Downes-Patterson Corp. v. First National Supermarkets, Inc.

780 A.2d 967, 64 Conn. App. 417, 2001 Conn. App. LEXIS 385
CourtConnecticut Appellate Court
DecidedJuly 24, 2001
DocketAC 20506
StatusPublished
Cited by23 cases

This text of 780 A.2d 967 (Downes-Patterson Corp. v. First National Supermarkets, 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
Downes-Patterson Corp. v. First National Supermarkets, Inc., 780 A.2d 967, 64 Conn. App. 417, 2001 Conn. App. LEXIS 385 (Colo. Ct. App. 2001).

Opinion

Opinion

LAVERY, C. J.

The plaintiffs, Downes-Patterson Corporation (Downes-Patterson) and S.S. Brooklyn, LLC,1 appeal from the judgment of the trial court setting aside a jury verdict in their favor.2 The plaintiffs claim on appeal that the court abused its discretion in setting aside the verdict because the evidence presented at trial was sufficient to support the jury’s finding that the defendant3 had (1) violated the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq., and (2) tortiously interfered with the plaintiffs’ business expectancies under a lease with a third party. We affirm the judgment of the trial court.

The jury reasonably could have found the following facts, most of which were stipulated to by the parties. In 1959, the defendant purchased real property in the town of Brooklyn from Pauline Schulze. The defendant [419]*419subsequently sold the property to ECONN Associates (ECONN) and leased it back, operating a Finast supermarket thereon since 1965.

Between 1960 and 1965, Downes-Patterson purchased adjacent property from Schulze. Pursuant to a prior agreement between Schulze and the defendant, Downes-Patterson held its property subject to a restrictive covenant. The restrictive covenant barred the owner of the land from operating a supermarket on the premises. Downes-Patterson did not develop the land but, around 1990, began negotiating with Stop & Shop Supermarkets, Inc. (Stop & Shop), with the aim of constructing a supermarket on the property. It was intended that Stop & Shop would lease the supermarket from the plaintiffs upon its completion.

At about that time, the plaintiffs brought a declaratory judgment action against ECONN and the defendant. The plaintiffs sought to have the restrictive covenant preventing the operation of a supermarket on their property declared invalid. The court, Rittenband, J., found that, because it contained no time limitation, the restrictive covenant was void as against public policy, and the defendant appealed. That decision is not at issue for purposes of the present appeal; the events giving rise to the present appeal occurred while the appeal concerning the validity of the restrictive covenant was pending before our Supreme Court.

The Supreme Court heard oral argument on the appeal on December 2, 1994. The defendant’s position before the court was that a time limitation should be implied as to the restrictive covenant, that limitation being for as long as the defendant or its successor operated its neighboring supermarket. The defendant argued that, once it ceased to operate a supermarket on its property, the restrictive covenant would have no purpose and no longer would be valid.

[420]*420On February 24,1995, before the Supreme Court had rendered a decision on the parties’ appeal, the plaintiffs learned from a local newspaper that the defendant planned to close its supermarket in early March, 1995. Shortly thereafter, the defendant did close the supermarket. Considering that the defendant’s argument on appeal had been undermined by its closing of the store, the plaintiffs approached the defendant on March 2, 1995, and asked whether the defendant had any objections to the plaintiffs’ beginning construction of a Stop & Shop store on their parcel. The defendant told the plaintiffs that it had no objections to the proposed construction.

On March 16, 1995, the plaintiffs signed a long-term lease agreement with Stop & Shop. The agreement provided that, if the pending litigation between the plaintiffs and the defendant was not finally resolved by May 1, 1995, Stop & Shop could terminate the lease, with an option to reinstate it within one year if it so desired.4 The plaintiffs commenced construction of the physical plant that was to become the Stop & Shop store.

[421]*421During the next two months, the plaintiffs’ attorney, Eric Lukingbeal, and the defendant’s attorney, Richard C. Robinson, communicated regularly via facsimile and telephone. Lukingbeal advised Robinson that the plaintiffs needed signed releases of the restrictive covenant from both the defendant and its landlord, ECONN, to obtain title insurance. Robinson agreed to relay the requests to his clients. On April 4, 1995, Robinson received from Lukingbeal two release of covenant forms. Robinson forwarded them to ECONN and the defendant. ECONN executed and returned its release form on April 19, 1995. The defendant did not sign and return its release form.

Lukingbeal called Robinson repeatedly throughout April, 1995, asking for the defendant’s release form. During an April 21,1995 telephone conversation, Lukingbeal expressed urgency and concern that the defendant had not yet signed the release. On April 26, 1995, Lukingbeal wrote Robinson a letter, warning that unspecified “serious financial consequences” would result if the release were not signed and that the plaintiffs would seek indemnification from the defendant if this occurred.5 The letter did not mention the plaintiffs [422]*422agreement with Stop & Shop or the May 1, 1995 deadline. At that point in time, the parties still were awaiting a decision from the Supreme Court on the appeal.

The next day, the defendant filed a motion with the Supreme Court asking that the appeal be withdrawn. Robinson informed Lukingbeal of the motion and obtained the plaintiffs’ consent to the granting of the motion. Both attorneys believed that withdrawal of the appeal would satisfy the plaintiffs’ requirements. On May 1, 1995, to the surprise of all of the parties, the Supreme Court denied the defendant’s motion. Lukingbeal again called Robinson, who told Lukingbeal that the defendant would not sign the release. Lukingbeal sent the defendant another letter on May 4,1995, warning for the first time that Stop & Shop, “which is going to occupy the store under a lease when it is built, and which is financing the construction, may decide not to close on the construction loan if this issue is not resolved quickly.” Nonetheless, the letter did not mention that the lease already had been signed or that it contained a termination provision contemplating an already passed deadline.6 The defendant did not sign the release. '

[423]*423On May 9,1995, the Supreme Court advised the defendant that it would reconsider the defendant’s motion to withdraw the appeal. A hearing was scheduled for May 24, 1995. On May 12, 1995, Lukingbeal notified Robinson that Stop & Shop had terminated its lease with the plaintiffs on May 10,1995. The plaintiffs blamed the defendant for that development and again threatened litigation. On May 19, 1995, the defendant delivered a photocopy of the executed release to the plaintiffs.7 On May 24, 1995, the hearing on the motion to withdraw the parties’ appeal was held as scheduled and, on June 1, 1995, the Supreme Court granted the motion, terminating the litigation over the validity of the restrictive covenant. Stop & Shop nonetheless declined to exercise its option to reinstate the lease. [424]*424Construction on the store ceased and, in November, 1996, the plaintiffs brought an action against the defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
780 A.2d 967, 64 Conn. App. 417, 2001 Conn. App. LEXIS 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/downes-patterson-corp-v-first-national-supermarkets-inc-connappct-2001.