AC Consulting, LLC v. Alexion Pharmaceuticals, Inc.

CourtConnecticut Appellate Court
DecidedNovember 12, 2019
DocketAC41814
StatusPublished

This text of AC Consulting, LLC v. Alexion Pharmaceuticals, Inc. (AC Consulting, LLC v. Alexion Pharmaceuticals, Inc.) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AC Consulting, LLC v. Alexion Pharmaceuticals, Inc., (Colo. Ct. App. 2019).

Opinion

*********************************************** The “officially released” date that appears near the be- ginning of each opinion is the date the opinion will be pub- lished in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the be- ginning of all time periods for filing postopinion motions and petitions for certification is the “officially released” date appearing in the opinion.

All opinions are subject to modification and technical correction prior to official publication in the Connecticut Reports and Connecticut Appellate Reports. In the event of discrepancies between the advance release version of an opinion and the latest version appearing in the Connecticut Law Journal and subsequently in the Connecticut Reports or Connecticut Appellate Reports, the latest version is to be considered authoritative.

The syllabus and procedural history accompanying the opinion as it appears in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be reproduced and distributed without the express written permission of the Commission on Official Legal Publica- tions, Judicial Branch, State of Connecticut. *********************************************** A.C. CONSULTING, LLC v. ALEXION PHARMACEUTICALS, INC. (AC 41814) Prescott, Elgo and Sheldon, Js.

Syllabus

The plaintiff sought to recover damages from the defendant for, inter alia, breach of contract. In January, 2013, the plaintiff had entered into a service contract with the defendant, in which the plaintiff agreed to provide the defendant with administrative support and coordination of security details for heightened risk employee travel. The contract provided, inter alia, that it was operative through December 31, 2016, but that the defendant could terminate the contract upon five days’ written notice. The defendant terminated its contract with the plaintiff in November, 2014. Subsequently, the plaintiff commenced the present action and filed a substitute complaint, which alleged breach of contract, negligent misrepresentation, and breach of the covenant of good faith and fair dealing. The defendant filed a motion to strike the complaint, which the trial court granted. Thereafter, the court granted the defen- dant’s motion for judgment and rendered judgment thereon, from which the plaintiff appealed to this court. On appeal, the plaintiff claimed, inter alia, that, on the basis of the allegations that, prior to executing the contract, the defendant had represented to the plaintiff that the contract would remain in effect for more than three years, the trial court should have concluded that the defendant was estopped from relying on the contract’s termination provision, and that, because the defendant should have been estopped from terminating the contract, the court should have viewed the allegation in the complaint that the defendant terminated the contract prior to its expiration as sufficient to allege breach of contract, negligent misrepresentation, and breach of the covenant of good faith and fair dealing. Held: 1. The plaintiff could not prevail on its claim that, in considering the legal sufficiency of the substitute complaint, the trial court improperly failed to consider whether the applicable contractual period was ambiguous and to construe the claimed ambiguity against the defendant as the drafter of the contract, which was based on the plaintiff’s claim that an ambiguity existed with respect to whether the defendant’s termination of the contract prior to the expiration of the contractual period consti- tuted a breach of the contract because the contract did not expire by its terms until December 31, 2016, and yet the contract also provided in a separate provision that the defendant could terminate the contract at any time with five days’ written notice; the contract was not ambiguous in the manner suggested by the plaintiff, as although paragraph 1 of the contract did set forth a contractual period of almost four years, that provision was also expressly qualified with the language ‘‘unless termi- nated earlier’’ and contained a cross-reference to paragraph 7, which sets forth the conditions upon which the contract may be terminated, and, when read together, the intent of the parties in agreeing to the terms in the two provisions was to resume their contractual relationship for almost four years unless the defendant chose to terminate the rela- tionship earlier by providing the plaintiff with five days’ written notice. 2. The plaintiff’s claim that the trial court improperly concluded that the plaintiff’s allegation that the defendant terminated the contract without giving the plaintiff sufficient notice under the contract was legally insuffi- cient to state a claim for breach of contract was unavailing; the substitute complaint did not provide the necessary factual allegations describing the manner in which the notice the plaintiff received was insufficient, as the complaint did not directly reference the contract’s notice provision, which provided that the contract could be terminated by the defendant upon five days’ written notice, and did not specify whether the notice the plaintiff received was insufficient because it received less than five days’ notice or because the notice was not in writing, and even if the bald allegation of insufficient notice of termination under the contract, without any additional facts, was sufficient to plead a breach of the agreement, the plaintiff failed to allege that it was harmed by the insuffi- cient notice, as the breach of contract count as pleaded focused entirely on the defendant’s decision to terminate the parties’ contract prior to the expiration of the contractual period, despite oral assurances that the defendant intended to continue with its business arrangement with the plaintiff, and the plaintiff made no factual allegation that it had been damaged by the defendant’s failure to give five days’ written notice. 3. The plaintiff could not prevail on its claim that the trial court improperly concluded that the allegations that the defendant made assurances regarding the length of the contract were insufficient to plead any of the plaintiff’s causes of action, as any reliance by the plaintiff on the alleged representation would have been unreasonable as a matter of law in the face of the fully integrated written contract containing a merger clause; the plaintiff executed a fully integrated contract with a merger clause that provided in express terms that the contract could not be altered except by a written agreement and that the contract terms superseded any prior understanding between the parties, and, thus, any reassurances that the defendant may have provided to the plaintiff prior to the execution of the contract regarding the length of the parties’ anticipated business relationship were superseded by the provisions in the contract stating that the contract could be terminated by the defen- dant, at will, upon five days’ written notice, and any oral assurances, promises, or representations made during the course of the contractual period that contradicted the provisions of the contract would have had no legal effect unless committed to a writing signed by both parties. Argued September 12—officially released November 12, 2019

Procedural History

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Bluebook (online)
AC Consulting, LLC v. Alexion Pharmaceuticals, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ac-consulting-llc-v-alexion-pharmaceuticals-inc-connappct-2019.