal from that judgment. Second, they claim that the trial court improperly concluded that the absence of the decedent’s residuary beneficiaries did not defeat the plaintiffs’ claim. Third, the defendants claim that the trial court improperly concluded that the contract was enforceable because it improperly found that the agreement: (1) was sufficiently definite and mutually assented to, rather than abandoned by the parties; and (2) was neither the result of mistake nor unconscionable. We disagree and, accordingly, we affirm the judgment of the trial court. Additional facts will be set forth as needed.
I
The defendants raise a jurisdictional claim, which we typically would address as a threshold matter. See
Chapman Lumber, Inc.
v.
Tager,
The record reveals the following additional undisputed facts. The plaintiffs’ petition in Probate Court named as respondents the defendants in their capacity as executors of the decedent’s estate. The petition requested that the Probate Court “enter an order directing the Fiduciaries to conduct a closing of the Real Estate Purchase Contract and to convey the Property as they have agreed to do.” The plaintiffs alleged therein, inter alia, that: the defendants were authorized under the will to sell the decedent’s real property without permission of the Probate Court; the plaintiffs and the defendants had entered into a valid real estate purchase contract; and the defendants neither had conducted a closing nor conveyed the property to the plaintiffs in accordance with their contract. The plaintiffs’ petition did not state a basis on which they claimed the Probate Court could exercise jurisdiction.
After a hearing, the Probate Court denied the petition, making the following determinations in support of its decision. The court first stated that it “has jurisdiction to approve [the] sale of land in an estate upon petition of executors if it is in the interest of all beneficiaries and is necessary to satisfy claims against the estate.” The court then noted that the plaintiffs were not the executors, and that the defendants as the executors had not petitioned the court for permission to sell the land. Finally, the court found that there was no evidence that the proposed sale was in the best interest of the affected beneficiaries or that the sale of the land was necessary to satisfy claims against the estate. The Probate Court’s decision did not cite to any statutory ground for jurisdiction, or its lack thereof.
As we previously have noted, Judge Robaina adopted Judge Martin’s decision denying the defendants’ motion for summary judgment as the law of the case regarding the defendants’ res judicata and jurisdictional defenses. As a general rule, “absent exceptional circumstances,
a denial of a motion for summary judgment is not appealable where a full trial on the merits produces a verdict against the moving party . . .
.” Pelletier v. Sor-doni/Skanska Construction Co.,
Before addressing the merits of the defendants’ claim, we first set forth the proper standard of this court’s review and certain well settled principles guiding our resolution of res judicata claims. Whether the trial court properly applied the doctrine of res judicata to the facts of the case is a question of law meriting plenary review.
Powell
v.
Infinity Ins. Co.,
The general parameters of Probate Court jurisdiction are well settled. “The Probate Court is a court of limited jurisdiction prescribed by statute, and it may exercise only such powers as are necessary to the performance of its duties.”
Heussner
v.
Hayes,
Although the trial court analyzed the defendants’ res judicata claim regarding the specific performance count
solely on the basis of the Probate Court’s lack of equitable jurisdiction, possibly because the defendants never cited
“When construing a statute, [o]ur fundamental objective is to ascertain and give effect to the apparent intent of the legislature. ... In other words, we seek to determine, in a reasoned manner, the meaning of the statutory language as applied to the facts of [the] case, including the question of whether the language actually does apply. ... In seeking to determine that meaning, General Statutes § l-2z directs us first to consider the text of the statute itself and its relationship to other statutes. If, after examining such text and considering such relationship, the meaning of such text is plain and unambiguous and does not yield absurd or unworkable results, extratextual evidence of the meaning of the statute shall not be considered. . . . When a statute is not plain and unambiguous, we also look for interpretive guidance to the legislative history and circumstances surrounding its enactment, to the legislative policy it was designed to implement, and to its relationship to existing legislation and common law principles governing the same general subject matter . . . .” (Internal quotation marks omitted.)
State
v.
Tabone,
We begin our analysis with the text of the relevant statute.
