SOUTHPORT CONGREGATIONAL CHURCH–UNITED CHURCH OF CHRIST v. BETTY ANN HADLEY, COEXECUTOR (ESTATE OF ALBERT L. HADLEY), ET AL.
AC 35289, AC 36395
Appellate Court of Connecticut
August 19, 2014
Lavine, Sheldon and Bishop, Js.
Argued February 20 and May 28
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(Appeal
John A. Farnsworth, for the appellant in both appeals (plaintiff).
Daniel J. Krisch, with whom was Jeffrey F. Gostyla, for the appellee in both appeals (defendant Cheekwood Botanical Garden and Museum of Art).
Grant P. Haskell, for the appellees in both appeals (named defendant et al.).
James Hogan Love filed a brief for the appellee in AC 35289 (named defendant).
Opinion
SHELDON, J. In these appeals involving a disputed application of the doctrine of equitable conversion, the central question is whether certain real property automatically passed to the specific devisee of the property under a will upon the death of the decedent when, prior to the decedent‘s death, he had entered into a contract to sell the property to a third party. The decedent, Albert L. Hadley, in his last will and testament, specifically devised a residential real property that he owned in Southport to the plaintiff, Southport Congregational Church–United Church of Christ (church). Prior to his death, however, he entered into a contract to sell the property to a third party, Evelyn P. Winn. The decedent died before the closing on the property could take place and before a mortgage contingency clause contained in the sales contract either expired or was waived or fulfilled. The church claims that the Superior Court erred in applying the doctrine of equitable conversion in this case and, on that basis, authorizing the defendant coexecutors of the decedent‘s estate, Betty Ann Hadley and Lee Snow, to complete the sale of the property to Winn following the decedent‘s death, pursuant to
The following factual and procedural history is relevant to the resolution of the claims raised in these appeals. The decedent owned a residential property at 504 Pequot Avenue in Southport. In his last will and testament dated September 22, 2010, he specifically devised that property to the church. On March 21, 2012, however, the decedent entered into a contract to sell that property to Winn. That transaction did not close prior to the decedent‘s death on March 30, 2012.
The decedent‘s will was admitted to probate in the Surrogate‘s Court for the County of New York, New York, on or about May 10, 2012. On June 15, 2012, the coexecutors of the decedent‘s estate filed an application with the Probate Court for the district of Fairfield for ancillary jurisdiction based upon the location of the subject property and for authorization to sell the property, pursuant to
On August 10, 2012, the church filed an appeal from the Probate Court‘s July 24, 2012 decree with the Superior Court, wherein it alleged that because it was the specific devisee of the subject property under the decedent‘s will, and the decedent‘s estate was solvent, the coexecutors could not sell the property without its consent pursuant to
Five days later, on August 15, 2012, the Probate Court amended its July 24, 2012 decree to require the coexecutors, under
On September 24, 2012, with the church‘s probate appeal from the July 24, 2012 decree still pending, the coexecutors filed an answer, special defense and counterclaim in response to the church‘s complaint therein. In their counterclaim, the coexecutors sought authorization, as they had initially in the Probate Court, to sell the subject property pursuant to
On December 4, 2012, Cheekwood, which had been permitted to intervene in the probate appeal as a party defendant on November 5, 2012, filed a memorandum of law in support of the coexecutors’ application for authorization to sell the property, in which it argued, under the doctrine of equitable conversion, that because the decedent had executed the contract for sale of the property prior to his death, his interest in the real property had terminated at that time and had vested instead in the purchaser, Winn, leaving him with only an interest in the expected proceeds from the ultimate sale of the property. Thus, Cheekwood argued, because the estate had no interest in the subject real property at the time of the decedent‘s death,
In response, the church filed an objection to the coexecutors’ application, in which it argued that: the application should be denied pursuant to
