QUICKEN LOANS, INC. v. JOSE RODRIGUEZ ET AL.
AC 46309
Appellate Court of Connecticut
September 10, 2024
Suarez, Clark and Westbrook, Js.
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Quicken Loans, Inc. v. Rodriguez
Syllabus
The plaintiff sought to foreclose a mortgage on certain real property owned by the defendants M and J. After defaulting the defendants for failure to plead, the trial court rendered a judgment of foreclosure by sale. The property was then sold to the plaintiff, and the trial court approved the sale. M timely filеd a motion to set aside the court‘s approval of the sale. The defendants, however, never marked the motion as ready for adjudication, and, accordingly, the court did not act on it. Thereafter, the case was administratively closed. Approximately three months later, the defendants filed a motion to open, requesting that the trial court vacate the administrative closure and open and vacate the judgment of foreclosure by sale. The trial court denied the defendants’ motion to open and sustained the plaintiff‘s objection thereto, and the defendants appealed to this court. Held:
- This court concluded that any error by the trial court in its misinterpretation or misapplication of the applicable rule of practice (
§ 63-1 (c) (1) ) regarding the existence of an appellate stay following M‘s filing of the motion to set aside the approval of the sale was harmless and did not provide a reasonable basis for reversing the trial court‘s judgment on the defendants’ motion to open: although, pursuant toPractice Book § 63-1 (c) (1) , M‘s filing of the motion to set aside the approval of the sale extended the appellate stay that was in effect as a result of the court‘s approval of the sale until there was a ruling on that motion and any resulting new appeal period expired, the court‘s decision to enter the administrative closure of the file either acted as an implicit denial of M‘s motion or served as notice to the parties that the court was declining to rule on that motion, which the defendants reasonably should have construed as an effective denial of the motion pursuant to Ahneman v. Ahneman (243 Conn. 471); moreover, to the extent that M‘s filing of the motion to set aside the approval of the sale created the potential for a new appeal period, it began to run with the entry of the administrative closure and, thus, terminated approximately two months prior to the defendants’ filing of the motion to open; furthermore, M‘s motion to set aside the approval of the sale did not assert fraud, mistake, surprise or any other issue with regard to the judicial sale but, instead, asserted claims directed at the judgment of foreclosure, which the defendants had waived when they failed to timely appeal from the judgment of foreclosure by sale. - Contrary to the defendants’ assertions, the trial court did not abuse its discretion by deciding the motion to open on the papers without a hearing: a motion seeking to open or set aside a judgment is not a motion for which oral argument is as of right; moreover, although the defendants requested oral argument, thеy did not identify in their motion or their supporting memorandum the existence of any disputed factual issues that required the taking of evidence; furthermore, although the defendants claimed that the lack of a hearing deprived them of the opportunity to contest one of the factual predicates underlying the court‘s rationale for denying the motion, namely, whether they diligently pursued M‘s motion to set aside the approval of the sale, that issue had no legal bearing on the existence of an appellate stay.
- The trial court did not abuse its discretion in denying the defendants’ motion to open to the extent that it sought to set aside the administrative closure and properly determined that the defendants’ request to open the judgment of foreclosure was untimely and, thus, that it lacked the authority to grant that aspect of the motion: the motion to open wаs filed nearly nine months after the court rendered the judgment of foreclosure by sale and, as such, was clearly outside of the applicable statutory limit (
§ 52-212a ); moreover, at the time the motion was filed, title to the property had vested in the plaintiff as the purchaser of the property because the time to appeal from the approval of the sale had long passed; furthermore, the motion did not raise a colorable claim that the foreclosure judgment was the product of fraud, duress or mutual mistake.
Argued April 22—officially released September 10, 2024
Procedural History
Action to foreclose a mortgage on certain real property owned by the named defendant et al., and for other relief, brought to the Superior Court in the judicial district of New Britain, where the defendant Capital One Bank (USA), N.A., was defaulted for failure to appear; thereafter, Rocket Mortgage, LLC, was substituted as the plаintiff; subsequently, the named defendant et al. were defaulted for failure to plead; thereafter, the court, Hon. Joseph M. Shortall, judge trial referee, granted the substitute plaintiff‘s motion for a judgment of foreclosure by sale and rendered judgment thereon; subsequently, the defendant Michelle Rodriguez filed a motion to set aside the court‘s approval of the sale of the real property; thereafter, the court, Hon. Joseph M. Shortall, judge trial referee, issued a notice of administrative closure; subsequently, the court, Hon. Joseph M. Shortall, judge trial referee, denied the motion to vacate the administrative closure and to open and vacate the judgment of foreclosure by sale filed by the named defendant et al. and sustained the plaintiff‘s objection thereto, and the named defendant et al. appealed to this court. Affirmed.
