Bristol Heights Associates, LLC v. Chicago Title Insurance

950 F. Supp. 2d 408, 2013 WL 2995232, 2013 U.S. Dist. LEXIS 84360
CourtDistrict Court, D. Connecticut
DecidedJune 14, 2013
DocketCivil Action No. 3:12-CV-1658 (JCH)
StatusPublished

This text of 950 F. Supp. 2d 408 (Bristol Heights Associates, LLC v. Chicago Title Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bristol Heights Associates, LLC v. Chicago Title Insurance, 950 F. Supp. 2d 408, 2013 WL 2995232, 2013 U.S. Dist. LEXIS 84360 (D. Conn. 2013).

Opinion

RULING RE: DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT (Doc. No. 36)

JANET C. HALL, District Judge.

I. INTRODUCTION

This case is the fourth in a series of proceedings between the parties regarding the same underlying transaction and set of facts. The dispute concerns liability under a title insurance policy for real property. Plaintiff Bristol Heights Associates, LLC (“Bristol Heights”) brought this action against defendant Chicago Title Insurance Company (“Chicago Title”), alleging negligence and breach of contract. Chicago Title filed a Motion for Summary Judgment (Doc. No. 36) as to both claims.

For the reasons below, the court grants the Motion for Summary Judgment.

II. STANDARD OF REVIEW

A motion for summary judgment is properly granted only if “there is no genu[410]*410ine issue of material fact and the moving party is entitled to judgment as a matter of law.” O’Hara v. Nat’l Union Fire Ins. Co. of Pittsburgh, PA, 642 F.3d 110, 116 (2d Cir.2011). Thus, the role of the district court in deciding a summary judgment motion “is to determine whether genuine issues of material fact exist for trial, not to make findings of fact.” Id. In making this determination, the court must resolve all ambiguities and draw all inferences in favor of the party against whom summary judgment is sought. See Garcia v. Hartford Police Dep’t, 706 F.3d 120, 127 (2d Cir.2013).

“The moving party bears the burden of establishing the absence of any genuine issue of material fact.” Zalaski v. City of Bridgeport Police Dep’t, 613 F.3d 336, 340 (2d Cir.2010). Once the moving party has satisfied that burden, to defeat the motion “the party opposing summary judgment ... must set forth ‘specific facts’ demonstrating that there is ‘a genuine issue for trial.’ ” Wright v. Goord, 554 F.3d 255, 266 (2d Cir.2009) (quoting Fed.R.Civ.P. 56(e)). “For summary judgment purposes, a ‘genuine issue’ exists where the evidence is such that a reasonable jury could decide in the non-moving party’s favor.” Cambridge Realty Co., LLC v. St. Paul Fire & Marine Ins. Co., 421 Fed.Appx. 52, 53 (2d Cir.2011); see also Rojas v. Roman Catholic Diocese of Rochester, 660 F.3d 98, 104 (2d Cir.2011) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)) (stating that the non-moving party must point to more than a mere “scintilla” of evidence in its favor). “[Unsupported allegations do not create a material issue of fact.” Weinstock v. Columbia Univ., 224 F.3d 33, 41 (2d Cir.2000).

III. BACKGROUND

A. Facts

The history of the parties’ relationship is not in dispute. In 2003 Lewis Volpicella conveyed by warranty deed a parcel of real property (the “Property”) located in the City of Bristol (the “City”) to Bristol Heights, in which he also had a twenty-five percent membership interest. See Def.’s Local Rule (“L.R.”) 56(a)(1) Stmt. (Doc. No. 36-1) at ¶ 16. In conjunction with the conveyance, Bristol Heights purchased a policy from Chicago Title (the “Policy”) to insure title to the Property. Id. at ¶ 17. In August 2005 the City demanded that Bristol Heights pay tax assessments on the Property that dated from 1993 (before Volpicella’s ownership) and for which the City never sent Volpicella a bill. Id. at ¶¶ 12-13, 18. The City had filed tax liens on the Property in 1995, but under the name of the previous owner, PB Real Estate, Inc. Id. at ¶ 14. Although Bristol Heights maintained during the fall of 2005 that Volpicella was responsible for the 1993 assessments, it did not demand payment under the warranty of title and instead negotiated directly with the City to resolve the matter without the participation of Chicago Title. Id. at ¶¶ 20, 26.

In December 2005, Bristol Heights filed a claim under the Policy with Chicago Title after learning that the City was contemplating foreclosing on the tax liens. Id. at ¶¶ 29-30. The attorney assigned by Chicago Title to investigate the claim concluded that there were valid defenses to foreclosure. Id. at ¶ 34.1 Nevertheless, in [411]*411March 2006, Bristol Heights paid the City in full without informing Chicago Title or obtaining its consent. Id. at ¶ 44. Before the payment, Bristol Heights also refused to cooperate with Chicago Title’s investigation into coverage of the claim or to comply with document requests. Id. at ¶¶ 40-43. Bristol Heights alleges that the requests were not authorized under the Policy but otherwise admits its failure to cooperate. See Pl.’s L.R. 56(a)(2) Stmt. (Doc. No. 64-2) at ¶¶ 40-41. At the time of the payment there was no threat of foreclosure. See Defs L.R. 56(a)(1) Stmt. ¶ 39. Rather, Bristol Heights paid the taxes in connection with refinancing the Property to continue work on the project. Id.

B. Prior Litigation

Chicago Title’s liability under the Policy has been the subject of three previous proceedings. The preclusive effect of that litigation is central to the present suit, as discussed in Part IV below. The history of the litigation, however, is not in question. Bristol Heights initiated arbitration in June 2006, but withdrew its claim in November 2006. Id. at ¶¶ 46-48. Chicago Title then brought suit in 2007 in Connecticut Superior Court, seeking a declaratory judgment regarding the company’s obligations under the Policy and, in case of liability, indemnification from Volpicella. Id. at ¶¶ 1-2. Bristol Heights filed counterclaims against Chicago Title, including for breach of contract, as well as a cross-claim against Volpicella for breach of the warranty deed. Id. at ¶¶ 3-4. In October 2009, Bristol Heights surrendered its claim for breach of warranty when it executed a mutual release agreement with Volpicella. Id. at ¶ 5; see PL’s L.R. 56(a)(2) Stmt. ¶ 5.2

While the state suit was pending, Bristol Heights initiated a federal diversity action in this Court in 2010. Id. at ¶ 6. Judge Chatigny initially stayed and ultimately dismissed the federal suit under the Colorado River abstention doctrine. Id. at ¶ 8. Judge Chatigny’s dismissal of the federal action was based on: (1) the reactive nature of the federal suit, which was filed in response to an adverse summary judgment ruling in the state court; (2) the advanced stage of the state litigation, which had proceeded to trial; and (3) the lack of evidence that state procedures were inadequate to protect Bristol Heights’ interests in the legal claims presented to the federal forum. See Bristol Heights Assocs., LLC v.

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950 F. Supp. 2d 408, 2013 WL 2995232, 2013 U.S. Dist. LEXIS 84360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bristol-heights-associates-llc-v-chicago-title-insurance-ctd-2013.