Attorney Fees for foreclosure paid in Connecticut

Reasonable Attorney Fees Collected in Connecticut

VORCELIA OLIPHANT, Plaintiff, v. JENNIFER SIMBOSKI and REINER, REINER & BENDETT, P.C., Defendants.
CIVIL ACTION NO. 3:03cv2038 (SRU)

Case Law
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF CONNECTICUT
2005 U.S. Dist. LEXIS 5353

March 31, 2005, Decided

Facts: In the note securing her mortgage, the mortgagor expressly agreed that, in the event the lender required immediate payment in full, she would pay the costs and expenses of enforcing the note to the extent not prohibited by applicable law. In an attempt to collect the mortgagor's debt on behalf of the creditor, defendants initiated a foreclosure action on the property. Defendants mailed the mortgagor a document that provided the cost of reinstating the mortgage. The cost included fees related to the collection of the debt and foreclosure action, including attorneys' fees.

Issue: Whether attorney’s fees be paid

Ruling: Yes. The court held that neither Conn. Gen. Stat. § 49-7 nor Conn. Gen. Stat. § 52-249 prohibited the collection of reasonable attorneys' fees pursuant to an agreement between the parties and neither section required a court to enter judgment in order for contractual fees to become due.

Lesson Learned: Conn. Gen. Stat. § 42-150aa(b) limits attorneys' fees in actions on consumer contracts or leases to not more than 15 percent of the amount of any judgment which is entered. Section § 42-150aa applicable to actions in which the underlying transaction involved a mortgage on real estate in excess of $ 25,000.

Written by Kevin Levonas and Jerry L.