Geoffrey K. Milne, for the appellee (substitute plaintiff).
Opinion
WESTBROOK, J. In this residential mortgage foreclosure action, the defendants Jose Rodriguez
The record reveals the following relevant undisputed facts and procedural history. On October 30, 2019, the plaintiff commenced this action to foreclose a mortgage on property owned by the defendants at 267 Culver Street in Newington. Following unsuccessful court-sponsored mediation, the court defaulted the defendants for failure to plead. On November 24, 2021, the plaintiff filed a motion for a judgment of strict foreclosure. The plaintiff also filed a foreclosure worksheet and other documents, including an affidavit of compliance with the Emergency Mortgage Assistance Program (EMAP),
On March 28, 2022, the court, Hon. Joseph M. Shortall, judge trial referee, rendered a judgment of foreclosure by salе.4 It found, inter alia, that the amount of the outstanding debt owed by the defendants was $194,535.31 and that the fair market value of the property was $225,000. The court set a sale date of June 4, 2022. The defendants did not file an appeal challenging the judgment of foreclosure, including any claim of noncompliance with the EMAP notice requirements.
On April 28, 2022, the court, Morgan, J., issued notice that, due to the
The foreclosure sale went forward as ordered, and the property was sold at auction to the plaintiff for $213,800. On June 6, 2022, the committee filed a motion for approval of the sale and deed and for acceptance of the committee‘s report. The defendants did not oppose the motion for approval of the sale. On June 20, 2022, Judge Shortall granted the committee‘s motion and approved the sale and deed. The court further ordered that “[t]he plaintiff‘s counsel must file a motion for supplemental judgment within thirty days of this notice, or a final disposition of the case will be ordered by the court.” (Emphasis added.)
On July 11, 2022—the final day on which to timely file an appeal from the court‘s approval of the sale—Michelle Rodriguez filed a motion asking the court tо set aside its approval of the sale.7 The motion provided in relevant part that “[Michelle Rodriguez] would like to inform the court that at no time did she receive an EMAP letter from [the plaintiff] as required. [Michelle Rodriguez] disputes receiving notice of default [on the note and mortgage] as claimed at paragraph six of the complaint. Additionally, COVID and the lack of response from [the plaintiff] hindered [Michelle Rodriguez‘] ability to pursue meaningful loss mitigation. [Michelle Rodriguez] would also need additional time to consult with and hire an attorney to pursue these issues further.” The motion did not contain an indication on the bottom of the first page that it was intended as a
On August 15, 2022, the committee filed a motion for advice. In that motion, the committee represented to the court that, despite making proper demand, the plaintiff had not paid it the fees and expenses ordered by the court. The committee asked the court for an order of payment and also requested an additional $300 in fees related to its filing of the motion for advice. On August 29, 2022, the court issued an order directing the plaintiff‘s counsel “to file a motion for supplemental judgment by no later than September 13, 2022, and to pay the committee $300 in addition to the fee already approved by the court.”
On September 26, 2022, Judge Shortall issued the following order: “The plaintiff having failed to comply with the order of the court (Morgan, J.) that a motion for suрplemental judgment be filed within ninety days of the sale date ([docket entry] #120.01), this file is administratively closed.” Notice of the court‘s administrative closure of the file was issued to all parties, including the defendants. The defendants did not file an appeal challenging the administrative closure, let alone raise the ground that the court‘s closure of the file arguably was in violation of an automatic appellate stay in place as a result of the filing of the motion to set aside the approval of the sale, nor did they move the court within the appeal period to open or set aside the administrative closure and restore the case to the docket for the purpose of adjudicating the motion to set aside approval of the sale. The plaintiff recorded the committee deed on October 11, 2022.
Rather, on December 16, 2022, nearly three months after the court issued notice of the administrative closure, the defendants filed what they captioned a “motion for order,” in which they argued that the plaintiff had prematurely recorded the court-approved deed. According to the defendants, the plaintiff never acquired title to the foreclosed property due to the appellate stay of execution that remained in effect as a result of the unadjudicated motion to set aside the approval of the sale. Judge Morgan rejected the motion for order, stating: “This case has been administratively closed. Consequently, a motion to reopen must be filed and granted, and the required filing fee paid, before this motion may be considered by the court.”
