LENDING HOME FUNDING CORPORATION v. REI HOLDINGS, LLC, ET AL.
AC 44564
Appellate Court of Connecticut
August 30, 2022
Elgo, Cradle and Suarez, Js.
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Syllabus
The defendant T Co. appealed to this court from the judgment of the trial court determining that it lacked subject matter jurisdiction to consider T Co.‘s motion to reargue or to reconsider the trial court‘s prior denial of T Co.‘s motion to open a judgment of strict foreclosure. The defendant R Co. had defaulted on a promissory note and mortgage it executed in favor of the plaintiff concerning a parcel of real property. The trial court rendered judgment of strict foreclosure in favor of the plaintiff and set the law day to run on May 20, 2019. R Co. did not file a timely appeal from the judgment but, on May 15, 2019, filed a motion to open and vacate the judgment. The court denied R Co.‘s motion to open and set a new law day for June 24, 2019. On June 10, 2019, pursuant to the applicable rule of practice (§ 11-11) and within the twenty day appellate stay period, R Co. filed a motion to reargue or to reconsider the court‘s denial of its motion to open. The court denied the motion to reargue on July 3, 2019, and notice of the court‘s ruling was sent to the parties on July 5, 2019. The plaintiff thereafter filed a certificate of foreclosure on the land records and quitclaimed the property to another entity. On December 7, 2020, pursuant to statute (§ 49-15), T Co. filed a motion to open and vacate the foreclosure judgment. T Co. claimed that title to the property had never passed to the plaintiff because the June 24, 2019 law day fell within the twenty day appellate stay period and the parties did not receive notice of the trial court‘s denial of R Co.‘s motion to reargue until July 5, 2019. The trial court concluded that T Co.‘s motion to open was moot because the filing of R Co.‘s motion to reargue did not stay the June 24, 2019 law day and, thus, absolute title had vested in the plaintiff on the passing of the June 24, 2019 law day. Held that the trial court erred in determining that it was without subject matter jurisdiction to hear T Co.‘s motion to open and vacate the foreclosure judgment: under the applicable rule of practice (§ 63-1 (b)), R Co.‘s timely filing of its motion to reargue the court‘s denial of R Co.‘s motion to open and vacate the foreclosure judgment triggered the automatic stay provision in the applicable rule of practice (§ 61-11 (a)) until the parties received notice of the court‘s ruling on R Co.‘s motion to reargue on July 5, 2019, and, because the June 24, 2019 law day fell within the extended appellate stay period, the June 24, 2019 law day had no legal effect and could not vest absolute title in the plaintiff; accordingly, the trial court retained jurisdiction to decide T Co.‘s motion to open and vacate the foreclosure judgment.
Submitted on briefs December 8, 2021—officially released August 30, 2022
Procedural History
Action to foreclose a mortgage on certain of the named defendant‘s real property, and for other relief, brought to the Superior Court in the judicial district of Hartford, where the court, Dubay, J., rendered judgment of strict foreclosure; thereafter, the court, Sheridan, J., denied the named defendant‘s motion to open and vacate the judgment; subsequently, the court, Dubay, J., denied the named defendant‘s motion to reargue or to reconsider the denial of its motion to open and vacate the judgment; thereafter, the court, M. Taylor, J., denied the motion filed by the defendant Traditions Oil Group, LLC, to open and vacate the judgment; subsequently, the court, M. Taylor, J., denied the motion filed by the defendant Traditions Oil Group, LLC, to reargue or to reconsider the denial of its motion to open and vacate the judgment, and the defendant Traditions Oil Group, LLC, appealed to this court. Reversed; further proceedings.
Elio Morgan filed a brief for the appellant (defendant Traditions Oil Group, LLC).
Opinion
The following facts and procedural history are relevant to our resolution of this appeal. On August 11, 2016, the defendant REI Holdings, LLC (REI), executed a promissory note in favor of the plaintiff for the principal sum of $247,500, secured by a mortgage on a parcel of real property located at 88 Dawn Drive in South Windsor (property). The defendant Wayne Francis also executed a commercial guaranty in which he personally guaranteed the loan. The defendant, REI, and Francis subsequently defaulted on the note, and the plaintiff commenced the underlying foreclosure action on April 27, 2018.
On June 10, 2019, pursuant to
On December 7, 2020, the defendant filed a motion to open and vacate the judgment of strict foreclosure (second motion to open) pursuant to
On February 16, 2021, the court, M. Taylor, J., denied the defendant‘s motion to open on the ground that the court was without subject matter jurisdiction to hear the motion.7 Specifically, the court determined that our Supreme Court in Sullivan had “relied upon the antiquated language of Practice Book [1978–97] § 4009, which stayed an appeal period until the issuance of notice of the decision upon the motion or the expiration of the time within which a remittitur is ordered filed. . . . This section of the Practice Book regarding the time for an appeal has been amended and is now codified in
We begin by setting forth the standard of review and relevant legal principles that guide our resolution of the defendant‘s appeal. “Because the principal issue on appeal concerns questions of law, namely, subject matter jurisdiction and the scope of the appellate stay provisions in the rules of practice, our review is plenary.” Wells Fargo Bank of Minnesota, N.A. v. Morgan, 98 Conn. App. 72, 78 (2006); see also Chamerda v. Opie, 185 Conn. App. 627, 637-38 (2018) (“A determination regarding a trial court‘s subject matter jurisdiction is a question of law. When . . . the trial court draws conclusions of law, our review is plenary and we must decide whether its conclusions are legally and logically correct and find support in the facts that appear in the record.” (Internal quotation marks omitted.)), cert. denied, 330 Conn. 953 (2018); Zirinsky v. Zirinsky, 87 Conn. App. 257, 269 (2005) (“[w]e are required to interpret the scope of [the] rules of practice; accordingly, we are presented with a question of law over which our review is plenary“), cert. denied, 273 Conn. 916 (2005).
