Bluebird Aviation Corp. v. Aviation Commission

679 A.2d 957, 42 Conn. App. 209, 1996 Conn. App. LEXIS 369
CourtConnecticut Appellate Court
DecidedJuly 16, 1996
Docket14322
StatusPublished
Cited by3 cases

This text of 679 A.2d 957 (Bluebird Aviation Corp. v. Aviation Commission) 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
Bluebird Aviation Corp. v. Aviation Commission, 679 A.2d 957, 42 Conn. App. 209, 1996 Conn. App. LEXIS 369 (Colo. Ct. App. 1996).

Opinion

HENNESSY, J.

Bluebird Aviation Corporation (Bluebird) appeals from the judgments in favor of the city of Danbury and the judgment in favor of the city’s aviation commission after trial before the court. The aviation commission is a municipal agency of Danbury. This appeal involves two actions that pertain to the same provisions of a lease agreement between Bluebird and the aviation commission. In the first action, Bluebird [211]*211filed a complaint against the aviation commission in two counts alleging breach of contract and breach of the implied covenant of good faith and fair dealing. In the second action, the city filed a complaint against Bluebird alleging that Bluebird failed to pay fees according to rules and regulations adopted by the aviation commission. The rules and regulations are known as the Minimum Standards for Lease and Use of the Danbury Municipal Airport (aviation standards). Bluebird counterclaimed in the second action alleging breach of contract and breach of the implied covenant of good faith and fair dealing. The actions were consolidated for trial. The trial court rendered judgment for the aviation commission and the city. Bluebird claims that the trial court improperly interpreted the lease.1 We affirm the judgments of the trial court.

The following facts are relevant to the disposition of this appeal. Bluebird holds a permit to act as a fixed base operator at the Danbury airport. As a fixed base operator, Bluebird provides the following services: flight instruction, aircraft sales, aircraft repair and maintenance, fuel sales and avionics sales. Bluebird conducts its business on land that it owns, which is contiguous to the airport, and land that it has leased from the aviation commission since 1976. The initial term of that lease is twenty-five years. That lease is the subject of this appeal, and the following provisions of the lease are pertinent to the resolution of this appeal:

“7. All applicable provisions of “Minimum Standards for Lease and/or Use of the Danbury Municipal Airport” [aviation standards] adopted by the Danbury Aviation Commission of the City of Danbury, Connecticut, [aviation commission] on June 11, 1970, and as the same are amended from time to time (with the exception of [212]*212Paragraph[s] 9.1 and 9.2) are incorporated herewith and made a part hereof.

* *

“26. During the initial [twenty-five] (25) year term of this Lease, the Lessee shall pay Category Fees in accordance with Paragraph 9.2 of ‘Minimum Standards for Lease and/or Use of the Danbury Municipal Airport,’ [aviation standards] as adopted by the Aviation Commission of the City of Danbury [aviation commission] on June 11, 1970, as the same is in force as of the date of this Lease. ...”

Paragraph 9.2 of the 1970 aviation standards provides that fixed base operators shall pay category fees based on the volume of business that they do in each service category.2 Another relevant provision of the 1970 aviation standards is paragraph 9.4, which provides that fixed base operators shall pay a minimum use fee of a specified amount in the event that the category fee does not exceed the specified minimum for that category.3 [213]*213In 1988, the aviation commission amended the aviation standards. First, the aviation commission eliminated the category fees, which had been set forth in paragraph 9.2. Next, the aviation commission inserted a new minimum use fee schedule, formerly in paragraph 9.4, and designated it paragraph 9.2.* **4 Hence, paragraph 9.2 of the 1988 aviation standards pertains to minimum use fees.

Bluebird contends that it agreed to pay only the category fees set forth in paragraph 9.2 of the 1970 aviation standards. Bluebird further claims that the trial court improperly concluded that, pursuant to the lease, it is also subject to the minimum use fees set forth in [214]*214paragraph 9.4 of the 1970 aviation standards and paragraph 9.2 of the 1988 aviation standards. The aviation commission argues that the lease specifically incorporated the minimum use fee provision set forth in paragraph 9.4 of the 1970 aviation standards and that the lease leaves that provision subject to amendment by the aviation commission. The aviation commission contends, therefore, that Bluebird is subject to the amended minimum use fee schedule set forth in paragraph 9.2 of the 1988 aviation standards.

The trial court concluded that the lease incorporates paragraph 9.2 of the 1970 aviation standards and exempts that provision from amendment. It further concluded that the lease incorporates the remainder of the aviation standards as they may be amended. As a result, the court found that the lease necessarily incoiporates the minimum use fee provision set forth in paragraph 9.4 of the 1970 aviation standards. Finally, the court concluded that the lease also incoiporates the amended version of the minimum use fee provision, now set forth in paragraph 9.2 of the 1988 aviation standards.

The first question that we must address is the standard of review that we apply to the trial court’s judgment. The city contends that we should employ the clearly erroneous standard of review because the trial court made findings of fact regarding the amendment of paragraph 9.4 of the aviation standards and because the trial court applied a principle of construction that reconciled apparently inconsistent provisions of the lease. Both Bluebird and the aviation commission submit that the trial court’s judgment is subject to plenary review.

“ ‘Where there is definitive contract language, the determination of what the parties intended by their contractual commitments is a question of law.’ ” Gateway Co. v. DiNoia, 232 Conn. 223, 229-30, 654 A.2d [215]*215342 (1995). Such a determination is subject to plenary review by this court. The trial court’s memorandum of decision and its response to a request for articulation reveal that the trial court interpreted the lease based on its language. See id. We conclude that the contract contains definitive language and, therefore, that the interpretation of the lease is subject to plenary review. See Kathuria v. Purcell, 40 Conn. App. 227, 230-31, 670 A.2d 889 (1996).

I

Bluebird first claims that the clear intent of the lease was to freeze the level of fees payable by Bluebird for the first twenty-five years of the lease to the category fees set forth in paragraph 9.2 of the 1970 aviation standards and that it agreed to pay only those fees. In support of this claim, Bluebird relies on the following language from paragraph 26 of the lease: “the Lessee shall pay Category Fees in accordance with Paragraph 9.2.” Bluebird contends that the word “shall” in this context means that Bluebird is obligated to pay only the category fees of paragraph 9.2 and no others. The trial court found that while paragraph 26 of the lease freezes category fees to those set forth in paragraph 9.2 of the 1970 aviation standards, the lease specifically incorporated the other provisions of the aviation standards, including the minimum use fees of paragraph 9.4, as they may be amended.

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Cite This Page — Counsel Stack

Bluebook (online)
679 A.2d 957, 42 Conn. App. 209, 1996 Conn. App. LEXIS 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bluebird-aviation-corp-v-aviation-commission-connappct-1996.