DocketNumber: File No. CV91-0100673S.
Citation Numbers: 47 Conn. Super. Ct. 291, 47 Conn. Supp. 291
Judges: WIESE, J.
Filed Date: 8/3/2000
Status: Precedential
Modified Date: 1/12/2023
On May 23, 2000, an evidentiary hearing was conducted on the motion. At that proceeding, the parties introduced into evidence numerous exhibits and the testimony of several witnesses. Following the hearing, the parties submitted detailed proposed findings of fact and conclusions of law. The plaintiff argues that the defendant's financial circumstances warrant an installment payment order of $4000. In contrast, the defendant maintains that his financial circumstances support a weekly installment payment order of only $100. The court has carefully considered the evidence and the positions of the parties.
The defendant is employed in the field of real estate investing, developing and managing. The defendant's parents, Richard Belfonti and Constance Belfonti, are principals in numerous business entities that own or manage commercial properties. The defendant is a corporate officer and an employee of numerous business entities owned by his family. Specifically, the defendant is the president of MCR Management, Inc. (MCR). MCR *Page 293 is a real estate management company that collects rents and makes disbursements for properties owned by the defendant's parents. The properties include commercial and other business enterprises valued in excess of $50 million. MCR has numerous employees.
The defendant is a middle-aged individual who appears to enjoy good health. He received an undergraduate degree from Boston University and has taken classes at Harvard University. He recently was married and has no children. The defendant's spouse is currently employed as a dental hygienist. The defendant drives a 1999 BMW automobile, which is owned by MCR and is provided for his use, with an original purchase price of approximately $50,000. MCR also pays for expenses on the vehicle. He is a member of several social clubs, including the Woodbridge Country Club and the New Haven Lawn Club. The defendant's personal property includes jewelry valued at approximately $15,000.
The defendant and his wife reside in a condominium that is owned by his mother. The defendant testified that the monthly rent is $1000. In addition to normal living expenses, such as utilities, the defendant is subject to a court order of weekly payments to CASA Investments Company. The court has considered that expense in reaching a decision in this matter. The defendant currently has other numerous judgments against him totaling millions of dollars. He is not currently making payments on those debts.
The defendant's financial history as disclosed on his federal income tax returns indicates that in 1996 his gross income was approximately $161,000. In 1997, the defendant's income was approximately $320,000. In 1998, the defendant's income was approximately $299,000. In 1999, the defendant did not file a federal income tax return. Introduced as evidence at trial, however, were an Internal Revenue Service (IRS) W-2 form *Page 294 in the amount of $52,000, reduced to $46,000 by a $6000 401 (k) contribution and $59,000 as disclosed on an IRS 1099 form for a total of approximately $111,000 in gross income. For the year 2000, the defendant claims that his salary is approximately $1000 per week for a projected year-end total of $52,000.
A substantial portion of the income earned by the defendant between 1996 and 1998 was attributable to bonuses he received from MCR. Those bonuses were based on two factors. First, the refinancing of several individual properties and second, the financial successes of the properties being managed by MCR. The decision to pay a bonus and the determination of the amount is made by the defendant's parents in consultation with the defendant. The defendant is an active participant in the decision-making process and has the ability to influence the outcome. The commercial properties being managed by MCR are, as a whole, performing well financially.
The defendant established a New York bank account in an effort to avoid the reach of creditors. His MCR paycheck is deposited into that account. MCR has on previous occasions paid for the defendant's utilities, rent and personal living expenses, including his court-ordered weekly payments to CASA Investments Company. That arrangement was approved by the owners of MCR, the defendant's parents.
Under the plain language of the statute, the two criteria that are to be evaluated are the "judgment debtor's financial circumstances" and "installment payments reasonably calculated to facilitate payment of the judgment." General Statutes §
The defendant's position is that under §
Regarding the second criteria, i.e., that the installment payments may be reasonably calculated to facilitate payment of the judgment, the defendant owes in excess of $1 million to the judgment creditor, which is accruing interest. It is impossible to address that debt through a nominal order of payments. After careful consideration of the statutory criteria and the proven facts, the court orders the defendant to make an installment payment of $500 per week. That amount represents an equitable balance of the interests of both the debtor and the creditor.