Tedesco v. Agolli , 182 Conn. App. 291 ( 2018 )


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    APPENDIX
    ANGELO TEDESCO, TRUSTEE
    v. RESJIMI AGOLLI ET AL.*
    Superior Court, Complex Litigation Docket at Waterbury
    File No. CV-12-6016130-S
    Memorandum filed June 21, 2016
    Proceedings
    Action to foreclose a mortgage on certain real prop-
    erty owned by named defendant et al. Judgment for
    plaintiff as to liability.
    Jeremy S. Donnelly, for the substitute plaintiff Scott
    Tedesco, trustee of the Heritage Builders of Waterbury,
    LLC, 401 (k) Profit Sharing Plan.
    Justin J. Garcia, for the named defendant et al.
    Opinion
    DOOLEY, J.
    PRELIMINARY STATEMENT
    This is an action to foreclose a mortgage covering
    several parcels of real property located in Waterbury,
    Connecticut, each of which is owned by the defendant
    Fikri Development, LLC (Fikri). The properties at issue
    are: (1) 3743 East Main Street; (2) 3496 East Main Street;
    (3) 51 Matteson Road; and (4) 3514 Main Street. The
    defendant Resjimi Agolli (Agolli) is currently the sole
    member of Fikri. The defendants assert several special
    defenses to the foreclosure action. Trial was conducted
    over the course of three days in May, 2016. The court
    heard testimony from seven witnesses and admitted
    numerous documents into evidence. Simultaneous trial
    briefs were submitted on June 1, 2016. The court has
    considered the testimony and evidence introduced, the
    arguments set forth in the parties’ memoranda, the
    authorities cited therein, and renders this decision
    based thereupon. For the reasons set forth below, judg-
    ment will enter in favor of the plaintiff as to liability.
    FACTUAL FINDINGS
    ‘‘In a case tried before a court, the trial judge is the
    sole arbiter of the credibility of the witnesses and the
    weight to be given specific testimony. . . . It is within
    the province of the trial court, as the fact finder, to
    weigh the evidence presented and determine the credi-
    bility and effect to be given the evidence.’’ (Citation
    omitted; internal quotation marks omitted.) Cadle Co.
    v. D’Addario, 
    268 Conn. 441
    , 462, 
    844 A.2d 836
     (2004).
    The court makes the following factual findings by a
    fair preponderance of the evidence, unless otherwise
    indicated, based upon the better, more credible evi-
    dence presented.1
    Agolli came to the United States in 1967 from what
    is now Macedonia as a young woman newly married
    to Fikri Agolli. She and her husband settled in the Water-
    bury area where they raised three children. Eventually,
    Agolli’s husband owned and operated a diner in Water-
    bury, at which Agolli sometimes worked. As the chil-
    dren grew, they helped in the diner as well. Ultimately,
    each of the children pursued careers of their own. In
    2006, Agolli’s husband was diagnosed with cancer, an
    illness to which he would eventually succumb. Agolli
    could not run the diner on her own and so arranged to
    sell it. At the time, there was an interested buyer for
    the diner but his interest was contingent upon a zoning
    change being made. The buyer paid Agolli $7500 per
    month as consideration for not selling the diner to some-
    one else. Ultimately, the putative purchaser did not
    obtain the zone change and terminated the option to
    purchase. Thereafter, Agolli located a buyer and sold
    the diner for $375,000.
    During his life, Agolli’s husband had purchased
    numerous parcels of undeveloped property in the
    Waterbury area. After his passing, Agolli became the
    owner of these parcels.
    Joseph Antonios was a local mortgage broker who
    ran his own business, Metro Mortgage. He also owned
    and operated The Private Mortgage Fund, LLC (The
    PMF), which financed mortgage loans. Fesnik Agolli
    (Nik), Agolli’s son, worked for Antonios’ mortgage bro-
    kerage business for approximately fourteen years. He
    is presently a police officer for the city of Waterbury.
    During the time that Nik Agolli worked for Metro Mort-
    gage, Antonios became well known to and a friend of
    the Agolli family. He would often accompany Nik Agolli
    to Agolli’s home for dinner. The Agollis liked and trusted
    Antonios. In 2007, Antonios began discussions with
    Agolli about developing her properties so that they
    would generate cash flow for Agolli.2 Fikri was formed
    and Agolli transferred all of her real estate holdings
    into Fikri, to include her personal residence. Agolli was
    a 50 percent member; Antonios’ wife, Gina, was a 50
    percent member; and Antonios was made the manager.3
    The arrangement called for Antonios, as the manager, to
    develop the properties. The operating agreement gave
    Antonios broad and largely unfettered authority to act
    on behalf of Fikri.
