Sovereign Bank v. Harrison
Sovereign Bank v. Harrison
Opinion
In this foreclosure action, the plaintiff, Sovereign Bank, 1 appeals from the order of the trial court granting the motion of the defendant, Angela Harrison, 2 to restore her third special defense to the docket following the plaintiff's voluntary withdrawal of its action. 3 The plaintiff's principal claim on appeal is that the trial court erred in interpreting the defendant's special defense as a counterclaim and, therefore, lacked the authority to restore it to the docket. 4 We agree and, accordingly, reverse the order of the trial court.
The following facts and procedural history are relevant to this appeal. The plaintiff commenced the present action on September 9, 2010, seeking to foreclose a mortgage on certain real property in Norwalk that the defendant had executed in 2005 as security for a note in the principal amount of $200,000. The plaintiff alleged in its complaint that it was the holder of the note and mortgage and that the defendant was in default under the note and mortgage for failing to make payment as agreed.
On June 24, 2011, the defendant filed an answer and three special defenses. The defendant alleged in the first two special defenses that the plaintiff's predecessor in interest had (1) misrepresented the terms and conditions of the loan and (2) fraudulently entered false information on the defendant's loan application and sold the defendant a loan that she could not possibly afford. As to her third special defense-the only one at issue in the present appeal-the defendant alleged that "[t]he plaintiff did not properly account for payments made by the defendant." The plaintiff filed a reply denying the defendant's special defenses on December 2, 2014.
On November 23, 2015-prior to the scheduled trial date-the plaintiff unilaterally withdrew its action pursuant to General Statutes § 52-80, 5 and shortly thereafter the plaintiff commenced a foreclosure action against the same defendant in federal court. 6 As of the date of the withdrawal, the defendant had not effectively filed a counterclaim. 7 On November 30, 2015, the defendant filed a request for leave to amend her answer to assert a counterclaim, to which the plaintiff objected. At the conclusion of the December 22, 2015 oral argument on the objection, the court ruled from the bench that it did not have jurisdiction to consider the defendant's request because no counterclaim had been pending when the plaintiff withdrew its action. The court suggested, however, that it might have the ability to consider the request for leave to amend if the defendant first filed a motion to restore the case to the docket.
Pursuant to the court's suggestion, on January 28, 2016, the defendant filed a motion and an accompanying memorandum of law to restore her special defenses and counterclaim to the docket or, alternatively, to restore the case to the docket (motion to restore). 8 In her memorandum of law, the defendant argued, inter alia, that her third special defense 9 was more properly construed as a counterclaim and that, as such, it survived the withdrawal of the plaintiff's action pursuant to Practice Book § 10-55. 10 After hearing oral argument on the motion on February 8, 2016, the court issued an oral decision granting the motion to restore. 11
As set forth in its ruling and subsequent articulation,
12
the court, relying on
225 Associates
v.
Connecticut Housing Finance Authority
,
On appeal, the plaintiff claims that the trial court acted in excess of its authority in restoring the defendant's third special defense to the docket. Specifically, the plaintiff argues that the defendant's special defense could not properly be construed as a counterclaim because it failed to allege any facts that would entitle the defendant to seek judicial relief through an independent cause of action against the plaintiff. The plaintiff further contends that, because the special defense did not constitute a counterclaim and thus did not survive the withdrawal of the plaintiff's action as provided in Practice Book § 10-55, the court had no "continuing subject matter jurisdiction over the matter" after the plaintiff withdrew its action. Therefore, the plaintiff claims that the court "had no authority to restore [the] case for the purpose of a counterclaim when, in fact, no counterclaim existed" prior to the withdrawal of the action.
We first set forth our standard of review. "Any determination regarding the scope of a court's subject matter jurisdiction or its authority to act presents a question of law over which our review is plenary."
Tarro
v.
Mastriani Realty, LLC
,
By statute, a "plaintiff may withdraw any action ... before the commencement of a hearing on the merits thereof." General Statutes § 52-80. Although the plaintiff's "right ... to withdraw
his action
before a hearing on the merits ... is absolute and unconditional"; (emphasis added; internal quotation marks omitted)
Sicaras
v.
Hartford
,
Consequently, a defendant with a pending counterclaim should not, in theory, need to move to have the counterclaim restored to the docket following the withdrawal of the plaintiff's action because the counterclaim survives the withdrawal as a matter of law. If, however, the counterclaim
is not identified as such in the defendant's answer, it may be erased from the docket along with the plaintiff's action. In such circumstances, the court has the authority to grant a motion to restore the case to the docket to permit the defendant to prosecute the counterclaim because, where a defendant's counterclaim is wrongfully stricken from the docket following the withdrawal of the plaintiff's action, the defendant "is
entitled
to have [the case] restored for the purpose [of pursuing the defendant's counterclaim]." (Emphasis added.)
Boothe
v.