“The opening of judgments of strict foreclosure is governed by
“In Connecticut, a mortgagee has legal title to the mortgaged property and the mortgagor has equitable title, also called the equity of redemption. . . . The equity of redemption gives the mortgagor the right to redeem the legal title previously conveyed by performing whatever conditions are specified in the mortgage, the most important of which is usually the pay-ment of money. . . . Under our law, an action for strict foreclosure is brought by a mortgagee who, holding legal title, seeks not to enforce a forfeiture but rather to foreclose an equity of redemption unless the mortgagor satisfies the debt on or before his law day. . . . Accordingly, [if] a foreclosure decree has become absolute by the passing of the law days, the outstanding rights of redemption have been cut off and the title has become unconditional in the plaintiff, with a consequent and accompanying right to possession.” (Internal quotation marks omitted.) Seminole Realty, LLC v. Sekretaev, 192 Conn. App. 405, 414–15 (2019), cert. denied, 334 Conn. 905 (2019). “Thus, once the law day passes and title vests in the [plaintiff], no practical relief is available [p]rovided that this vesting has occurred pursuant to an authorized exercise of jurisdiction by the trial court . . . .” (Internal quotation marks omitted.) Deutsche Bank National Trust Co. v. Pardo, 170 Conn. App. at 652. In other words, ”
On the other hand, it is well established that “law days that are set forth in a judgment of strict foreclosure can have no legal effect if an appellate stay is in effect because to give them legal effect would result in an extinguishment of the right of redemption pending appeal.” Sovereign Bank v. Licata, 178 Conn. App. 82, 91 n.11 (2017); see also Continental Capital Corp. v. Lazarte, 57 Conn. App. 271, 273-74 (2000) (“Law days are ineffective while the appeal period is pending. To conclude otherwise would be tantamount to depriving a party of judicial review and, therefore, of due process of law.“).
In the context of strict foreclosure, our Supreme Court in Farmers & Mechanics Savings Bank v. Sullivan, 216 Conn. 341, addressed the issue of whether a motion to open, filed pursuant to
In the present case, although the matter before the court involves a timely motion to reargue/reconsider the trial court‘s denial of a motion to open and vacate the judgment of strict foreclosure, rather than a timely filed motion to open following the court‘s judgment of strict foreclosure, we conclude that the rule set forth in Farmers & Mechanics Savings Bank v. Sullivan, 216 Conn. 341, governs our disposition of this appeal. Accordingly, for the reasons we will set forth, REI‘s timely filing of the motion to reargue/reconsider within the appellate stay period operated to extend that period until the parties received notice of the court‘s decision of that motion on July 5, 2019.
In determining whether REI‘s filing of the first motion to reargue/reconsider extended the appellate stay until the parties received notice of the court‘s denial of that motion, we turn to the rules of practice that govern the creation of new appeal periods under
We find this court‘s decision in Brooklyn Savings Bank v. Frimberger, 29 Conn. App. 628 (1992), to be instructive in resolving the present appeal. In Frimberger, following the entry of a judgment of strict foreclosure, the defendant filed a motion to reopen the judgment and extend the law day. Id., 630. The trial court denied that motion, and the defendant appealed “well within the twenty day period from the issuance of the notice of the trial court‘s denial of the motion.” Id. On appeal, this court concluded that the defendant‘s appeal was not moot. See id., 632. First, this court determined that the trial court‘s denial of the defendant‘s motion to open the judgment “resulted in the entry of an appealable final judgment invoking the automatic stay under [Practice Book (1978–97)] § 4046.”16 Id., 631. This court then concluded that “[t]he stay remain[ed] in effect until the disposition of [the] appeal because the defendant‘s appeal was timely filed during the appeal period . . . .” (Emphasis added.) Id.
In the present case, REI did not file an appeal within the twenty day appeal period following the court‘s denial of the first motion to open but, rather, filed the first motion to reargue/reconsider. It is well established, however, that “[a] motion filed within the appeal period automatically stays the judgment if an appeal from the judgment would do so.” W. Horton & K. Bartschi, Connecticut Practice Series: Rules of Appellate Procedure (2020-2021 Ed.) § 61-11, p. 117, authors’ comments (citing Farmers & Mechanics Savings Bank v. Sullivan, supra, 216 Conn. 349); see also Weinstein v. Weinstein, 275 Conn. 671, 699 (2005) (“the filing of a motion [pursuant to Practice Book § 63-1] that seeks an alteration, rather than a clarification, of the judgment suspends the appeal period“); Young v. Young, 249 Conn. 482, 496 (1999) (interpreting
Applying the foregoing rationale to the unique facts of the present case, we conclude that the court erred in determining that it was without subject matter jurisdiction to hear the defendant‘s second motion to open. The court‘s denial of REI‘s first motion to open was “an appealable final judgment . . . from which an automatic twenty day [appellate] stay [arises].” Countrywide Home Loans Servicing, L.P. v. Peterson, supra, 171 Conn. App. 845; see also Practice Book §§
The judgment is reversed and the case is remanded for further proceedings consistent with this opinion.19
In this opinion the other judges concurred.