    Between 2008 and 2010, Antonios borrowed hun-
    dreds of thousands of dollars on behalf of Fikri, secur-
    ing these loans with the properties Agolli had
    transferred into Fikri. Some of these loans were
    financed by the Angelo P. Tedesco Money Purchase
    Pension Plan (ATMPPP). Angelo Tedesco was a local
    property developer. He had a business relationship with
    Antonios, and would, at times, provide the funds
    through which The PMF extended loans. In 2008, Anto-
    nios arranged for The PMF to loan Fikri $750,000. This
    debt was secured by a mortgage on the four properties
    at issue here, as well as Agolli’s personal residence
    located at 375 Maybrook Road, Waterbury, Connecticut,
    and an undeveloped parcel of land located on Austen
    Road in Waterbury, Connecticut. In 2010, Tedesco, as
    Trustee of the ATMPPP, agreed to take an assignment
    of this note and mortgage. In connection therewith,
    Agolli, on behalf of Fikri, signed a Note and Mortgage
    Modification Agreement, to include a new Promissory
    Note dated January 12, 2010 (exhibit B). This transac-
    tion closed on or about January 12, 2010. The Promis-
    sory Note contained a 10 percent interest rate and a
    payment schedule of interest only for twelve months
    with the principal due in full on January 12, 2011.
    No discernible progress was made in the develop-
    ment of the properties. As a result, the properties did
    not generate any cash flow with which to service the
    enormous debt which had been taken on by Fikri.4 Fikri
    defaulted under the terms of the January, 2010 Note.
    By service of a writ of summons and complaint filed
    September 3, 2010, Angelo Tedesco as Trustee of the
    ATMPPP commenced a foreclosure action against
    Agolli and Fikri.5 Fikri and Agolli were represented by
    Attorney Timothy Sullivan of Mahaney, Geghan & Sulli-
    van. Attorney Sullivan was a childhood friend of Nik
    Agolli and had known the Agolli family for many years.
    Nik Agolli asked Attorney Sullivan to defend the foreclo-
    sure with the primary objective being the securing and
    safeguarding of Agolli’s personal residence on May-
    brook Road in Waterbury, Connecticut.
    Although it is not clear precisely when the relation-
    ship between Agolli and Antonios soured, following the
    filing of the foreclosure action, the determination was
    made to remove both Joseph and Gina Antonios from
    any further involvement with Fikri. Also during this
    time period, Agolli spoke directly with Angelo Tedesco
    in an effort to resolve the foreclosure and satisfy Fikri’s
    debt to the ATMPPP. She testified that she asked him
    whether he intended to leave her ‘‘out on the street’’
    with nothing. Agolli wanted Tedesco to accept $500,000
    from the anticipated sale of one of the parcels of prop-
    erty in full satisfaction of Fikri’s debt.
    Attorney Sullivan eventually worked out a resolution
    of the foreclosure action with Tedesco, who was repre-
    sented by Attorney Paul Margolis. The debt would be
    refinanced as follows. Fikri would consummate the sale
    of property located on Austen Road, Waterbury, Con-
    necticut, from which $290,000 would be paid to Tedesco
    to pay down the outstanding Fikri debt. Fikri would
    sign a new Promissory Note in the reduced amount
    of approximately $571,000. The new Note would bear
    interest at 5 percent, instead of the previous interest
    rate of 10 percent. The new Note would be secured by
    the four properties at issue here, but Agolli’s personal
    residence would no longer be on the mortgage, pro-
    tecting her home in the event of future default. The
    new Note required no payments for approximately six
    months, to give Fikri time to either sell or develop the
    property, in a fashion that would permit Fikri to stay
    current on its debt obligations.
    Attorney Sullivan testified that he had regular com-
    munications with Nik Agolli, Suzi (Agolli) Zenko, as
    well as Agolli herself, regarding the terms of the refi-
    nance and settlement of the pending foreclosure. He
    testified that he sent all draft documents to Suzi because
    she is an attorney. Although there were a few discus-
    sions with Antonios, Attorney Sullivan was aware that
    Antonios was being removed from Fikri and he took
    his direction from the Agollis. Consistent with Attorney
    Sullivan’s testimony, Antonios denied that he was the
    architect of the refinance or that he negotiated its terms
    on behalf of Fikri.6 He was being removed from Fikri,
    so that limited his involvement to participating in the
    execution of the negotiated agreement as necessary.
