Brennan v. Brennan Associates

977 A.2d 107, 293 Conn. 60, 2009 Conn. LEXIS 281
CourtSupreme Court of Connecticut
DecidedAugust 18, 2009
Docket17812, 17813
StatusPublished
Cited by23 cases

This text of 977 A.2d 107 (Brennan v. Brennan Associates) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brennan v. Brennan Associates, 977 A.2d 107, 293 Conn. 60, 2009 Conn. LEXIS 281 (Colo. 2009).

Opinion

*63 Opinion

KATZ, J.

As aptly described by the trial court, “[t]his particular case is the unhappy story of a financially successful [partnership] that became an environment of distrust, rancor and paralysis after the untimely death of [one of the four partners].” On one side is the plaintiff, Thomas Brennan, one of the partnership’s founding members. On the other side are the defendants: the named defendant, the partnership of Brennan Associates (partnership); the two other surviving partners; and the four coadministrators (administrators) of the estate of the deceased partner, Richard Aiello (decedent). 1 The plaintiff appeals from the trial court’s judgment granting the counterclaim filed by the defendant partners, Alexander Aiello and Serge Mihaly, seeking the plaintiffs expulsion from the partnership, pursuant to General Statutes § 34-355 (5) (C), 2 and denying the plaintiffs request for a permanent injunction barring the defendants from blocking his full access to the partnership records. All of the defendants except the partnership cross appeal from, inter alia, the trial court’s *64 judgment denying their request for that court to conduct a proceeding for the valuation of the plaintiffs partnership interest while the plaintiffs appeal was pending. 3 We affirm the trial court’s judgment.

The record reveals the following undisputed facts and procedural history. In 1984, the plaintiff, the decedent, Aiello and Mihaly executed an agreement whereby they formed the partnership, principally for the management and operation of a shopping center they owned in Trumbull. The plaintiff and the decedent each held a 32 percent interest in the partnership, Aiello held a 25 percent interest and Mihaly held an 11 percent interest. Because each partner’s number of votes was equal to his partnership interest, and a 70 percent vote was necessary for any business initiative proposed, the plaintiff and the decedent each held a sufficient interest to veto any proposed initiative.

Until his death in December, 2004, the decedent essentially ran the partnership. He negotiated all of the *65 leases, performed all of the improvements and paid all of the bills. He kept the partnership books at an office where he also kept records for two other partnerships. The plaintiff, Aiello and Mihaly were essentially silent partners and were fully content with the decedent’s management of the partnership.

After the decedent’s death, in January, 2005, his attorney, Thomas Welch, held a meeting with the three surviving partners and others who had an interest in the disposition of the decedent’s partnership interest pursuant to the decedent’s will. The will directed the sale of the decedent’s interest in the partnership to his cousins, the defendants Peter DiNardo and Leonard DiNardo. Welch informed those present that he hoped to transfer the decedent’s interest as soon as feasible, with no one expressing opposition at that time. Welch later was replaced as administrator, on his own motion, by another attorney, the defendant David Lehn. Lehn later obtained permission to have Peter DiNardo, Leonard DiNardo and their father, the defendant Salvatore DiNardo, added as administrators of the decedent’s estate.

Shortly after the reading of the will, the harmony between the surviving partners deteriorated. They reached an impasse over many issues, including check signing authority, control over and access to partnership books, and decisions relating to the management of the shopping center. The plaintiff also came to believe that Aiello and Salvatore DiNardo had committed insurance fraud in relation to claims that had been submitted to the partnership’s insurance company. At some point, the plaintiff made an offer to buy the decedent’s share of the partnership, which Lehn rejected.

In March, 2005, the plaintiff commenced the present action against the defendants. In his revised amended complaint, the plaintiff sought a declaratory judgment *66 that the disposition of the decedent’s partnership interest constituted an event of dissociation 4 that: (1) triggered the right of the surviving partners to purchase the decedent’s full partnership interest; (2) in the absence of unanimous consent of the surviving partners, precluded the decedent’s estate from transferring the decedent’s full partnership interest to Peter DiNardo and Leonard DiNardo; and (3) would render any purported assignment of the decedent’s interest to Peter DiNardo and Leonard DiNardo effective as to only the economic interest and not any management or voting rights. The plaintiff also sought a permanent injunction to, inter alia, prohibit the defendants from blocking his access to the partnership’s records. 5 Finally, the plaintiff *67 sought to have himself appointed as a receiver to supervise the partnership during the pendency of the trial on this matter because of alleged misconduct by Aiello and the DiNardos. 6

The administrators, Aiello and Mihaly thereafter each filed counterclaims against the plaintiff. The administrators sought a declaratory judgment that the decedent’s death was not an event of dissociation, that the decedent’s estate holds the decedent’s full partnership rights, including management and voting rights, and that the plaintiffs withholding of consent for the estate to assign the decedent’s full partnership interest to Peter DiNardo and Leonard DiNardo is unreasonable. Aiello and Mihaly sought a judicial determination expelling the plaintiff from the partnership pursuant to § 34-355 (5). They claimed that the plaintiffs conduct constituted grounds for dissociation under each of the three subparagraphs of that statute. See footnote 2 of this opinion.

The plaintiff and the administrators subsequently filed cross motions for partial summaiy judgment as to the issues concerning the decedent’s partnership interest. The trial court’s resolution of the motions turned on the extent to which the partnership agreement addressed the issues raised and to what extent resort was necessary to the Connecticut Uniform Partnership Act (partnership act), General Statutes §§ 34-300 through 34-399, to fill any gaps in the agreement. The court rejected the plaintiffs contention that the decedent’s death was an event of dissociation that triggered the right of the surviving partners to buy the decedent’s interest, if the partnership was not dissolved. The court concluded that the partnership agreement specifically *68

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Cite This Page — Counsel Stack

Bluebook (online)
977 A.2d 107, 293 Conn. 60, 2009 Conn. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brennan-v-brennan-associates-conn-2009.