Rader v. Valeri

Citations

• 223 Conn. App. 243

Syllabus

The plaintiff stakeholder, an attorney who represented the defendant V in a real estate transaction in which V sold two real properties to the defendant M Co., brought an action for interpleader to determine the rights of V and M Co. to funds held in escrow until V obtained certain zoning approvals for the properties. The properties, which were adjacent to each other, were located in a federal opportunity zone, which provided the opportunity for tax deferment. M Co. made clear its intent to V that it desired to continue mixed commercial and residential use for the first property and to convert the second property from a single-family residence to a two-family residence. Various zoning and use approvals were required from the city of Danbury in order to use the second property as a two-family property. In order to qualify for the tax benefits of the opportunity zone, V and M Co. were required to close on the transaction within a six month window. In order to ensure the closing could take place within the time frame needed to obtain the tax defer- ment, the parties entered into a contract for sale containing a rider to the contract that called for the creation of an escrow agreement to hold $75,000 of the purchase price contingent on the receipt of specified zoning and use approvals on or before February 1, 2020. M Co. designated V as its agent relative to any application for a variance for the second property. The zoning board granted the application for the variance for the second property with the stipulation that there would be no street access to the front of the second property, the driveway to the front of the second property would need to be removed and replaced with grass, and access to parking for the second property would be available only through an easement over the first property in favor of the second property. M Co. did not agree to the creation of the easement. After trial, the court rendered judgment awarding the escrow funds to M Co. On appeal to th