DXR Finance Parent, LLC v. Theraplant, LLC

223 Conn. App. 362
CourtConnecticut Appellate Court
DecidedJanuary 23, 2024
DocketAC46769
StatusPublished
Cited by2 cases

This text of 223 Conn. App. 362 (DXR Finance Parent, LLC v. Theraplant, LLC) 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
DXR Finance Parent, LLC v. Theraplant, LLC, 223 Conn. App. 362 (Colo. Ct. App. 2024).

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. *********************************************** DXR FINANCE PARENT, LLC v. THERAPLANT, LLC (AC 46769) Bright, C. J., and Cradle and Suarez, Js.

Syllabus

The plaintiff sought to foreclose a mortgage on certain real property of the defendant, T Co. The plaintiff alleged that certain lenders entered into a credit agreement with G Co. as the borrower, T Co. and N Co. as guarantors, and the plaintiff acting as the lenders’ agent. The credit agreement provided that the lenders would make certain financial accommodations to G Co. T Co., as a guarantor, was liable for all payment obligations if G Co. defaulted, and, subsequently, T Co. entered into a mortgage deed with respect to the subject property to secure its obligations under the credit agreement and guaranty. Following several events of default, the plaintiff commenced this action. The trial court granted the parties’ motion for entry of a stipulated judgment of strict foreclosure and rendered judgment thereon. T Co. waived its rights to appeal and to an appraisal, and the parties stipulated to a fair market value of the property based on records of the municipal tax assessor. On the law day assigned by the court, S Co., a nonparty, filed a postjudgment motion to intervene as a party defendant, asserting that it was the plaintiff in a separate action against G Co., which owned T Co., and that it had filed an application for a prejudgment remedy seeking to attach T Co.’s assets, including the subject property. S Co. claimed that the property was substantially undervalued in the foreclosure judgment because the valuation was not based on an appraisal and that its ability to collect a judgment against G Co. would be impaired in the absence of its involvement in the foreclosure action. The trial court denied the motion to intervene after the law day had passed, and S Co. appealed to this court. The plaintiff thereafter filed a motion to dismiss the appeal as moot. Held that, because the appeal was moot, this court lacked subject matter jurisdiction and, accordingly, the appeal was dismissed: there was no appellate stay affecting the running of the law days because S Co., as a nonparty, could not file an appeal from the judgment of strict foreclosure, and, although S Co. filed a motion to intervene, it did not also file a motion that, if granted, would have rendered the judgment ineffective, such that a new appeal period from the judgment would have been created, and, therefore, the denial of S Co.’s motion to intervene, in the absence of the granting of a discretionary stay, which S Co. did not request, did not stay this foreclosure action; moreover, no practical relief could be granted to S Co. because title had already vested in the plaintiff by the time the trial court denied S Co.’s postjudgment motion to intervene, the right of redemption by T Co. had been extinguished, and the rare exception in which fact-specific relief could be granted to a would-be intervenor did not exist here, as the granting of the motion to intervene would have necessitated opening the foreclosure judgment, which would have required further proceedings by the trial court; fur- thermore, there was no colorable claim implicating this court’s equitable authority to open the foreclosure judgment as established in U.S. Bank National Assn. v. Rothermel (339 Conn. 366), as S Co. did not file a motion to open the judgment along with its motion to intervene, and, even if it had, S Co. did not raise any colorable claims of the type that would have caused this court to determine that equity required opening the judgment after title had vested in C Co., and, notwithstanding S Co.’s argument that T Co.’s waiver of an appraisal and the parties’ stipulated property value based on the tax assessor’s records were improper and unlawful, the valuation was part of the stipulation, was based on a municipal tax assessor’s valuation, and was accepted by the trial court in its order rendering the judgment of strict foreclosure, and, thus, T Co.’s waiver of an appraisal, without additional factual allegations to establish the rare and exceptional circumstances of fraud, accident, mistake or surprise, did not convert S Co.’s disagreement with the stipulated valuation of the property into a claim sufficient to invoke this court’s continuing equitable authority, particularly given that S Co. had no direct interest in the property that could be foreclosed in the underlying action. Considered October 11, 2023—officially released January 23, 2024

Procedural History

Action to foreclose a mortgage on certain real prop- erty, and for other relief, brought to the Superior Court in the judicial district of Waterbury, where the court, Spader, J., rendered a judgment of strict foreclosure in accordance with the parties’ stipulation; thereafter, the court denied the motion to intervene filed by Share- holder Representative Services, LLC, and Shareholder Representative Services, LLC, appealed to this court; subsequently, the plaintiff filed a motion to dismiss the appeal. Motion to dismiss granted and appeal dis- missed. Jonathan A. Kaplan, James T. Shearin, and Dana M. Hrelic, in support of the motion. Jeffrey J. Mirman, in opposition to the motion. Opinion

CRADLE, J. In this foreclosure action, Shareholder Representative Services, LLC (SRS), a nonparty, appeals from the denial of its motion to intervene that was filed after the judgment of strict foreclosure was rendered but before the law days passed. Because an automatic appellate stay did not apply, title to the sub- ject property has vested in the plaintiff, and there is no basis for this court to invoke its continuing equitable authority to afford practical relief to the proposed inter- venor. We therefore grant the plaintiff’s motion to dis- miss this appeal as moot. The following facts and procedural history are rele- vant to our review. On April 6, 2023, the plaintiff, DXR Finance Parent, LLC, filed a one count complaint for strict foreclosure of a guaranty mortgage to which it had been assigned the rights. The defendant, Ther- aplant, LLC (Theraplant), is the owner of the subject mortgaged property located at 856 Echo Lake Road in Watertown (property). A cannabis facility occupies the property that includes buildings, equipment, and inven- tory used to grow, manufacture, and package cannabis products. SRS, the proposed intervenor, alleges that the property hosts ‘‘one of the largest growers of cannabis in Connecticut,’’ and that ‘‘the Department of Consumer Protection . . . relied upon [Theraplant] in approving the [recreational cannabis] program . . .

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Cite This Page — Counsel Stack

Bluebook (online)
223 Conn. App. 362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dxr-finance-parent-llc-v-theraplant-llc-connappct-2024.