405 Sullivan Avenue Industrial LLC v. Kuhns Family Properties, LLC

CourtDistrict Court, D. Connecticut
DecidedJuly 12, 2023
Docket3:23-cv-00240
StatusUnknown

This text of 405 Sullivan Avenue Industrial LLC v. Kuhns Family Properties, LLC (405 Sullivan Avenue Industrial LLC v. Kuhns Family Properties, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
405 Sullivan Avenue Industrial LLC v. Kuhns Family Properties, LLC, (D. Conn. 2023).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT 405 SULLIVAN AVENUE INDUSTRIAL ) 3:23-CV-240 (SVN) LLC, ) Plaintiff, ) ) v. ) ) KUHNS FAMILY PROPERTIES, LLC, ) July 12, 2023 Defendant. ) RULING AND ORDER ON PLAINTIFF’S MOTION TO STRIKE AND DISMISS Sarala V. Nagala, United States District Judge. Plaintiff and counterclaim Defendant 405 Sullivan Avenue Industrial LLC (“405 Sullivan”) initiated the present breach of contract action against Defendant and counterclaim Plaintiff Kuhns Family Properties, LLC (“Kuhns”), relating to 405 Sullivan’s purchase of a property from Kuhns. In response, Kuhns filed an answer raising various affirmative defenses and a counterclaim for attorney fees under the parties’ contract. 405 Sullivan then filed the present motion pursuant to Federal Rules of Civil Procedure 12(b)(6) and 12(f), seeking to dismiss Kuhns’ counterclaim and strike two of Kuhns’ affirmative defenses. For the following reasons, the Court GRANTS IN PART and DENIES IN PART 405 Sullivan’s motion. I. FACTUAL BACKGROUND & PROCEDURAL HISTORY The pleadings contain the following factual background. Early in 2022, Kuhns entered into a contract with PADS Property Holdings LLC (“PADS”), 405 Sullivan’s alleged predecessor in interest, regarding the purchase and sale of a commercial real property located at 405 Sullivan Avenue in South Windsor, Connecticut. Compl., ECF No. 1, ¶¶ 8, 10.1 Under that contract, Kuhns agreed to sell the property to PADS for $1.5 million. Id. ¶¶ 8–9. Kuhns admits that it entered into a contract to sell the property to PADS. Am. Ans., ECF No. 12, ¶ 8; Countercl., ECF No. 12, ¶ 3. But Kuhns denies that the contract attached to 405 Sullivan’s complaint is the true and accurate contract, and Kuhns attaches a contract to its answer that it contends is the true and accurate

contract. Am. Ans. ¶¶ 8, 10; Countercl. ¶ 3.2 405 Sullivan alleges that Kuhns made certain representations and warranties in the contract about the condition of the property and its compliance with applicable laws, rules, and regulations, all of which appear to be contained in the version of the contract supplied by Kuhns as well. Compl. ¶¶ 13–15; Ex. A to Am. Ans., ECF No. 12-1, at 6, 9. In addition, relevant here, both parties’ versions of the contract contained identical indemnity clauses, under which Kuhns agreed to indemnify PADS from any losses arising from Kuhns’s breach of any of its representations, warranties, or obligations set forth in the contract. Ex. A to Compl., ECF No. 1-1, at 11; Ex. A to Am. Ans. at 10. Finally, both versions of the contract also contained identical survival clauses,

which provided that all of Kuhns’s representations and warranties as set forth in the contract would survive the closing on the purchase and sale of the property for a period of six months. Ex. A to Compl. at 11; Ex. A to Am. Ans. At 10.

