J. Alexander Palesty v. Bradley Kabbash (2011)

MEMORANDUM OF DECISION

A Hearing in Damages before this court proceeded on Thursday, May 19, 2011, at which time the plaintiff appeared and testified.

The Complaint originally consisted of six (6) counts, all of which arose out of the defendant's solicitation of the plaintiff regarding the sale of an interest in two (2) companies and in conversion rights to such shares as well as warrants (in the event the conversion rights were exercised).   The investment solicited was structured as a loan to the defendant—for which the defendant executed a promissory note dated January 12, 2009.   Pl. Exh. 4. The plaintiff loaned the amount of $150,000, which indebtedness, together with accrued and unpaid interest, became due and payable on October 1, 2009 (less than one month after execution of the instrument).

The defendant filed an appearance on June 21, 2010, at which time he was incarcerated at Bergin Correctional Institute in Storrs, Connecticut.   Though at some point in time thereafter, the defendant was moved to a halfway house, he no longer resides there, his present address is unknown,¹ and he has never kept current with the court his address.   He did not appear on May 19, 2011.   Summary Judgment on Count Five was argued before Trombley, J., and was granted on 3/21/11, thus paving the way for the subject hearing.

The plaintiff Palesty has established his burden of proof with regard to Count Five brought under the terms of the Promissory Note. The defendant has not paid the $150,000 loaned to him by October 1, 2009, as required by the Note. Interest on the unpaid balance in the amount of ten percent (10%) per year is awarded (See Para 3 of Exh. 4) as per C.G.S. § 37–3a.²

JUDGMENT

Judgment for the plaintiff enters this date in the total amount of $185,689.34—of which the principal amount is $150,000, interest is $35,177.34, and costs are $512.00.

SHEEDY, J.

FOOTNOTES

FN1. The defendant's last known address appears to have been Gates Correctional Institute in Niantic, CT, at such time (July 20, 2010) as he filed an “Answer and Affirmative Defense.”  (No defense was in fact filed and the pleading itself is without legal effect because unsigned.).  FN1. The defendant's last known address appears to have been Gates Correctional Institute in Niantic, CT, at such time (July 20, 2010) as he filed an “Answer and Affirmative Defense.”  (No defense was in fact filed and the pleading itself is without legal effect because unsigned.)

FN2. Paragraph 6 of the Note provides, “at no time shall the amount of interest earned under this Note exceed that permitted by applicable law.”   C.G.S. § 37–3a provides compensation for the time value of money at 8% but allows the court in its discretion to tack on an additional 2% for the wrongful detention of funds.  State v. Lex Associates, 248 Conn. 612, 632–33 (1999).   The imposition of 10% interest per annum is authorized by law..  FN2. Paragraph 6 of the Note provides, “at no time shall the amount of interest earned under this Note exceed that permitted by applicable law.”   C.G.S. § 37–3a provides compensation for the time value of money at 8% but allows the court in its discretion to tack on an additional 2% for the wrongful detention of funds.  State v. Lex Associates, 248 Conn. 612, 632–33 (1999).   The imposition of 10% interest per annum is authorized by law.

Sheedy, Barbara J., J.