Justia Landlord - Tenant Opinion Summaries
Articles Posted in Connecticut Supreme Court
Centrix Management Co., LLC v. Fosberg
The plaintiff landlord initiated a summary process action to evict the defendant tenant from an apartment. The trial court ruled in favor of the defendant, who then sought attorney’s fees under a statute that allows consumers to recover such fees when a contract includes a unilateral attorney’s fees provision favoring the commercial party. The lease agreement in question capped the plaintiff’s recoverable attorney’s fees at $750. The trial court awarded the defendant $3500 in attorney’s fees, reasoning that limiting the defendant’s recovery to $750 would not achieve true parity between the parties, as intended by the statute.The plaintiff appealed, arguing that the trial court could only award the defendant up to $750 in attorney’s fees, as specified in the lease agreement. The plaintiff contended that the statute required the court to base the defendant’s award on the same terms governing the plaintiff’s fees, as long as it was practicable to do so.The Connecticut Supreme Court reviewed the case and concluded that trial courts have discretion to award a prevailing consumer reasonable attorney’s fees in excess of the contractual cap when it is not practicable to base the award on the contractual terms. The court determined that the term "practicable" means feasible under the circumstances, which are circumstances that achieve equity or fairness. The court emphasized that the equitable purpose of the statute is to rectify the imbalance of power between consumers and commercial parties in contract disputes.The court vacated the trial court’s award of $3500 in attorney’s fees and remanded the case for a new hearing. The trial court was directed to determine whether it was practicable to base the defendant’s award on the lease agreement’s terms and, if not, to award reasonable attorney’s fees consistent with the statute’s equitable purpose. View "Centrix Management Co., LLC v. Fosberg" on Justia Law
Chabad Lubavitch of Western & Southern New England, Inc. v. Shemtov
The plaintiff, a religious organization, sought to reclaim possession of a commercial property occupied by the defendants through a summary process action. The dispute arose after the founder and former president of the plaintiff, D, transferred his responsibilities to S in 2014. S took possession of the property and operated two companies from it, making regular mortgage payments until his relationship with D deteriorated, leading to a cessation of payments. D then ordered S to vacate the property and purported to remove him from his position. The parties agreed to resolve their disputes before a Bais Din, a rabbinical tribunal, which ruled that S would continue as the leader and make mortgage payments, while D retained ownership of the property for three years.The trial court, the Superior Court in the judicial district of Stamford-Norwalk, initially denied the defendants' motion to dismiss the action for lack of subject matter jurisdiction but ordered a stay to allow arbitration before the Bais Din. The court found that D had signed the arbitration agreement intending to bind the plaintiff and that the ownership issue was to be adjudicated by the Bais Din. However, after the stay period, the court denied the defendants' motion to stay the proceedings and compel arbitration, concluding that the plaintiff was not a party to any arbitration agreement and that the court would resolve the ownership and landlord-tenant issues.The Supreme Court of Connecticut reviewed the case and found that the trial court erred in failing to enforce the arbitration agreement. The court held that the plaintiff was bound by the arbitration agreement, as D signed it in a representative capacity with the intent to bind the plaintiff. The court noted that the arbitration agreement covered all disputes between the parties, including the issue of possession of the property. Consequently, the Supreme Court reversed the trial court's judgment and remanded the case with direction to grant the defendants' motion to stay the proceedings and compel arbitration. View "Chabad Lubavitch of Western & Southern New England, Inc. v. Shemtov" on Justia Law
Northland Investment Corp. v. Public Utilities Regulatory Authority