1 405 Sullivan alleges that, after Kuhns and PADS executed the purchase and sale agreement but before the closing, PADS assigned its rights and interests under the agreement to 405 Sullivan, and it further alleges that Kuhns was aware of and consented to the assignment. Compl. ¶¶ 10–11. Kuhns denies that it was aware of or consented to the assignment, Am. Ans., ECF No. 12, ¶ 11, but Kuhns does not suggest that this factual dispute impacts the present motion. 2 Because the parties’ pleadings reference and rely on the versions of the contract attached to them, the Court will consider the attached versions of the contracts for purposes of the present motions to strike and dismiss. See Chambers v. Time Warner, Inc., 282 F.3d 147, 152–53 (2d Cir. 2002) (explaining that the complaint includes any written instrument attached to it and any document considered integral to the complaint); Carruthers v. Flaum, 365 F. Supp. 2d 448, 454 (S.D.N.Y. 2005) (explaining that “it is well settled that on a motion to dismiss, where the validity of contracts is challenged, the court may review and properly consider the terms of the contracts that were referenced in the pleadings”); Meisels v. Meisels, No. 19-CV-4767(EK)(RML), 2021 WL 1924186, at *8 (E.D.N.Y. May 13, 2021) (considering a contract referenced in a pleading for the purpose of a motion to strike). On July 7, 2022, Kuhns conveyed its interest in the property to 405 Sullivan through a warranty deed. Compl. ¶ 19; Am. Ans. ¶ 19. After the closing, 405 Sullivan identified several allegedly defective conditions at the property, particularly concerning the roof, which required costly repair and replacement. Compl. ¶¶ 21–26. In addition, the property allegedly failed to comply with many sections of the Town of Windsor’s fire code during a post-closing inspection,

and presented other ancillary issues. Id. ¶¶ 28–31. 405 Sullivan alleges that Kuhns either knew or should have known of these defective conditions at the time of the closing, but failed to disclose them to 405 Sullivan. Id. ¶¶ 27, 29, 31. 405 Sullivan alleges that, on December 29, 2022, it notified Kuhns that Kuhns was in default under the contract and demanded that Kuhns indemnify 405 Sullivan for all costs, including attorneys’ fees, incurred by 405 Sullivan as a result of the default. Id. ¶ 35. On February 23, 2023, 405 Sullivan initiated the present action against Kuhns, seeking indemnification under the contract due to Kuhns’ alleged breaches of that contract. Id. ¶¶ 16–17, 35. Specifically, 405 Sullivan raises the following claims: breach of contract (Count One), id. ¶

38; breach of the implied covenant of good faith and fair dealing (Count Two), id. ¶ 42; negligent misrepresentation (Count Three), id. ¶ 45; fraudulent misrepresentation (Count Four), id. ¶ 51; and violation of Connecticut Unfair Trade Practices Act (“CUTPA”), Conn. Gen. Stat. § 42-100a et seq. (Count Five), id. ¶ 58. Thereafter, Kuhns filed its operative answer to the complaint, raising several affirmative defenses and a counterclaim for attorneys’ fees under the contract. See generally Am. Ans. 405 Sullivan then filed the present motion, seeking to strike two of Kuhns’ affirmative defenses and to dismiss Kuhns’s counterclaim. II. MOTION TO STRIKE 405 Sullivan seeks to strike Kuhns’ fourth and fifth affirmative defenses. For the following reasons, the Court grants 405 Sullivan’s motion with respect to Kuhns’ fourth affirmative defense, but the Court denies 405 Sullivan’s motion with respect to Kuhns’ fifth affirmative defense. A. Legal Standard

Federal Rule of Civil Procedure 12(f) provides that a court “may strike from a pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” Fed. R. Civ. P. 12(f). The general purpose of motions to strike is to “clean up the pleadings, streamline litigation, and avoid unnecessary forays into immaterial matters.” Lokai Holdings LLC v. Twin Tiger USA LLC, 306 F. Supp. 3d 629, 645 (S.D.N.Y. 2018) (citations and internal quotation marks omitted). Because striking a pleading is a “drastic remedy,” however, motions to strike are generally disfavored and will not be granted unless the moving party clearly shows that “the challenged matter has no bearing on the subject matter of the litigation.” Lamoureux v. AnazaoHealth Corp., 250 F.R.D. 100, 102–03 (D. Conn. 2008); see Salcer v. Envicon Equities

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405 Sullivan Avenue Industrial LLC v. Kuhns Family Properties, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/405-sullivan-avenue-industrial-llc-v-kuhns-family-properties-llc-ctd-2023.