Capp Industries, Inc. v. Schoenberg

932 A.2d 453, 104 Conn. App. 101, 2007 Conn. App. LEXIS 393
CourtConnecticut Appellate Court
DecidedOctober 2, 2007
DocketAC 27933
StatusPublished
Cited by20 cases

This text of 932 A.2d 453 (Capp Industries, Inc. v. Schoenberg) 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
Capp Industries, Inc. v. Schoenberg, 932 A.2d 453, 104 Conn. App. 101, 2007 Conn. App. LEXIS 393 (Colo. Ct. App. 2007).

Opinion

Opinion

HARPER, J.

This consolidated appeal arises out of an attempt by Capp Industries, Inc. (Capp), to foreclose a mechanic’s lien against property owned by Sabine H. Schoenberg and Robert V. Lardón (property owners). After a joint trial of the two actions to the court, the court rendered judgment foreclosing the hen. The court ruled further that neither Capp nor its principal officers, John Cappiali and Beth Cappiali, had violated the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq., or engaged in slander of title, abuse of process or fraud. On appeal, the property owners argue that the court determined improperly that (1) the execution of several mechanic’s hen waivers by Capp did not preclude Capp from filing a mechanic’s hen against the property, and (2) the actions taken by Capp and the Cappialis did not violate CUTPA or constitute slander of title, abuse of process or fraud. We disagree with the claims advanced by the property owners and, accordingly, affirm the judgments of the trial court in both actions.

The following facts and procedural history are relevant to the property owners’ appeal. The Cappialis are *104 principal officers of Capp, a Connecticut corporation engaged in the business of site development and construction. The property owners jointly own a parcel of land located in Greenwich (property).

In late August, 2001, the property owners hired Capp to reposition bushes and other shrubbery on the property. Following the completion of this task, the property owners and Capp entered into a series of agreements to perform other work on the property. This subsequent work included relocating a large tree and some shrubs, demolishing an existing house, excavating a foundation for a new house and filling and grading the land behind the house. Neither the original agreement, nor any of the subsequent agreements between the parties was integrated into a formal written contract. The parties agreed orally, however, that the property owners would pay a fixed sum of money for the plant and tree relocation and demolition projects, and pay for the excavation and filling and grading work on the basis of the amount of time and materials expended by Capp.

Pursuant to the parties’ oral agreement, the property owners paid Capp fully for the relocation and demolition projects, and made incremental payments to Capp for the excavation and filling and grading work. Following the property owners’ first partial payment, Capp executed a two page mechanic’s lien waiver (first waiver). That first waiver, dated December 4, 2001, and signed by John Cappiali on behalf of Capp, provided in pertinent part:

“Know all Men by these Presents,

“That we the undersigned ... for the consideration of One Dollar . . . the receipt and sufficiency of which is acknowledged, to [the] full satisfaction of [Capp] . . . have waived and relinquished, and do hereby waive and relinquish, all liens and claims of liens upon [the property] . . . belonging to said [property owners] *105 . . . and upon the buildings now on said land, and also upon the buildings which are now in process of erection on said land, for work done or to be done and materials furnished or to be furnished in the erection, construction, or repair of said buildings or any of them.

“It is understood and agreed that any and all signatures hereto are for all services rendered, work performed and materials furnished, heretofore and hereafter, by the undersigned, in any and all capacities, and are not limited to the descriptive words following their names.” Alongside the signature of John Cappiali, the following handwritten notation was made: “demolition [and] initial landscaping/shrub moving.”

After the execution of the first waiver, Capp signed nine other mechanic’s lien waivers in response to specific remittances from the property owners. Unlike the first waiver, the nine subsequent mechanic’s lien waivers bore the heading “unconditional waiver of lien” and stated prominently at the beginning various information, including the date of their execution and the amount of the remittance. Underneath the heading and identifying information, the nine waivers provided in relevant part: “The undersigned subcontractor hereby acknowledges receipt of the above requisition and does hereby waive and release all liens or rights of lien now existing for work, labor and materials furnished through [this date] with respect to the above referenced project.

“The undersigned subcontractor further covenants and agrees that it shall not in any way, claim or file a mechanic’s or other lien against the [property owners] or against the above Project, for any of the work, labor or materials heretofore furnished by it in connection with the improvement of the above Project and that [this sum of money] has been paid to date for work on this Project.” All nine waivers were signed by either *106 John Cappiali or Beth Cappiah in their capacities as officers of Capp.

In February, 2002, the parties’ relationship began to deteriorate, primarily as a result of disagreements over the timing and amount of payments due to Capp. These disputes culminated in the cessation of all work on the property in the middle of March, 2002, and in the termination of Capp’s services on April 11, 2002. Capp subsequently filed a lis pendens and certificate of mechanic’s lien against the property in the amount of $118,568.58.

Thereafter, by way of a complaint dated August 22, 2002, Capp filed suit to foreclose the mechanic’s hen or, alternatively, to recover under the equitable theory of unjust enrichment (first action). 1 The property owners responded by filing an answer and four special defenses, one of which included the claim that Capp had signed several mechanic’s hen waivers and thereby forfeited its right to file a mechanic’s hen against the property. 2 In addition to the four special defenses, the property owners asserted a five count counterclaim against Capp for slander of title, abuse of process and fraud, as well as for violation of the Home Improvement Act, General Statutes § 20-418 et seq., and CUTPA. Almost one year later, the property owners filed a five count complaint alleging identical causes of action against the Cappialis in their individual capacities (second action). The Cappialis filed an answer and averred, by way of a special defense, that they could not be *107 held individually liable for actions taken in their official capacities as officers of Capp.

The two actions were consolidated and tried to the court in October, 2005. On July 21,2006, the court issued a memorandum of decision foreclosing the mechanic’s lien and ruling in favor of Capp on all of the special defenses and the counterclaim in the first action, 3 and in favor of the Cappialis on all of the claims and the special defense in the second action. The court found that the lien waivers were intended by the parties to apply only to the portion of the work for which Capp had already received compensation from the property owners.

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Cite This Page — Counsel Stack

Bluebook (online)
932 A.2d 453, 104 Conn. App. 101, 2007 Conn. App. LEXIS 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capp-industries-inc-v-schoenberg-connappct-2007.