Advanced Financial Services, Inc. v. Associated Appraisal Services, Inc.

830 A.2d 240, 79 Conn. App. 22, 2003 Conn. App. LEXIS 375
CourtConnecticut Appellate Court
DecidedAugust 26, 2003
DocketAC 22219
StatusPublished
Cited by35 cases

This text of 830 A.2d 240 (Advanced Financial Services, Inc. v. Associated Appraisal Services, Inc.) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced Financial Services, Inc. v. Associated Appraisal Services, Inc., 830 A.2d 240, 79 Conn. App. 22, 2003 Conn. App. LEXIS 375 (Colo. Ct. App. 2003).

Opinion

Opinion

LAVERY, C. J.

The defendants Associated Appraisal Services, Inc., and Garry R. Brooke1 appeal and the [25]*25plaintiff, Advanced Financial Services, Inc., cross appeals from the judgment of the trial court awarding the plaintiff $591,418 plus attorney’s fees and costs. On appeal, the defendants claim that the court improperly (1) admitted into evidence an incomplete contract, (2) calculated damages, (3) failed to address their special defense of improper reliance, (4) denied their discovery request for a policy manual, (5) precluded them from conducting voir dire of a plaintiffs witness, (6) precluded them from presenting expert testimony, (7) applied the wrong statute of limitations and (8) denied their motion to disqualify the trial judge. The plaintiff claims in its cross appeal that the court improperly calculated compensatory damages. We affirm the judgment of the trial court.

The following undisputed facts were found by the court. “In early 1995, the plaintiff agreed to make a mortgage loan to Frank S. Sottile, who was purchasing a home then owned by one Kenneth Assad. The home was then under construction in Southington. The loan was to be in the amount of $650,000. The plaintiff contemplated selling the loan to Countrywide Funding Corp. (Countrywide). According to its own practice and as required by Countrywide, the plaintiff, in May, 1995, hired the [defendants] to appraise the property. The appraisal was done by Stephen G. Shore, an independent contractor, who reported the results to [Brooke, the president of the defendant corporation]. An appraisal report was issued by the defendants, purportedly signed by Shore and [Brooke], but in actuality, signed only by Brooke.

“The report assigned a value of $1,100,000 to the property ‘subject to completion per plan and specifications.’ Prior to closing the loan, the plaintiff asked Brooke to reinspect the property because it could not close the loan unless construction was completed. In response to this request, the defendant Brooke again [26]*26asked Shore to inspect the property. Shore revisited the premises and observed that not only had no further work been done, but also that the property had been damaged by vandalism. He reported his findings to Brooke.

“Notwithstanding this report, Brooke prepared, signed and delivered to the plaintiff a document entitled ‘Satisfactory Completion Certificate’ (completion certificate), which contained the following recital: T certify that I have reinspected subject property, the requirements or conditions set forth in the appraisal report have been met, and any required repairs or completion items have been done in a workmanlike manner.’ The report, purportedly signed also by Shore, was in fact signed only by Brooke who, without authorization, signed Shore’s name.

“Relying on the appraisal, [the plaintiff] closed the loan on June 2, 1995, in the amount of $650,000. It thereupon assigned the mortgage to Countrywide. By agreement, [the plaintiff] fully guaranteed the loan to Countrywide. Brooke claimed at trial that [the plaintiff] knew the property was not completed, but told him to send [it] the satisfactory completion certificate notwithstanding. Later in 1995, the Sottile loan went into default. The plaintiff asked Countrywide to handle the foreclosure action, which it did. The judgment obtained found a debt due the plaintiff of $722,646.30 and a fair market value of the property in the amount of $552,000. The plaintiff duly watched over the property and the foreclosure action. Pursuant to its agreement with Countrywide, [the plaintiff] repurchased the loan and paid Countrywide a negotiated sum of $461,499.58, although Countrywide had claimed a loss of $544,091.25.” The negotiated sum was the result of an agreement entered into between the plaintiff and Countrywide resolving several outstanding debts the plaintiff owed Countrywide, including the Sottile loan. The court [27]*27also found that title vested in the plaintiff on May 26, 1996.

The plaintiff brought an amended four count complaint against the defendants, alleging negligence, breach of contract, fraud and recklessness, and, finally, a violation of the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq. The defendants raised the following five special defenses: (1) statute of limitations, (2) failure to mitigate, (3) contributory negligence, (4) collateral estoppel and (5) improper reliance. The court found in favor of the plaintiff on each count and awarded $591,418 in damages plus attorney’s fees and costs. These appeals followed. Additional facts will be set forth as necessary.

I

The defendants’ first claim is that the court improperly admitted into evidence as a full contract only a portion of that contract. Specifically, the defendants argue that the court failed to require the production of a manual that was referenced in the contract. We disagree.

The following additional facts are necessary for the resolution of the defendants’ claim. The court admitted into evidence a loan purchase agreement (agreement) between Countrywide and the plaintiff dated January 16, 1990, which outlined the parties’ respective rights and obligations to each other when purchasing and selling loans. That agreement makes reference to Countrywide’s correspondent lending division loan purchase program seller’s manual (manual) that sets forth additional terms, conditions and procedures. On April 6, 2001, four days before trial began, the defendants asked the court to order the plaintiff to produce the manual. The plaintiff informed the court that neither it nor Countrywide had the manual as it existed in 1995, but that there was a 2001 version on Countrywide’s Internet [28]*28web site. The court ordered the plaintiff to access the 2001 manual and to provide the defendants with any material concerning the completion certificate. On April 17, 2001, the plaintiff informed the court that it had provided the defendants with those portions of the manual before trial began. The defendants did not dispute that assertion.

The defendants, at trial, objected to the agreement’s being admitted into evidence because it was incomplete due to the absence of the manual. The plaintiff argued that the agreement had been authenticated and identified by Dennis F. Hardiman, the chief executive officer of the plaintiff corporation, and that questions pertaining to the manual were a proper subject for cross-examination, but did not concern the agreement’s admissibility. The court informed the defendants that the agreement might become worthless after cross-examination concerning the absence of the manual, but that its absence alone did not make the agreement inadmissible. The court then overruled the defendants’ objection.

The defendants argue that the court admitted the agreement as a full contract without requiring the plaintiff to introduce the manual. According to the defendants, the agreement was incomplete without the manual. The defendants contend that they were harmed by the court’s ruling because the plaintiff was allowed to bring an action on an incomplete agreement, their ability to challenge the plaintiffs claim of damages was impaired and they were prohibited from effectively raising their special defense of contributory negligence.

We first set forth our standard of review. “We have, generally held that [t]he trial court has broad discretion in ruling on the admissibility [and relevancy] of evidence. . . .

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Cite This Page — Counsel Stack

Bluebook (online)
830 A.2d 240, 79 Conn. App. 22, 2003 Conn. App. LEXIS 375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-financial-services-inc-v-associated-appraisal-services-inc-connappct-2003.