Department of Transportation v. White Oak Corp.

62 A.3d 599, 141 Conn. App. 738, 2013 WL 1296776, 2013 Conn. App. LEXIS 179
CourtConnecticut Appellate Court
DecidedApril 9, 2013
DocketAC 33458
StatusPublished
Cited by5 cases

This text of 62 A.3d 599 (Department of Transportation v. White Oak Corp.) 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
Department of Transportation v. White Oak Corp., 62 A.3d 599, 141 Conn. App. 738, 2013 WL 1296776, 2013 Conn. App. LEXIS 179 (Colo. Ct. App. 2013).

Opinion

Opinion

GRUENDEL, J.

This appeal concerns the proper scope of an arbitration proceeding commenced under the narrow confines of General Statutes § 4-61. The plaintiff, the department of transportation (department), appeals from the judgment of the trial court denying its application to vacate, correct or modify an arbitration award and granting the application to confirm the award filed by the defendant, White Oak Corporation (White Oak). The department contends that the court improperly confirmed an arbitration award predicated on claims over which the arbitration panel lacked jurisdiction due to the state’s sovereign immunity. We agree and, accordingly, reverse the judgment of the trial court.

The record reveals the following facts and procedural history. The parties entered into two public works contracts in the mid-1990s relevant to this appeal. The first pertained to the reconstruction of the Tomlinson Bridge in New Haven; the second concerned the reconstruction of the Yellow Mill Pond Bridge and a portion of Interstate 96 in Bridgeport. Both projects were plagued by numerous delays. Ultimately, the department, White Oak and White Oak’s surety reached an agreement on March 9, 2000, to reassign the two contracts to other contractors for completion.

White Oak subsequently filed against the department two separate notices of claims and corresponding demands for arbitration with the American Arbitration Association (association) pursuant to § 4-61 (b).1 In the [741]*741demand related to the Tomlinson Bridge contract (Tom-linson arbitration), White Oak sought $93,793,891.11 in damages for the department’s alleged wrongful termination of the contract. In the demand regarding the Bridgeport contract (Bridgeport arbitration), White Oak sought $45,205,336.30 in damages for the department’s alleged wrongful termination of the contract.

In response, the department commenced an action in the Superior Court seeking to enjoin White Oak and the association from further prosecuting the two arbi-trations. The department alleged, inter alia, that the association lacked subject matter jurisdiction over the claims presented therein due to White Oak’s failure to comply with the notice requirements of § 4-61 (b). Following the submission of briefs by the parties, the matter was argued before the court, Sheldon, J., on divers days. The court then took the matter under advisement pursuant to the parties’ waiver of the 120 day deadline for the filing of its memorandum of decision.

Before the court issued its memorandum of decision, the Tomlinson arbitration panel issued a final award rejecting White Oak’s sole claim for wrongful termination, which the trial court confirmed. White Oak thereafter filed a motion to dismiss the injunction action. The [742]*742court granted that motion with respect to the Tomlinson arbitration, concluding that the matter was moot. The court denied the motion with respect to the Bridgeport arbitration.

The court issued its memorandum of decision on whether to enjoin the Bridgeport arbitration on April 3, 2006. Describing the Tomlinson and Bridgeport arbi-trations as “separate but related,” the court detailed the factual and procedural history underlying the injunctive action before it. The court then analyzed the department’s claim that White Oak had failed to comply with the mandatory notice requirements of § 4-61 (b).2 Emphasizing the plain language of § 4-61 (b), the court stated: “Under that statute, a claimant’s written notice of claim must both name each claim of which he wishes to give notice and disclose the factual bases of each such noticed claim. His later demand for arbitration, which can only be filed as to one or more properly noticed claims, must include, for each such claim, both the amount of damages sought on it . . . and the alleged facts and contractual or statutory provisions which form the basis for its assertion.” The court examined the notice of claim that White Oak provided to the department in its six page letter dated March 30, 2001, to department commissioner James F. Sullivan. That notice indicated that White Oak “seeks legal and/or equitable relief for the following acts and/or omissions of the department: (1) delays in the project; (2) nonpayment of contract amounts owed; and (3) wrongful termination.” After reviewing the specifics of that [743]*743notice, the court concluded that “it was more than sufficient to inform the [department] as to the general nature of White Oak’s wrongful termination claim.”

The court then turned its attention to the department’s challenge to the demand for arbitration filed by White Oak. The department argued principally that the demand was defective because it failed to state the amount of damages of the wrongful termination claim. As the corut stated, “[t]his assertedly resulted from the listing on a single demand for arbitration of three separate claims but only one amount of damages, without affording any basis for apportioning such damages among the three claims.” After scrutinizing the demand for arbitration, the court found that “the demand is virtually identical in substance to the . . . notice. . . . What is plainly different about the demand [compared to] the notice is that the demand lists all of its factual allegations as parts of a single claim of wrongful termination, whereas the notice, though incorporating the allegations from its ‘Project Delays’ and ‘Non-Payment of Contract Claims’ sections into its ‘Wrongful Termination’ section, listed them separately. Consistent with this change, the demand concludes by listing ... a single amount of damages but does not suggest that that amount applies to multiple claims.” The court continued: “What was implicit in White Oak’s Bridgeport notice has now been made explicit in its Bridgeport demand, to wit: that its wrongful termination claim is based upon and subsumes within it the entire, allegedly unreasonable course of conduct that led up to it, including all of the costly, damaging, unreasonable acts by which White Oak claims to have been forced to endure and not be compensated for substantial project delay, to experience non-payment of monies due it under the contract, and ultimately to lose the contract and incur the obligation to indemnify its surety for its completion by O & G [Industries]. Since that claim, [744]*744though supported by multiple acts of alleged misconduct, is a single claim, it is appropriate to list for it a single amount of claimed damages in the demand for arbitration required by [#] 4-61 (b).”3 (Emphasis added.) For that reason, the court likewise rejected the department’s ancillary contention that the demand described claims that were not previously mentioned in the notice, concluding that “the inclusion of additional specifications of unpaid-for project delays in the [demand] did not constitute the presentation of a new claim, but rather the statement of a modified basis for pursuing a previously noticed wrongful termination claim.” Accordingly, the court rendered judgment in favor of White Oak “on all remaining counts and claims of the department’s complaint in this action, wherein the department seeks to enjoin them [from] further prosecuting or conducting further proceedings in the Bridgeport arbitration on . . . White Oak’s claim that the Bridgeport contract was wrongfully terminated.”

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Related

Dept. of Transportation v. White Oak Corp.
Supreme Court of Connecticut, 2015
State v. Graham S.
87 A.3d 1182 (Connecticut Appellate Court, 2014)
State v. Grant
87 A.3d 1150 (Connecticut Appellate Court, 2014)
Degourville v. Warden, No. Cv-95-0552598 (May 20, 1999)
1999 Conn. Super. Ct. 5598 (Connecticut Superior Court, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
62 A.3d 599, 141 Conn. App. 738, 2013 WL 1296776, 2013 Conn. App. LEXIS 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-transportation-v-white-oak-corp-connappct-2013.