Armstrong
,
The defendant's third special defense consisted of a single allegation: "The plaintiff did not properly account for payments made by the defendant." Nothing in this allegation can reasonably be interpreted as a claim of entitlement to affirmative relief. She neither explicitly requested any judicial redress or relief nor alleged any facts from which it could be inferred that she was entitled to such relief. Although pleadings must be construed "broadly and realistically, rather than narrowly and technically"; (internal quotation marks omitted)
Grenier
v.
Commissioner of Transportation
,
The judgment is reversed and the case is remanded with direction to deny the motion to restore.
In this opinion the other judges concurred.
On October 17, 2013, subsequent to the commencement of the present action, the plaintiff changed its name to Santander Bank. Although the plaintiff's filings subsequent to that date reflected that it now was known as Santander Bank, it did not file a motion to substitute Santander Bank as plaintiff, and, thus, the trial court file continues to identify the plaintiff as Sovereign Bank. Therefore, we likewise identify the plaintiff as Sovereign Bank.
The defendant did not file a brief in this appeal. Accordingly, on January 18, 2018, this court issued an order indicating that the appeal would be considered solely on the basis of the plaintiff's brief and the record as defined by Practice Book § 60-4.
"[F]or final judgment purposes, an order restoring a withdrawn case to the docket is identical in all material respects to an order opening a final judgment ...."
Rosado
v.
Bridgeport Roman Catholic Diocesan Corp.
,
The plaintiff also claims on appeal that: (1) the trial court erred in determining that the defendant had a vested right that was prejudiced by the withdrawal of the plaintiff's action and, therefore, abused its discretion in restoring the case to the docket; and (2) no practical relief can be afforded to the defendant by upholding the trial court's decision to restore the case for adjudication of her special defense because the defendant waived her right to assert it by failing to do so in the federal foreclosure action subsequently brought by the plaintiff. Because the issue of the court's authority to restore the defendant's special defense to the docket is dispositive, we do not address the plaintiff's other claims.
General Statutes § 52-80 provides in relevant part: "The plaintiff may withdraw any action ... returned to and entered in the docket of any court, before the commencement of a hearing on the merits thereof. After the commencement of a hearing on an issue of fact in any such action, the plaintiff may withdraw such action, or any other party thereto may withdraw any cross complaint or counterclaim filed therein by him, only by leave of court for cause shown."
On September 26, 2016, the plaintiff filed a motion requesting that this court take judicial notice and supplement the record. On December 6, 2017, we granted the motion for the purpose of taking judicial notice of the file and decisions rendered in the plaintiff's federal foreclosure action against the defendant in Santander Bank, N.A. v. Harrison , United States District Court, Docket No. 3:15CV01730 (AVC) (D. Conn.).
Although the defendant had filed a four count counterclaim prior to the withdrawal of the plaintiff's action, the trial court ruled during an October 21, 2015 trial management conference that the counterclaim was ineffective and "not part of this case" because the defendant had not filed it in conjunction with a request for leave to amend her answer. The defendant failed to file such a request in the intervening month before the plaintiff withdrew its action.
Because the defendant previously had filed a motion to restore on January 14, 2016, she titled her January 28, 2016 filing as a "revised" motion to restore. Because only the revised motion is relevant to this appeal, for the sake of simplicity, we refer to it as the defendant's motion to restore.
Although the defendant suggested that the trial court could construe all of her special defenses as counterclaims, her specific argument focused solely on the third special defense.
Practice Book § 10-55 provides: "The withdrawal of an action after a counterclaim, whether for legal or equitable relief, has been filed therein shall not impair the right of the defendant to prosecute such counterclaim as fully as if said action had not been withdrawn, provided that the defendant shall, if required by the judicial authority, give bond to pay costs as in civil actions."
In accordance with Practice Book § 64-1(a), the trial court created a memorandum of decision for use in this appeal by signing a transcript of the portion of the proceedings in which it stated its oral decision and filing it with the clerk of the trial court.
After the plaintiff filed this appeal, it filed a motion for articulation requesting, inter alia, that the trial court clarify the basis for its determination that the third special defense constituted a counterclaim and that it articulate "the basis for its determination that the court had jurisdiction to review the [d]efendant's special defenses when the matter had been withdrawn as of right under ... § 52-80 and a counterclaim had not been alleged in the [d]efendant's operable [a]nswer prior to the withdrawal."
More specifically, "[a] set-off is made where the defendant has a debt against the plaintiff ... and desires to avail himself of that debt, in the existing suit, either to reduce the plaintiff's recovery, or to defeat it altogether, and, as the case may be, to recover a judgment in his own favor for a balance." (Internal quotation marks omitted.)
Mariculture Products Ltd.
v.
Certain Underwriters at Lloyd's of London
,
Reference
- Full Case Name
- SOVEREIGN BANK v. Angela HARRISON
- Cited By
- 6 cases
- Status
- Published