On December 7, 2012, following a hearing on the application for authorization to sell the subject property at which the parties submitted documentary evidence and presented oral argument in support of their respective positions, the court rejected the church‘s jurisdictional challenges,7 then granted the coexecutors’ application for authorization to sell the property to Winn. The court reasoned, under the doctrine of equitable conversion, that because the decedent had executed what it found to be a valid sales contract prior to his death, he no longer had an interest in the property at the time of his death, but only an equitable interest in the funds that would ultimately be realized from the sale of the property. The court thus concluded that
Notes
The church thereafter filed a motion to reargue, in which it renewed its
On February 19, 2013, Cheekwood filed a motion for summary judgment on the coexecutors’ counterclaim on the ground that the relief sought therein was identical to that sought in the coexecutors’ earlier application to sell the subject property, which had been granted by the court. The church objected to Cheekwood‘s motion, asserting that Cheekwood did not have standing to move for summary judgment on the coexecutors’ counterclaim and that the counterclaim was moot because the relief therein requested had already been granted by the court when it granted the coexecutors’ application for authorization to sell the property. On September 30, 2013, the court granted Cheekwood‘s motion and took judicial notice, based only upon the oral representations of Cheekwood‘s counsel, that “Evelyn Winn is ready, willing and able to proceed with the sale, has waived the mortgage contingency clause, and is ready to proceed with an all-cash purchase. . . . [A]nd that has been the case from the beginning.” The church thereafter filed a motion to reargue, in which it reasserted its challenges to the court‘s jurisdiction and further argued that the court “improperly took judicial notice of matters relating to the potential future purchase of the . . . property.” The court denied the church‘s motion to reargue and the church appealed from that judgment. That appeal bears docket number AC 36395.
Following oral argument in AC 35289, this court sua sponte ordered expedited briefing and argument in AC 36395. The parties have fully briefed and argued the claims presented in both appeals and we address those claims herein. The substantive issue in the two appeals is identical, namely, whether the decedent‘s interest in the subject property automatically passed to the church upon his death, preventing the property from being sold by the estate without the church‘s consent pursuant to
I
AC 35289
A
As a threshold matter, we must address the church‘s challenge to the Superior Court‘s subject matter jurisdiction over the coexecutors’ application for authorization to sell the subject property under
It is well settled that a challenge to the court‘s subject matter jurisdiction must be addressed, once it is raised, before the case may proceed, and that because the issue of jurisdiction presents a question of law, our review of a jurisdictional challenge is plenary. See Guerra v. State, 150 Conn. App. 68, 74, 89 A.3d 1028 (2014). “[I]n determining whether a court has subject matter jurisdiction, every presumption favoring jurisdiction should be indulged. . . . Subject matter jurisdiction involves the authority of the court to adjudicate the type of controversy presented by the action before it.” (Citation omitted; internal quotation marks omitted.) Keller v. Beckenstein, 305 Conn. 523, 531, 46 A.3d 102 (2012).
“An appeal from probate is not so much an appeal as a trial de novo with the Superior Court sitting as a Probate Court and restricted by a Probate Court‘s jurisdictional limitations.” (Internal quotation marks omitted.) Gardner v. Balboni, 218 Conn. 220, 225, 588 A.2d 634 (1991). “[A probate] appeal brings to the Superior Court only the order appealed from. . . . The Superior Court may not consider or adjudicate issues beyond the scope of those proper for determination by the order or decree attacked. . . . In a probate appeal . . . the Superior Court‘s jurisdiction is statutory and limited to the order appealed from. The issues presented for review are those defined in the reasons of appeal. The Superior Court cannot consider or adjudicate issues beyond the scope of those proper for determination by the order or decree attacked.” (Citation omitted; internal quotation marks omitted.) Marshall v. Marshall, 71 Conn. App. 565, 569–70, 803 A.2d 919, cert. denied, 261 Conn. 941, 808 A.2d 1132 (2002).
