Lending Home Funding Corp. v. REI Holdings, LLC

214 Conn. App. 703
Connecticut Appellate Court·Decided August 30, 2022·No. AC44564·Published·Cited by 3 cases

Opinion

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LENDING HOME FUNDING CORPORATION v. REI HOLDINGS, LLC, ET AL.

(AC 44564)

Elgo, Cradle and Suarez, Js.

Syllabus

The defendant T Co. appealed to this court from the judgment of the trial court determining that it lacked subject matter jurisdiction to consider T Co.’s motion to reargue or to reconsider the trial court’s prior denial of T Co.’s motion to open a judgment of strict foreclosure. The defendant R Co. had defaulted on a promissory note and mortgage it executed in favor of the plaintiff concerning a parcel of real property. The trial court rendered judgment of strict foreclosure in favor of the plaintiff and set the law day to run on May 20, 2019. R Co. did not file a timely appeal from the judgment but, on May 15, 2019, filed a motion to open and vacate the judgment. The court denied R Co.’s motion to open and set a new law day for June 24, 2019. On June 10, 2019, pursuant to the applicable rule of practice (§ 11-11) and within the twenty day appellate stay period, R Co. filed a motion to reargue or to reconsider the court’s denial of its motion to open. The court denied the motion to reargue on July 3, 2019, and notice of the court’s ruling was sent to the parties on July 5, 2019. The plaintiff thereafter filed a certificate of foreclosure on the land records and quitclaimed the property to another entity. On December 7, 2020, pursuant to statute (§ 49-15), T Co. filed a motion to open and vacate the foreclosure judgment. T Co. claimed that title to the property had never passed to the plaintiff because the June 24, 2019 law day fell within the twenty day appellate stay period and the parties did not receive notice of the trial court’s denial of R Co.’s motion to reargue until July 5, 2019. The trial court concluded that T Co.’s motion to open was moot because the filing of R Co.’s motion to reargue did not stay the June 24, 2019 law day and, thus, absolute title had vested in the plaintiff on the passing of the June 24, 2019 law day. Held that the trial court erred in determining that it was without subject matter jurisdiction to hear T Co.’s motion to open and vacate the foreclosure judgment: under the applicable rule of practice (§ 63-1 (b)), R Co.’s timely filing of its motion to reargue the court’s denial of R Co.’s motion to open and vacate the foreclosure judgment triggered the automatic stay provision in the applicable rule of practice (§ 61-11 (a)) until the parties received notice of the court’s ruling on R Co.’s motion to reargue on July 5, 2019, and, because the June 24, 2019 law day fell within the extended appellate stay period, the June 24, 2019 law day had no legal effect and could not vest absolute title in the plaintiff; accordingly, the trial court retained jurisdiction to decide T Co.’s motion to open and vacate the foreclosure judgment. Submitted on briefs December 8, 2021—officially released August 30, 2022

Procedural History

Action to foreclose a mortgage on certain of the named defendant’s real property, and for other relief, brought to the Superior Court in the judicial district of Hartford, where the court, Dubay, J., rendered judgment of strict foreclosure; thereafter, the court, Sheridan , J., denied the named defendant’s motion to open and vacate the judgment; subsequently, the court, Dubay, J., denied the named defendant’s motion to reargue or to reconsider the denial of its motion to open and vacate the judgment; thereafter, the court, M. Taylor, J., denied the motion filed by the defendant Traditions Oil Group, LLC, to open and vacate the judgment ; subsequently, the court, M. Taylor, J., denied the motion filed by the defendant Traditions Oil Group, LLC, to reargue or to reconsider the denial of its motion to open and vacate the judgment, and the defendant Traditions Oil Group, LLC, appealed to this court. Reversed; further proceedings.

Elio Morgan filed a brief for the appellant (defendant Traditions Oil Group, LLC).

Opinion

CRADLE, J. The defendant Traditions Oil Group, LLC,1 appeals from the judgment of the trial court denying its motion to reargue/reconsider the court’s denial of its motion to open the judgment of strict foreclosure rendered in favor of the plaintiff, Lending Home Funding Corporation. On appeal, the defendant claims that the court incorrectly determined that it lacked subject matter jurisdiction to open the judgment of strict foreclosure on the ground that title already had vested in the plaintiff, thereby rendering the defendant’s motion to open moot. We agree with the defendant and, accordingly , reverse the judgment of the trial court and remand the matter for further proceedings.2 The following facts and procedural history are relevant to our resolution of this appeal. On August 11, 2016, the defendant REI Holdings, LLC (REI), executed a promissory note in favor of the plaintiff for the principal sum of $247,500, secured by a mortgage on a parcel of real property located at 88 Dawn Drive in South Windsor (property). The defendant Wayne Francis also executed a commercial guaranty in which he personally guaranteed the loan. The defendant, REI, and Francis subsequently defaulted on the note, and the plaintiff commenced the underlying foreclosure action on April 27, 2018.

On October 23, 2018, the plaintiff filed a motion for default against the defendant for failure to disclose a defense, which the court, Dubay, J., granted. On January 28, 2019, the court rendered judgment of strict foreclosure in favor of the plaintiff and set the law day to run on May 20, 2019. REI subsequently filed a motion to open and vacate the judgment of strict foreclosure (first motion to open) on May 15, 2019, claiming, inter alia, that the appraised value of the property, as found by the court, was too low. On May 20, 2019, the court, Sheridan, J., denied the first motion to open and assigned a new law day for June 24, 2019.

On June 10, 2019, pursuant to Practice Book § 11- 11,3 REI filed a motion to reargue/reconsider the court’s denial of the first motion to open (first motion to reargue /reconsider), again contending that the appraised value of the property was incorrect. The court, Dubay, J., denied the first motion to reargue/reconsider on July 3, 2019, and notice of the court’s ruling was sent to the parties on July 5, 2019.4 On July 17, 2019, the plaintiff filed a certificate of foreclosure on the South Windsor land records. The plaintiff subsequently executed a quitclaim deed transferring the property to CFAI Special Assets LLC, which was recorded on the South Windsor land records.

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Lending Home Funding Corp. v. REI Holdings, LLC, 214 Conn. App. 703 (Colo. Ct. App. 2022).

214 Conn. App. 703 (Lending Home Funding Corp. v. REI Holdings, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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