    However, Nik Agolli and Agolli testified that Attorney
    Sullivan never discussed the terms of the refinance with
    them until the morning of the closing. Agolli further
    testified that she believed Tedesco had accepted her
    proposal to resolve Fikri’s debt by the payment of
    $500,000 from the proceeds of the Austen Road sale,
    contingent upon his receipt and review of the purchase
    and sale contract. She testified that she asked Attorney
    Sullivan to send the contract to Tedesco and that she
    believed he had done so. Based upon these discussions,
    Agolli testified that she believed that the closing which
    occurred was not a refinance at all, but a resolution
    of Fikri’s debt to Tedesco. She testified that she was
    ‘‘surprised’’ to learn that she would be asked to sign a
    new Note or that there would continue to be mortgages
    on some of her property. Her testimony is not credited.
    To accept this testimony would be to completely ignore
    or discredit the testimony of Attorney Sullivan, Anto-
    nios, and Attorney Margolis,7 each of whom had the
    same understanding of how this refinance came to pass,
    and whose understanding is entirely consistent with
    the documents created and signed by Agolli on behalf
    of Fikri.
    On July 26, 2011, the closing on the refinance of
    the Fikri debt occurred in various stages at Attorney
    Sullivan’s office. Present at various times was Agolli,
    Nik Agolli, Suzi (Agolli) Zenko, Attorney Sullivan, Attor-
    ney Margolis, Joseph Antonios and perhaps others.8
    Fikri sold property located on Austen Road, Waterbury,
    Connecticut, to a disinterested purchaser. The sale pro-
    ceeds were used to pay off encumbrances on that prop-
    erty, leaving approximately $290,000 for the paydown
    of the Tedesco debt.9 Gina and Joseph Antonios were
    removed from Fikri. The principals had already agreed
    that Agolli would become the only member of Fikri
    owning a 100 percent interest and Antonios would be
    removed as manager. To accomplish this shift, Antonios
    was to be given a mortgage in the amount of $88,000
    secured by the four properties at issue here, though his
    mortgage was subordinated to the Tedesco note and
    mortgage. The debt subordination agreement (exhibit
    4) was signed by Agolli, on behalf of Fikri, and Antonios
    and provided to Tedesco’s counsel prior to the closing
    of the refinance. At this juncture, Antonios left Attorney
    Sullivan’s office.
    Thereafter, Agolli, individually and on behalf of Fikri,
    executed the documents necessary to effectuate the
    settlement with Tedesco and the refinance of the debt.
    These include the Promissory Note (exhibit 1) at issue
    in this foreclosure and the Open End Mortgage Deed,
    Security Agreement and Fixture Filing (exhibit 2),
    which secured the Note. She understood that Fikri
    would remain indebted to Tedesco under the terms of
    the new Note and refinance. She understood that she
    was, at that time, the sole member of Fikri and that
    she was binding Fikri under the terms of the agreement.
    As agreed, Tedesco filed a withdrawal of the foreclo-
    sure action on July 27, 2011,10 indicating thereon that
    the dispute had been ‘‘resolved by discussion of the
    parties on their own.’’ During this time, though it is not
    clear precisely when, Angelo Tedesco was diagnosed
    with cancer. Prior to his passing, Scott Tedesco, his
    son, became the Trustee of the ATMPPP. The note and
    mortgage were thereafter transferred to the current
    plaintiff, the Heritage Builders of Waterbury, LLC, for
    which Scott Tedesco is also the Trustee. The plaintiff
    remains in possession of the Note, signed by Agolli on
    behalf of Fikri.
    The first payment under the Note was due February
    1, 2012. Fikri failed to make that payment and each
    payment due thereafter. The Note is in default.
    DISCUSSION
    ‘‘In order to establish a prima facie case in a mortgage
    foreclosure action, the plaintiff must prove by a prepon-
    derance of the evidence that it is the owner of the
    note and mortgage, that the defendant mortgagor has
    defaulted on the note and that any conditions precedent
    to foreclosure, as established by the note and mortgage,
    have been satisfied.’’ (Internal quotation marks omit-
    ted.) Wells Fargo Bank, N.A. v. Strong, 
    149 Conn. App. 384
    , 392, 
    89 A.3d 392
    , cert. denied, 
    312 Conn. 923
    , 
    94 A.3d 1202
     (2014).
