Glen Ostrager et al. v. John Jacques et al. (2013)

MEMORANDUM OF DECISION

Statement of the Case

Before the court are three separate applications for payment of excess proceeds after tax sales under the provisions of Connecticut General Statutes § 12–151, together with four actions for summary process returnable to GA 21.   All cases were consolidated for trial.   Each case must be considered separately.

I.

Claims Under Connecticut General Statutes § 12–157

Connecticut General Statutes § 12–157 establishes the procedure for the selling of real estate for delinquent taxes.   Subsection (i)(1) of this section provides that if the sale realizes an amount in excess in the amount needed to pay the delinquent tax, such amount shall be held in escrow and if the property is not redeemed during the redemption period, the amount held in escrow by the tax collector shall be paid to the clerk of the court in the judicial district in which the property is located.   Subsection (2) provides that any mortgagee interest in the property may make application for return of the proceeds held by the clerk in escrow.

Docket No. KNL CV 12–6013458 is an action by M & A Investments, LLC against Donna Rockwell, John Jacques and Kenneth Lavoie, all who have filed answers, special defenses and are representing themselves.   Other non-appearing defendants are the Deep Wood Beach House, LLC, Murry Ostrager, The Amston Lake Company, Worldwide Asset Trust and Birmingham Utilities, Inc., n/k/a Connecticut Water Company.   Plaintiff is claiming the excess paid at a tax sale under the provisions of § 12–157.

The property is located at 87 Deep Wood Drive, Lebanon, Connecticut.   Default is entered against non-appearing defendants.

The property was sold at public auction by the tax collector of the Town of Lebanon for delinquent taxes in the amount of $8,867.52 and accrued interest.   There was active bidding at the sale of the property.   The property was sold to the highest bidder, Barry R. Ostrager for $35,000.00.

It is found that plaintiff, M & A Investments LLC, holds the first mortgage to the property with a balance due in the amount of $111,725.77 due as of July 24, 2013.   Plaintiff M & A Investments LLC, as holder of the first mortgage on the property claims the excess amount now being held by the clerk alleged to be $13,865.58.

Nine pretrial motions have been filed by defendants.   It does not appear that any of the motions were ever properly claimed for short calendar.   A resolution of the motions is not necessary for a final disposition of this case.

Defendant, Kenneth J. Lavoie, has filed a special defense.   The allegations of which have been denied by plaintiff.   The allegations of the special defense have not been proven.

Judgment is entered that plaintiff, as holder of the first mortgage on the property, recover the excess proceeds of the sale now held by the clerk not to exceed the balance due of the mortgage pursuant to Connecticut General Statutes § 12–157.

Docket No. 12–6013436 is an action by The Amston Lake Company against Donna Rockwell, John Jacques, Kenneth Lavoie, all who have appeared and Chasing Sunsets Lake Cottages d/b/a Sunflower Farms LL which have not appeared.   Plaintiff is seeking the excess paid for a tax sale for property at 70 Park Road Amston Lake, Lebanon, Connecticut.

Default is entered against the non-appearing defendant.

The property was sold at public auction by the tax collector of the Town of Lebanon with delinquent taxes in the amount of $9,613.42 and accrued interest.   There was active bidding on the property.   The proceeds were sold to the highest bidder, Barry Ostrager for $39,000.00.

The Amston Lake Company held a first mortgage to the property with a balance of $113,987.50 due July 24, 2013.

Plaintiff, Amston Lake Company, as holder of the first mortgage on the property, claims the excess funds from the tax sale now being held by the clerk.

Nine pre-trial motions have been filed by defendants.   It does not appear that the motions were ever properly claimed for short calendar.   A resolution of the motions is not necessary for the final disposition of this case.

Defendants have filed special defenses.   The allegations of which have been denied by the plaintiff.   The special defenses contain denials of the allegations of the complaint and assertions which are irrelevant to the issues of this case.   The special defenses filed by defendants, Rockwell and Jacques allege a breach of contract claim.   The allegations arise of a Mortgage Reinstatement Settlement Agreement executed on June 16, 2011, between defendant, John Jacques and Murry Ostrager.   It is claimed that under this agreement, Mr. Ostrager was obligated to pay the taxes on the property.   This claim, if proven, would not be relevant to the issues in the case at bar.   The taxes were not paid.   A tax sale was held.   The defendants had knowledge of the sale and took no action.   The allegations of the special defenses have not been proven.

Judgment is entered that plaintiff, as holder of the first mortgage on the property, recover the excess proceeds of the sale now held by the clerk not to exceed the balance due on the mortgage for property at 70 Park Road, Lebanon, Connecticut.

Docket No. 12–6013437 is an action by plaintiff, Glen ¹ Ostrager and M & A Investments LLC, against Donna Rockwell, John Jacques and Kenneth J. Lavoie all who have appeared and are representing themselves, Wildwood Lake House LLC and The Amston Lake Company who have failed to appear.   Plaintiffs are claiming the excess purchase price paid at a tax sale pursuant to § 12–157.   The property is located at 61 Wildwood Drive, Lebanon, Connecticut.