Accordingly, we turn to the genealogy and legislative history of the statutes governing Probate Court jurisdiction to resolve the ambiguity. The provision that is now codified at
In 1991, the legislature appointed a task force to study the probate court system and make recommendations for reform. Spec. Acts 1991, No. 91-19. Task force membership consisted of, inter alia, the Probate Court administrator and three Probate Court judges. Among
other topics, the task force was directed to examine the jurisdiction of the probate courts. Spec. Act 91-19, § 1. The task force thereafter submitted its findings in a document captioned “Report to the Governor and the 1992 Session of the Connecticut General Assembly” (Task Force Report). The task force made several major recommendations, including changes to the structure and financing of probate courts.
The task force proposed additional draft legislation, which also was adopted by the legislature, that would permit a party to remove a claim to the Superior Court that otherwise properly had been brought to the Probate Court under
A report from the Probate Court administrator’s office (administrator) produced shortly after the enactment of
In sum, the limited incidental jurisdiction exercised by the probate courts over real property prior to 1993, the narrow purpose stated in the task force report, the testimony provided by Judge Killian to the judiciary committee, the legislature’s adoption of the exact language proposed by the task force, and the education thereafter provided to probate judges as to property matters solely relating to title, indicate that the legislature intended to grant the Probate Court limited additional jurisdiction. In particular, the legislature intended
In the present case, therefore, the Probate Court did not have jurisdiction over the plaintiffs’ action for specific performance. The claim involved no dispute as to whether the title to that the property was in fact an asset of the decedent’s estate, as required for jurisdic
tion under
II
We therefore turn to the merits of the trial court’s decision granting specific performance. The defendants claim that the trial court improperly rejected two of their special defenses relating to the residuary beneficiaries’ absence from the action. Specifically, the defendants claim that, because title to the property in the estate passed by operation of law to the residuary beneficiaries: (1) the defendants lacked authority to sell the property; and (2) the plaintiffs’ cause of action must fail because the residuary beneficiaries were not made parties to the action. We conclude that the trial court properly rejected the special defenses because: (1) the defendants had express authority under the decedent’s will to sell the property as part of their duties as executors; and (2) executors may sue and be sued without joining the persons represented by them and beneficially interested in the action.
As we previously have noted, the will named Ebe-nezer Lutheran Church as a residuary beneficiary as to one third of the residue of the estate and named the defendants’ five grandchildren as residuary beneficiaries as to the remaining two thirds of the residue. The will included no specific devises of the decedent’s real property. The will authorized the defendants, as executors, to make any necessary division of the estate, and to determine what property should be included in each share. In addition, the will gave the defendants, as executors,
The record reveals the following additional procedural history. The defendants filed a motion to strike the plaintiffs’ complaint for failure to join necessary parties with an interest in the subject of the action, namely, the residuary beneficiaries. The trial court,
Riley, J.,
denied the motion on the ground that the defendants had not properly identified the allegedly necessary parties pursuant to
A
We first address the defendants’ claim that the trial court improperly found that the defendants had authority, as executors, to sell the property. Whether parties to a contract have the authority to create a contract is a question of fact. Cf.
Maharishi School of Vedic Sciences,
Inc. (Connecticut)
v.
Connecticut Constitution Associates Ltd. Partnership,
Both our common law and our statutory law support the trial court’s decision that the defendants were entitled to sell the property, which, as we previously have noted, was not specifically devised to anyone, including the residuary beneficiaries. We first note that this court explicitly has recognized that a testator may give an executor the power to sell real property without the permission or supervision of a court.
Gilman
v.
Gil-man,
It is true, as the defendants claim, that, upon the death of an owner of real property, title to the decedent’s property passes to his or her heirs.
Stepney Pond Estates, Ltd.
v.
Monroe;
In the present case, the plain language of the will gave the defendants, as executors, the express authority to sell real property belonging to the estate. The defendants were in possession of the property as part of their duties as executors of the estate. Any sale that they entered into constituted a transfer from the estate, not from the beneficiaries. As such, nothing in the record or the law convinces us that the trial court’s finding that the defendants had authority to enter a contract for the sale of the decedent’s property was clearly erroneous.
