Fischer v. People's United Bank, N.A.

CourtConnecticut Appellate Court
DecidedNovember 8, 2022
DocketAC44872
StatusPublished

This text of Fischer v. People's United Bank, N.A. (Fischer v. People's United Bank, N.A.) 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
Fischer v. People's United Bank, N.A., (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. *********************************************** ALAN FISCHER ET AL. v. PEOPLE’S UNITED BANK, N.A., ET AL. (AC 44872) Bright, C. J., and Prescott and Pellegrino, Js.

Syllabus

The plaintiffs, L Co., a mortgagor, F, its guarantor, and F Co., F’s real estate company, sought to recover damages from the defendant bank and two of its officers after the bank rescinded its offer to refinance L Co.’s mortgage and L Co. defaulted on that mortgage. F commenced this action on behalf of all three plaintiffs, filing a five count complaint. Counts one through four were brought by all three plaintiffs and alleged breach of contract, breach of the implied covenant of good faith and fair dealing, violations of the Connecticut Unfair Trade Practices Act (§ 42-110a et seq.), and tortious interference with business expectancies, respectively. Count five was brought by F only and alleged negligent infliction of emotional distress. The trial court granted the defendants’ motion to dismiss, dismissing for lack of standing all claims brought by L Co. and the claims brought by F and F Co. that were set forth in the first, second, and third counts of the complaint. On the plaintiffs’ appeal to this court, held: 1. The portion of the appeal that pertained to the claims of F and F Co. was dismissed because they did not appeal from a final judgment: the trial court’s ruling with respect to F and F Co. was only a partial judgment because it did not fully dispose of counts four and five of the complaint; accordingly, this court did not have jurisdiction to review the appeal with respect to their claims. 2. The trial court properly determined that L Co. lacked standing to bring this action and, accordingly, the court properly dismissed the claims brought by L Co. for a lack of jurisdiction: L Co. failed to meet its burden to establish that F, acting alone on behalf of L Co.’s general partner, A Co., was legally authorized to commence the action on behalf of L Co., as L Co.’s partnership agreement granted A Co., a member managed limited liability company, full management and control over L Co., and, although F was one of the three members of A Co., because the decision to commence litigation on behalf of L Co. was not within the scope of A Co.’s ordinary business and was a decision that affected the policy and management of A Co., the authorization of A Co.’s other two mem- bers was required to commence litigation, which was not forthcoming; moreover, F’s management responsibilities in his role as property man- ager of the mortgaged property and his statements asserting that he was the sole member of A Co. to carry out operations on behalf of L Co. did not undermine the clear and unambiguous language of L Co.’s partnership agreement, which granted A Co. the exclusive right to bring an action on L Co.’s behalf, or A Co.’s operating agreement, which required the unanimous consent of A Co.’s members for decisions affect- ing the policy and management of A Co. and those outside the scope of A Co.’s ordinary business; furthermore, L Co.’s partnership agreement and A Co.’s operating agreement prohibited A Co. from removing itself from its role as L Co.’s general partner and from delegating to F its exclusive control and management of L Co., and there was no support in the record that any such delegation had occurred. Argued September 6—officially released November 8, 2022

Procedural History

Action to recover damages for, inter alia, breach of contract, and for other relief, brought to the Superior Court in the judicial district of Ansonia-Milford, where the court, Pierson, J., granted the defendants’ motion to dismiss and rendered judgment thereon, from which the plaintiffs appealed to this court. Appeal dismissed in part; affirmed. Laurence V. Parnoff, Jr., and Laurence V. Parnoff, Sr., filed a brief for the appellants (plaintiffs). James T. Shearin, with whom were Dana M. Hrelic, and, on the brief, Potoula Tournas, for the appellees (defendants). Opinion

PRESCOTT, J. This appeal arises out of an action brought by the plaintiffs, Alan Fischer, Fischer Real Estate, Inc., and 1730 State Street Limited Partnership (1730 LP), against the defendants, People’s United Bank, N.A. (People’s United), and two of its officers, Kenneth Nuzzolo and Virgilio Lopez.1 The underlying action was brought after People’s United, 1730 LP’s mortgage lender, rescinded its offer to refinance a mort- gage executed by 1730 LP in 2010 (2010 mortgage) on real property located at 1730 Commerce Drive in Bridge- port (property), following which 1730 LP defaulted on the 2010 mortgage. The plaintiffs appeal from the judgment of the trial court granting the defendants’ motion to dismiss. The trial court held that it lacked subject matter jurisdiction over all counts of the operative five count complaint brought by 1730 LP because 1730 LP was not legally authorized to bring the underlying action, thereby depriving it of standing. The court also held that Fischer and Fischer Real Estate, Inc., lacked standing to bring the first, second, and third counts of the complaint because Fischer and Fischer Real Estate, Inc., did not suffer a direct injury from the defendants’ actions rescinding the mortgage commitment letter and, thus, did not have standing to bring those counts. The plaintiffs claim on appeal that the court improp- erly held that 1730 LP lacked standing because, contrary to the court’s determination, Fischer had authority under the relevant corporate governance documents to permit 1730 LP to commence the underlying action. The plaintiffs also claim on appeal that Fischer and Fischer Real Estate, Inc., had standing to bring counts one, two, and three because Fischer and Fischer Real Estate, Inc., suffered a direct injury from the defen- dants’ actions separate from the injury suffered by 1730 LP. On appeal, prior to oral argument, this court ordered the parties to file supplemental briefs addressing whether Fischer and Fischer Real Estate, Inc., appealed from a final judgment because two of the counts brought by them were not disposed of in the trial court’s judgment of dismissal and thereby remain pending in the trial court. We conclude that (1) the judgment dismissing some, but not all, counts of the complaint brought by Fischer and Fischer Real Estate, Inc., is not an appealable final judgment, and (2) the court properly dismissed all counts brought by 1730 LP for a lack of subject matter jurisdiction because 1730 LP’s general partner did not authorize the commencement of the action against the defendants.

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Fischer v. People's United Bank, N.A., Counsel Stack Legal Research, https://law.counselstack.com/opinion/fischer-v-peoples-united-bank-na-connappct-2022.