Fleetwood Corp. v. LLC (2015)

MEMORANDUM OF DECISION RE MOTION FOR DEFICIENCY JUDGMENT (# 117)

In this action, the plaintiff, Fleetwood Corp., sought to foreclose a mortgage on property located at 100 West Town Street, Norwich, Connecticut.   On April 1, 2015, a judgment of strict foreclosure entered against the defendant, Danielson Dyer Group, LLC. The court set law days to commence running on May 5, 2015.   The court further found the debt to be $88,135.00, and that the fair market value of the subject property being foreclosed was $95,000.00.

The plaintiff has now filed this motion for a deficiency judgment pursuant to Practice Book § 23–19.   It asserts that the defendant, Danielson Dyer Group, LLC, failed to redeem the mortgage on its law day and that title to the subject premises vested in the plaintiff on May 7, 2015.

The court heard testimony from the appraisers Robert H. Champagne and Jilian A. Chase.   Mr. Champagne filed a report with the court and testified that in his opinion on the date that title to the property vested in the plaintiff, the fair market value of the property was $85,000.00.   Jilian A. Chase testified and filed a report with the court concluding that the property in question had a value of $110,000.00 on the date title vested.   Both appraisers opined that it was most appropriate to use the comparable sale method of valuation to reach an opinion as to the fair market value of the property.   The appraisers each used 6 Lee Avenue, Norwich, Connecticut and 73 Sherman Street, Norwich Connecticut as appropriate comparable sales.   The plaintiff's appraiser substantially reduced the per square foot costs for the comparable sales because he felt that the subject property was inferior.   The defendant's appraiser made minor reductions to the square foot costs based upon her opinion that there was not a significant difference in the quality of the subject property.   Each appraiser identified an additional comparable sale.   The differences in the opinion of values reflect the different adjustments that each appraiser has made with regard to the location, lot size, view, room count or out buildings between the comparable sales and the subject property.   Further, the difference in value also reflected a concern expressed by the plaintiff's appraiser that when he viewed the property shortly after the date the title vested in the plaintiff, that there was a substantial amount of water in the basement that raised concerns for the functioning of the heating system.   Based upon these variables the plaintiff's appraiser opined that the subject property should be valued at $43.99 per square foot while the defendant's appraiser concluded the property should be valued at $56.94 per square foot.

The court has considered not only the testimony of the appraisers but also the other witnesses who testified.   The court finds that the subject property is inferior in many ways to the comparable sales identified.   There is significant concern for the water condition in the basement and the “third” bedroom did not have a door.   The court is of the opinion that considering the appropriate adjustments that a fair market value based upon a per square foot value of $48.00 per square foot is appropriate.   The court therefore finds that the subject property on the date title vested in the plaintiff, May 7, 2015 was $93,702.00.   The court allows the $650.00 in appraisal fees for the report and testimony in court.

Further the parties stipulated to certain adjustments of Tax payments and Water and Sewer Charges that were in arrears when title vested in the plaintiff.   Specifically the parties agreed that the plaintiff is entitled to a credit of $12,921.99 for taxes paid and to a credit of $1,139.36 for water and sewer charges.

Accordingly, the court orders a deficiency judgment in favor of the plaintiff in the amount of $12,897.00.   The plaintiff may file a request for reasonable attorneys fees within two weeks.   The Plaintiff is further ordered to prepare a Deficiency Judgment consistent with this opinion.

Cosgrove, J.

Cosgrove, Emmet L., J.