Traggis v. Shawmut Bank Connecticut, N.A.

805 A.2d 105, 72 Conn. App. 251, 2002 Conn. App. LEXIS 466
CourtConnecticut Appellate Court
DecidedSeptember 10, 2002
DocketAC 21676; AC 21962
StatusPublished
Cited by14 cases

This text of 805 A.2d 105 (Traggis v. Shawmut Bank Connecticut, N.A.) 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
Traggis v. Shawmut Bank Connecticut, N.A., 805 A.2d 105, 72 Conn. App. 251, 2002 Conn. App. LEXIS 466 (Colo. Ct. App. 2002).

Opinion

Opinion

HENNESSY, J.

The plaintiff, Demetrius P. Traggis, trustee, appeals from the judgments of the trial court reforming a contract between him and the defendant Shawmut Bank Connecticut, N.A.,2 on the defendant’s counterclaim and granting the defendant’s motion for summary judgment on the plaintiffs complaint. On appeal, the plaintiff claims that there was insufficient evidence to support the court’s decisions granting the reformation of the contract of sale and rendering a summary judgment in favor of the defendant. Specifically, he claims that the court improperly (1) reformed the contract on the basis of evidence of prior written contracts between him and the defendant’s predecessor in interest, (2) reformed the contract without clear, substantia] and convincing proof of mistake, (3) reformed the contract without properly considering his special defenses of estoppel, laches and waiver, (4) failed to consider the entire record before reforming the contract, (5) found inequitable conduct on his part as a result of having relied on legal authority that was not applicable to the facts of this case, (6) ruled on January 30, 2001, the date of trial on the defendant’s counterclaim, that his answer and special defenses to [254]*254the defendant’s amended counterclaim actually was a motion to amend his previous answer and special defenses to the counterclaim, and (7) rendered a summary judgment in favor of the defendant.

The following facts are relevant to the resolution of the plaintiffs appeal. In April, 1993, the defendant’s predecessor in interest, Gateway Bank, listed a property for sale with a Realtor, Timothy J. Kennelly, Jr. Kennelly showed the property to the plaintiff, who signed a pre-printed, short form agreement to purchase the property. Gateway Bank submitted the agreement to its attorney, Marshall Goldberg, for review. Goldberg drafted a more comprehensive contract with a $575,000 purchase price. The parties executed the contract on or about August 27, 1993, with a closing date “on the later to occur of December 15, 1993, or Town of Cheshire approval of Purchaser’s intended addition to the premises ... or on such other date as may be agreed upon by the parties hereto.”

The parties agreed on a number of extensions during which time the plaintiff obtained an appraisal of the subject property in the amount of $450,000. On June 23,1994, the prior contract was discarded, and the plaintiff and his partner signed a new preprinted, short form agreement for the purchase of the property. The purchase price under the new agreement was $450,000 with a $28,750 deposit. The agreement also contained a third party financing contingency providing that if the plaintiff and his partner were unable to secure a commitment for mortgage financing in the amount of $450,000 within sixty days and they timely notified the defendant of such inability, the agreement would become null and void and the deposit would be returned to the plaintiff. The new agreement listed August 26, 1994, as the closing date.

After the short form agreement was signed, Kennelly, who had negotiated its terms with the plaintiff, submit[255]*255ted it to the defendant. The defendant then submitted the matter to Goldberg for the drafting of a new contract. That contract, which forms the foundation of the plaintiffs complaint, was entered into by Shawmut Bank, N.A., as “successor in interest to Gateway Bank.” The defendant informed Goldberg that it wanted the closing to occur in two weeks. On or about July 29, 1994, Goldberg marked a copy of the original contract and told his secretary that the closing date on the new contract was to be “the fifteenth,” by which he meant August 15,1994. The secretary, however, typed “August 15, 1995.”3 Goldberg sent the contract to Kennelly on July 29, 1994, and Kennelly gave the contract to the plaintiff to sign. Kennelly explained to the plaintiff that the reason for the defendant’s acceptance of the $450,000 price was the fact that there would be a closing in two weeks. The plaintiff replied, “[o]kay.” The plaintiff then reviewed the contract with his partner. After all parties signed the contract, Kennelly gave a copy to the plaintiff and said, “We’re all set for next week.”4

After the August 15,1994 closing date passed without a closing, the plaintiff claimed that he had another year to close. During a conversation, the defendant’s attor[256]*256ney told the plaintiffs attorney that the August 15,1995 closing date typed in the contract had been a mistake. The plaintiffs attorney replied, “I know it’s a mistake, but it’s the only weapon I have.”

On October 14, 1994, the defendant sent a letter to the plaintiff, stating that it would tender to him a deed to the property at a closing to be held on October 27, 1994,5 or, in the event that the closing did not occur on that date, the defendant stated that it would pursue its remedies under the contract. No closing took place on October 27, 1994, and the plaintiff maintained that he was not obligated to close until August 15, 1995. The defendant sold the property to a third party on March 31, 1995. Thereafter, the plaintiff brought an action against the. defendant, alleging breach of contract. In the complaint, the plaintiff alleged that the defendant had breached the contract by selling the property to a third party. The defendant filed an answer and special defense in which it claimed that the contract was executed as the result of mutual mistake or a mistake of the defendant coupled with actual or constructive fraud on the part of the plaintiff. The defendant also filed a counterclaim seeking reformation of the contract to reflect the actual closing date on which the parties allegedly had agreed, August 15, 1994, instead of the closing date of August 15,1995, as stated in the contract. The plaintiff, in turn, filed special defenses of estoppel and laches. Specifically, the plaintiff claimed that the defendant was guilty of laches because it sold the property to a third party and should be estopped from claiming a reformation of the contract where the sale had made reformation impossible.

Thereafter, the defendant filed an amended counterclaim that was identical to the previous counterclaim except that it deleted typographical errors. The plaintiff [257]*257then filed an amended answer and special defenses to the amended counterclaim that included the following additional allegations: (1) the defendant was guilty of laches because it did not make any claim for reformation until more than four years after the contract date of August 9,1994; (2) the defendant should be estopped from seeking reformation because the plaintiff was prejudiced when it obtained a mortgage loan on March 31, 1995, in reliance on the contract closing date of August 15, 1995; and (3) the defendant waived the alleged mistake of the closing date by not claiming a rescission of the August 9, 1994 contract, by unilaterally changing the closing date to October 27, 1994, and by retaining possession of the plaintiffs deposit check. The court treated the plaintiffs second answer and special defenses as a motion to file an answer and subsequently denied the motion. By agreement of the parties, the counterclaim was tried to the court on January 30,2001, prior to any hearing of the allegations contained in the plaintiffs complaint. The court thereafter rendered judgment in the defendant’s favor on its counterclaim for reformation of the contract.

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Cite This Page — Counsel Stack

Bluebook (online)
805 A.2d 105, 72 Conn. App. 251, 2002 Conn. App. LEXIS 466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/traggis-v-shawmut-bank-connecticut-na-connappct-2002.