Collard and Roe, PC v. Klein

• Decision Date: 08 February 2005
• Docket Number: No. 24651.,24651.
• Parties: COLLARD AND ROE, P.C. v. Arthur O. KLEIN et al. Charles D. Rockwell et al. v. Arthur O. Klein et al.
• Court: Connecticut Court of Appeals

865 A.2d 500

87 Conn.App. 337

COLLARD AND ROE, P.C. v. Arthur O. KLEIN et al.

Charles D. Rockwell et al. v. Arthur O. Klein et al.

No. 24651.

Appellate Court of Connecticut.

Argued October 20, 2004.

Decided February 8, 2005.

Arthur O. Klein, pro se, the appellant (named defendant).

Aimee J. Wood, Bridgeport, for the appellee (Collard & Roe, P.C.).

Richard E. Castiglioni, Stamford, for the appellees (First American Title Insurance Company et al.).

FOTI, DiPENTIMA and FRANCIS X. HENNESSY, Js.

DiPENTIMA, J.

The defendant Arthur O. Klein appeals from the judgments of the trial court rendered in a fraudulent conveyance action and an interpleader action. In the fraudulent conveyance action, the court rendered judgment in favor of the plaintiff, Collard & Roe, P.C. (Collard & Roe), a New York law firm, on both the complaint and the counterclaim. In the interpleader action, the court ordered the disbursement of escrowed funds and discharged the plaintiff escrow agents. Charles D. Rockwell and Michael A. Laux, from liability. Arthur Klein raises a number of issues on appeal attacking these judgments. For the reasons set forth, the judgments of the trial court are affirmed.

These cases have a tortuous procedural and factual history that began with the short-lived merger of Collard & Roe and Klein & Vibber, P.C. (Klein & Vibber) a Connecticut law firm in which Arthur Klein was a partner. Following a dispute over the division of fees and profits, the merger dissolved, and Collard & Roe filed an action against Arthur Klein and Klein & Vibber in a New York court, claiming that they had misappropriated approximately $70,000. On February 28, 1997, after Arthur Klein and Klein & Vibber failed to appear for trial, Collard & Roe obtained a judgment against them in the amount of $97,921. On June 2, 1997, Collard & Roe domesticated the judgment in Connecticut pursuant to the Uniform Enforcement of Foreign Judgments Act, General Statutes § 52-604 et seq.

On July 25, 1997, Arthur Klein transferred by quitclaim deed to his wife, Diane L. Klein, his interest in property located at 7 Half Mile Common in Westport. On February 12, 1998, he quitclaimed to his wife his one-half interest in property located at 391 North Main Street, Westport. Following these transfers, Arthur Klein was left with no other assets and was insolvent. Subsequently, Diane Klein sought to sell 391 North Main Street to Kirk Straight and Nicole J. Straight, third party buyers, but due to a judgment lien placed on the property by Collard & Roe, Diane Klein could not provide marketable title for the property. The Straights' title company, First American Title Insurance Company (First American), agreed to issue the title policy despite the lien, provided the Kleins indemnified First American against loss, damages and attorney's fees, and placed $150,000 of the proceeds of the sale in escrow to secure the indemnification agreement. The Kleins also agreed to take immediate steps to remove the lien with the understanding that if they failed to do so, First American could demand that the escrow funds be paid to any claimant in order to release or to discharge the lien. In accordance with the indemnification and escrow agreement of November 16, 1998, $150,000 was placed in escrow with the Straights' attorney, Laux, and Diane Klein's attorney, Rockwell.

By complaint dated April 14, 1998, Collard & Roe commenced the action to set aside as fraudulent Arthur Klein's transfer of 7 Half Mile Common to his wife. By amended complaint dated February 4, 1999, Collard & Roe added a count claiming that Arthur Klein's transfer of his partial interest in 391 North Main Street was also fraudulent. On March 27, 1999, the Kleins, appearing pro se, filed an amended answer, asserting as a special defense that the underlying claim had been rendered invalid as a result of a proceeding against Arthur Klein before the statewide grievance committee, and filed a six count counterclaim alleging intentional infliction of emotional distress and seeking restitution for sums already collected by Collard & Roe. On December 6, 1999, the Kleins filed a request for a jury trial. Over the objections of the Kleins, the case was tried to an attorney trial referee who recommended that judgment be rendered in favor of Collard & Roe on the complaint and against the Kleins on the counterclaims. The court accepted the recommendations of the referee and judgment was rendered. The Kleins appealed from that judgment.