    Here, based upon the facts found above, the plaintiff
    has established its prima facie case. The plaintiff is the
    current holder of the Note and Mortgage Deed securing
    the Note and the Note is in default. The defendants do
    not dispute these findings and there are no conditions
    precedent to foreclosure which have been identified
    as unmet.
    The defendants rely instead upon several special
    defenses: no meeting of the minds; duress and lack of
    consideration. Each will be discussed in turn.
    ‘‘A valid special defense at law to a foreclosure pro-
    ceeding must be legally sufficient and address the mak-
    ing, validity or enforcement of the mortgage, the note
    or both. . . . Where the plaintiff’s conduct is inequita-
    ble, a court may withhold foreclosure on equitable con-
    siderations and principles. . . . [I]f the mortgagor is
    prevented by accident, mistake or fraud, from fulfilling
    a condition of the mortgage, foreclosure cannot be had
    . . . .’’ (Internal quotation marks omitted.) Fidelity
    Bank v. Krenisky, 
    72 Conn. App. 700
    , 705–706, 
    807 A.2d 968
    , cert. denied, 
    262 Conn. 915
    , 
    811 A.2d 1291
     (2002).
    The principle that a special defense must relate to the
    making, validity or enforcement of the note or mortgage
    ‘‘was . . . considered to include events leading up to
    the execution of the loan documents . . . .’’ (Internal
    quotation marks omitted.) TD Bank, N.A. v. M.J. Hold-
    The defendants bear the burden of proving their spe-
    cial defenses. See Emigrant Mortgage Co. v. D’Agos-
    tino, 
    94 Conn. App. 793
    , 802, 
    896 A.2d 814
    , cert. denied,
    
    278 Conn. 919
    , 
    901 A.2d 43
     (2006). Although the defen-
    dants may rely upon more than one special defense,
    they need only establish one in order to defeat a finding
    of liability. See Union Trust Co. v. Jackson, 
    42 Conn. App. 413
    , 417, 
    679 A.2d 421
     (1996).
    A
    Lack of Consideration
    ‘‘To be enforceable, a contract must be supported by
    valuable consideration. . . . The doctrine of consider-
    ation is fundamental in the law of contracts, the general
    rule being that in the absence of consideration an execu-
    tory promise is unenforceable.’’ (Citation omitted; inter-
    nal quotation marks omitted.) Connecticut National
    Bank v. Voog, 
    233 Conn. 352
    , 366, 
    659 A.2d 172
     (1995).
    ‘‘[C]onsideration is [t]hat which is bargained-for by the
    promisor and given in exchange for the promise by the
    promisee . . . . [T]he doctrine of consideration does
    not require or imply an equal exchange between the
    contracting parties. . . . Consideration consists of a
    benefit to the party promising, or a loss or detriment
    to the party to whom the promise is made.’’ (Internal
    quotation marks omitted.) Thoma v. Oxford Perfor-
    mance Materials, Inc., 
    153 Conn. App. 50
    , 56, 
    100 A.3d 917
     (2014). ‘‘Consideration . . . requires intent by the
    parties to incur benefits or detriments at the time an
    agreement is entered into.’’ Id., 57. ‘‘Whether an
    agreement is supported by consideration is a factual
    inquiry reserved for the trier of fact . . . .’’ (Internal
    quotation marks omitted.) Viera v. Cohen, 
    283 Conn. 412
    , 442, 
    927 A.2d 843
     (2007).
    The court concludes that the Note and Mortgage Deed
    were supported by consideration and are therefore
    enforceable.
    First, both the Note and the Mortgage Deed contain
    an acknowledgement by the defendants that both are
    signed upon receipt of consideration. The Note states
    that it is given ‘‘FOR VALUE RECEIVED.’’ The Mortgage
    Deed provides: ‘‘KNOW YE, that Fikri Development,
    LLC . . . (the ‘Mortgagor’) for the consideration of
    One Dollar ($1.00) and other valuable consideration
    received to the Mortgagor’s full satisfaction . . . does
    hereby give, grant . . . .’’ Declarations such as these
    are generally sufficient to satisfy the consideration
    requirements of a binding contract. See Milford Bank
    v. Phoenix Contracting Group, Inc., 
    143 Conn. App. 519
    , 529–30, 
    72 A.3d 55
     (2013).
    Even absent these declarations, the evidence estab-
    lished that the defendants, in fact, received good and
    valuable consideration for the Note and Mortgage Deed.
