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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Scholz v. Epstein, 198 Conn. App. 197 (2020)

Citation
Scholz v. Epstein, 198 Conn. App. 197 (2020)
Parent Document
Scholz v. Epstein, 198 Conn. App. 197 (2020)
Jurisdiction
Connecticut (state)
Effective Date
2020-06-16

Full Text

5,194 chars
The plaintiff sought to recover damages from the defendant, an attorney,
    for alleged statutory theft arising from the defendant’s conduct during
    prior judicial proceedings involving the foreclosure of the plaintiff’s
    property. The defendant, acting as attorney for B Co., brought an action
    against the plaintiff to foreclose a municipal lien that B Co. had pur-
    chased from the city of Bridgeport. The plaintiff thereafter commenced
    this action alleging that the defendant, in the course of the foreclosure
    proceeding, made false representations to the court with the intent to
    default the plaintiff for failure to appear and to render a judgment of
    strict foreclosure. The plaintiff alleged that the defendant intended to
    deprive the plaintiff of his property and/or to appropriate the property
    to B Co., committing theft pursuant to statute (§ 52-564). The court
    granted the defendant’s motion to dismiss the action for lack of subject
    matter jurisdiction on the ground that the defendant was protected by
    absolute immunity pursuant to the litigation privilege, and, from the
    judgment rendered thereon, the plaintiff appealed to this court. Held:
1. The trial court properly granted the defendant’s motion to dismiss, this
    court having determined, as a matter of first impression, that the defen-
    dant was protected by absolute immunity from the plaintiff’s action for
    statutory theft under § 52-564: following an evaluation of the competing
    public policy considerations, including the underlying purpose of judicial
    proceedings, the similarity between statutory theft and claims of fraud
    and defamation, which are protected by the privilege, and the availability
    of other remedies, this court reasoned that the plaintiff’s claim of statu-
    tory theft did not require a consideration of whether the underlying
    purpose of the foreclosure litigation was improper, rather, the plaintiff’s
    claim raised the issue of whether an attorney’s conduct, while represent-
    ing a client during a judicial proceeding brought for a proper purpose,
    was entitled to absolute immunity; moreover, a claim of statutory theft
    under § 52-564 is more analogous to a claim of fraud, as opposed to a
    claim of vexatious litigation or abuse of process, because the plaintiff
    had to prove that the defendant obtained the property in the foreclosure
    action through false representations made to the court in the foreclosure
    action, and, because the privilege protected the defendant’s communica-
    tions, they were shielded by absolute immunity, regardless of the nature
    of the plaintiff’s cause of action; furthermore, the required elements of
    statutory theft do not contain inherent safeguards against inappropriate
    retaliatory litigation, public policy does not support permitting claims
    of statutory theft against attorneys, as it would inhibit candor in judicial
    proceedings, and attorneys who engage in serious misconduct, such as
    that alleged by the plaintiff, are subject to a number of possible sanctions,
    and the availability of these alternative remedies serves as a deterrent
    to attorney misconduct.
2. The plaintiff could not prevail on his claim that, even if the litigation
    privilege applied to the defendant’s conduct during the foreclosure pro-
    ceeding, the trial court improperly granted the defendant’s motion to
    dismiss where some of the defendant’s alleged conduct was perpetrated
    outside the scope of judicial proceedings: although the plaintiff claimed
    that the defendant delayed the recording of the certificate of foreclosure,
    in light of the fact that the litigation privilege applies to documents
    prepared in connection with a judicial proceeding, the defendant’s action
    was clearly conducted in connection with the foreclosure proceeding
    and fell within the scope of the litigation privilege; this court rejected
    the plaintiff’s claim that the subsequent sale of the foreclosed property
    constituted conduct by the defendant outside the scope of the privilege,
    as the complaint did not contain any allegations of wrongdoing by the
    defendant with respect to the sale of the property, rather, the complaint
    alleged that the defendant’s misconduct eventually resulted in the sale
    of the property by B Co., and, as the complaint did not allege that the
   defendant was involved in wrongdoing with respect to the sale after
   title had vested in B Co., or that the sale was procured through the
   services of the defendant, the plaintiff’s claim lacked merit; moreover,
   even construing the allegations of the complaint as alleging a claim for
   statutory theft on the basis of the defendant’s conduct concerning the
   sale of the property, the sale of the foreclosed property was an integral
   step in the foreclosure process, and the defendant’s conduct in assisting
   B Co. with that sale was relevant to that proceeding and, thus, fell within
   the scope of the litigation privilege.
          Argued January 13—officially released June 16, 2020 Procedural History