Boardwalk Realty Associates, LLC v. M & S Gateway Associates, LLC

340 Conn. 115
CourtSupreme Court of Connecticut
DecidedAugust 13, 2021
DocketSC20395
StatusPublished
Cited by6 cases

This text of 340 Conn. 115 (Boardwalk Realty Associates, LLC v. M & S Gateway Associates, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boardwalk Realty Associates, LLC v. M & S Gateway Associates, LLC, 340 Conn. 115 (Colo. 2021).

Opinion

*********************************************** The “officially released” date that appears near the be- ginning of each opinion is the date the opinion will be pub- lished in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the be- ginning of all time periods for filing postopinion motions and petitions for certification is the “officially released” date appearing in the opinion.

All opinions are subject to modification and technical correction prior to official publication in the Connecticut Reports and Connecticut Appellate Reports. In the event of discrepancies between the advance release version of an opinion and the latest version appearing in the Connecticut Law Journal and subsequently in the Connecticut Reports or Connecticut Appellate Reports, the latest version is to be considered authoritative.

The syllabus and procedural history accompanying the opinion as it appears in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be reproduced and distributed without the express written permission of the Commission on Official Legal Publica- tions, Judicial Branch, State of Connecticut. *********************************************** BOARDWALK REALTY ASSOCIATES, LLC v. M & S GATEWAY ASSOCIATES, LLC, ET AL. (SC 20395) Robinson, C. J., and McDonald, D’Auria, Mullins, Kahn, Ecker and Keller, Js.

Syllabus

Pursuant to statute (§ 12-163a (a)), a municipality may request that the Superior Court appoint a receiver of rents or use and occupancy pay- ments for any property for which the owner is delinquent in the payment of real property taxes, and the ‘‘receiver appointed by the court shall collect all rents or payments for use and occupancy forthcoming from the occupants of the [property] in question in place of the owner . . . .’’ The plaintiff, which had been appointed, pursuant to § 12-163a (a), to serve as the receiver of rents for certain real property owned by C Co., sought to recover unpaid rent and use and occupancy fees from the defendants, M Co. and V Co., which have operated an automobile dealership on that property since 2001 without paying rent. C Co. leased the property to M Co. for a three year term, and M Co. thereafter exercised its option to renew the lease for another three year term, which expired in 2001. V Co., which is owned by M Co., subleased the property from M Co. pursuant to an agreement that incorporated the terms and rent obliga- tions of the lease. Shortly before the lease expired, C Co. effectively abandoned the property, which was allegedly contaminated and the subject of an ongoing enforcement action by the Department of Environ- mental Protection. The defendants thereafter continued to operate the dealership on the property, but, since 2001, they have failed to pay rent or to make use and occupancy payments to C Co., or to pay property taxes to the town in which the property is located. The parties filed separate motions for summary judgment. The defendants claimed that a receiver of rents appointed under § 12-163a has no authority to seek rent or use and occupancy payments with respect to an abandoned property, whereas the plaintiff claimed that it was entitled to seek rent and use and occupancy payments because, even though the lease with C Co. had expired, the defendants remained in possession as tenants, either at will or at sufferance. The trial court denied the plaintiff’s motion and granted the defendants’ motion, concluding that C Co., by abandoning the property and failing to pursue any of its rights against the defendants, had allowed the defendants to occupy the property without a rental obligation and that there was no rent for the plaintiff receiver to collect. On the plaintiff’s appeal, held that the trial court correctly concluded that § 12-163a did not authorize the plaintiff to collect rent or use and occupancy payments from the defendants, as the remedy provided by that statute does not extend to situations in which a tax delinquent property owner is absent and not pursuing such rent or payments from the occupant, and, accordingly, the trial court properly granted the defendants’ motion for summary judgment: because the language in § 12-163 (a) was ambiguous as to whether a receiver is limited to collecting rent or use and occupancy payments that are the product of an existing landlord-tenant relationship or whether a receiver has the authority to establish those payments in the first instance, this court considered extratextual sources, including case law interpreting the statute, and concluded that, under the circumstances of the present case, the narrow authority conferred on the receiver by § 12-163a did not permit the plaintiff to establish rent or use and occupancy payments in the first instance; moreover, that conclusion was supported by the legislative history, which indicated that the statute was viewed as a remedy that would avert the abandonment of properties, rather than being intended to apply to abandoned property or to authorize receivers to impose rent or use and occupancy payments in the place of a property owner who has abandoned the property; furthermore, the legislature, as the governmental body primarily responsible for formulating public policy, was best situated to address the unusual circumstances presented in this case, in which the town in which C Co.’s property was located sought to recoup unpaid property taxes on an abandoned property utilized by an apparently successful commercial enterprise. Argued November 23, 2020—officially released August 13, 2021*

Procedural History

Action to recover damages for, inter alia, unpaid rent, and for other relief, brought to the Superior Court in the judicial district of Hartford, Housing Session, where the court, Miller, J., denied the plaintiff’s motion for summary judgment as to liability, granted the defen- dants’ motion for summary judgment and rendered judgment for the defendants, from which the plaintiff appealed. Affirmed. Kenneth R. Slater, Jr., with whom was Logan A. Carducci, for the appellant (plaintiff). Eric H. Rothauser, with whom were Jay B. Wein- traub and, on the brief, John L. Bonee III, for the appel- lees (defendants). Opinion

ROBINSON, C. J. This appeal is the most recent battle in the efforts of the town of Canton (town) to collect unpaid property taxes on a parcel of commercial real property (property) that was effectively abandoned in 2001 by its owner, Cadle Properties of Connecticut, Inc. (Cadle), and on which the defendants, M & S Gateway Associates, LLC (Gateway) and Mitchell Volkswagen, LLC (Mitchell),1 have operated an automobile dealer- ship since 1995. The plaintiff, Boardwalk Realty Associ- ates, LLC, which is the court-appointed receiver of rents pursuant to General Statutes § 12-163a,2 appeals3 from the trial court’s judgment, rendered in accordance with the court’s granting of the defendants’ motion for sum- mary judgment with respect to the plaintiff’s complaint seeking rent, as well as use and occupancy payments, from the defendants. On appeal, the plaintiff contends that the trial court incorrectly concluded that the plain- tiff lacked authority under § 12-163a to impose and col- lect rent or use and occupancy payments in the place of Cadle, the tax delinquent owner that effectively aban- doned the property in 2001. We conclude that a receiver appointed under § 12-163a is not statutorily authorized to impose and collect rent or use and occupancy pay- ments under the circumstances of this case, when the property has been abandoned by the owner prior to the appointment of the receiver and there is no existing obligation for the receiver to enforce. Accordingly, we affirm the judgment of the trial court.

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Cite This Page — Counsel Stack

Bluebook (online)
340 Conn. 115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boardwalk-realty-associates-llc-v-m-s-gateway-associates-llc-conn-2021.