PPC Realty, LLC v. Hartford

350 Conn. 347
Supreme Court of Connecticut·Decided August 12, 2024·No. SC20826·Published

Opinion

November 5, 2024 CONNECTICUT LAW JOURNAL Page 3

350 Conn. 347 NOVEMBER, 2024 347 PPC Realty, LLC v. Hartford

PPC REALTY, LLC v. CITY OF HARTFORD (SC 20826)

Robinson, C. J., and McDonald, D’Auria, Mullins, Ecker, Alexander and Dannehy, Js.

Syllabus

The defendant city appealed from the judgment of the trial court, which granted the plaintiff property owner’s application to discharge a lien that the city had placed on the plaintiff’s property pursuant to the relevant provisions (§§ 8-268 and 8-270) of the Uniform Relocation Assistance Act, in connection with the city’s efforts to recover costs that it incurred when it relocated the tenants of the plaintiff’s apartment building, which was destroyed by an act of arson and condemned under the city’s building code. The city claimed that the trial court had incorrectly determined that the lien was invalid on the ground that the plaintiff’s tenants were displaced as a result of a third party’s arson and not the city’s enforcement of its building code. Held:

The tenants were ‘‘displaced persons,’’ as defined by statute (§ 8-267 (3) (B)), because, even though the fire that displaced them was not the plaintiff’s fault, their displacement was a direct result of the city’s enforcement of its building code.

The trial court improperly allowed the plaintiff to challenge the validity of the lien by asserting an affirmative defense contemplated by the provision (§ 8-270a) of the act that allows a municipality or the state to recover relocation expenses from a landlord by bringing a civil action, as that affirmative defense is available to a landlord only in a civil action brought by a municipality or the state under § 8-270a and cannot be invoked in support of an application to discharge a lien filed pursuant to §§ 8-268 and 8-270.

(One justice concurring separately)

Argued March 25—officially released August 12, 2024*

Procedural History

Application to discharge a certificate of lien filed by the defendant on certain of the plaintiff’s real property, and for other relief, brought to the Superior Court in the judicial district of Hartford and tried to the court, Hon. Robert B. Shapiro, judge trial referee, who, exer-

* August 12, 2024, the date that this decision was released as a slip opinion, is the operative date for all substantive and procedural purposes.

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348 NOVEMBER, 2024 350 Conn. 347 PPC Realty, LLC v. Hartford

cising the powers of the Superior Court, rendered judgment discharging the lien, from which the defendant appealed. Reversed; judgment directed.

David R. Roth, with whom were Aaron S. Bayer and, on the brief, Nathan Guevremont and Demar G. Osbourne, assistant corporation counsel, for the appellant (defendant). Michael J. Barnaby, for the appellee (plaintiff). Kirk Tavtigian filed a brief for the New England Legal Foundation as amicus curiae.

Karen L. Dowd and Michael A. Lanza filed a brief for the Connecticut Association of Public Insurance Adjusters as amicus curiae.

Evan K. Buchberger, Jane Kelleher, Nilda R. Havrilla, Giovanna Shay and Shelley White filed a brief for Connecticut Legal Services et al. as amici curiae.

Opinion

D’AURIA, J. In this appeal, we must interpret provisions of the Uniform Relocation Assistance Act (act), §§ 8-266 through 8-282, also known as the URRA, to determine whether a city can maintain a lien against a property to secure repayment of costs incurred when relocating residents who find themselves displaced following the city’s enforcement of its building codes, even if the property owner did not cause the building to become uninhabitable. The defendant, the city of Hartford , contends that the trial court improperly discharged its lien on the property of the plaintiff, PPC Realty, LLC. Relying on the statutory text of the act, we agree with the defendant that its lien was proper, and we reverse the trial court’s judgment.

The following undisputed facts and procedural history relate to the defendant’s claim on appeal. The plaintiff owns real property located at 820 Wethersfield

November 5, 2024 CONNECTICUT LAW JOURNAL Page 5

350 Conn. 347 NOVEMBER, 2024 349 PPC Realty, LLC v. Hartford

Avenue in Hartford, which was improved with a three story apartment building with forty residential units. On March 7, 2019, at approximately 7:18 a.m., a third party started a fire on the second floor of the apartment building. Both parties have stipulated that the fire was not the fault of the plaintiff or any apartment resident. The third party was later convicted of arson for starting this fire.

The ensuing blaze caused water, smoke, and fire damage , rendering the apartment units uninhabitable immediately and for the foreseeable future. Less than one hour later, at approximately 8 a.m. that same day, the defendant provided the plaintiff with a ‘‘Notice Violation /Emergency and Order to Abate,’’ which stated that the defendant was condemning the property and ordering all residents to vacate their units until the apartment building was repaired. The defendant placed a placard on the plaintiff’s property declaring the building ‘‘[u]nfit for [h]uman [o]ccupancy.’’ At the time of the fire, residents occupied thirty-nine of the building’s forty apartment units. Important to the dispute before us, the defendant provided shelter and relocation services to all residents who lived in these units. The plaintiff does not contest the necessity of the defendant’s actions in response to this emergency.

The day after the fire, the defendant filed a lien on the plaintiff’s property pursuant to General Statutes §§ 8-268 and 8-270. The lien provided that it was ‘‘for all reimbursable relocation assistance expenses, including , if any, but not limited to, ongoing expenses for temporary housing (hotel rental fees), moving, storage and insurance of personal property, and replacement housing made by the [defendant] to or on . . . behalf [of] certain tenants displaced from said [p]remises due to violation(s) of the [c]ity of Hartford [h]ousing, [b]uilding, [h]ealth, and/or [f]ire [c]odes.’’ The defendant later filed an updated lien, specifying that the relo-

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350 NOVEMBER, 2024 350 Conn. 347 PPC Realty, LLC v. Hartford

cation assistance it had provided to the building’s residents amounted, cumulatively, to $274,564.95. The defendant ‘‘further claim[ed] a lien on said premises . . . against the proceeds of any policy of insurance providing coverage for loss or damage caused by fire, if a loss or damage has occurred.’’ At the time of the fire, the plaintiff maintained a fire insurance policy for up to $5 million in property damage. From this coverage, the plaintiff and a property mortgagor jointly received $1.6 million in insurance proceeds. The plaintiff has stipulated that it is unaware of any evidence that its insurance provider ever contacted the town clerk’s office about whether liens existed on the property.

On March 11, 2019, the defendant also sent the plaintiff a letter explaining that ‘‘[t]he [defendant] must be reimbursed for all relocation costs related to these displaced tenants.’’ The plaintiff’s counsel ‘‘strenuously object[ed]’’ to the defendant’s position and requested that the defendant discharge the lien. The plaintiff contended that ‘‘[it] did not violate any code requiring enforcement by the [defendant]. Instead, the structure was rendered unsafe as a result of the criminal action of a third party.’’ (Emphasis in original.)

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