Canterbury School, Inc. v. Christopher Pawlowski et al. (2011)

MEMORANDUM OF DECISION

This matter was tried on April 18, 2011 following the call of the hearing in damages list.   The court heard testimony from the plaintiff's business manager and from both defendants.

The plaintiff, Canterbury School, Inc. (“the school'), operates a private secondary school in New Milford.   The defendants, Christopher Pawlowski and Helen Pawlowski, have three daughters who attended and graduated from the school.   In order to help finance their daughters' educations, the defendants jointly signed four promissory notes to the school on July 18, 1997, July 13, 1998, May 25, 2001 and September 27, 2001.   Each of these notes provides that interest at 6% per year will begin to accrue only after the child graduates from the school.   Thereafter, interest-only payments are due every three months for four years.   Then, interest and principal payments will be due four times per year over the next four years.

In addition to the four joint promissory notes, the defendant, Christopher Pawlowski alone, signed a similar promissory note on July 20, 1996.   He also signed an enrollment contract on April 17, 2001 for his daughter, Amaris, promising to pay her tuition for the 2001–2002 school year.   This contract provides that interest will accrue on unpaid balances at the rate of 18% per year.

All of the promissory notes and the enrollment contract provide that the defendants will pay the plaintiff's costs of collection, including reasonable attorneys fees, in the event that a collection action is brought.   The plaintiff has incurred reasonable attorneys fees in the amount of $4,366.14 in handling this action.

The evidence establishes that there are balances on the five promissory notes and on the enrollment contract.   The school has been extremely patient in waiting for payment.   Suit could have been brought much sooner than it was.   The school has submitted detailed calculations of each of the balances and the accrued interest.   The court has scrutinized those calculations and finds that they are accurate.   The court notes that the school has not attempted to compound the interest, and has waived the right given by the notes to charge late fees.   The interest rate charged on the promissory notes is very reasonable.

The defendants were unable to deny that they owe the balances due.   They feel that the school acted unreasonably in denying them a payment plan when their last daughter graduated, thereby forcing them to put a large lump sum on credit cards.   They also feel that the interest charges are unreasonable.   Unfortunately for the defendants, the interest rates of 6% on the promissory notes and 18% on the enrollment contract were agreed to by them when they signed the promissory notes.   It is unfortunate that bad feelings have developed as a result of this collection because the evidence was clear that defendants' daughters all received excellent educations at the school and have gone on to make their parents proud of all their accomplishments.

The plaintiff has requested an award of postjudgment interest.   An award of postjudgment interest, pursuant to C.G.S. § 37–3a, is an equitable determination which is discretionary and dependent primarily on whether the detention of money was wrongful.  Urich v. Fish, 112 Conn.App. 837, 843–44, cert. denied, 292 Conn. 909 (2009).   Here, the facts indicate that an award of postjudgment interest would be appropriate.  C.G.S. 37–3a permits the court to award interest “at the rate of ten per cent a year, and no more ․” This language has been interpreted to mean that the court has discretion to award interest at a rate which is less than, but no more than, ten percent.   Stuart v. Stuart, 112 Conn.App. 160, 180–81 (2009).   In this case, an award of postjudgment interest at the rate of six percent per year is equitable.

The court makes the following findings regarding the four joint loans made by both defendants:

Loan # 1346:

Principal balance:  $1,000.00

Interest:  $ 334.63

Total:  $1,334.63

Loan # 1058:

Principal balance:  $1,000.00

Interest:  $ 437.07

Total:  $1,437.07

Loan # 1308:

Principal balance:  $2,000.00

Interest:  $1,074.26

Total:  $3,074.26

Loan # 981:

Principal balance:  $1,824.55

Interest:  $ 881.16

Total:  $2,705.71

The court makes the following findings regarding the loan and enrollment contract made individually by the defendant, Christopher Pawlowski:

Loan # 899:

Principal balance:  $1,775.27

Interest:  $ 857.40

Total:  $2,632.67

Enrollment Contract:  Total balance of principal plus interest:  $2,425.57

Based upon these findings judgment shall enter against both defendants in the amount of $12,917.81 plus attorneys fees in the amount of $4,366.14.   Judgment shall also enter against the defendant, Christopher Pawlowski, in the amount of $5,058.24.   The plaintiff is also awarded its taxable costs of $400.40.   The plaintiff may recover postjudgment interest on the judgments at the rate of 6% per year.

BY THE COURT,

John W. Pickard

Pickard, John W., J.