Meanwhile, by complaint dated February 8, 1999, Collard & Roe brought an action to foreclose its judgment lien on 391 North Main Street, which was then owned by the Straights. A judgment of strict foreclosure was rendered on May 24, 1999.¹ Laux and Rockwell were requested to pay over the escrow funds to satisfy the lien. They did not do so and, in June, 1999, initiated an interpleader action and deposited the $150,000 escrow account with the clerk of the court. In that action, First American and the Straights sought indemnification, costs and attorney's fees. Collard & Roe claimed that it was entitled to the funds to satisfy its judgment lien. The Kleins claimed that the funds rightly belonged to them for a variety of reasons.² The court found against the Kleins and directed payment from the escrow funds to satisfy Collard & Roe's New York judgment. The Kleins appealed from that judgment.

The fraudulent conveyance and the interpleader actions were consolidated for the purpose of appeal. Although the Kleins raised a number of issues on appeal, this court addressed only one in Collard & Roe, P.C. v. Klein, 72 Conn.App. 683, 806 A.2d 580 (2002). We held that the Kleins had not consented to have the fraudulent transfer case heard by an attorney trial referee pursuant to Practice Book § 19-2A and remanded the cases for new trials. Id., at 692, 806 A.2d 580.

On remand, notwithstanding the Kleins' renewed request for a jury trial, the consolidated cases were tried to the court. In a memorandum dated August 20, 2003, the court found in favor of Collard & Roe on all counts and directed that "the remaining balance of the $150,000 shall be paid over and used first to satisfy the Collard & Roe judgment, including interest on said sum and for any attorney's fees hereinafter approved by the court, and any remaining sums from the escrowed funds [are] to be used in satisfaction of fees and costs of First American Title Insurance Company." On September 17, 2003, the court issued a supplemental memorandum of decision in which it reiterated its finding in favor of Collard & Roe, discharged the escrow agents from any liabilities arising out of the interpleader action and directed payment from the escrow account in accordance with the judgment of August 20, 2003. This appeal followed.

On appeal, Arthur Klein claims that the court improperly (1) denied him and Diane Klein a jury trial, (2) gave full faith and credit to the New York judgment, (3) failed to consider the proceedings before the United States District Court for the District of Columbia, the statewide grievance committee and the United States Patent and Trademark Office, (4) denied the Kleins access to the Klein & Vibber bank account maintained by Collard & Roe, (5) determined that the quitclaim deed conveying 391 North Main Street was invalid, (6) determined that the escrow agreement between the Kleins and First American was valid and enforceable, (7) ignored what Arthur Klein deems to be the "controlling dicta" in Collard & Roe, P.C. v. Klein, supra, 72 Conn.App. 683, 806 A.2d 580, (8) denied the Kleins' request to amend their counterclaims in both the fraudulent transfer and interpleader actions, and (9) determined that First American and attorney Laux had not violated the Connecticut Unfair Trade Practices Act, General Statutes § 42-110a et seq., and the Connecticut Unfair Insurance Practices Act, General Statutes § 38a-815 et seq.³

I

As a threshold matter, we address this court's jurisdiction over this appeal. Prior to oral argument, the parties were directed to address why this court should not dismiss for a lack of a final judgment that portion of the appeal challenging the trial court's judgments on the fraudulent conveyance and interpleader actions on the ground that the court did not specify the rate at which prejudgment interest should be calculated. See Gianetti v. Meszoros, 268 Conn. 424, 426, 844 A.2d 851 (2004) (when discretionary prejudgment interest awarded, but applicable rate of interest not established, there is no final judgment). "The lack of a final judgment implicates the subject matter jurisdiction of an appellate court to hear an appeal. A determination regarding ... subject matter jurisdiction is a question of law ... [and, therefore] our review is plenary." (Internal quotation marks omitted.) Sweeney v. Sweeney, 271 Conn. 193, 207, 856 A.2d 997 (2004).

In its memorandum of decision, the trial court ordered that "the remaining balance of the $150,000 shall be paid over and used first to satisfy the Collard & Roe judgment, including interest on said sum," but failed to clarify whether the interest ordered was prejudgment or postjudgment and, if prejudgment, what rate of interest was to be applied. If the interest ordered was prejudgment, there is no final judgment under Gianetti v. Meszoros, supra, 268 Conn. 424, 844 A.2d 851; however, if it was postjudgment interest, there is a final judgment, and this court has jurisdiction to hear the appeal. See Bower v. D'Onfro, 45 Conn.App. 543, 696 A.2d 1285 (1997). Because we determine that the interest awarded was postjudgment, we conclude that there is a final judgment.

Pursuant to General Statutes § 52-605(b), a foreign judgment is to be "treated in the same manner as a judgment of a court of this state...." Therefore, any proceeding before our courts related to a properly domesticated final foreign judgment is treated as postjudgment in nature. Harris v. Harris, 14...