    First and foremost, Angelo Tedesco withdrew the pend-
    asserted and which was poised to go to judgment. Fur-
    thermore, the debt was restructured at a lower interest
    rate; the Note allowed for a six month grace period
    during which no payments would be due; and the mort-
    gage deed no longer extended to Agolli’s personal resi-
    dence, removing any risk that she would lose her home
    in the event of a future default. The defendants’ argu-
    ments to the contrary are not persuasive.11
    B
    Duress
    ‘‘The classical or common law definition of duress
    is any wrongful act of one person that compels a mani-
    festation of apparent assent by another to a transaction
    without his volition. . . . The defendant must prove:
    [1] a wrongful act or threat [2] that left the victim no
    reasonable alternative, and [3] to which the victim in
    fact acceded, and that [4] the resulting transaction was
    unfair to the victim. . . . The wrongful conduct at issue
    could take virtually any form, but must induce a fearful
    state of mind in the other party, which makes it impossi-
    ble for [the party] to exercise his own free will.’’ (Cita-
    tion omitted; internal quotation marks omitted.). Chase
    Manhattan Mortgage Corp. v. Machado, 
    83 Conn. App. 183
    , 189–90, 
    850 A.2d 260
     (2004).
    The defendants presented no evidence to support
    this special defense. The defendants do not identify any
    wrongful act or threat by Tedesco. Agolli did not testify
    that she felt any fear or threat at the closing as a result
    of any conduct by Tedesco or otherwise. Agolli did not
    testify that her free will was overborne. The resulting
    transaction, as noted above, was not unfair to Fikri or
    Agolli and indeed provided an opportunity for Fikri to
    right its ship and for Agolli to keep her home from fore-
    closure.
    Agolli testified that she did not like the deal. Nik
    Agolli testified that in his opinion, his mother ‘‘had no
    choice.’’ The testimony derives from the viewpoint that
    Antonios had defrauded Agolli and Fikri leaving her
    ‘‘with no choice’’ but to proceed with the refinance.12
    This is insufficient. See Chase Manhattan Mortgage
    Corp. v. Machado, supra, 
    83 Conn. App. 190
     (‘‘[w]e
    will not invalidate a mortgage agreement against the
    mortgagee unless it participated in the alleged duress
    or had reason to know of its existence’’). The question
    is whether Tedesco’s conduct placed Agolli under
    duress. It did not.13 See Noble v. White, 
    66 Conn. App. 54
    , 59, 
    783 A.2d 1145
     (2001) (‘‘[w]here a party insists
    on a contractual provision or a payment that he honestly
    believes he is entitled to receive, unless that belief is
    without any reasonable basis, his conduct is not wrong-
    ful and does not constitute duress or coercion under
    Connecticut law’’). Further, even if Agolli consented to
    the transaction under protest, which does not appear
    to be the case, this does not establish duress. See 
    id.,
    citing Smedley Co. v. Lansing, 
    35 Conn. Supp. 578
    , 579,
    
    398 A.2d 1208
     (1978); see also Twachtman v. Hastings,
    Superior Court, judicial district of Tolland, Docket No.
    CV-95-57307-S (July 23, 1997) (Hon. Harry T. Hammer,
    judge trial referee) (
    20 Conn. L. Rptr. 145
    ), aff’d, 
    52 Conn. App. 661
    , 
    727 A.2d 791
     (consent secured by the
    pressure of financial circumstance is not sufficient to
    establish duress), cert. denied, 
    249 Conn. 930
    , 
    733 A.2d 851
     (1999).
    The defendants failed to prove the special defense
    of duress.
    C
    No Meeting of the Minds
    Last, the defendants claim that there was no meeting
    of the minds as between Agolli and Tedesco with
    respect to the Note and Mortgage Deed. The argument
    is twofold. The defendants claim that Agolli could not
    legally bind Fikri at the time she executed the Note and
    Mortgage Deed purporting to do so. The defendants
    also claim that she did not have an adequate understand-
    ing of the transaction.
    ‘‘In order for an enforceable contract to exist, the
    court must find that the parties’ minds had truly met.
    . . . If there has been a misunderstanding between the
    parties, or a misapprehension by one or both so that
    their minds have never met, no contract has been
    entered into by them and the court will not make for
    them a contract which they themselves did not make.’’
    (Internal quotation marks omitted.) Milford Bank v.
    Phoenix Contracting Group., Inc., 
    supra,
     
    143 Conn. App. 527
    –28. ‘‘ ‘Meeting of the minds’ is defined as
    ‘mutual agreement and assent of two parties to contract
    to substance and terms. It is an agreement reached by
    the parties to a contract and expressed therein, or as
    the equivalent of mutual assent or mutual obligation.’
