Electroformers, Inc. v. Emhart Corp., No. 29 78 91 (Jan. 29, 1993)

1993 Conn. Super. Ct. 709
CourtConnecticut Superior Court
DecidedJanuary 29, 1993
DocketNo. 29 78 91
StatusUnpublished

This text of 1993 Conn. Super. Ct. 709 (Electroformers, Inc. v. Emhart Corp., No. 29 78 91 (Jan. 29, 1993)) is published on Counsel Stack Legal Research, covering Connecticut Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Electroformers, Inc. v. Emhart Corp., No. 29 78 91 (Jan. 29, 1993), 1993 Conn. Super. Ct. 709 (Colo. Ct. App. 1993).

Opinion

[EDITOR'S NOTE: This case is unpublished as indicated by the issuing court.] MEMORANDUM OF DECISION ON MOTION FOR SUMMARY JUDGMENT This is an action to recover damages for cleanup of property contaminated by hazardous waste. The defendant's motion for summary judgment raises the legal issue as to which statute of limitations applies to actions for indemnification for environmental cleanup costs.

The subject property in Danbury was leased by MITE Corp. a predecessor corporation of the defendant, Emhart Corporation, from September, 1963 to January 2, 1979. MITE maintained lagoons for the treatment of waste water as part of its manufacturing operations on the subject property. On November 21, 1978, the plaintiff, Electroformers, Inc., entered into a written agreement with MITE which provided for (1) a sale of some of the assets and business of the GAR Electroformers Division of MITE, (2) a sublease of the subject property, and (3) an option to buy the property. The agreement provided for a closing date of January 2, 1979. The closing occurred on that date, and the plaintiff purchased the division of MITE related to the subject property, and subleased the property from MITE. Prior to the closing date, the plaintiff knew about MITE's discharge into the lagoons on the subject property. Paragraph one of the agreement provided for a sale of specified assets of MITE to Electroformers for a purchase price of $300,000, and it contained an indemnity provision which provided: "Buyer will not assume any of the liabilities of the GAR Electroforming Division existing on the date of the closing and MITE agrees CT Page 710 to defend any claims relating thereto presented against Buyer and to save Buyer harmless from any such claims."

On March 29, 1983, the Connecticut Department of Environmental Protection (DEP) issued an environmental cleanup order and closure plan for the lagoons. The plaintiff first incurred cleanup costs on January 31, 1986 in carrying out the prior order of DEP. MITE had received a series of DEP orders prior to the sale of assets to Electroformers, but none of those orders required cleanup of the deposits in the treatment lagoons, and as of January 2, 1979, there were no outstanding orders from the DEP or the United States Environmental Protection Agency for the subject property. On July 13, 1983, an affiliate of Electroformers purchased the property. Electroformers had closed the lagoons as required by the DEP by October, 1985, commenced clean up of them on January 31, 1986, and finally made a demand to MITE to reimburse Electroformers for a pro rata share of the cleanup costs by letter dated October 24, 1986. MITE refused the demand, but this action was not started until about two and one-half years later, on March 20, 1989.

The first count of the complaint requests reimbursement under section 22a-452 of the General Statutes for cleanup costs and removing the portion of chemical liquids and solids that might have discharged into the lagoons between 1963 and 1979. The second count of the complaint is based on the indemnity provision in the November 21, 1978 agreement, and claims that MITE has responsibility for the liabilities it created before the closing date, and that this includes the environmental cleanup cost incurred by the plaintiff in 1986.

MITE was merged into the defendant, Emhart Corporation, in July, 1985, and for purposes of the motion for summary judgment, Emhart concedes that it is responsible for MITE's liabilities under the indemnification agreement and the statute. The motion for summary judgment claims that the statute of limitations bars indemnification actions under both section 22a-452 of the General Statutes and the assets purchase agreement (hereafter "agreement" or "APA"), and that the agreement itself precludes the plaintiff from recovering under section 22a-452 for liabilities not existing on the closing date, January 2, 1979.

Summary judgment may be granted where an action was not CT Page 711 commenced within the period of the statute of limitations. Burns v. Hartford Hospital, 192 Conn. 451, 454; Arsenault v. Pa-Ted Spring Co., 203 Conn. 156, 158. To determine if the defense exists, it must be clear when the statute of limitations began to run against each claim and which statute of limitations applies. The first issue presents factual questions. Summary judgment can be granted where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Connelly v. Housing Authority, 213 Conn. 354, 364; Bartha v. Waterbury House Wrecking Co., 190 Conn. 8, 11. Summary judgment is designed to eliminate the delay and expense of litigating an issue when there is no real issue to be tried. Wilson v. New Haven, 213 Conn. 277, 279. A material fact is one that will make a difference in the result of the case. Hammer v. Lumberman's Mutual Casualty Co., 214 Conn. 573, 578. In determining whether there is an issue of material fact, the evidence is considered in the light most favorable to the nonmoving party. Connell v. Colwell, 214 Conn. 242, 246,247. The test on whether a summary judgment should be granted is resolved by applying to the established facts the same criteria as are used in determining whether a party would be entitled to a directed verdict on the same facts. Connelly v. Housing Authority, supra, 364; State v. Goggin,208 Conn. 606, 616.

Most of the essential facts concerning the history of the property are undisputed. The parties agree that the purchase of assets and sublease of the property occurred on January 2, 1979, even though they disagree as to the meaning of the indemnification provision in the agreement. Under the terms of the agreement itself, MITE was responsible for any liabilities of the division sold to the plaintiff as of that date. As a result of the written agreement and the sublease of the subject property which went with it, MITE no longer had any control over the property or the lagoons on it as of January 2, 1979. Another material undisputed date is the purchase of the property by the plaintiff's affiliate on July 13, 1983, four and one-half years later. The plaintiff's demand for partial reimbursement of environmental cleanup cost occurred more than three years after that on October 24, 1986, and this action was started two years and five months later on March 23, 1989.

The second count of the complaint is based upon the CT Page 712 indemnification provision in the written agreement between the parties. The statute of limitations for a written contract is section 52-576 of the General Statutes which requires commencement of the action "within six years after the right of action accrues. . . ." With an action for breach of contract, the cause of action is complete at the time the breach of contract occurs, which is when the injury has been inflicted, and ignorance of the fact that damage has been done does not prevent running of the statute of limitations except where there is something amounting to a fraudulent concealment of a cause of action. Beckenstein v. Potter Carrier, Inc., 191 Conn. 150,

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Bluebook (online)
1993 Conn. Super. Ct. 709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/electroformers-inc-v-emhart-corp-no-29-78-91-jan-29-1993-connsuperct-1993.