Default is entered against the non-appearing defendants.

The property was sold at public auction by the tax collector of the Town of Lebanon for delinquent taxes in the amount of $8,803.31 with accrued interest.   There was active bidding on the property.   The property was sold to the highest bidder, Barry Ostrager, for $36,000.00.   Murry Ostrager and M & A Investments LLC hold the first mortgage to the property with a balance of $106,393.00 due July 24, 2013.   Murry Ostrager and M & A Investments LLC, as holders of the first mortgage on the property, claim the excess funds now being held by the clerk pursuant to § 12–157.

Nine pre-trial motions have been filed by defendants.   It does not appear that the motions were ever properly claimed for short calendar.   A resolution of the motions is not necessary for the final disposition of this case.

Defendants have filed special defenses.   The allegations of which have been denied by the plaintiffs.   The special defenses contain denials of the allegations of the complaint and assertions which are irrelevant to the issues of this case.   The special defenses filed by defendants, Rockwell and Jacques allege a breach of contract claim.   The allegations arise of a Mortgage Reinstatement Settlement Agreement executed on June 16, 2011, between defendant, John Jacques and Murry Ostrager.   It is claimed that under this agreement, Mr. Ostrager was obligated to pay the taxes on the property.   This claim, if proven, would not be relevant to the issues in the case at bar.   The taxes were not paid.   A tax sale was held.   The defendants had knowledge of the sale and took no action.   The allegations of the special defenses have not been proven.

Judgment is entered that plaintiffs, as holders of the first mortgage on the property, recover the excess proceeds of the sale now held by the clerk not to exceed the balance due on the mortgage to property located at 70 Park Road.

II.

Summary Process Actions

Four summary process actions, Docket No. CV 21–20197, CV 21–20767, CV 21–20766 and CV 21–20768, all pending in GA 21, were consolidated for trial together with the above cases.   In all cases, plaintiffs claim to be the owners of the property in question, and that the persons occupying the property have no right to so occupy the premises.

Docket No. CV 21–20197.   It is found that plaintiff, Glen Ostrager, is the owner of the property at 509 Deep Wood Drive, Lebanon, Connecticut.   Defendants were properly served with notices to quit possession.   All defendants have no right to possession.   Defendant, John Jacques, claims a right to possession under a mortgage deed.   It cannot be found that defendant, Jacques, has a right to possession.   Defendant, Jacques, has rented the property to other defendants who have no right to possession.   Accordingly, a judgment of immediate possession is rendered in favor of plaintiff.   Execution is suspended until August 30, 2013.

Docket No. CV 21–20768.   It is found that plaintiff, Barry Ostrager, is the owner of the property at 81 Deep Wood Drive, Lebanon, Connecticut.   Defendants were properly served with notices to quit possession.   All defendants have no right to possession.   Defendant, John Jacques, claims a right to possession under a mortgage deed.   It cannot be found that defendant, Jacques, has a right to possession.   Defendant, Jacques, has rented the property to other defendants who have no right to possession.   Accordingly, a judgment of immediate possession is rendered in favor of plaintiff.   Execution is suspended until August 30, 2013.

Docket No. CV 21–20766.   It is found that plaintiff, Barry Ostrager, is the owner of the property at 70 Park Road, Lebanon, Connecticut.   Defendants were properly served with notices to quit possession.   All defendants have no right to possession.   Defendant, John Jacques, claims a right to possession under a mortgage deed.   It cannot be found that defendant, Jacques, has a right to possession.   Defendant, Jacques, has rented the property to other defendants who have no right to possession.   Accordingly, a judgment of immediate possession is rendered in favor of plaintiff.   Execution is suspended until August 30, 2013.

Docket No. CV 21–20767.   It is found that plaintiff, Barry Ostrager, is the owner of the property at 61 Wildwood Drive, Lebanon, Connecticut.   Defendants were properly served with notices to quit possession.   All defendants have no right to possession.   Defendant, John Jacques, claims a right to possession under a mortgage deed.   It cannot be found that defendant, Jacques, has a right to possession.   Defendant, Jacques, has rented the property to other defendants who have no right to possession.   Accordingly, a judgment of immediate possession is rendered in favor of plaintiff.   Execution is suspended until August 30, 2013.

Judgment enters accordingly in all of the above cases.

Joseph J. Purtill, JTR

FOOTNOTES

FN1. The original plaintiff in this matter was Murry Ostrager.   Murry Ostrager died during the pendency of this action.   Glen Ostrager the executor of Murry Ostrager's estate has been substituted as party plaintiff by order of Vasington, J. on June 10, 2013..  FN1. The original plaintiff in this matter was Murry Ostrager.   Murry Ostrager died during the pendency of this action.   Glen Ostrager the executor of Murry Ostrager's estate has been substituted as party plaintiff by order of Vasington, J. on June 10, 2013.

Purtill, Joseph J., J.T.R.