Rader v. Valeri

223 Conn. App. 243
CourtConnecticut Appellate Court
DecidedJanuary 9, 2024
DocketAC45407
StatusPublished
Cited by1 cases

This text of 223 Conn. App. 243 (Rader v. Valeri) 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
Rader v. Valeri, 223 Conn. App. 243 (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. *********************************************** MARTIN A. RADER, JR. v. PAUL J. VALERI ET AL. (AC 45407) Bright, C. J., and Alvord and Clark, Js.

Syllabus

The plaintiff stakeholder, an attorney who represented the defendant V in a real estate transaction in which V sold two real properties to the defendant M Co., brought an action for interpleader to determine the rights of V and M Co. to funds held in escrow until V obtained certain zoning approvals for the properties. The properties, which were adjacent to each other, were located in a federal opportunity zone, which provided the opportunity for tax deferment. M Co. made clear its intent to V that it desired to continue mixed commercial and residential use for the first property and to convert the second property from a single-family residence to a two-family residence. Various zoning and use approvals were required from the city of Danbury in order to use the second property as a two-family property. In order to qualify for the tax benefits of the opportunity zone, V and M Co. were required to close on the transaction within a six month window. In order to ensure the closing could take place within the time frame needed to obtain the tax defer- ment, the parties entered into a contract for sale containing a rider to the contract that called for the creation of an escrow agreement to hold $75,000 of the purchase price contingent on the receipt of specified zoning and use approvals on or before February 1, 2020. M Co. designated V as its agent relative to any application for a variance for the second property. The zoning board granted the application for the variance for the second property with the stipulation that there would be no street access to the front of the second property, the driveway to the front of the second property would need to be removed and replaced with grass, and access to parking for the second property would be available only through an easement over the first property in favor of the second property. M Co. did not agree to the creation of the easement. After trial, the court rendered judgment awarding the escrow funds to M Co. On appeal to this court, V claimed that the trial court made erroneous factual findings and improperly concluded that he failed to satisfy the contingency set forth in the escrow agreement requiring that he obtain a use variance for the second property. Held: 1. M Co. could not prevail on its claim that V’s appeal was moot because V did not challenge each independent basis for the trial court’s judgment; if this court were to agree with V’s claim that the trial court misconstrued the escrow agreement as a matter of law, there would be no other basis on which to affirm the trial court’s judgment and this court could grant V practical relief by either directing judgment in his favor or by ordering a new trial. 2. V could not prevail on his claim that the trial court made clearly erroneous factual findings; even if this court assumed that the challenged findings were clearly erroneous, the trial court did not rely on either of those findings in reaching its conclusion that V failed to satisfy a condition of the escrow agreement and, thus, any alleged error was harmless. 3. The trial court properly concluded that V failed to satisfy a condition of the escrow agreement and awarded the escrow funds to M Co.: the contract for sale and the escrow agreement were connected by reference and subject matter and, when read together to determine the intent of V and M Co., were unambiguous that, although M Co. designated V as its agent to obtain a use variance for the second property, it did not grant V any authority that allowed him to encumber the first property in pursuit of a use variance for the second property; moreover, the use variance V obtained for the second property was conditioned on the granting of an easement over the first property, which did not satisfy the terms of the escrow agreement or the contract for sale, which expressly required that V convey the properties without private restric- tive covenants or easements; furthermore, V’s reliance on the fact that there was no dispute that the only access to the additional parking spaces behind the second property was across the first property as support for his suggestion that M Co. knew that a permanent easement would be required for the use variance for the second property lacked probative force because, with M Co. as the owner of both properties, no easement would be required to allow such access. Argued September 18, 2023—officially released January 9, 2024

Procedural History

Action for interpleader to determine the defendants’ rights to certain funds held in escrow in connection with the sale of two real properties, brought to the Superior Court in the judicial district of Danbury, where the court, Kowalski, J., granted the plaintiff’s motion for an interlocutory judgment of interpleader and ordered the plaintiff to deposit the funds with the clerk of the court; thereafter, the case was tried to the court, Shaban, J.; judgment for the defendant MSPD Downs Street, LLC, from which the named defendant appealed to this court. Affirmed. Alexander Copp, for the appellant (named defen- dant). Brandon B. Fontaine, for the appellee (defendant MSPD Downs Street, LLC). Opinion

BRIGHT, C. J. This interpleader action arises from a real estate transaction in which the defendant claimant, MSPD Downs Street, LLC (MSPD), purchased two prop- erties located in Danbury from the defendant claimant, Paul J. Valeri.1 The plaintiff stakeholder, Martin A. Rader, Jr., sought an order determining the rights of Valeri and MSPD to funds held in escrow until Valeri obtained certain zoning approvals for the properties.2 Valeri appeals from the judgment of the trial court, rendered after a court trial, awarding MSPD the escrow funds and attorney’s fees. On appeal, Valeri claims that the court (1) made clearly erroneous factual findings and (2) improperly concluded that he failed to satisfy one of the zoning contingencies set forth in the escrow agreement. We affirm the judgment of the trial court. The following facts, either as found by the trial court or undisputed by the parties, and procedural history are relevant to Valeri’s claims. ‘‘In 2019, MSPD sought to purchase from Valeri two properties located at 10 Downs Street [also referred to as 10 Downs] and 12 Downs Street [also referred to as 12 Downs] [in] Dan- bury . . . . The two properties are adjacent to each other. 12 Downs is a corner lot, also bordering Smith Street, with parking in the rear of the building that is accessed from Smith Street.

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Bluebook (online)
223 Conn. App. 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rader-v-valeri-connappct-2024.