DocketNumber: No. CV910504508
Citation Numbers: 1994 Conn. Super. Ct. 12311, 13 Conn. L. Rptr. 94
Judges: LANGENBACH, J.
Filed Date: 12/6/1994
Status: Non-Precedential
Modified Date: 7/5/2016
In February, 1993, the parties stipulated to arbitration and the case was tried before an arbitrator in April and March of 1993. On April 22, 1993, the arbitrator awarded the plaintiff $17,045.49, plus interest at a rate of 8% from January 1, 1990. The arbitrator did not award any amount to the defendant on its counterclaim. On June 14, 1993, judgment on the award was entered and the defendant did not appeal.
On or about May, 1993, the defendant established an escrow account at Glastonbury Bank Trust [the account], entitled "Duke Tours, Client Deposits, 273 Hebron Avenue, Glastonbury, CT 06033." On February 3, 1994, the plaintiff applied for a bank execution for $21,900.01, a copy of which is attached to the plaintiff's motion for exemption. On February 15, 1994, the sheriff, pursuant to the application for a bank execution, obtained a bank execution on the CT Page 12312 account.
On March 10, 1994, the defendant filed an amended motion for exemption requesting that the court order that the "client deposits" account be exempted from the plaintiff's bank execution and that the court determine the interests of the respective parties in the "client deposits" account, purportedly pursuant to General Statutes §
In support of its motion for exemption, the defendant argues that, as a corporation in the business of making group travel and tour arrangements, it requires its clients to pay fully refundable deposits. The defendant asserts that for some time, the defendant commingled these funds with corporate funds, but, in May, 1993, upon the advice of counsel, the defendant opened a separate account for these deposits at Glastonbury Bank Trust Co.1 The defendant first argues that it is a "[t]rustee in possession of CLIENT DEPOSITS, and as such TRUSTEE, [the defendant] is acting in [sic] behalf of the third party claims for his CLIENTS DEPOSITS and therefore may bring this Motion under [General Statutes §
In opposition to the motion for exemption, the plaintiff asserts that the defendant created the account for the sole purpose of avoiding execution in the present case. The plaintiff argues that the defendant may not invoke General Statutes §
General Statutes §
[w]here a dispute exists between the judgment debtor or judgment creditor and a third person concerning an interest in personal property sought to be levied on, or where a third person claims that the execution will prejudice his superior interest therein, the judgment creditor or third person may, within twenty days of service of the execution or upon application by the judgment creditor for a turnover order, make a claim for determination of interests pursuant to this section.
(Emphasis added.) General Statutes §
One superior court judge has ruled that General Statutes §
As stated above, General Statutes §
A trust is comprised of three elements: "(1) a trust res; (2) a fiduciary relationship between a trustee and a beneficiary requiring the trustee to deal with the trust res for the benefit of the beneficiary; and (3) the manifestation of an intent to create a trust." Goytizolov. Moore,
In addition, General Statutes § 36-110, entitled "Deposits in trust," provides, in part:
No savings bank, state bank and trust company, savings and loan association or national banking association shall accept any deposit made by one person in trust for another unless the same is accompanied by a statement signed by the depositor giving the name and residence of the beneficiary. Such statement may also specify the terms of the trust thereby created. . . .
General Statutes § 36-110(a)(1). The court finds that the defendant did not establish the existence of such a written CT Page 12315 declaration.
Also, there is no evidence that clients, as purported "settlors," intended that their funds were to be held in trust. Moreover, the court finds that the defendant did not establish the existence of a written declaration of trust, as required by General Statutes § 36-110(a)(1). Accordingly, the court finds that the defendant may not invoke § 52-536c because he is the judgment debtor.
The defendant further argues that the account is exempt from execution pursuant to General Statutes § 52-367 et seq. Section
Execution may be granted pursuant to this section against any debts due from any banking institution to a judgment debtor which is not a natural person. . . . If any such banking institution upon which such execution is served and upon which such demand is made is indebted to the judgment debtor, it shall pay to such officer . . . the amount of such indebtedness not exceeding the amount due on such execution, to be received and applied on such execution by such officer. . . . If such banking institution fails or refuses to pay over to such officer the amount of such debt, not exceeding the amount due on such execution, such banking institution shall be liable in an action therefor to the judgment creditor named in such execution, and the amount so recovered by such judgment creditor shall be applied toward the payment of the amount due on such execution.
This provision does not provide a mechanism by which the judgment debtor, or a third party, for that matter, may challenge a bank execution. Rather, this provision allows that the bank, upon being served with the execution, must only pay "the amount of such indebtedness" if "indebted to the judgment debtor." The court finds that this provision, by implication, allows the bank to challenge the bank execution where there is a claim that the bank is not CT Page 12316 indebted to the judgment debtor for the amount of the money judgment claimed in the execution. But the judgment debtor itself, when not a natural person, is without recourse to challenge a bank execution under General Statutes §
At the April 4, 1994 hearing on the motion for exemption, defendant's counsel stated that he was "sure that if the Court so prefer[red,] . . . the third party or bank counsel [could] . . . bring essentially the same . . . motion for exemption. . . . It's your opinion, your Honor. . . . and the parties agree to offer testimony with respect to the issues in this matter." Transcript, p. 2. This court replied that it would "reserve decision" on whether it is proper for the defendant itself to assert the motion for exemption, but that it would "hear the evidence while everybody is here." Transcript, p. 3.
Upon consideration of the "merits" of the motion for exemption under General Statutes §
In conclusion the court finds that General Statutes §
Accordingly, the motion for exemption is denied.
Langenbach, J.