Connecticut House Bill HB05381

Connecticut 2010 Regular Session

• Introduced: 2/25/10
• Refer: 2/25/10

Caption

An Act Concerning Costs And Attorney's Fees In An Action Of Foreclosure Or Upon A Bond Substituted For A Mechanic's Lien.

Impact

If enacted, this bill would amend specific sections of the general statutes, particularly section 52-249. The major change is the repeal of current provisions that complicate the awarding of costs and attorney's fees in foreclosure cases. The bill's implementation would mean that costs and fees are directly recoverable as part of the judgment, simplifying the financial aspects tied to foreclosure proceedings. Advocates argue that this could encourage actions on delinquent mortgages, as lenders and contractors would feel more secure in their ability to recover their legal expenses related to such actions.

Summary

House Bill 05381 aims to revise the existing statutes regarding the awarding of costs and attorney's fees in foreclosure actions and in cases involving bonds substituted for mechanic's liens. Specifically, the bill seeks to clarify that plaintiffs who prevail in these actions are entitled to recover reasonable costs and attorney's fees. The intent is to streamline the legal process involved in foreclosures by ensuring that plaintiffs do not face financial burdens when seeking to recover debts secured by a mortgage or lien. By establishing clearer guidelines on costs, the bill hopes to provide a more predictable legal environment for both plaintiffs and defendants.

Contention

While the bill has garnered support for its practical approach to foreclosure proceedings, there may be concerns regarding the equitable treatment of defendants. Critics could argue that simplifying the awarding of costs may lead to situations where defendants are faced with burdensome legal fees, potentially discouraging them from contesting foreclosures. Additionally, there may be debates surrounding the definition of 'reasonable' attorney's fees, as this could vary significantly across different cases and jurisdictions. Stakeholders in the housing and lending markets will likely continue to discuss the implications of this bill on their practices and rights.