    Black’s Law Dictionary (6th Ed. 1990). This definition
    refers to fundamental misunderstandings between the
    parties as to what are the essential elements or subjects
    of the contract. It refers to the terms of the contract,
    not to the power of one party to execute a contract as
    the agent of another.’’ Sicaras v. Hartford, 
    44 Conn. App. 771
    , 784, 
    692 A.2d 1240
    , cert. denied, 
    241 Conn. 916
    , 
    696 A.2d 340
     (1997).14
    When an agreement is reduced to writing and signed
    by all parties, the agreement itself is substantial evi-
    dence that a meeting of the minds has occurred. See
    Tsionis v. Martens, 
    116 Conn. App. 568
    , 577–78, 
    976 A.2d 53
     (2009) (‘‘[i]n light of the fact that a contract
    existed in written form that was signed by both parties,
    the plaintiffs’ argument that a meeting of the minds did
    not occur is contrary to the evidence provided to the
    court’’); see also Reid v. Landsberger, 
    123 Conn. App. 260
    , 268, 
    1 A.3d 1149
     (‘‘[b]ecause the agreement existed
    in written form and was signed by all parties, [the defen-
    dant’s] argument that a meeting of the minds did not
    occur is not supported by the evidence, at least where
    there is no mutual mistake as to the fundamental prom-
    ises’’), cert. denied, 
    298 Conn. 933
    , 
    10 A.3d 517
     (2010).
    Nonetheless, the defendants argue that Agolli was
    inadequately advised as to the terms of the settlement
    and refinance by Attorney Sullivan; that Attorney Sulli-
    van did not explain the content of the documents; that
    her lack of proficiency in reading and writing English
    prevented her from understanding the documents she
    signed. As noted previously, the court credited Attorney
    Sullivan’s testimony that he not only negotiated the
    terms of the settlement and refinance with input from,
    and at the direction of, Agolli as well as her children,
    but also that he explained the closing documents to
    Agolli. Perhaps Agolli had hoped for a different outcome
    but she was represented by counsel, she was involved
    in the negotiation; counsel explained the documenta-
    tion to her and she understood and agreed to the terms
    of the refinance. The special defense on this basis is
    therefore not proven.
    The defendants next argue that Agolli did not have
    the authority to bind Fikri. At the summary judgment
    phase of this litigation, the defendants relied upon the
    inconsistencies in the dates which appeared in the vari-
    ous closing documents to raise a genuine issue of mate-
    rial fact as to whether Joe and Gina Antonios were
    removed from Fikri prior to Agolli’s signing of the Note
    and Mortgage Deed in which she purports to act on
    behalf of Fikri as its sole member. As a factual matter,
    that argument was laid to rest by, inter alia, Agolli’s tes-
    timony:
    ‘‘Q. [By Attorney Donnelly]: Now, I want to bring
    you back, again, to that July 26th, 2011 closing. Do
    you understand?
    ‘‘A. Yes.
    ‘‘Q. Okay, Now your home was removed; we’ve been
    over that, correct?
    ‘‘A. Yes.
    ‘‘Q. In addition, the interest rate was lowered from
    10 percent to 5 percent on the loan, correct?
    ‘‘A. Yes. Uh-huh.
    ‘‘Q. And you’re aware that. Also, on that date, you
    were able to remove Mr. Antonios and Mrs. Antonios
    from being involved in Fikri Development, correct?
    ‘‘A. Yes.
    ‘‘Q. All right. So, the removed—they were removed
    on that day.
    ‘‘A. Yes.
    ‘‘Q. And after—and you signed those loan documents
    representing Fikri Development, correct?
    ‘‘A. Yes. . . .
    ‘‘Q. Well, I will rephrase. So, you just stated that Mr.
    and Mrs. Antonios were removed from the company,
    true?
    ‘‘A. Yes.
    ‘‘Q. Okay, so you were the only remaining member
    at the time you signed the documents that you signed
    on July 26th.
    ‘‘A. Yes.
    ‘‘Q. Okay, so, by doing so you represented to my
    client that you had the ability to sign for Fikri Develop-
    ment, correct?
    ‘‘A. Yes.’’ (May 12, 2016 transcript, pp. 18–19.)
    Agolli’s testimony is entirely consistent with the testi-
    mony of Antonios, Attorney Sullivan and Suzi Zenko15
    as well as the executed closing documents.
