Embalmers' Supply Co. v. Giannitti

929 A.2d 729, 103 Conn. App. 20, 2007 Conn. App. LEXIS 332
CourtConnecticut Appellate Court
DecidedAugust 7, 2007
DocketAC 25829
StatusPublished
Cited by39 cases

This text of 929 A.2d 729 (Embalmers' Supply Co. v. Giannitti) 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
Embalmers' Supply Co. v. Giannitti, 929 A.2d 729, 103 Conn. App. 20, 2007 Conn. App. LEXIS 332 (Colo. Ct. App. 2007).

Opinions

Opinion

HARPER, J.

This is an action for vexatious litigation brought by the plaintiff, the Embalmers’ Supply Company, against the defendants, the law firm of Modugno, Modugno & Modugno, LLC (law firm), and its former client, Salvatore D. Giannitti.1 After trial, the jury returned a verdict in favor of the plaintiff. On appeal, the law firm claims that the trial court (1) lacked subject matter jurisdiction, (2) improperly denied three of its postjudgment motions, (3) improperly permitted the plaintiff to file a reply to its special defense at the beginning of trial, (4) improperly permitted Gary R. Khachian, the attorney representing Giannitti, to testify as part of the plaintiffs rebuttal case and (5) improperly instructed the jury on the issue of probable cause.2 In its cross appeal, the plaintiff claims that the court improperly denied its motion for interest and attorney’s fees pursuant to Practice Book § 17-18. With regard to the law firm’s appeal, we affirm the judgment of the trial court. As to the plaintiffs cross appeal, we reverse the judgment in part.

[24]*24The present action is based on prior litigation involving a request by Giannitti to inspect and copy the plaintiffs accounting records pursuant to General Statutes § 33-946 (b) (shareholder litigation). Throughout the shareholder litigation, the law firm represented Gian-nitti, who owned several hundred shares of the plaintiffs class B stock.

The relevant facts are as follows: On May 15, 1998, the plaintiff held a special stockholders’ meeting to discuss whether to repurchase all of its class B stock. At that time, the stockholders voted to reject the proposal. On June 22, 1998, R. Shawn Beck, president of the plaintiff, sent a letter to Giannitti, informing him that there would be another special stockholders’ meeting on August 20, 1998. The purpose of the meeting would be to conduct a second vote on the proposal to repurchase all class B stock at $153.64 per share. According to the letter, the purchase price of $153.64 per share was based on a 1997 valuation report prepared at the plaintiffs behest. The letter concluded with the statement that in the event that the stockholders voted to approve the stock repurchase, “each stockholder will have thirty days from the meeting date to submit his or her shares to the corporation’s attorney for payment. After the thirty days expire, the offer will be withdrawn.”

That same day, June 22,1998, the law firm sent a letter to the plaintiff on Giannitti’s behalf, officially requesting permission to inspect the plaintiffs accounting records pursuant to § 33-946 (b) (2).3 The letter represented that the purpose of the request was to verify the adequacy of the repurchase offer, as well as the accuracy of the [25]*251997 valuation report on which it was based. The letter also stated that “ [t]his information will be used to evaluate [Giannitti’s] interest in said corporation and will aid [him] in [his] decision as to whether or not to accept the company’s offer.”

A representative from the law firm and William Galasso, Giannitti’s accountant, attended the August 20, 1998 special stockholders’ meeting. The meeting concluded with an affirmative vote to repurchase all class B stock at $153.64 per share over the next thirty days. Despite the offer, Giannitti did not sell his stock back to the plaintiff during the thirty day period. By its terms, the repurchase offer expired on September 21, 1998.

In early 1999, Giannitti filed a complaint against the plaintiff, alleging that he had been wrongfully denied access to some of the documents specified in his June 22, 1998 request to inspect and copy records. Although the stock repurchase occurred several months earlier, the complaint alleged that the inspection “was necessary in order to properly evaluate the offer made by [the plaintiff] to purchase [Giannitti’s] class B stock.” On the basis of this allegation, Giannitti petitioned the court for a writ of mandamus, compelling production of all of the requested records pursuant to General Statutes § 33-948 (b),4 as well as for an order requiring payment of costs and attorney’s fees pursuant to § 33-948 (c).5

[26]*26On May 18, 1999, the court, Mints, J., determined that the offer to repurchase Giannitti’s stock had expired and that consequently, there was no longer any reason to grant the relief requested in the complaint. Accordingly, Judge Mintz dismissed the case as moot. On appeal, this court affirmed the judgment of dismissal. See Giannitti v. Embalmers’ Supply Co., 61 Conn. App. 904, 763 A.2d 1096, cert. denied, 255 Conn. 941, 768 A.2d 949 (2001).

Thereafter, the plaintiff initiated the present action by complaint dated April 11, 2001. The complaint alleged that the defendants “commenced and prosecuted [the shareholder litigation] without probable cause in violation of [General Statutes] § 52-568 (1)” and that Giannitti evinced “a malicious intent unjustly to vex and trouble the plaintiff corporation, in violation of § 52-568 (2) . . . .”6 The plaintiff requested double damages from the defendants pursuant to § 52-568 (1) and treble damages from Giannitti, specifically, pursuant to § 52-568 (2).

On February 25, 2003, the parties attended a court-ordered pretrial conference. Giannitti and his wife, Karin Giannitti, were present, along with their attorney, Khachian. The law firm, R. Shawn Beck and Beck’s son were also in attendance.7 After the pretrial conference, the Giannittis, the Becks and their attorneys met without the law firm. At that time, they executed a handwritten document embodying an agreement to settle the case against Salvatore Giannitti. R. Shawn Beck, acting [27]*27on behalf of the plaintiff, also signed a generic release form (release) in which the plaintiff agreed to discharge the Giannittis and their “agents” from all past, present and future claims.8

Khachian later created a typed, formal copy of the February 25, 2003 agreement that was signed by the Giannittis and by R. Shawn Beck as a representative of the plaintiff (settlement agreement). In accordance with its terms, Salvatore Giannitti agreed to pay the plaintiff $2500 “as full and final satisfaction of the claims brought against him” in return for “full access to [the plaintiffs] books and records.” The settlement agreement further recorded the plaintiffs and the Gian-nittis’ “exchange [of] mutual releases.” Pursuant to the agreement, Salvatore Giannitti was withdrawn from the present action on March 10, 2003.

One and one-half years later, the law firm and the plaintiff proceeded to trial. After deliberations, the jury returned a verdict in favor of the plaintiff on the basis of the finding that the law firm had instituted the shareholder litigation without probable cause and thereby caused the plaintiff to incur $7238.31 in damages. The jury further found that the provisions of the release did not absolve the law firm of liability for any action taken “as an agent of [its] former client Salvatore D. Giannitti [28]*28. . . .” Thereafter, the law firm filed five motions, including motions for remittitur, for a new trial and to set aside the verdict. All five were denied by the court.

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Cite This Page — Counsel Stack

Bluebook (online)
929 A.2d 729, 103 Conn. App. 20, 2007 Conn. App. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/embalmers-supply-co-v-giannitti-connappct-2007.