D2E Holdings, LLC v. Corp. for Urban Home Ownership of New Haven

CourtConnecticut Appellate Court
DecidedMay 31, 2022
DocketAC44218, AC44656
StatusPublished

This text of D2E Holdings, LLC v. Corp. for Urban Home Ownership of New Haven (D2E Holdings, LLC v. Corp. for Urban Home Ownership of New Haven) 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
D2E Holdings, LLC v. Corp. for Urban Home Ownership of New Haven, (Colo. Ct. App. 2022).

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. *********************************************** D2E HOLDINGS, LLC v. CORPORATION FOR URBAN HOME OWNERSHIP OF NEW HAVEN (AC 44218) (AC 44656) Alvord, Suarez and Bishop, Js.

Syllabus

The plaintiff sought to recover damages from the defendant for breach of contract in connection with a real estate contract in which the plaintiff agreed to purchase from the defendant certain residential units. The real estate contract required the plaintiff to obtain mortgage financing by a certain date and mandated that the defendant provide to the plaintiff various documents, to the extent such documents were existing and available. The defendant did not supply all of the documents requested by the plaintiff because certain documents did not yet exist. The closing date expired and the plaintiff never obtained mortgage financing. The plaintiff commenced this action alleging that the defendant breached the implied covenant of good faith and fair dealing by failing to provide it with the necessary documents for it to obtain mortgage financing and by retaining the plaintiff’s deposit without intent to transfer title to the units. The defendant impleaded B Co. into the action by way of a third- party complaint. B Co. and the defendant had attempted to enter into a property management agreement. B Co., however, did not exist as a corporate entity on the date that the agreement was executed. P, a manager of B Co., signed the agreement, despite the fact that P was not a party to the agreement. B Co. filed a third-party counterclaim against the defendant alleging that the defendant breached the manage- ment agreement and was unjustly enriched when it failed to pay B Co. for all of its services. After a trial to the court, the trial court found in favor of the defendant as to the plaintiff’s claim alleging breach of the implied covenant of good faith and fair dealing, concluding that the defendant had no obligation to provide the plaintiff with documents that did not exist. The court rendered judgment in favor of the defendant as to B Co.’s breach of contract claim on the ground that the management agreement was a ‘‘nullity’’ because B Co. did not exist when the manage- ment agreement was executed. The plaintiff and B Co. appealed from the trial court’s judgment, and, while that appeal was pending, the plaintiff filed a motion to open the trial court’s judgment on the ground that the defendant engaged in fraud by concealing that it had sold the residential units to another entity for a higher price. The court denied the motion, reasoning that, even if the plaintiff’s contentions were true, this would not have affected its determination that the defendant per- formed its obligations under the contract, and the plaintiff filed a sepa- rate appeal to this court, which consolidated the appeals. Held: 1. The plaintiff could not prevail on its claim that the trial court improperly rendered judgment in favor of the defendant on the plaintiff’s claim alleging that the defendant breached the implied covenant of good faith and fair dealing, which was based on its claim that the court incorrectly determined that the defendant did not act in bad faith by failing to provide to the plaintiff the documents necessary for it to obtain mortgage financing and by accepting the plaintiff’s deposit without the intent to transfer title to the residential units: the court determined that the defendant did not act in bad faith by failing to provide the plaintiff with documents to secure financing that did not exist, the agreement does not mandate that the defendant create nonexistent documents, rather, the agreement mandates the opposite, namely, that the defendant must provide the plaintiff with documents that are existing and available; moreover, the defendant did not act in bad faith by retaining the plain- tiff’s deposit because the agreement permitted the defendant to retain the deposit in the event that the plaintiff defaulted, and it was undisputed that the plaintiff defaulted on its obligations because it did not obtain mortgage financing to comply with the agreement. 2. This court declined to review B Co.’s claim that the trial court improperly rendered judgment in favor of the defendant on B Co.’s breach of con- tract counterclaim, which was based on its claim that the court incor- rectly determined that the management agreement between B Co. and the defendant was a nullity: the trial court did not review any of the fact bound arguments made by B Co. in support of its claim that it was able to enforce the agreement against the defendant, and, therefore, the record was inadequate for this court to consider B Co.’s arguments because the court never made the requisite determination as to the issues of P’s capacity, as to P’s assignment of the agreement and the defendant’s ratification of the agreement, and B Co. failed to seek reargu- ment or an articulation as to any of these grounds; moreover, although B Co. lacked the capacity to enter into the management agreement because it did not exist as a corporate entity at the time the agreement was executed, B Co.’s lack of capacity did not, by itself, render the agreement a nullity, as the management agreement may have been enforceable between P and the defendant if P had the capacity to execute the agreement on behalf B Co., however, the issue of P’s capacity was not determined by the court, which determined only that the agreement was a nullity because B Co. was not yet legally formed. 3. The plaintiff’s claim that the trial court incorrectly determined that it failed to make a threshold showing of fraud in order to warrant limited discovery and an evidentiary hearing on its motion to open was unavail- ing: the trial court did not abuse its discretion in denying the plaintiff’s motion to open because the plaintiff failed to make a threshold showing of substance warranting the opening of the judgment, that court having correctly determined that, even if the defendant sold the residential units to another entity, this would have had no impact on its judgment rendered in favor of the defendant, as the court determined that the defendant complied with the real estate agreement, and the defendant’s interactions with a separate buyer were immaterial to the plaintiff’s claims. Argued March 8—officially released May 31, 2022