B
We next address the defendants’ claim that the trial court improperly rejected their special defense that the plaintiffs’ action must fail because the plaintiffs did not join the residuary beneficiaries as indispensable party defendants.
23
With respect to our standard of review,
we note that the trial court determined only that no legal authority supported the defendants’ contention that the residuary beneficiaries must be joined in the action. The trial court made no findings of fact concerning the joinder claim, nor did it base its conclusion on any construction of the will. Moreover, the facts underlying the defendants’ joinder claims are undisputed. Accordingly, the trial court’s determination that the residuary beneficiaries were not indispensable parties is a question of law, subject to plenary review. See
Webster Bank
v.
Zak,
We first note that
Our case law farther supports this conclusion. Parties are indispensable only “when their interest in the controversy is such that a final decree cannot be made without either affecting that interest or leaving the controversy in such condition that its final disposition may be inconsistent with equity and good conscience.” (Internal quotation marks omitted.)
Hilton
v.
New Haven,
The defendants cite to several cases for the proposition that, because title to property in the decedent’s estate automatically devolved to the beneficiary heirs, they are indispensable parties to claims involving title to such property. These cases, however, involve title disputes over whether a given property belonged to an estate. See, e.g.,
Cardillo
v.
Cardillo,
supra,
Ill
The defendants next claim that the trial court improperly rejected their special defenses that the agreement was not sufficiently definite and certain and that the parties’ conduct indicated that any such agreement was later abandoned for lack of mutual assent. The defendants first contend that, because they believed that the signed agreement was contingent on approval of counsel for the estate and that this “material term” was absent from the agreement, there was never mutual assent to the terms of that contract. They further point to the parties’ inability to agree on additional terms after signing that agreement, specifically, the cleanup of the premises, the amount of the deposit and the drafting of the “option contract,” as evidence that the parties mutually assented to abandon that initial agreement. We disagree that the trial court’s rejection of these claims was improper.
The record reveals the following additional undisputed facts and procedural history. The parties signed a preprinted three page document entitled “Real Estate Purchase Contract” dated February 24, 2004. The top of the document contains the language: “When signed by Buyer and Seller this is intended to be a legally binding contract. If either party has questions about any aspect of this transaction, he/she should consult with an attorney before signing this Contract.” The agreement stipulated that the property would be sold to the plaintiffs for $240,000, with a closing to be held on May 24, 2004. The agreement also called for a $500 deposit, which the plaintiffs gave to the defendants after the parties had signed the agreement. The defendants subsequently provided a copy of the agreement to attorney Omar Shepard, Jr., whose law firm the decedent had requested, in his will, that the executors use to settle the estate. Thereafter, the plaintiffs’ attorney, Timothy Wentworth, contacted Shepard, and the two attorneys discussed some concerns Shepard had about the amount of the deposit and the form of the agreement. As a result of these discussions, the plaintiffs tendered an additional deposit of $10,000 by check and signed an option contract for the land, which the defendants never signed. The plaintiffs then attempted several times to schedule a closing on the property. Ultimately, the defendants returned both deposit checks to the plaintiffs and advised the plaintiffs that they were unwilling to close.
At trial, the parties offered conflicting evidence as to their intent. Edward Bender testified that he believed that he needed to get Shepard’s approval before doing anything regarding the decedent’s estate. He also testified that he had told the plaintiffs that Shepard would have to have the “final say” regarding the terms of the sale. He testified further that, although the parties had spoken about the property, they never had reached any conclusions in terms of a sale price or other details of the sale. Similarly, Clara Bender testified
Judge Robaina made several findings of fact regarding the agreement between the parties. First, the trial court found that the contract was sufficiently specific, as it identified the property in question, the purchase price, and the amount of the deposit. The trial court also found that “the document identified as the ‘Real Estate Purchase Contract’ is a contract. There is no ambiguity as to its terms.” Second, with respect to Shepard’s role, the court found that there was nothing in the will to require approval by counsel before the property could be sold and that there was no evidence that an “offer” to sell was rejected by the defendants after having received Shepard’s advice. Finally, the court rejected the argument that the agreement had been abandoned. The court noted that there was no evidence that the defendants ever had claimed that the consideration was inadequate, only that the deposit should be larger, a request to which the plaintiffs had acceded.