The case involves Northland Investment Corporation (N Co.), a landlord of multiunit residential buildings, and the Public Utilities Regulatory Authority (PURA). N Co. sought a declaratory ruling from PURA that it could use ratio utility billing (RUB) to recoup utility costs from tenants in buildings without individual meters. Under RUB, N Co. would bill tenants for their proportionate share of utility usage, calculated based on factors like unit square footage and number of occupants. PURA concluded that RUB violated the statute because it prohibited charging a tenant for utilities they did not exclusively use. However, PURA suggested N Co. could use the "building in" methodology, incorporating estimated utility costs into fixed rent.PURA's decision was appealed to the trial court, which remanded the case back to PURA for further consideration of whether its decision on RUB conflicted with its conclusion on the "building in" approach. PURA reaffirmed its prior ruling, and N Co. appealed again to the trial court, which dismissed the appeal. N Co. then appealed from the trial court's judgment.The Supreme Court of Connecticut upheld the trial court's decision, agreeing with PURA's determination that the statute prohibits N Co.'s proposed use of RUB to recoup building-wide utility costs by billing tenants for their estimated proportionate share of the total cost. The court concluded that the "building in" approach was acceptable as it allowed for consistent and predictable payments each month and placed the risk of higher-than-anticipated utility usage on the landlord. View "Northland Investment Corp. v. Public Utilities Regulatory Authority" on Justia Law
Boardwalk Realty Associates, LLC v. M & S Gateway Associates, LLC
The Supreme Court affirmed the judgment of the trial court concluding that Boardwalk Realty Associates, LLC (Boardwalk), the court-appointed receiver of rents, lacked authority under Conn. Gen. Stat. 12-163a to impose and collect rent or use and occupancy payments in the place of the subject property's owner, Cadle Properties of Connecticut, Inc., holding that there was no error.This case centered on the Town of Canton's efforts to collect unpaid property taxes on a parcel of real property that was effectively abandoned Cadle and on which M&S Gateway Associates, LLC and Mitchell Volkswagen, LLC (together, Defendants) operated an automobile dealership. Boardwalk brought a complaint seeking rent and use and occupancy payments from Defendants. The trial court granted summary judgment in favor of Defendants, holding that section 12-163a does not permit a receiver of rents to collect rent or use and occupancy payments if the tax delinquent property owner is absent and nor pursuing those payments. The Supreme Court affirmed, holding that a receiver appointed under section 12-163a is not statutorily authorized to impose and collect rent or use and occupancy payments under the facts and circumstances of this case. View "Boardwalk Realty Associates, LLC v. M & S Gateway Associates, LLC" on Justia Law
Boccanfuso v. Daghoghi
In this summary process action for nonpayment of rent under the terms of a commercial lease the Supreme Court affirmed the judgment of the Appellate Court affirming the trial court's judgment of possession rendered in favor of Plaintiffs, holding that the trial court properly denied Defendants equitable relief from forfeiture of their tenancy.After the Appellate Court affirmed the trial court's judgment of possession rendered in favor of Plaintiffs, Defendants appealed, arguing that the trial court erred in denying their special defense of equitable nonforfeiture. The Supreme Court affirmed, holding that, under the facts of this case, the trial court did not abuse its discretion in refusing to grant Defendants equitable relief from forfeiture. View "Boccanfuso v. Daghoghi" on Justia Law
Boccanfuso v. Daghoghi
The Supreme Court affirmed the judgment of the Appellate Court affirming the trial court's judgment of possession rendered in favor of Plaintiffs, holding that the trial court properly rejected Defendants' claim that the doctrine of equitable nonforfeiture should have operated to prevent their eviction in a summary process action for nonpayment of rent under the terms of a commercial lease.After Defendants failed to pay rent, Plaintiffs served a notice to quit on Defendants, thereby terminating the parties' lease. Because Defendants did not subsequently vacate the premises Plaintiffs initiated this summary process action. In response, Defendants raised special defenses, including the special defense of equitable nonforfeiture. The trial court rendered judgment of possession for Plaintiffs. The Appellate Court affirmed. The Supreme Court affirmed, holding that the trial court did not abuse its discretion in refusing to grant Defendants equitable relief from forfeiture and granting possession of the premises to Plaintiffs. View "Boccanfuso v. Daghoghi" on Justia Law