Procedural History

Action to recover damages for breach of contract, and for other relief, brought to the Superior Court in the judicial district of New Haven, where the defendant filed a counterclaim and a third-party complaint; there- after, the third-party defendants filed a third-party coun- terclaim; subsequently, the matter was tried to the court, Hon.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Chapman Lumber, Inc. v. Tager
952 A.2d 1 (Supreme Court of Connecticut, 2008)
Ravetto v. Triton Thalassic Technologies, Inc.
941 A.2d 309 (Supreme Court of Connecticut, 2008)
Malave v. Ortiz
970 A.2d 743 (Connecticut Appellate Court, 2009)
O & G Industries, Inc. v. All Phase Enterprises, Inc.
963 A.2d 676 (Connecticut Appellate Court, 2009)
Central New Haven Development Corporation v. La Crepe, Inc.
413 A.2d 840 (Supreme Court of Connecticut, 1979)
DEROY v. Estate of Baron
43 A.3d 759 (Connecticut Appellate Court, 2012)
418 Meadow St. Assoc. v. Clean Air Partners
43 A.3d 607 (Supreme Court of Connecticut, 2012)
Von Kohorn v. Von Kohorn
33 A.3d 809 (Connecticut Appellate Court, 2011)
Sunset Gold Realty, LLC v. Premier Building & Development, Inc.
36 A.3d 243 (Connecticut Appellate Court, 2012)
Stiffler v. Continental Insurance
950 A.2d 1270 (Supreme Court of Connecticut, 2008)
BRJM, LLC v. Output Systems, Inc.
917 A.2d 605 (Connecticut Appellate Court, 2007)
Molaver v. Thomas
6 A.3d 232 (Connecticut Appellate Court, 2010)
Szekeres v. Miller
2 A.3d 953 (Connecticut Appellate Court, 2010)
Difrancesco v. Kennedy
160 A. 72 (Supreme Court of Connecticut, 1932)
Geysen v. Securitas Security Services USA, Inc.
142 A.3d 227 (Supreme Court of Connecticut, 2016)
Burns v. Adler
155 A.3d 1223 (Supreme Court of Connecticut, 2017)
Financial Freedom Acquisition, LLC v. Griffin
170 A.3d 41 (Connecticut Appellate Court, 2017)
Alpha Beta Capital Partners, L.P. v. Pursuit Investment Management, LLC
193 Conn. App. 381 (Connecticut Appellate Court, 2019)
Veneziano v. Veneziano
205 Conn. App. 718 (Connecticut Appellate Court, 2021)

Cite This Page — Counsel Stack

Bluebook (online)
D2E Holdings, LLC v. Corp. for Urban Home Ownership of New Haven, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d2e-holdings-llc-v-corp-for-urban-home-ownership-of-new-haven-connappct-2022.