De La Concha of Hartford, Inc. v. Aetna Life Insurance

849 A.2d 382, 269 Conn. 424, 2004 Conn. LEXIS 211
CourtSupreme Court of Connecticut
DecidedJune 1, 2004
DocketSC 16989
StatusPublished
Cited by124 cases

This text of 849 A.2d 382 (De La Concha of Hartford, Inc. v. Aetna Life Insurance) 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
De La Concha of Hartford, Inc. v. Aetna Life Insurance, 849 A.2d 382, 269 Conn. 424, 2004 Conn. LEXIS 211 (Colo. 2004).

Opinion

Opinion

PALMER, J.

This appeal arises out of a dispute between the plaintiff, De La Concha of Hartford, Inc., the lessee of certain retail space in the Hartford Civic Center (Civic Center), and the defendant, Aetna Life Insurance Company, the former owner of the Civic Cen[426]*426ter and lessor of the space leased by the plaintiff. The plaintiff commenced this action alleging, inter alia, that the defendant had breached the implied covenant of good faith and fair dealing and had violated the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq., by changing its leasing and promotional practices at the Civic Center during the plaintiffs tenancy and by refusing to renew the plaintiffs lease. After a court trial, the court rejected the plaintiffs claims as factually unfounded and rendered judgment for the defendant. On appeal,1 the plaintiffs sole claim is that the trial court’s findings are unsupported by the evidence. We disagree and, therefore, affirm the judgment of the trial court.2

The trial court’s memorandum of decision sets forth the following relevant facts. “The [Civic Center] . . . in downtown Hartford is an enclosed mall with retail stores facing inward toward a central court and generally not visible from the street. The facility also contains a coliseum used for events and exhibitions, and an arena for sporting contests. Customers are attracted to the Civic Center by the direct advertising of retailers, by promotion of the Civic Center as a downtown shopping mall and by events at the coliseum and sports arena. [427]*427Interdependency of the retailers is particularly important. Consumers [who come] to the Civic Center to make an intended purchase at one store frequently make an impulse purchase at another store. On the one hand, full occupancy of the Civic Center helps all the retailers to prosper. On the other hand, low occupancy [gives] the Civic Center a deserted feeling that depresses the sales of the remaining retailers.

“[The plaintiff] was a retail distributor of tobacco and tobacco related products. The defendant . . . [was] the owner and lessor of the Civic Center. In 1975, [the plaintiff] entered into a fifteen year' lease with . . . [the defendant’s predecessor]3 for retail space in the Civic Center. The lease was renewed in 1990 and 1995, and expired by its terms in September, 2000.

“The lease provided for an annual rental of $6502 the first year, $9625 the second and third years, and $13,125 the fourth through the fifteenth years, plus a percentage rental of 5 percent of gross sales. The lease further required [the plaintiff] to contribute $18.23 a month to a promotional fund, to which other tenants contributed amounts based on the square footage of their stores. [The defendant] agreed to contribute not less than 25 percent of the total amount of funds paid by the [retail] tenants of the . . . [Civic Center] .... However ... at its option [the defendant could] contribute all or part of the services of a promotion director and/or secretary or [could] provide reasonable office space and equipment in lieu of the cash contributions.

“[The plaintiff’s] lease was amended as of January 1, 1980, to provide that the percentage rent would be 5 percent of gross sales in excess of $262,500 each year [428]*428and that [the defendant] could terminate the lease if [the] plaintiffs gross sales were less than $400,000 in one year. The lease was amended in 1990 to extend its terms to September 30, 1999, and to change the percentage rent to 5 percent of the gross sales, exclusive of cigarette sales, exceeding $262,500. It further gave [the] plaintiff the option to extend the term of the lease for two additional five year terms provided [the] plaintiff was not in default and its gross sales in the last year prior to the date of exercise of the option totaled at least $262,500. [The plaintiff] exercised its option to renew in March, 1995, and the lease was renewed for five more years to terminate on September 30, 2000, with a slight increase in rent and a slight change in the percentage rent provision.