We begin by setting out our standard of review. Under well established contract law, a contract must be definite and certain as to its terms and requirements.
Glazer
v.
Dress Barn, Inc.,
The agreement itself provides strong evidence to support the trial court’s finding that the contract was definite, certain and the product of mutual assent. On its face, the contract unambiguously sets out the essential terms and conditions of
IV
Finally, the defendants contend that the trial court improperly failed to conclude that, if a contract was formed, the agreement was a result of mistake and is void as unconscionable. Specifically, the defendants contend that they were unilaterally mistaken as to the value of the property, which, according to their expert, was more than double the price set forth in the contract. They contend that this fact, in conjunction with unspecified “pressure” that the plaintiffs had asserted on them to execute the contract, renders the agreement unconscionable and, therefore, unenforceable. We disagree.
Although we have had no recent occasion to address the effect of a unilateral mistake, this court previously has recognized that “[t]he mistake of [only one] of the
parties inducing him to sign a contract which, but for the mistake, he would not have entered into, may be a ground in some cases for cancelling the contract ....
Snelling v.
Merritt,
“The classic definition of an unconscionable contract is one ‘which no man in his senses, not under delusion,
would make, on the one hand, and which no fair and honest man would accept, on the other.’ ”
Smith
v.
Mitsubishi Motors Credit of America, Inc.,
Whether parties are mistaken about a material term of a contract is a question of fact, and therefore subject to review under the clearly erroneous standard.
McBur-ney
v.
Cirillo,
With this background in mind, we turn to the record, which reveals the following additional facts. The trial court
The defendants have failed to point to any evidence that would demonstrate that these findings were clearly erroneous. Their reliance on Edward Bender’s general
ized testimony that he felt “pressured” to execute the agreement, an appraisal performed four years after the execution of the contract, and the defendants’ assertion that “[i]t would appear that the plaintiffs, as developers, were in a position to know [the property’s] true value and took unfair advantage of the defendants’ lack of such knowledge”; (emphasis added); do not meet this deferential standard. See
Wasniewski v. Quick & Reilly, Inc.,
The judgment is affirmed.
In this opinion the other justices concurred.
Notes
The defendants appealed from the judgment of the trial court to the Appellate Court, and we transferred the appeal to this court pursuant to
The decedent and the defendants were not related, but were longtime friends. The defendants are married. John Bender is the defendants’ nephew, and Carl Bender is John Bender’s son.
The plaintiffs do not challenge the trial court’s dismissal of their count seeking damages for breach of contract.
“(b) The jurisdiction of courts of probate to determine title or rights or to construe instruments or to apply the doctrine of cy pres or approximation pursuant to subsection (a) of this section is concurrent with the jurisdiction of the Superior Court and does not affect the power of the Superior Court as a court of general jurisdiction.”
The defendants also suggested in their reply brief that the plaintiffs had waived any objection to the Probate Court’s jurisdiction by initiating the original Probate Court action. Our precedent dictates that jurisdiction over subject matter cannot be conferred on the court by waiver or the consent of the parties.
See New Hartford v. Connecticut Resources Recovery Authority,
To the extent that the defendants both challenge the propriety of Judge Robaina’s adoption of Judge Martin’s decision as the law of the case and urge this court not to adopt Judge Martin’s decision as the law of the case, we need not address the former in light of our plenary review of the res judicata issue.
We examine
Although the defendants’ brief to this court mentions the “power” of the Probate Court to order the sale of real property pursuant to
“(b) Except as provided in this section, real property of a decedent whose estate is solvent and either specifically devised by will or forbidden by will to be sold or to be mortgaged shall not be so ordered to be sold or mortgaged without the written consent of the specific devisees or other parties interested as distributees of such real property or of the guardians ad litem or guardians or conservators of the estates of those not legally competent so to consent.”
