First American Title Ins. Co. v. 273 Water Street, LLC

CourtConnecticut Appellate Court
DecidedMay 5, 2015
DocketAC35882
StatusPublished

This text of First American Title Ins. Co. v. 273 Water Street, LLC (First American Title Ins. Co. v. 273 Water Street, 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
First American Title Ins. Co. v. 273 Water Street, LLC, (Colo. Ct. App. 2015).

Opinion

****************************************************** The ‘‘officially released’’ date that appears near the beginning of each opinion is the date the opinion will be published in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the beginning of all time periods for filing postopinion motions and petitions for certification is the ‘‘officially released’’ date appearing in the opinion. In no event will any such motions be accepted before the ‘‘officially released’’ date. All opinions are subject to modification and technical correction prior to official publication in the Connecti- cut Reports and Connecticut Appellate Reports. In the event of discrepancies between the electronic version of an opinion and the print version appearing in the Connecticut Law Journal and subsequently in the Con- necticut Reports or Connecticut Appellate Reports, the latest print version is to be considered authoritative. The syllabus and procedural history accompanying the opinion as it appears on the Commission on Official Legal Publications Electronic Bulletin Board Service and 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 repro- duced and distributed without the express written per- mission of the Commission on Official Legal Publications, Judicial Branch, State of Connecticut. ****************************************************** FIRST AMERICAN TITLE INSURANCE COMPANY v. 273 WATER STREET, LLC, ET AL. (AC 35882) Lavine, Beach and Keller, Js. Argued October 23, 2014—officially released May 5, 2015

(Appeal from Superior Court, judicial district of Hartford, Peck, J. [motion to dismiss]; Vacchelli, J. [motion in limine; judgment; motions to set aside verdict and for remittitur]). Courtney G. Saleski, pro hac vice, with whom were Benjamin Berger and, on the brief, David R. Makare- wicz and Richard M. Kremen, pro hac vice, for the appellant (plaintiff). Wesley W. Horton, with whom were Brendon P. Lev- esque and, on the brief, Karen L. Dowd, for the appel- lees (defendants). Opinion

BEACH, J. In this declaratory judgment action, the plaintiff, First American Title Insurance Company, appeals from the judgment, rendered after a jury trial, in favor of the defendant developers, 273 Water Street, LLC, and Fenwick Acquisition, LLC. The plaintiff claims that (1) the defendants lacked standing to pursue, and the trial court lacked subject matter jurisdiction to hear, their counterclaims; (2) the trial court abused its discre- tion with respect to several evidentiary rulings; and (3) the court abused its discretion in denying its motion to set aside or to reduce the verdict. We affirm the judg- ment of the trial court. The following facts, which reasonably could have been found by the jury, and procedural history are rele- vant. On September 27, 2004, the defendants purchased the subject property for $6 million. The property, con- sisting of approximately 3.5 acres, had been the beachfront summer home of actress Katharine Hep- burn. The property was located in the town of Old Saybrook and the Borough of Fenwick (borough). The property had 600 feet of frontage on Long Island Sound and was bordered on one side by a pond and on another by a land trust. The subject property previously had been larger, but prior to the sale of the property to the defendants, the Hepburn estate donated the eastern portion of the property to a land trust. When the defendants purchased the property, they also purchased a title insurance policy (policy) from the plaintiff. The defendants subdivided the property into three lots. The house was on the center lot. There had been plans to build smaller houses on the easterly and westerly lots to create a family compound. The three lots were on the market at the time of trial for a total asking price of $30 million. Shortly after the defendants began renovating the property, an official from the borough notified the defendants, by letter dated February 18, 2005, that the borough claimed ownership of a thirty foot wide discon- tinued road. The road ran from Mohegan Avenue, through part of the property’s driveway, over a portion of the lawn, and ended at a waterfront rock jetty. The parties agreed that February 18, 2005, constituted the date of loss under the title insurance policy. On August 15, 2007, the defendants submitted a claim to the plaintiff title insurance company. The plaintiff approved the claim and issued a check to the defendants in the amount of $17,000 on October 8, 2008. The defen- dants refused to accept the check because, in the defen- dants’ opinion, the loss amounted to approximately $5 million. In November, 2008, the plaintiff initiated this action seeking a declaratory judgment of its rights and obliga- plaintiff sought a declaration that its obligations under the policy would be satisfied by a payment of $40,000 or less. The defendants filed a counterclaim alleging breach of contract and breach of the implied covenant of good faith and fair dealing, and sought a counter- declaratory judgment without a limit on the amount of recovery. During the course of litigation, in March, 2010, the parties negotiated with the borough and reached an accommodation regarding the road. The borough agreed to convey fee title to the thirty foot discontinued road to the defendants, who in turn conveyed to the borough a limited six foot wide easement in the same area. The easement allowed access residents of the borough by foot and by bicycle between the hours of 5 a.m. and midnight. Running along the eastern side of the east lot next to the land donated to the land trust, the easement was approximately eighty yards from the house. It was a footpath that was not marked, main- tained or advertised, but was used by some people. The case was tried. A jury returned a verdict in favor of the defendants on their counterclaim for breach of contract and for a declaratory judgment. The jury awarded the defendants $2.2 million in damages. The jury found against the plaintiff on its request for a declaratory judgment and found against the defendants on their counterclaim alleging breach of the implied covenant of good faith and fair dealing. The plaintiff filed a motion to set aside or to reduce the verdict, which the trial court denied. The court rendered judg- ment in accordance with the jury’s verdict, plus costs. This appeal followed. Additional facts will be set forth as necessary. I The plaintiff first claims that the defendants lacked standing to pursue, and thus the trial court lacked sub- ject matter jurisdiction to hear, their counterclaims. It argues that the court erred in denying its motion to dismiss, which claimed lack of standing. We disagree. ‘‘It is well established that [i]f a party is found to lack standing, the court is without subject matter jurisdic- tion to determine the cause. . . . A determination regarding a trial court’s subject matter jurisdiction is a question of law. When . . . the trial court draws con- clusions of law, our review is plenary and we must decide whether its conclusions are legally and logically correct and find support in the facts that appear in the record. . . . [S]tanding is the legal right to set judicial machinery in motion. One cannot rightfully invoke the jurisdiction of the court unless he [or she] has, in an individual or representative capacity, some real interest in the cause of action, or a legal or equitable right, title or interest in the subject matter of the controversy.’’ (Citation omitted; internal quotation marks omitted.) Perry v. Perry, 312 Conn. 600, 626–27, 95 A.3d 500 (2014). ‘‘A determination regarding a trial court’s sub- ject matter jurisdiction is a question of law. When . . .

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First American Title Ins. Co. v. 273 Water Street, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-american-title-ins-co-v-273-water-street-llc-connappct-2015.