“[The plaintiffs] lease did not [contain], as the leases of other tenants did, a clause tying [the plaintiffs] tenancy either to a prescribed occupancy rate of the Civic Center or to a key tenant remaining at the Civic Center.

“The Civic Center opened in 1975. It was essentially fully occupied. However, [the defendant] was never able to find an anchor tenant. As a consequence, it created [Luettgens Ltd.] as an upscale department store, which, during the entire time of its existence, lost money and required subsidization by [the defendant]. In subsequent years, the Civic Center’s occupancy rate fluctuated with the Hartford economy. In the early 1980s, when the Hartford economy contracted, the occupancy rate dropped to between [50 and 75 percent]; in the mid and late 1980s, when the Hartford economy rebounded, the occupancy rate rose to 90 percent. When the Hartford economy [became] depressed again in the early 1990s, the occupancy rate again started dropping. Yet, even when fully occupied, [the defendant] lost money as the owner of the Civic Center.

“For many years, [the defendant] spent enormous amounts of its own money to make the Civic Center a [429]*429viable business venture. It felt its reputation as a leading Hartford company and important Hartford citizen was at stake. From 1992 to 1998, [the defendant] contributed many times more to the promotional fund than it was obligated to [contribute] under the lease.

“In the mid 1990s, a number of factors contributed to the falling occupancy at the Civic Center and the difficulty [the defendant] had acquiring new tenants: (1) [a] number of Hartford companies laid off downtown employees, reducing the source of customers for the Civic Center; (2) [n]ew shopping centers expanded, upgraded or opened in the suburbs, including West-farms Mall, West Hartford center, and Buckland Hills; (3) [t]he [Civic Center] coliseum lost out in ticket sales to the Meadows Music Theater in . . . Hartford; (4) [t]he Hartford Whalers [ice hockey franchise], the biggest sports draw in Hartford, left in 1997; [and] (5) [d]owntown Hartford retail establishments such as G. Fox and Sage Allen closed their doors, leaving little to attract customers to downtown Hartford.

“Although [the defendant] tried to buck the trend, its efforts at promotion did not increase traffic, obtain new tenants or acquire tenant replacements at the Civic Center.

“In 1995, David Romano became [the defendant’s asset] manager for the Civic Center. When he analyzed the financial outlook, he found the Civic Center had lost more than $50 million in twenty years, had few substantial tenants and was hemorrhaging thousands of dollars for lack of rental income and high operating expenses. [Romano] explored the possibilities of [the defendant’s] closing the Civic Center, selling it or finding a partner able to run it profitably. His analysis revealed that, by closing the Civic Center, [the defendant] would lose [approximately $5 million] in rents and still incur nondiscretionary operating expenses of [430]*430[more than $1 million]. By keeping it open, [the defendant could expect] annual operating losses of [approximately $500,000 but would avoid] expensive tenant lease buyouts of between [$4 and $5 million].

“Because [Romano] deemed [the sale of] the Civic Center as the most likely alternative, but . . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Doe v. Indian Mountain School
D. Connecticut, 2025
Golden v. WorldQuant Predictive Technologies, LLC
235 Conn. App. 377 (Connecticut Appellate Court, 2025)
Martinez v. Agway Energy Services, LLC
88 F.4th 401 (Second Circuit, 2023)
GWG DLP Funding V, LLC v. PHL Variable Insurance Co.
54 F.4th 1029 (Eighth Circuit, 2022)
Edwards v. McMillen Cap., LLC
Second Circuit, 2022
Kovachich v. Dept. of Mental Health & Addiction Services
344 Conn. 777 (Supreme Court of Connecticut, 2022)
Scott v. Scott
215 Conn. App. 24 (Connecticut Appellate Court, 2022)
Onward Search, LLC v. Noble
D. Connecticut, 2022
Bell v. University of Hartford
D. Connecticut, 2021

Cite This Page — Counsel Stack

Bluebook (online)
849 A.2d 382, 269 Conn. 424, 2004 Conn. LEXIS 211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-la-concha-of-hartford-inc-v-aetna-life-insurance-conn-2004.