    Faced with this testimony, the defendants argue that
    Attorney Sullivan, Joseph Antonios and Gina Antonios
    failed to comply with the procedures in the Connecticut
    Limited Liability Company Act, General Statutes § 34-
    100 et seq. (the Act), or the Operating Agreement in
    effectuating Antonios’ removal as manager and Gina
    Antonios as a member. Thus, they argue, Agolli could
    not legally bind Fikri.16
    This argument is largely premised on ‘‘facts’’ which
    are not supported by the body of evidence. The defen-
    dants assert that ‘‘[n]one of the formalities necessary for
    Fikri to validly execute documents were ever followed.’’
    Attorney Sullivan was not questioned about such ‘‘for-
    malities,’’ the requirements of the Act, or even what he
    did or did not do to effectuate the removal of Joe and
    Gina Antonios. The defendants assert further that ‘‘Mrs.
    Antonios never provided written notice to Fikri,’’ as
    required under the Act. Mrs. Antonios was asked
    whether she gave written notice. She replied that she
    did not recall. This is not evidence from which the
    court can infer that no written notice was given. The
    defendants aver that ‘‘Mrs. Agolli and Mrs. Antonios
    never voted to remove Mr. Antonios as manager.’’ The
    court recalls neither testimony nor documentary evi-
    dence to support this assertion. Ironically, the defen-
    dants aver that ‘‘there is no evidence Mrs. Agolli ever
    even spoke with Mrs. Antonios about removal of Mr.
    Antonios.’’ It is likely there was no evidence because
    this issue was not adequately raised prior to trial. How-
    ever, the lack of evidence as to whether the procedural
    mechanisms necessary to removal were complied with
    inures to the defendants’ detriment. The defendants
    bear the burden of proof with respect to their special
    defense. See Emigrant Mortgage Co. v. D’Agostino,
    
    supra,
     
    94 Conn. App. 802
    .
    In any event, and most importantly, the evidence is
    both overwhelming and consistent that the removal of
    Joseph and Gina Antonios occurred prior to the closing
    on the refinance.
    For all of the foregoing reasons, the defendants failed
    to prove the special defense of no meeting of the minds.
    Judgment will enter in favor of the Plaintiff as to lia-
    bility.
    * Affirmed. Tedesco v. Agolli, 
    182 Conn. App. 291
    ,          A.3d    (2018).
    1
    The court does not attempt to include in this decision all of the evidence
    relied upon in the court’s factual findings. The court has considered all of
    the evidence admitted. The reference to any subset of the evidence presented
    should not be construed as identifying the exclusive basis for the court’s
    finding, and the court’s failure to identify or mention specific evidence should
    not give rise to an inference that such evidence has not been considered.
    2
    Nik Agolli testified that Antonios approached he and his mother, while
    Antonios testified that the Agollis approached him. The court need not
    determine which account is accurate in this litigation.
    3
    Gina Antonios did not personally invest in Fikri and was largely unin-
    volved or passive with respect to Fikri’s activities. The purpose of Gina’s
    involvement in, and the structure of Fikri, remains unclear.
    4
    Antonios’ conduct, as manager of Fikri, is the subject of a civil action
    captioned Fikri Development, LLC, et al. v. The Private Mortgage Fund,
    LLC, et al., which is pending on this court’s docket at CV-12-6013458. Therein,
    Fikri alleges that Antonios defrauded Fikri, borrowing against the property
    only to divert the funds to his own personal use. This trial does not require
    a determination as to where the money went or to what purposes it was
    put by Antonios. Although Fikri asserted Antonios’ fraudulent conduct as
    a defense in this foreclosure, the court previously determined that there
    was no genuine issue of material fact that Tedesco was not a knowing
    participant in any such chicanery. Therefore, Antonios’ purported fraud
    against Fikri and Agolli cannot be visited upon the plaintiff by way of
    special defense to this foreclosure. See Chase Manhattan Mortgage Corp.
    v. Machado, 
    83 Conn. App. 183
    , 
    850 A.2d 260
     (2004) (fraud by a third party
    upon a mortgagor does not invalidate a mortgage as against the mortgagee
    unless the mortgagee in some way participated in or knew of the fraud).