On December 21, 2022, the defendants then filed the motion to open that is the subject of the present appeаl. In that motion, the defendants moved the court to vacate the administrative closure “pursuant to its inherent supervisory authority
The plaintiff filed an objection to the motion to open on December 27, 2022. It argued that the defendants had failed to establish good cause to open the judgment, the motion was untimely, and, because title to the property had already transferred to the plaintiff, the motion was not properly before the court.
On January 19, 2023, the court sustained the plaintiff‘s objection and denied the defendants’ motion to open. The court explained: “As far as the judgment of foreclosure by sale is concerned, the motion is untimely, and the court lacks authority to open the judgment. . . . As far as the order for administrative closure is concerned, assuming the defendants have standing to address an order entered because of the plaintiff‘s failure to comply with a court order, their motion is not verified by an appropriate oath, as required by [§] 52-212 (c), and fails to state any reasonable cause for opening that order. [Michelle Rodriguez‘] motion for order [docket entry #125] did not purport to be a [
We begin our discussion with general principles of law that guide our review of the court‘s denial of the defendants’ motion to open, including our standard of review. “It is well established that
I
The defendants first claim that the court misinterpreted or misapplied
Whether the court properly construed our rules of practice in determining that no appellate stay was in effect as a result of the filing of the motion to set aside the approval of the sale in this case raises a question of law over which we exercise plenary review. See Ion Bank v. J.C.C. Custom Homes, LLC, 189 Conn. App. 30, 38 (2019); see also Wells Fargo Bank, N.A. v. Treglia, 156 Conn. App. 1, 10 (2015) (“principles of statutory interpretation also apply to our review of rules of practice” and “our rules of practice should be construed harmoniously and not in a way that would render one provision superfluous as a result of the existence of another” (internal quotation marks omitted)). In deciding whether an appеllate stay exists in noncriminal cases, such as foreclosure actions; see Alberta v. Alberta, 58 Conn. App. 89, 93 (2000); we look to both
Relatedly,
In addition to
“[T]here [generally] are three appealable determinations in a case involving a foreclosure by sale: [1] the judgment ordering a foreclosure by sale, [2] the approval of the sale by the court and [3] the supplemental judgment [in which proceeds from the sale are distributed].” (Internal quotation marks omitted.) Toro Credit Co. v. Zeytoonjian, 341 Conn. 316, 322 (2021). “A judicial sale is one made as a result of judicial proceedings by a [committee of sale] legally appointed by the court for [that] purpose. . . . The court is the vendor, and the [committee] appointed to make the sale is the mere agent of the court. . . . Only after a sale has been confirmed and ratified by the court does it become complеte. . . . Following confirmation of the sale, a judicial sale generally will not be set aside in the absence of fraud, mistake or surprise.” (Citations omitted; internal quotation marks omitted.) Citicorp Mortgage, Inc. v. Burgos, 227 Conn. 116, 120 (1993). “[T]he court‘s approval of a sale extinguishes the rights of redemption of other parties [but] . . . does not automatically vest title with the purchaser.” National City Mortgage Co. v. Stoecker, 92 Conn. App. 787, 795 (2006), cert. denied, 277 Conn. 925 (2006). Instead, as set forth in
The court‘s June 20, 2022 approval of the sale and deed was an appealable judgment. Accordingly, an appellate stay of execution was in effect, at the least, through the end of the appeal period in which to challenge the approval of the sale, which, in the present case, expired on July 11, 2022. On the final day of the appeal period, Michelle Rodriguez filed a motion that asked the court to set aside its approval of the sale. If the court had granted that motion, it would have rendered the approval of the sale ineffective, and, therefore, pursuant to
In its ruling on the defendants’ motion to open, the trial court nevertheless advanced two reasons why it believed no appellate stay was in effect following its approval of the sale.
First, the court opined that it did not view the motion to set aside approval of the sale as a proper
Second, the court indicated that, even if the motion was a proper
In short, contrary to the conclusions of the court, the defendants are correct that the filing of the motion to set aside the approval of the sale did extend the appellate stay that already was in place as a result of the court‘s approval of the sale. A new twenty day appeal period would have commenced following the court‘s disposition of the motion.13
It is at this juncture, however, that we part ways with the defendants’ analysis regarding the appellate stay, which the defendants contend continued even through the time of the court‘s ruling on their motion to open because the court never expressly resolved the pending motion to set aside the approval of the sale. We conclude otherwise.
