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PIC ASSOCIATES, LLC v. GREENWICH PLACE GL ACQUISITION, LLC (AC 31606)
Harper, Lavine and McDonald, Js. Argued November 16, 2010--officially released April 19, 2011

(Appeal from Superior Court, judicial district of Stamford-Norwalk, Housing Session, Hon. Jack L. Grogins, judge trial referee.) James A. Fulton, for the appellant (plaintiff). Michael D. O'Connell, with whom, on the brief, was Erin Arcesi Mutty, for the appellee (defendant).

Opinion

LAVINE, J. In this summary process action involving commercial real property, the plaintiff, PIC Associates, LLC, appeals from the judgment of the trial court, rendered after a trial to the court, in favor of the defendant, Greenwich Place GL Acquisition, LLC. On appeal, the plaintiff claims that the court mistakenly concluded that the defendant had proven its special defense of equitable nonforfeiture as to both counts of the plaintiff's complaint. We affirm the judgment of the trial court. There is no dispute as to the following facts. The parties are the successors in interest to a fifty year ground lease for real property that abuts West Putnam Avenue in Greenwich (town). Forty-eight units of a larger apartment complex known as Putnam Green are situated on the premises.1 The original lessor was John & John, Inc., the plaintiff's predecessor in interest, and FAWN Associates was the original lessee. Antares Putnam Green IV, SPE, LLC (Antares), succeeded to the interests of FAWN Associates. In 2007, Antares allowed numerous mechanic's liens to be placed on the premises and recorded in the town land records. On December 27, 2007, the plaintiff delivered notice to Antares that it was in default of the lease by reason of those mechanic's liens.2 On January 11, 2008,3 the defendant received an assignment of the lease from Antares and acquired ownership of the apartment complex on the premises. At the time of the assignment, Radco Management, LLC (Radco), assumed responsibility for the management of the premises and apartment complex on behalf of the defendant. With respect to the mechanic's liens, the defendant sent the plaintiff a surety bond in the amount of $2,108,733 on January 24, 2008. Neither Antares nor the defendant paid the plaintiff the fixed monthly rent for January, 2008, within thirty days of its due date as required by the lease. On February 1, 2008, the plaintiff served the defendant with a notice to quit, which gave the following reasons: (1) ``nonpayment of rent when due,'' and (2) ``an expressed stipulation in your written lease gives the lessor the right to terminate your lease and re-enter the demised premises upon the lessee's failure to cure any default in the performance of any obligations or terms of the lease within thirty (30) days after notice thereof.'' Immediately upon receipt of the notice to quit, the defendant paid the plaintiff rent for both January and February, 2008. The plaintiff commenced this summary process action on November 4, 2008. Count one alleged that the plaintiff was entitled to possession of the premises due to the defendant's failure to pay the January, 2008 rent when it was due, and count two alleged that the plaintiff

was entitled to possession of the premises for the defendant's failure to discharge the mechanic's liens as required by the lease. In response, the defendant alleged several special defenses, but only the doctrine of equitable nonforfeiture is relevant to this appeal.4 The matter was tried to the court on May 21 and September 1, 2009. The court issued its findings and judgment orally on October 8, 2009. The court found that the defendant was negligent in failing to pay the January, 2008 rent pursuant to the lease but that the failure was not wilful or gross negligence. The court also found that the defendant negligently failed to post the proper bonds for the mechanic's liens but concluded that the plaintiff contributed to the mechanic's lien issue by not responding to the January 24, 2008 letter in which the defendant's counsel, Nellie P. Camerik, requested that the plaintiff's counsel communicate ``any questions regarding this matter . . . .'' The court concluded that the defendant had prevailed on its special defense of equitable nonforfeiture and rendered judgment in its favor. The plaintiff filed a motion for reargument and reconsideration. The court granted the motion for reargument, but following the reargument on October 20, 2009, denied the motion for reconsideration. The plaintiff appealed. Additional facts will be set forth as necessary. ``Summary process is a special statutory procedure designed to provide an expeditious remedy. . . . It enable[s] landlords to obtain possession of leased premises without suffering the delay, loss and expense to which, under the common-law actions, they might be subjected by tenants wrongfully holding over their terms. . . . Summary process statutes secure a prompt hearing and final determination. . . . Therefore, the statutes relating to summary process must be narrowly construed and strictly followed.'' (Internal quotation marks omitted.) HUD/Willow Street Apartments v. Gonzalez, 68 Conn. App. 638, 642

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Connecticut Law