As we previously have noted, in the present case, the Probate Court did not cite to any statute in its denial of the plaintiffs’ petition and, indeed, it is not entirely clear whether the Probate Court concluded that it lacked jurisdiction, authority, or both. It appears, however, that the Probate Court may have considered whether it had jurisdiction or authority under
“(b) If a party fails to file an affidavit of intent to claim a jury trial prior to the initial hearing in the Probate Court on the merits, or having filed such an affidavit, fails to bring an action in the Superior Court within the sixty-day period allowed by the Probate Court, the party shall be deemed to have consented to a hearing on the matter in the Probate Court and to have waived any right under
For example, one meeting of the Probate Assembly focused on “the expanded role of the probate court in trying title to real and personal property pursuant to the provisions of Public Act 93-279, which [gave] the probate court concurrent jurisdiction with the [S]uperior [C]ourt over matters of title.” Probate Court Annual Report, supra, p. 2. In particular, Attorney Ellen Sostman of Connecticut Attorneys Title Insurance Company had addressed the question “What is Title?” by explaining the different types of title, the layering of title interest, definitions of real property, how title is acquired and held, and how title may be evidenced. Id. Similarly, Attorney Robert Harrington’s presentation on “Trying Title to Real Property” gave the judges a framework for examining title issues such as “definitions of real and personal property; a discussion of ownership, title, and methods of passing title to real estate and personal property; and a discussion of the burden of proof and methods of proof in cases involving title of property.” Id.
The defendants make a corollary claim that once the Probate Court denied the plaintiffs’ petition, the defendants could not convey the land without risking contempt or breaching their fiduciary duties. We first note that the defendants’ contractual obligation predated the Probate Court action. In addition, because the Probate Court did not have jurisdiction over the specific performance action, the denial of the plaintiffs’ petition was in no way binding on the defendants. Moreover, neither damages for breach of fiduciary duties nor contempt of court sanctions were ever at issue in the Probate Court or the Superior Court, and are not at issue in this appeal.
The decedent’s will provides in relevant part: “I hereby empower my said [fiduciary to sell at public or private sale ... all or any part of my real or personal estate . . . without any hearing thereon and without obtaining permission of any probate court or court of like powers in connection therewith, and to sign, execute, acknowledge and deliver any and all proper deeds, conveyances, and other documents in connection herewith.”
“(2) Sell, Mortgage or Exchange Property. — To sell, exchange, alter, assign, transfer, grant options to buy, sign real estate listing agreements; to convey, pledge, hypothecate; and to mortgage, lease and sublease ... to do any of such acts without an order of any court, at public or private sale or otherwise, upon such terms or conditions . . . and for such consideration as the fiduciary shall deem advisable; to transfer and convey the property or any interest therein, in fee simple absolute or otherwise free of all trusts. . . .”
See footnotes 9 and 11 of this opinion.
The plaintiffs contend that this claim should be rejected because of the fact that the trial court denied the defendants’ motion to strike for failure to comply with the rules of practice and that, under
“(21) Distribute in Cash or Kind. — To make distribution of assets of the estate or trust in kind or in cash, or partially in kind and partially in cash, in divided or undivided interests ... to make such distribution either upon final distribution or during one or more preliminary distributions, at the then current values, as the fiduciary finds to be the most practicable and for the best interests of the distributees; and to make reasonable determinations of said values for the purpose of making distribution if there is more than one distributee thereof, which determination shall be binding upon the distributees . . . .”
The defendants rely on
Friedman
v.
Donenfeld,
Because uneonscionability is itself a defense to contract enforcement, it is unclear under the Restatement (Second) rule whether the mistake itself must rise to the level of substantive uneonscionability or whether the mistake simply is one factor to be considered in determining whether enforcement of the contract would be unconscionable. We need not decide this issue in the present case, however, as the defendants have failed to prove both mistake and uneonscionability.
The defendants make a vague assertion in their brief that the trial court improperly relied on the May, 2004 appraisal because the plaintiffs had introduced this evidence without a proper foundation. The defendants have not briefed this issue as a separate claim and have cited to no case law regarding this issue to indicate such an intent. Therefore, we do not consider whether the trial court properly could have relied on this evidence. See
State
v.
Madigosky,