Presidential Village, LLC v. Perkins
The Supreme Court reversed the judgment of the Appellate Court reversing the judgment of the trial court dismissing the summary process action initiated by Landlord, holding that the the trial court properly concluded that the inclusion of undesignated charges for obligations other than rent rendered the pretermination notice jurisdictionally defective.In this summary process action, Landlord provided a pretermination notice to Tenant, Tenant, who resided in federally subsidized housing, asserting nonpayment of rent as the ground for proposed termination. The notice also alleged violations of leases that were no longer in effect. The trial court granted Tenant's motion to dismiss, determining that the notice was defective because it contained legally impermissible and factually inaccurate grounds for termination. The Appellate Court reversed. The Supreme Court reversed, holding that the the notice was not effective because it was inaccurate to the point that Tenant's ability to prepare a defense against the alleged reason for termination was impaired. View "Presidential Village, LLC v. Perkins" on Justia Law
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Connecticut Supreme Court, Landlord - Tenant
Amica Mutual Insurance Co. v Muldowney
At issue was what sort of “specific agreement” is required under DiLullo v. Joseph, 792 A.2d 819 (Conn. 2002), to overcome DiLullo’s presumption that a landlord’s insurer has no right of subrogation to bring an action against a tenant for damage the tenant caused to the rented property.The lower courts in this case concluded that it was sufficient for the lease to allocate to the tenant responsibility for damage caused by the tenant and to require the tenant to obtain insurance even without a specific agreement authorizing subrogation. The Supreme Court affirmed, holding (1) an express agreement that the tenant will bear responsibility for his or her negligence and needs to obtain his or her own insurance to cover that responsibility is the kind of “specific agreement” that will overcome DiLullo’s presumption against subrogation; and (2) the parties in this case made a specific agreement sufficient to overcome the application of DiLullo’s presumption against subrogation, and allowing subrogation was fair and consistent with the doctrine of equitable subrogation. View "Amica Mutual Insurance Co. v Muldowney" on Justia Law
Amica Mutual Insurance Co. v Muldowney
At issue was what sort of “specific agreement” is required under DiLullo v. Joseph, 792 A.2d 819 (Conn. 2002), to overcome DiLullo’s presumption that a landlord’s insurer has no right of subrogation to bring an action against a tenant for damage the tenant caused to the rented property.The lower courts in this case concluded that it was sufficient for the lease to allocate to the tenant responsibility for damage caused by the tenant and to require the tenant to obtain insurance even without a specific agreement authorizing subrogation. The Supreme Court affirmed, holding (1) an express agreement that the tenant will bear responsibility for his or her negligence and needs to obtain his or her own insurance to cover that responsibility is the kind of “specific agreement” that will overcome DiLullo’s presumption against subrogation; and (2) the parties in this case made a specific agreement sufficient to overcome the application of DiLullo’s presumption against subrogation, and allowing subrogation was fair and consistent with the doctrine of equitable subrogation. View "Amica Mutual Insurance Co. v Muldowney" on Justia Law
Presidential Village, LLC v. Phillips
In this summary process action, the trial court relied on the “spirit” of certain federal disability laws in support of an equitable defense to the eviction of Defendant, a tenant who kept an “emotional support dog” in her federally subsidized rental apartment despite a clause restricting pets that was included in her lease. Plaintiff appealed from the trial court’s judgment in favor of Defendant. The Supreme Court reversed, holding (1) this appeal was not rendered moot when Plaintiff commenced an ancillary summary process action against Defendant, the filing of which had the effect of affirmatively reinstating Defendant’s tenancy; and (2) the trial court abused its discretion by relying on the spirit of the federal regulations and by applying the doctrine of equitable nonforfeiture to support its equitable decision in favor of Defendant. View "Presidential Village, LLC v. Phillips" on Justia Law