Best Friends Pet Care, Inc. v. Design Learned, Inc.

823 A.2d 329, 77 Conn. App. 167, 2003 Conn. App. LEXIS 243
CourtConnecticut Appellate Court
DecidedJune 3, 2003
DocketAC 23330
StatusPublished
Cited by13 cases

This text of 823 A.2d 329 (Best Friends Pet Care, Inc. v. Design Learned, 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
Best Friends Pet Care, Inc. v. Design Learned, Inc., 823 A.2d 329, 77 Conn. App. 167, 2003 Conn. App. LEXIS 243 (Colo. Ct. App. 2003).

Opinion

Opinion

BISHOP, J.

This is an appeal from the summary judgment rendered by the trial court in favor of the defendant Design Learned, Inc. (Design Learned), in an action for negligence.1 The plaintiff, Best Friends Pet Care, Inc. (Best Friends),2 raises several claims on appeal, all of which concern the applicability of a waiver of subrogation clause in a construction contract. We affirm in part and reverse in part the judgment of the trial court.

From the pleadings and materials filed in conjunction with the motion for summary judgment, the following undisputed facts emerge. Best Friends was the owner and operator of a chain of pet care facilities, including one that was under construction in Rocky Hill. The project in Rocky Hill was undertaken pursuant to a construction management agreement (contract) between Best Friends and the construction manager, Highland Management Associates, Inc. (Highland). The contract, which was a standard American Institute of Architects (AIA) contract, contained a waiver of subrogation clause stating in relevant part that Best Friends and Highland “waive all rights against each other and against the Contractors, Architect, consultants, agents and employees of any of them, for damages, but only to the extent covered by property insurance . . . .” Design Learned had been retained by Highland as a consultant pursuant to an agreement between itself and [170]*170Highland, whereby Design Learned would provide design consulting services for the Best Friends project.

On January 12, 1998, while still under construction, the Rocky Hill facility was consumed by fire and destroyed. Best Friends alleges that the fire started because the boiler was not installed with the proper clearance from the flooring, which ignited. The Hartford Insurance Company (the Hartford), which was the insurer of Best Friends, reimbursed Best Friends for the loss, which included $1,049,000 for damage to the building, $446,739 for loss of income resulting from loss of use of the building and $77,714.30 for damage to personal property.

Best Friends brought this subrogation action against several of Highland’s contractors and consultants, including the defendants American Standard Companies, Inc., a contractor, and Design Learned. Those defendants filed motions for summary judgment on the theory that the contract between Best Friends and Highland contained a valid waiver of subrogation clause that foreclosed the possibility of Best Friends’ instituting a subrogation action against either contractors or consultants. Best Friends argued that General Statutes (Rev. to 1997) § 52-572k made void waiver of subrogation provisions in construction contracts. It also argued that the waiver would be inapplicable to Design Learned in any event because, inter alia, Highland had failed to obtain a similar waiver from Design Learned in their agreement.

The court granted the motions for summary judgment in favor of both defendants. Best Friends challenges only the granting of the motion in favor of Design Learned. It makes the following claims: (1) that the waiver of subrogation clause is void pursuant to § 52-572k; (2) that the allegedly negligent conduct by Design Learned predated and was outside the scope of the [171]*171contract; (3) that Design Learned forfeited the protection of the contract by not including a waiver of subrogation provision in its own agreement with Highland; and (4) that neither personal property loss nor loss of use are within the scope of the waiver. We affirm the judgment of the trial court on all but the last claim.

I

The threshold question and a question of first impression for this court concerns the effect of § 52-572k3 (statute) on the waiver of subrogation provision in this standard AIA contract. We note that “[i]n general, whether conduct falls within a statute’s province is a matter of statutory construction, and presents a question of law warranting plenary review.” Sandella v. Dick Corp., 53 Conn. App. 213, 226, 729 A.2d 813, cert. denied, 249 Conn. 926, 733 A.2d 849 (1999).

In essence, the question we must answer to dispose of the first claim is whether the waiver of subrogation clause is, effectively, a hold harmless or indemnification provision, as those terms are used by the statute. A closer examination of the AIA contract and the statute is required for that discussion.

We begin with a look at the AIA contract, AIA Document B801/CMa,4 which explicitly incorporates AIA [172]*172Document A201/CMa. Section 10.4 of B801/CMa, entitled “Waivers of Subrogation,” states in relevant part that “[t]he Owner and Construction Manager waive all rights against each other and against the Contractors, Architect, consultants, agents and employees of any of them, for damages, but only to the extent covered by property insurance during construction, except such rights as they may have to the proceeds of such insurance as set forth in the edition of AIA Document A201/ CMa . . . .”5 The property insurance provision, § 11.3, of A201/CMa requires that the owner purchase property insurance “for the entire Work at the site on a replacement cost basis . . . .” Section 11.1.1 of B801/CMa requires the construction manager to purchase insurance, inter alia, to cover all workers compensation and other claims for personal injury at the site.

General Statutes (Rev. to 1997) § 52-572k (a) provides in relevant part: “Any . . . agreement . . . entered into in connection with or collateral to a contract or agreement relative to the construction ... of any building, structure or appurtenances thereto . . . that purports to indemnify or hold harmless the promisee against liability for . . . damage to property caused by or resulting from the sole negligence of such promisee, his agents or employees, is against public policy and void, provided this section shall not affect the validity of any insurance contract, workers’ compensation [173]*173agreement or other agreement issued by a licensed insurer.”

The first question for our consideration is whether the previously described provisions of the contract fall within the contours of the statute. In interpreting the statute, “we look to the words of the statute itself, to the legislative history and circumstances surrounding its enactment, to the legislative policy it was designed to implement, and to its relationship to existing legislation and common law principles governing the same general subject matter. . . . Thus, this process requires us to consider all relevant sources of the meaning of the language at issue, without having to cross any threshold or thresholds of ambiguity.” (Citation omitted; internal quotation marks omitted.) State v. Courchesne, 262 Conn. 537, 577, 816 A.2d 562 (2003) (en banc).

From the language of the statute, it is unclear whether the waiver of subrogation in the AIA contract reasonably can be viewed as a provision to hold harmless or to indemnify, as those terms are used in the statute. Similarly, our review of the legislative history of the statute provides us with no guidance on whether waivers such as the type just described are within the scope of the statute.

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Cite This Page — Counsel Stack

Bluebook (online)
823 A.2d 329, 77 Conn. App. 167, 2003 Conn. App. LEXIS 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/best-friends-pet-care-inc-v-design-learned-inc-connappct-2003.