Summerbrook West, L.C. v. Foston

742 A.2d 831, 56 Conn. App. 339, 2000 Conn. App. LEXIS 13
CourtConnecticut Appellate Court
DecidedJanuary 11, 2000
DocketAC 18326
StatusPublished
Cited by12 cases

This text of 742 A.2d 831 (Summerbrook West, L.C. v. Foston) 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
Summerbrook West, L.C. v. Foston, 742 A.2d 831, 56 Conn. App. 339, 2000 Conn. App. LEXIS 13 (Colo. Ct. App. 2000).

Opinion

Opinion

LAVERY, J.

The substitute plaintiff, Summerbrook West, L.C. (Summerbrook), appeals from the trial court’s judgment denying Summerbrook’s motion for permission to bring an action against the court-appointed receiver of the real property that is the subject of this foreclosure action. Summerbrook claims that the court improperly found that it failed to establish a prima facie case that the receiver exceeded its authority. We affirm the judgment of the trial court.

The pertinent facts are as follows. In August, 1993, CTB Realty Services, Inc. (CTB Realty), the original plaintiff, brought a foreclosure action on an apartment complex located at 510-554 Saw Mill Road in West Haven (premises). In October, 1993, CTB Realty moved for the appointment of a receiver to collect rents, to pay maintenance and operating expenses and to manage the premises, including the negotiation of leases, the hiring of necessary employees and the making of reasonably necessary repairs. The court granted the motion and appointed Right Property Management Company, Inc. [341]*341(Right Property), as receiver.1 The court also ordered Right Property to post a $250,000 bond, which it thereafter posted. In March, 1994, the court granted permission for BCS Acquisition, L.P. (BCS Acquisition), the assignee of the mortgage deed and note, to be substituted as the plaintiff in lieu of CTB Realty. Later that month, the court rendered judgment of strict foreclosure, and the named defendant appealed to this court. We affirmed the judgment of strict foreclosure in CTB Realty Services, Inc. v. Foston, 36 Conn. App. 929, 651 A.2d 290 (1994).

In July, 1995, Summerbrook, the assignee of BCS Acquisition, was substituted as the party plaintiff. Also in the summer of 1995, Right Property moved to be discharged as receiver, and to have its final accounting and fees accepted. Before Right Property’s motions were heard, Summerbrook moved for the court’s permission to bring an action against Right Property for mismanaging the premises and committing waste by failing to keep the premises in good repair and to minimize vacancies.2 In its motion, Summerbrook alleged that Right Property had taken direction from BCS Acquisition regarding the management of the premises in derogation of the court’s order of appointment.

The court held a hearing on Summerbrook’s motion on March 28, 1998.3 In support of its motion, Sum[342]*342merbrook offered into evidence a July 5, 1995 letter (letter) from Right Property’s president, Frederick Mott, to Rene Rodriguez of Summerbrook.4 Summerbrook also put into evidence a financial statement summarizing the income and expenditures related to the premises during the time Right Property served as receiver. Summerbrook claimed that the sentence in the letter stating, “Our direction from BCS [Acquisition] was to minimize all expenses when operating the property, and the new note-holders wanted the property with as many vacancies as possible,” was sufficient proof that the receiver took direction from someone other than the court. The court disagreed, concluding that the sentence was not proof that the receiver had followed the direction given by BCS Acquisition. Thereafter, Summerbrook presented testimony from Mott.

On the basis of the two exhibits and Mott’s testimony, the court ruled from the bench, stating, “Well, there is [343]*343no question in my mind that the evidence elicited here today indicated that Mr. Mott did contact other people. As I stated previously, I see nothing wrong with that. The court, for whom the receiver is performing, is not the real party in interest, except that the court wishes that justice be done. Now, I find that it’s well within his rights as a receiver to notify anyone who might have an interest in the property ... to keep them apprised of what’s going on and, indeed, to permit them to have such information as would perhaps lead them to a resolution of the problem, [to determine] what they should do relative to this foreclosure action, even to the extent of abandoning it if they see fit. But, at the same time, the receiver, while he communicates, while he may receive information from external sources—his duty remains constant. He is to do what he is charged with doing by direction of the court that appointed him. All that having been said, I find nothing demonstrated here this morning which indicates that the receiver, Mr. Mott, did exceed his duties or was derelict in his duties.”

On appeal, Summerbrook claims that the court improperly found that it had not made a prima facie case that Right Property had acted outside the scope of its authority. Summerbrook claims that whether it established a prima facie case is a question of law, citing Wordie v. Staggers, 27 Conn. App. 463, 465, 606 A.2d 734 (1992).5 Right Property argues that pursuant to Practice Book § 60-56 we review that issue to determine whether the trial court’s finding was clearly erroneous.

[344]*344“A receiver appointed by judicial authority cannot, in the absence of a statute to the contrary, be subjected to suit without the leave of the court whose officer he is, granted in the cause in which he was appointed. Porter v. Sabin, 149 U.S. 473 [13 S. Ct. 1008, 37 L. Ed. 815 (1893)]. He is presumed to be acting according to the will of that court.” Links v. Connecticut River Banking Co., 66 Conn. 277, 284, 33 A. 1003 (1895); see also Walsh v. Raymond, 58 Conn. 251, 20 A. 464 (1889). “[T]he question whether a court will permit its receiver to be sued is largely a matter of discretion. There is no reason why the Superior Court, being in possession of the property and able to administer full relief to the petitioner, should allow him to bring another action in the same court . . . .” Davis v. Holden, 92 Conn. 96, 98, 101 A. 485 (1917).

“On appeal, it is the function of this court to determine whether the decision of the trial court is clearly erroneous. See Practice Book § [60-5]. This involves a two part function: where the legal conclusions of the court are challenged, we must determine whether they are legally and logically correct and whether they find support in the facts set out in the memorandum of decision; where the factual basis of the court’s decision is challenged we must determine whether the facts set out in the memorandum of decision are supported by the evidence or whether, in light of the evidence and the pleadings in the whole record, those facts are clearly erroneous. That is the standard and scope of this court’s judicial review of decisions of the trial court.” Pandolphe’s Auto Parts, Inc. v. Manchester, 181 Conn. 217, 221-22, 435 A.2d 24 (1980).

“We do not examine the record to determine whether the trier of fact could have reached a conclusion other [345]*345than the one reached.

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Cite This Page — Counsel Stack

Bluebook (online)
742 A.2d 831, 56 Conn. App. 339, 2000 Conn. App. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/summerbrook-west-lc-v-foston-connappct-2000.