In our view, the court‘s decision to enter the administrative closure of the file on September 26, 2022, either acted as an implicit denial of the defendants’ pending motion to set aside the approval of the sale or served as notice to the parties that the court was declining to rule on that motion, which the defendants reasonably should have construed as an effective denial of the motion under our Supreme Court‘s holding in Ahneman v. Ahneman, 243 Conn. 471, 480 (1998). In Ahneman, our Supreme Court recognized that a “trial court‘s decision not to consider [a party‘s] motions was the functional equivalent of a denial of those motions. Like a formal denial, the effect of the court‘s decision refusing to consider the defendant‘s motions ... was to foreclose the possibility of relief from the court on those issues . . . .” Id. Under either scenario, the defendants undoubtedly were aggrieved by the administrative closure of the file, which they had been notified would constitute a final disposition of the case. Consequently, the defendants could have filed an appeal challenging the administrative closure but did not do so. Moreover, to the extent that the filing of the motion to set aside the sale created the potential for a new twenty day appeal period in which to challenge the approval of the foreclosure sale and, by implication, an extension of the existing appellate stay, that new appeal period began to run with the entry of the administrative closure and, thus, terminated on October 16, 2022. The defendants did not file their motion to open or take any other action before that appeal period expired, and, therefore, any appellate stay in this case effectively terminated as of October 17, 2022, well before the filing of the motion to open. Even assuming arguendo that the recording of the committee deed on October 11, 2022, was an act that effectuated the approval of the sale,14 we are not convinced that the
Finally, the motion to set aside the approval of the sale had not asserted fraud, mistake, surprise or any other issue with regard to the judicial sale. Instead, it asserted claims dirеcted at the judgment of foreclosure, claims that the defendants waived when they failed to timely appeal from the judgment of foreclosure by sale. Accordingly, to the extent that the motion to open was directed at the administrative closure of the file and, by implication, the approval of the sale, we cannot conclude that the court abused its considerable discretion in denying the motion.
II
The defendants next claim that the court improperly failed to conduct an evidentiary hearing with respect to their motion to open. In particular, they argue that the court‘s denial of the motion to open without an evidentiary hearing deprived them of an opportunity to contest one of the factual predicates underlying the court‘s rationale for denying the motion to open; namely, that the defendants had failed to pursue the motion to set aside the approval of the sale. We disagree.
A motion seeking to open or set aside a judgment is not a motion for which oral argument is as of right. See
III
Finally, the defendants claim that the court incorrectly determined that it lacked the authority to open the judgment of foreclosure by sale because the defendants’ motion was untimely as to that judgment. We disagree.
As we have previously indicated, “[o]ur courts have the inherent authority to open, correct or modify judgments, but this authority is restricted by statute and the rules of practice. . . . [A] civil judgment may not be opened unless a motion to opеn is filed within four months following the date on which it was rendered. . . . [If] a motion to open is untimely, the trial court lacks authority to open the judgment.” (Citations omitted; internal quotation marks omitted.) TD Banknorth, N.A. v. White Water Mountain Resorts of Connecticut, Inc., 133 Conn. App. 536, 541 (2012). Whether a court properly determines that it lacks the authority to open a judgment of foreclosure raises a question of law over which our review is de novo. Id. “A motion to open a judgment of foreclosure by sale is typically subject to two restrictions. . . . First, a motion to open a judgment of foreclosure by sale must be filed within the four month restriction of
Here, the court rendered the judgment of foreclosure by sale on March 28, 2022, setting a sale date of June 4, 2022. The defendants never appealed from the foreclosure judgment nor, as discussed in part I of this opinion, did they appeal following the approval of the sale. The defendants’ motion to open was filed on December 21, 2022, which was nearly nine months after the court rendered the judgment of foreclosure by sale and, thus, clearly outside the statutory limit of
In summary, the court has considerable discretion in deciding whether to grant a motion to open or set aside a judgment. Having reviewed the file in the present matter as well as the briefs and arguments of the parties, we disagree that the court abused its considerable discretion by denying
The judgment is affirmed.
In this opinion the other judges concurred.
