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Collard and Roe, PC v. Klein

Citations: 865 A.2d 500; 87 Conn. App. 337; 2005 Conn. App. LEXIS 55Docket: AC 24651

Court: Connecticut Appellate Court; February 8, 2005; Connecticut; State Appellate Court

Narrative Opinion Summary

This case involves Arthur O. Klein's appeals from judgments in fraudulent conveyance and interpleader actions initiated by the law firm Collard & Roe, P.C. The disputes arose following the dissolution of a merger between Klein's firm and Collard & Roe, resulting in a New York judgment against Klein, which was subsequently domesticated in Connecticut. Klein's transfer of property interests to his wife, leaving him insolvent, prompted Collard & Roe to contest these transfers as fraudulent conveyances. The Connecticut Appellate Court upheld the trial court’s rulings in favor of Collard & Roe, rejecting Klein's claims, including the improper denial of a jury trial, the validity of the quitclaim deed, and the escrow agreement's enforceability. The court affirmed the domesticated New York judgment, emphasizing its entitlement to full faith and credit. Klein's jury trial request was deemed untimely under statutory requirements. Additionally, the court clarified appellate jurisdiction by differentiating between prejudgment and postjudgment interest. Ultimately, the court ordered the satisfaction of Collard & Roe's judgment from escrow funds, with interest and attorney's fees, and dismissed several procedural and substantive claims raised by Klein. The case underscores the legal intricacies of fraudulent conveyance claims and the enforcement of domesticated foreign judgments.

Legal Issues Addressed

Appellate Jurisdiction and Prejudgment Interest

Application: The court delineated that prejudgment interest must be specified to establish a final judgment, affecting appellate jurisdiction, but found the interest was postjudgment.

Reasoning: It was determined that the interest awarded was postjudgment because it pertained to a domesticated foreign judgment, thereby establishing a final judgment and allowing the court to hear the appeal.

Domestication of Foreign Judgments

Application: The court recognized the domesticated New York judgment against Klein as a valid final judgment despite Klein's challenges, citing full faith and credit principles.

Reasoning: The New York judgment, which was domesticated by Collard. Roe through proper certification, is a valid final judgment, not affected by the 1995 New York Supreme Court determination.

Enforceability of Escrow Agreements

Application: The court upheld the validity of the escrow agreement disputed by Klein, citing precedents that distinguish true escrow agreements from those controlled by one party.

Reasoning: The court affirmed the escrow agreement as valid and enforceable.

Fraudulent Conveyance under Connecticut Law

Application: The court ruled that Klein's transfer of property to his wife was a fraudulent conveyance intended to evade creditor claims, thus complicating the sale of the property due to a judgment lien.

Reasoning: Collard & Roe initiated the fraudulent conveyance action to contest Klein's property transfers, claiming they were made to evade creditor claims.

Jury Trial Requests under General Statutes § 52-215

Application: Klein's request for a jury trial was denied as untimely since it was filed long after the statutory period following the joinder of factual issues.

Reasoning: Klein's request for a jury trial in the fraudulent conveyance action was made nearly six months after the last factual issue was joined, exceeding the statutory limit.

Validity of Quitclaim Deeds under General Statutes § 47-5

Application: The court invalidated a quitclaim deed lacking required witness signatures, rejecting Klein's argument that statutory provisions corrected the defect.

Reasoning: The court ruled the deed defective for lacking two witness signatures, as mandated by General Statutes § 47-5.