DiRienzo Mechanical Contractors, Inc. v. Salce Contracting Associates, Inc.

998 A.2d 820, 122 Conn. App. 163, 2010 Conn. App. LEXIS 257
CourtConnecticut Appellate Court
DecidedJune 29, 2010
DocketAC 29960
StatusPublished
Cited by6 cases

This text of 998 A.2d 820 (DiRienzo Mechanical Contractors, Inc. v. Salce Contracting Associates, Inc.) 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
DiRienzo Mechanical Contractors, Inc. v. Salce Contracting Associates, Inc., 998 A.2d 820, 122 Conn. App. 163, 2010 Conn. App. LEXIS 257 (Colo. Ct. App. 2010).

Opinion

Opinion

GRUENDEL, J.

The defendants, Salce Contracting Associates, Inc. (Salce), and its surety, United States [165]*165Fidelity & Guaranty Company (surety), appeal from the judgment of the trial court rendered in favor of the plaintiff, DiRienzo Mechanical Contractors, Inc. (DiRienzo). On appeal, the defendants claim that the court erred in (1) failing to apply certain provisions of the contract, (2) finding that (a) DiRienzo was due $60,500 in retainage and (b) DiRienzo was due $68,228.80 for its change order concerning duct work and piping for the air conditioning system and (3) making certain findings concerning the installation of air conditioning units, namely, (a) finding Salce responsible for one half of the problems resulting from the installation of those units, (b) awarding DiRienzo $25,630.72 for the purchase of additional materials and labor to complete the installation of those units and (c) failing to award Salce any of the $125,737 it sought for delay costs it allegedly incurred due to DiRienzo’s improper installation of those units. We affirm in part and reverse in part the judgment of the trial court.

The following facts are necessary to our resolution of the defendants’ appeal. DiRienzo and Salce entered into a contract, dated February 11, 2004. DiRienzo assumed the role of subcontractor and Salce of general contractor for the construction of a private commercial project consisting of thirty beachside condominium units in West Haven, to be known as Oceanside Condominiums. The contract, which was drafted by Salce, provided that DiRienzo was to perform the plumbing, heating, air conditioning and fire protection work. DiRienzo was to receive $605,000 for its work. The contract set July 15, 2003, as the date that work was to commence and September 15, 2004, as the date upon which the project was to be substantially completed.

On April 4, 2005, DiRienzo submitted to Salce a final payment application in which it stated that its work was 100 percent complete, and in which it claimed an unpaid balance of $94,081. When Salce refused to pay, [166]*166DiRienzo filed a four count amended complaint against Salce and the surety. The complaint included claims against Salce for breach of contract, unjust enrichment and violation of the Connecticut Unfair Trade Practices Act, General Statutes § 42-110a et seq. The complaint also included a payment bond claim against the surety in which DiRienzo sought compensation for additional change orders, none of which appeared on the final payment application in which DiRienzo claimed its work was 100 percent complete. Salce and the surety raised special defenses alleging (1) the existence of a contractual limitations of action provision in the contract, (2) that DiRienzo had failed to perform as required by the contract and (3) that DiRienzo’s deficient performance resulted in a loss to Salce. In addition, Salce filed a counterclaim for damage it alleged to have incurred as a result of DiRienzo’s failure to perform. The court ruled in favor of DiRienzo for Salce’s breach of contract and on the payment bond claim against the surety, and ruled against DiRienzo on its other claims. The court further ruled in favor of Salce on its counterclaim in the amount of $50,187.33 and credited it with that amount when awarding DiRienzo $454,631.67. Thereafter, the court acknowledged mathematical errors in the amount awarded to DiRienzo and modified that amount to $408,584.11.1 From that judgment, the defendants appeal.

I

The defendants first claim that the court erred in failing to apply certain provisions of the contract. Specifically, they contend that the court failed to apply (1) paragraph 40, a contractual statute of limitations [167]*167provision, (2) paragraph 14, limiting subcontractor compensation for change order prices not agreed to in advance to DiRienzo’s actual cost plus 10 percent for profit and overhead combined, and (3) paragraphs 1, 5 and 43, each providing that DiRienzo be responsible for both the design and construction of the systems it was to install. We address each claim in turn.

A

The defendants first argue that the court failed to apply paragraph 40 of the contract. We disagree.

The following facts are relevant to our discussion. At trial, the defendants referred to paragraph 40 to raise as a special defense “contractual statute of limitations.” Paragraph 40 provides: “In the event Subcontractor desires to give any Notice of Claim to Contractor, the Notice of Claim must be given sooner than five business days before Contractor is required to make any ‘Pass Through Claim’ under the General Contract. A ‘Pass Through Claim’ for the purposes of the preceding sentence is defined as a claim made or which may be made by Contractor under the General by which Contractor may pass through to Owner all or any part of the claim of Subcontractor such that any additional compensation or damages sought by Subcontractor from Contractor may be procured all or in part by Contractor from Owner. Notwithstanding any longer limitation period which may exist in the General Contract for Pass Through Claim, no Notice of Claim by Subcontractor against Contractor shall be valid unless it is given within 60 days after the occurrence of the event giving rise to the Notice of Claim. Subcontractor shall not be entitled to any relief or maintain any claim or cause of action against Contractor without first giving Contractor a Notice of Claim in accordance with the provisions of this Subcontract, and no Notice of Claim shall be valid unless given in accordance with this subcontract.”

[168]*168The court ruled against the defendants on this special defense. It stated: “The first special defense . . . entitled ‘contractual statute of limitations,’ argues that paragraph 40 of the contract . . . provides for an outside limit of sixty days from the time the event occurs that gives rise to the claim, within which the subcontractor [must] present a claim to the general contractor. The court finds that said limitation period of sixty days for notice does not apply to any payment due DiRienzo from Salce for any work requested or authorized by Salce. As to such work, Salce would have, of necessity, had notice. Similarly, any such work, if not required by the contract and performed by [DiRienzo] after consultation with [Salce] and permission to proceed, would not require subsequent notice other than billing in order for [DiRienzo] to be entitled to seek payment. Any defense available to [Salce] would be limited to proof that [DiRienzo] negligently performed the work in question and therefore was not entitled to payment.” (Citation omitted.)

On appeal, the defendants assert that the court erred in failing to apply paragraph 40, thereby denying them an opportunity to assess potential liability, investigate whether certain work was truly beyond the scope of the contract and, if beyond the scope of the contract, decide whether to proceed with such work. The defendants first contend that the court improperly concluded that they had waived the notice requirement under paragraph 40. Specifically, they aver that because waiver is a defense that must be pleaded and DiRienzo failed to plead waiver, the court erred in charging Salce with having waived paragraph 40. See Jo-Ann Stores, Inc. v. Property Operating Co., LLC, 91 Conn. App. 179, 198, 880 A.2d 945 (2005) (waiver as special defense must be specifically pleaded).

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Cite This Page — Counsel Stack

Bluebook (online)
998 A.2d 820, 122 Conn. App. 163, 2010 Conn. App. LEXIS 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dirienzo-mechanical-contractors-inc-v-salce-contracting-associates-inc-connappct-2010.