Skip to main content

M&T Bank v. Lewis

Conn.April 30, 2024No. SC20817Cited 10 times
RemandedM&T Bank
Facing something similar at work?Check your rights — free, private, no sign-up

Case Details

Judge(s)
Robinson; McDonald; D’Auria; Mullins; Ecker; Alexander; Dannehy
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
appeal

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Outcome

The Connecticut Supreme Court reversed the trial court's decision to strike the defendant's special defenses of unclean hands and breach of the implied covenant of good faith and fair dealing in a mortgage foreclosure action, and remanded the case for further proceedings on the merits.

Excerpt

The plaintiff bank sought to foreclose on a mortgage on certain real property owned by the defendant after he defaulted on a promissory note secured by the mortgage. The mortgage agreement included a provision authoriz- ing the plaintiff to purchase force placed insurance coverage for the property if the defendant failed to maintain adequate coverage. The defendant filed an answer and a counterclaim, and asserted various special defenses, including unclean hands and breach of the implied covenant of good faith and fair dealing, which were predicated on allega- tions relating to the plaintiff's purchase of force placed flood insurance from A Co., an insurance provider. The defendant did not challenge the plaintiff's right to purchase the force placed insurance but alleged that the plaintiff was involved in an undisclosed kickback scheme with A Co., pursuant to which the plaintiff used A Co. as its exclusive force placed insurance provider, and, in exchange, A Co. provided the plaintiff with certain rebates, including free or below cost mortgage services. The defendant claimed that, instead of passing those rebates on to him, the plaintiff charged him more than the cost of purchasing the force placed coverage, contrary to both the provisions of the mortgage agree- ment and certain representations the plaintiff had made to him. The defendant's answer also included numerous allegations concerning the plaintiff's nationwide kickback scheme with A Co. and its impact on borrowers generally. The plaintiff filed a motion to strike the special defenses and the counterclaim, which the trial court granted in part. In connection with its decision to strike the special defenses of unclean hands and breach of the implied covenant of good faith and fair dealing, the trial court reasoned that the allegations concerning the kickback scheme were broad and related to borrowers generally instead of to the defendant specifically, and, therefore, the allegations did not arise from the mak

What This Ruling Means

**M&T Bank v. Lewis: Connecticut Supreme Court Ruling** **What Happened:** This case involved a mortgage foreclosure dispute between M&T Bank and a homeowner named Lewis. When Lewis fell behind on his mortgage payments, the bank moved to foreclose on his property. The mortgage contract allowed the bank to buy expensive "force-placed" insurance for the property if Lewis didn't maintain his own coverage. Lewis fought back, claiming the bank acted unfairly and in bad faith when handling his mortgage and insurance requirements. The lower court initially dismissed Lewis's defenses, but he appealed. **What the Court Decided:** The Connecticut Supreme Court sided with Lewis and reversed the lower court's decision. The court ruled that Lewis should be allowed to present his defenses claiming the bank acted unfairly and breached its duty to deal with him in good faith. The case was sent back to the lower court for a full hearing on these issues. **Why This Matters for Workers:** This ruling strengthens protections for homeowners and borrowers against potentially unfair banking practices. It confirms that banks must deal fairly with customers, even during foreclosure proceedings, and that borrowers can challenge questionable conduct in court.

This summary was generated to explain the ruling in plain English and is not legal advice.

Similar Rulings

James Chappel v. Laboratory Corporation of America, AKA National Health Lab
9th CircuitNov 2000
Mixed Result
Umland v. PLANCO Financial Services, Inc.
3rd CircuitSep 2008
Defendant Win
United States Ex Rel. Clausen v. Laboratory Corp. of America, Inc.
11th CircuitMay 2002
Defendant Win
Dodge
Conn.Apr 2026

Pursuant to the Workers' Compensation Act (§ 31-293 (a)), an injured employee may assert a claim against and recover damages from a tortfeasor who is allegedly liable for the employee's work-related injury, even if the employee is entitled to workers' compensation benefits for that injury, and an employer that has paid or has become obligated to pay those benefits to the employee "shall have a lien upon any judgment . . . or any settlement received by the employee from the [tortfeasor]." The plaintiff, as executrix of the decedent's estate and as the decedent's surviving spouse, had filed for workers' compensation benefits after the decedent died of mesothelioma, which was caused in substantial part by his exposure to products containing asbestos during the course of his employ- ment with the defendants, the Commissioner of Motor Vehicles and the town of Manchester. Prior to filing her claims for benefits, the plaintiff settled numerous product liability actions that she had brought against the manu- facturers and suppliers of the products containing asbestos to which the decedent had been exposed, with 70 percent of the net settlement proceeds awarded to the decedent's estate as damages for his personal injuries and death, and 30 percent of the proceeds awarded to the plaintiff for her loss of consortium. With respect to the plaintiff's claim for workers' compensation benefits, an administrative law judge of the Workers' Compensation Commis- sion found that the decedent's exposure to asbestos, both at home and during the course of his employment with the defendants, was a significant factor in causing the decedent to develop mesothelioma. Because the decedent's meso- thelioma was caused in substantial part by this exposure to asbestos during his employment, total incapacity benefits were awarded to the decedent's estate and survivor's benefits were awarded to the plaintiff. The administra- tive law judge determined, however, that the defendants, as the decedent's e

Defendant Win
Ajdini
Conn.Apr 2024

Pursuant to statute (§ 31-294c (b)), whenever an employer contests liability to pay workers' compensation benefits, the employer ''shall file'' with the workers' compensation administrative law judge, on or before the twenty-eighth day after the employer has received the employee's written notice of claim, a notice of intention to contest the employee's right to compensation benefits. The defendants, F Co. and F Co.'s insurer and third-party workers' compensa- tion benefit administrator, appealed from the decision of the Compensa- tion Review Board, which upheld the decision of the administrative law judge precluding the defendants from contesting liability for injuries sustained by the plaintiff during the course of his employment with F Co. Within twenty-eight days of receiving the plaintiff's notice of claims, F Co. mailed to the administrative law judge a notice of intention to contest the plaintiff's right to compensation benefits pursuant to § 31- 294c (b), but the administrative law judge did not receive the notice of intention until after the twenty-eight day statutory period elapsed. The administrative law judge thereafter granted the plaintiff's motion to preclude the defendants from contesting liability, concluding that, because F Co. had failed to commence payment for the claims or file its notice of intention to contest within twenty-eight days following receipt of the plaintiff's notice of claims, as required by § 31-294c (b), the defendants were presumed to have accepted the compensability of the plaintiff's alleged injuries and precluded from contesting his claims. The board upheld the administrative law judge's decision, and, there- after, the defendants appealed. Held that the board properly upheld the administrative law judge's decision to preclude the defendants from contesting liability, as F Co. did not file its notice of intention to contest with the administrative law judge on or before the twenty-eighth day after receiving the plaintiff's no

Plaintiff Win

Browse Related

Facing something similar at work?

Court rulings like this one are useful, but every situation is different. Take 2 minutes to see which laws may protect you — it's free, private, and no account is required to start.

This ruling information is sourced from public court records via CourtListener.com. Case outcomes, claim types, and summaries are extracted using AI analysis and may be incomplete or inaccurate. It is provided for informational and educational purposes only and does not constitute legal advice.

See something wrong, or named in this ruling and want it corrected or redacted? Request a correction.