Toro Credit Co. v. Zeytoonjian

Citations

• 341 Conn. 316

Syllabus

The plaintiff sought to foreclose a mortgage on commercial property owned by the defendants that was comprised of parcel A and parcel B, and secured by a promissory note. A remedies provision in the mortgage agreement between the parties permitted the plaintiff to seek foreclosure by sale of both parcels. After the defendants defaulted on the promissory note, the plaintiff commenced the present action and requested that the trial court render judgment of foreclosure by sale of both parcels. After a trial, the court concluded that foreclosure by sale, rather than strict foreclosure, was the most appropriate remedy. The court determined that it was not bound by the remedies provision in the mortgage agree- ment but considered it as one factor in its balancing of the equities. In addition, the court, in balancing the equities, considered, inter alia, that the plaintiff successfully bargained for the right to select the remedy of foreclosure by sale and that it is generally an abuse of discretion not to order a foreclosure by sale when, as in the present case, the fair market value of the property substantially exceeds the amount of the debt. The trial court ordered the sale of both parcels, either together or separately depending on the defendants' preference, to protect the 341 Conn. 316 FEBRUARY, 2022 317 Toro Credit Co. v. Zeytoonjian plaintiff's interest in its security and to ensure that any value realized in excess of the amount owed would redound to the defendants' benefit. The defendants appealed from the trial court's order of foreclosure by sale, claiming that the court should not have considered the remedies provision in the mortgage agreement and that foreclosure by sale of both parcels was inequitable when strict foreclosure as to parcel A would have fully satisfied the defendants' debt. Held: 1. The trial court having determined the method of foreclosure and the amount of debt, the defendants appealed from a final judgment, and the fact that the trial cou