Here, the issue presented by the coexecutors’ counterclaim, as well as by their separate application for authorization to sell the subject property, is identical to that presented in the initial probate appeal filed by the church, namely, whether the coexecutors should be authorized to sell the decedent‘s property pursuant to
As noted herein,
B
We now turn to the church‘s substantive claim that the Superior Court improperly granted the coexecutors’ application for authorization to sell the property pursuant to
“Under the doctrine of equitable conversion . . . the purchaser of land under an executory contract is regarded as the owner, subject to the vendor‘s lien for the unpaid purchase price, and the vendor holds the legal title in trust for the purchaser. . . . The vendor‘s interest thereafter in equity is in the unpaid purchase price, and is treated as personalty . . . while the purchaser‘s interest is in the land and is treated as realty.” (Citations omitted; internal quotation marks omitted.) Francis T. Zappone Co. v. Mark, 197 Conn. 264, 267, 497 A.2d 32 (1985). “An equitable title is a right possessed by a person to have the legal title to property transferred to him upon the performance of specified conditions. . . . The right must be one enforceable in equity. . . . In other words, before one can claim equitable title, one must be in a position such that a court of equity could, in exercising its jurisdiction over the parties, convey legal title.” (Citations omitted; internal quotation marks omitted.) Francini v. Farmington, 557 F. Supp. 151, 155 (D. Conn. 1982). For the doctrine of equitable conversion to apply, the real estate contract must be specifically enforceable. 14 R. Powell, Real Property (2007) § 81.03 [1], p. 81-85. “[A] contract involving a precondition such as adequate financing approval for the purchaser . . . is not a valid agreement until the precondition has been accomplished.” Id., p. 81-86. “Whether [a party is] in fact equitable owner of the [property] in question is . . . a conclusion of law“; Francini v. Farmington, supra, 155; over which our review is plenary. Joyner v. Simkins Industries, Inc., 111 Conn. App. 93, 97, 957 A.2d 882 (2008).
Here, the contract for the sale of the subject property that was executed by the decedent and Winn on March 21, 2012, contained a mortgage contingency clause, in paragraph 17 thereof, which provided that the parties’ agreement was contingent upon Winn obtaining a written commitment for a loan in the amount of $230,000 on or before April 16, 2012. As of the time of the decedent‘s death on March 30, 2012, that contingency had neither expired nor been waived or fulfilled.10 Because the contract of sale contained a contingency clause which, as of the date of the decedent‘s death, had not yet been waived or fulfilled, then, on that date, the contract could not have been specifically enforced. The decedent thus maintained an ownership interest in the real property at the time of his death, not merely an equitable interest in the funds to be realized from the ultimate performance of the contract. In accordance with the decedent‘s will, the property had been specifically devised to the church. Therefore, because the estate was then solvent, that property could not have been sold without the consent of the church pursuant to
II
AC 36395
As previously noted, this second appeal stems from the Superior Court‘s granting of Cheekwood‘s motion for summary judgment on the coexecutors’ counterclaim. The church argues that the court lacked jurisdiction over the motion because the relief requested in the counterclaim was identical to that previously requested in the coexecutors’ application, which the court had already granted, thereby rendering the counterclaim moot.11 We agree.
“A case is considered moot if [the] . . . court cannot grant the appellant any practical relief through its disposition of the merits . . . . Because mootness implicates this court‘s subject matter jurisdiction, it raises a question of law over which we exercise plenary review.” (Internal quotation marks omitted.) Gagne v. Vaccaro, 311 Conn. 649, 659, 90 A.3d 196 (2014).
Although Cheekwood concedes that the counterclaim sought exactly the same relief as the coexecutors’ application for authorization to sell the subject property, it contends that practical relief was available to it following the granting of the coexecutors’ application because the ruling on the application was not a final judgment that would have a preclusive effect on subsequent litigation of the same issue, whereas an order granting summary judgment on the counterclaim would be. We disagree. When the Superior Court granted the coexecutors’ application for authorization to sell under
The judgments are reversed and the case is remanded with direction to deny the coexecutors’ application for authorization to sell the real property and to dismiss the coexecutors’ counterclaim.
In this opinion the other judges concurred.
“Now based on the – the facts of – of this case, the court finds that the decree and the amended decree which are exhibits in this case; Exhibits . . . G and H constitute – H and I rather, constitute a single decree, the initial decree being issued in July and the amended decree relating back to that decree and it‘s labeled an – an amended decree and therefore attaches to the initial decree which was issued, ordered and properly appealed to this court. It‘s found that they are one decree and that the August 15th decision of the court relates back to the initial decisions. Further found that a – an appropriate probate appeal was taken from the decree to this court, and that a counterclaim was filed in that appeal prior to its being withdrawn, and therefore the court does have jurisdiction to rule on the counterclaim sitting as a Probate Court to determine whether there was, in fact, an error of law.”