Candlewood Hills Tax District v. Medina

74 A.3d 421, 143 Conn. App. 230, 2013 WL 2397078, 2013 Conn. App. LEXIS 300
CourtConnecticut Appellate Court
DecidedJune 11, 2013
DocketAC 33564
StatusPublished

This text of 74 A.3d 421 (Candlewood Hills Tax District v. Medina) 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
Candlewood Hills Tax District v. Medina, 74 A.3d 421, 143 Conn. App. 230, 2013 WL 2397078, 2013 Conn. App. LEXIS 300 (Colo. Ct. App. 2013).

Opinion

Opinion

BISHOP, J.

The defendants, former board members and residents of the plaintiff, Candlewood Hills Tax District, appeal from the judgment of the trial court [232]*232declaring invalid actions taken by the defendants to reduce the boundaries of the district containing the defendants’ property.1 The defendants claim that (1) the court improperly declared the boundary reduction invalid despite finding compliance with the statutoiy procedure, and (2) the court erroneously found that the defendants owed fiduciary duties to the district and breached these duties by calling the referendum on the boundary reduction.2 We reverse the judgment of the trial court.

The following undisputed facts and procedural history are relevant to our resolution of this appeal. The plaintiff is a special taxing district originally created in 1971, pursuant to General Statutes §§ 7-324 through 7-329, for a residential neighborhood known as Candle-wood Hills, in the town of New Fairfield. The plaintiffs bylaws provide that the purpose of the district is to maintain the roads within the boundaries of the district. The plaintiff is governed by a nine member board of directors (board), whose members are elected from the residents of the district.

For many years, residents of the district who lived on portions of Candle Hill Road, Linda Lane, Carola Lane and Squantz View Drive had been unsatisfied with the allocation of the tax monies they paid to the district. [233]*233In 2008, three residents of Squantz View Drive, the defendants Gregory Cross, Thomas Wahlig and John Benicewicz, drafted a letter demanding that the board cooperate in releasing their street from the district, with the result that they would no longer be subject to the tax responsibilities of the district. These residents brought the letter to two monthly meetings of the board but were informed that no new business could be considered until several vacancies on the board were filled. At a third meeting on June 19, 2008, a request was made by the board president, Raffaele Martino, for volunteers to fill the vacant seats. Five residents of Squantz View Drive, the defendants Gregory Cross, Rosie Cross, Thomas Wahlig, Donna Wahlig and John Benicewicz, three of whom had written the previous demand letter, volunteered for the open positions and were duly elected.

At the meeting of the board that convened that evening after the election, the defendants introduced their previous letter demanding removal of their street from the district’s boundaries during the new business portion of the meeting. No action was taken by the board on the matter that evening. Subsequently, the defendants asked Martino to call a special meeting to discuss the boundary reduction and to list the issue on the agenda of the next board meeting; he refused both requests. At the July 17,2008 board meeting, the defendants again raised the boundary reduction issue during the new business portion of the meeting. After a “ ‘lively debate’ ” regarding the complaints of the residents residing on Squantz View Drive and two other areas of the district, the board, by a bare majority vote, passed three resolutions for the exclusion of specific locales from the district.3 All of the votes in favor of the three resolutions came from the five defendants who lived [234]*234on Squantz View Drive. The resolutions in favor of exclusion of specific locales also authorized a referendum to be held at a special meeting to determine whether the residents of the identified locales wished to reduce the district’s boundaries by removing these areas from the district. The announcement of the referendum was highly contentious within the district and two petitions were circulated. One sought to remove the defendants from the board, and the other sought to allow all the residents of the district to vote on the referendum, regardless of whether they lived in the specific locales under consideration for removal from the district. Both petitions were rejected by the district clerk on the ground that the requested actions were illegal.

The referendum held on August 14,2008, was of such sufficient public moment that the location of the vote had to be changed to accommodate the high volume of persons who attended, and a police officer was placed on duty to observe. Most of the eligible voters in the areas subject to the referendum attended the meeting. They voted unanimously to reduce the boundaries of the district by removal of their respective streets from the district. At a subsequent board meeting, the defendants who resided in the areas removed from the district were replaced with residents who remained in the district. The successor board then commenced this action on behalf of the district.

The plaintiff filed this declaratory judgment action, seeking a judicial determination as to whether the prior board properly reduced the district’s boundaries. In its operative complaint, the plaintiff alleged that, prior to their election to the board, the defendants had failed to make a good faith disclosure of their intention to reduce the plaintiffs geographical area and improperly put their own interests in excluding themselves from [235]*235taxation ahead of the district’s best interests. In addition, the plaintiff alleged that the defendants violated General Statutes § 7-325 (b), which provides in relevant part: “Any district may enlarge or reduce its territorial limits if the board of directors of the district approves a resolution proposing such an enlargement or reduction . . . provided: (1) The board of directors of the district shall call a meeting of voters of the area proposed to be included or excluded, which meeting shall be held within thirty days of the board of directors’ approval of such resolution and shall be called by publication of a written notice of the same, signed by the members of the board of directors of the district, at least fourteen days before the time fixed for such meeting in two successive issues of some newspaper published or circulated in such town . . . [and] (2) a two-thirds majority of the voters of the area proposed to be included or excluded in attendance at such meeting . . . vote in favor of joining or leaving such district . . . .”4 In response to the plaintiffs complaint, the defendants filed a two count counterclaim, alleging that they had properly followed statutory dictates and seeking a declaration that the boundary reduction process and the outcome of the referendum were legally proper and binding.

On June 7, 2011, following a trial to the court, the court issued a memorandum of decision in which it found in favor of the plaintiff. The court found, inter alia, that the tax district was a quasi-municipal corporation, and, as such, both the district and its board members were akin to municipal officers and had narrow authority only as prescribed by statute. The court further found that, as municipal officers, the defendants had a fiduciary duty to the public whom they served, and [236]*236they, therefore, could not serve on a matter in which they had a conflict of interest.

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Bluebook (online)
74 A.3d 421, 143 Conn. App. 230, 2013 WL 2397078, 2013 Conn. App. LEXIS 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/candlewood-hills-tax-district-v-medina-connappct-2013.