    5
    The foreclosure action was filed in Waterbury Superior Court and was
    captioned Angelo Tedesco, Trustee v. Resjimi Agolli et al., Docket No. CV-
    XX-XXXXXXX. This court is permitted to and does therefore take judicial notice
    of the file in that matter. See Jewett v. Jewett, 
    265 Conn. 669
    , 678 n.7, 
    830 A.2d 193
     (2003); Wasson v. Wasson, 
    91 Conn. App. 149
    , 157, 
    881 A.2d 356
    ,
    cert. denied, 
    276 Conn. 932
    , 
    890 A.2d 574
     (2005).
    6
    Notwithstanding this testimony, the defendants maintain in their posttrial
    submission that this court should, as a factual finding, conclude that Anto-
    nios, in collusion with Tedesco, was the person responsible for the negoti-
    ated terms of the settlement and refinance. This is but one example of the
    defendants’ proposed findings of fact having little or no support in the
    evidence presented.
    7
    The defendants argue that the testimony of both Attorney Sullivan and
    Attorney Margolis was not credible. They snidely suggest the testimony
    suffered from ‘‘convenient’’ lapses of memory and/or was self-serving to
    conceal their own exposure for what the defendants suggest was legal
    malpractice on their part. The defendants, however, presented no credible
    evidence to rebut the testimony of Attorneys Sullivan and Margolis and
    indeed, the court found their testimony forthright and believable.
    8
    The events in question occurred almost five years ago and none of the
    witnesses questioned were completely confident in their recollection as to
    who was present at what time during the course of the day on July 26, 2011.
    9
    Two of the mortgages paid off on the Austen Road property were paid
    to Antonios related entities. Those mortgages total approximately $233,000.
    The validity of those mortgages and Antonios’ entitlement to those funds
    will be determined in the fraud case brought by Fikri against Antonios.
    10
    It is worth noting that the defendants had been defaulted for failure to
    disclose a defense and the plaintiff had filed a motion for judgment by strict
    foreclosure, which, if granted, would have resulted in Agolli losing her home.
    11
    For the first time, in their posttrial brief, the defendants assert that
    Tedesco released Fikri from all debt, as evidenced by exhibit E, a release
    of the 2010 Tedesco mortgage dated July 14, 2011, which was prepared in
    connection with the July 26, 2011 closing. The defendants never asserted
    any purported release as a special defense. It will not be further addressed.
    12
    Indeed, the defendants argue that it was Antonios who ‘‘eliminated Mrs.
    Agolli’s free will.’’
    13
    The defendants claim that ‘‘Mr. Antonios and Mr. Tedesco created a
    trap for Mrs. Agolli with only one result possible for Mrs. Agolli and Fikri:
    loss of her land’’ is without support in the evidence. This court has previously
    determined that there was no genuine issue of material fact that Tedesco
    was neither involved in nor aware of any treachery on the part of Antonios.
    The evidence at trial did not alter this conclusion. Indeed, if Tedesco’s
    nefarious goal was to ultimately take Agolli’s land, he would simply have
    done so by way of the first foreclosure.
    14
    The court had previously questioned whether the defendants’ special
    defense of no meeting of the minds, as pleaded by the defendants, included
    the argument that Agolli could not bind Fikri. As a factual matter, it was first
    raised in the defendants’ opposition to the plaintiff’s motion for summary
    judgment. As noted at that time, this allegation does not appear in the
    defendants’ special defenses. However, insofar as the issue was briefed
    without objection on this basis by the plaintiff, the court addressed the
    issue in the motion for summary judgment. Indeed, it was this argument as
    to which the court found a genuine issue of material fact and on which the
    court heard evidence at trial.
    15
    Suzi Zenko testified as follows:
    ‘‘Q. With respect to the July 26, 2011 closing, what was the result of that
    closing: in essence, what did that closing accomplish?
    ‘‘A. We got rid of Joe.
    ‘‘Q. Okay. How did you get rid of Joe?
    ‘‘A. I mean, it was—he was removed. He withdrew from the LLC. Him
    and Gina were out.’’
    16
    The broadest possible reading of the defendants’ special defenses does
    not include such a claim, nor is this claim arguably within the scope of the
    issues addressed in the summary judgment motion. ‘‘Pleadings are intended
    to limit the issues to be decided at the trial of a case and [are] calculated
    to prevent surprise. . . . [The] purpose of pleadings is to frame, present,
    define, and narrow the issues, and to form the foundation of, and to limit,
    the proof to be submitted on the trial . . . . It is axiomatic that the parties
    are bound by their pleadings.’’ (Internal quotation marks omitted.) Brye v.
    State, 
    147 Conn. App. 173
    , 177, 
    81 A.3d 1198
     (2013). Notwithstanding, the
    court addresses the argument.