Tolland Meetinghouse Commons, LLC v. CXF Tolland, LLC

Connecticut Appellate Court·Decided March 1, 2022·No. AC44379·Published

Opinion

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APPENDIX TOLLAND MEETINGHOUSE COMMONS, LLC v.

CXF TOLLAND, LLC, ET AL.* Superior Court, Judicial District of Tolland File No. CV-XX-XXXXXXX-S

Memorandum filed October 27, 2020

Proceedings

Memorandum of decision on plaintiff’s motion for summary judgment and on defendant Peter A. Rusconi’s motion for summary judgment. Plaintiff’s motion granted; defendant’s motion denied.

Kurosh L. Marjani and Daniel B. Brill, for the plaintiff .

Matthew T. Wax-Krell and Denise Luccio, for the defendants.

Opinion

FARLEY, J.

MEMORANDUM OF DECISION The plaintiff, Tolland Meetinghouse Commons, LLC (‘‘Tolland Meetinghouse’’), has brought this action claiming breach of a commercial lease agreement by the defendant CXF Tolland, LLC, d/b/a Cardio Express (‘‘Cardio Express’’), and claiming breach of a guaranty agreement by the defendant Peter Rusconi. Tolland Meetinghouse and Rusconi have both moved for summary judgment. Tolland Meetinghouse’s motion is granted as to both Rusconi and Cardio Express. Rusconi ’s motion is denied.

FACTS AND PROCEEDINGS On May 14, 2007, a predecessor in interest to Tolland Meetinghouse entered into a commercial lease agreement with Cardio Express demising premises that were part of a shopping center called Meetinghouse Commons , to be used as an exercise facility and health club. The lease provided for a term of eleven years and six months, commencing on May 1, 2007, and terminating on October 31, 2018. Also in May, 2007, Rusconi, at the time a member of CXF Tolland, LLC, signed an agreement (the ‘‘guaranty agreement’’) dated May 10, 2007, unconditionally guaranteeing the performance of Cardio Express’ obligations under the lease for a term of five years, a period that expired on May 1, 2012. In August, 2010, following Tolland Meetinghouse’s succession to the original landlord’s interests, the lease was amended (‘‘first amendment of lease’’) to recognize that Tolland Meetinghouse was now the landlord, and the lease was ratified and remained in full force and effect. Thereafter, on May 1, 2012, the guaranty agreement expired by its own terms.

A ledger statement submitted in support of Tolland Meetinghouse’s motion for summary judgment indicates that Cardio Express was current on its account as of August 5, 2014, two years after the original guaranty by Rusconi expired. The account was in arrears, however, throughout the rest of 2014, all of 2015, and into 2016. In March, 2016, Tolland Meetinghouse commenced eviction proceedings by serving Cardio Express with a notice to quit. In April, 2016, Tolland Meetinghouse and Cardio Express entered into a ‘‘Second Amendment to Lease’’ (‘‘second amendment’’). The purpose of this amendment was to restructure an arrearage under the lease, acknowledged at the time by Cardio Express to be $122,275.71. The notice to quit was revoked and the pending eviction thus avoided by means of the second amendment.

Under the second amendment to the lease, Tolland Meetinghouse agreed to reduce the amount of the arrearage to $100,000 to be paid in eighteen monthly installments of $5555.55 through September, 2017, ‘‘conditioned on the Tenant’s full compliance with the terms set forth herein.’’ Upon any default in the payments or otherwise under the lease, the original amount of $122,275.71 would become due, subject to credit for any installment payments already made. Importantly, although Rusconi was not a party to the lease, he signed the second amendment as ‘‘guarantor’’ in addition to signing in his status as ‘‘member/manager’’ of Cardio Express. Paragraph 5 of the second amendment provides : ‘‘The Guarantor hereby reaffirms his obligations in respect to the terms of the Guaranty dated May 10, 2007, which Guaranty shall remain in full force and effect.’’ Following the execution of the second amendment , Cardio Express made all eighteen of the $5555.55 payments called for in the agreement, although its account never achieved currency again. From June, 2018, through the end of the lease on October 31, 2018, Cardio Express made no payments under the lease as amended, and it held over in the premises until December 18, 2018. According to the ledger, at that time Cardio Express’ account was in arrears $291,997.61. In this litigation, however, Tolland Meetinghouse has chosen not to pursue $7687.27 reflected in the ledger because it was not included in the $122,275.71 arrearage agreed upon between the parties in the second amendment. Tolland Meetinghouse has also credited a prorated share of rent for December, 2018, which is not reflected in the ledger. Thus, the amount sought by Tolland Meetinghouse is an arrearage of $276,552.77, an amount which includes rent and other charges for the month of November, 2018, and part of December, 2018, after the lease expired, totaling $42,412.63.

The principal dispute between the parties concerns the nature and extent of Rusconi’s obligations as guarantor . Rusconi contests liability and has moved for summary judgment himself, based principally upon the argument that the original guaranty expired in 2012, and the 2016 second amendment did not create any new obligations beyond those set forth in the original guaranty agreement. Cardio Express acknowledges its default under the lease. As referenced above, Tolland Meetinghouse has supported its motion for summary judgment with evidence of the amounts owed under the lease. Cardio Express and Rusconi submitted no evidence concerning the amounts due. While Cardio Express does not contest liability it does contest the amount of damages sought by Tolland Meetinghouse and, without submitting any evidence contesting damages , requests that the court conduct a hearing in damages ‘‘so it may cross-examine the plaintiff’s representative regarding the amount of claimed damages, including late fees, charges, and credits.’’

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Tolland Meetinghouse Commons, LLC v. CXF Tolland, LLC, (Colo. Ct. App. 2022).

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