First Merchants Group Ltd. Partnership v. Fordham

50 A.3d 963, 138 Conn. App. 220, 2012 Conn. App. LEXIS 425
CourtConnecticut Appellate Court
DecidedSeptember 25, 2012
DocketAC 33096
StatusPublished
Cited by1 cases

This text of 50 A.3d 963 (First Merchants Group Ltd. Partnership v. Fordham) 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
First Merchants Group Ltd. Partnership v. Fordham, 50 A.3d 963, 138 Conn. App. 220, 2012 Conn. App. LEXIS 425 (Colo. Ct. App. 2012).

Opinion

Opinion

PER CURIAM.

The plaintiff, First Merchants Group Limited Partnership, appeals from the decision of the trial court remanding the case to an arbitrator for further findings after denying summary judgment in a declaratory judgment action in which the primary issue was whether the arbitration had ended. The plaintiff claims that once the court denied summary judgment on whether the arbitration had ended, it lacked authority to send any issues back to the arbitrator without first hearing evidence and deciding the merits of the declaratory judgment action. We agree and reverse the judgment of the trial court.

This is the second time this case is before us on appeal. We first adjudicated similar issues in First Merchants Group Ltd. Partnership v. Fordham, 121 Conn. App. 135, 994 A.2d 289 (2010). Our decision in that appeal laid out the relevant facts and procedural history. In that case, we reversed the trial court’s dismissal, on the basis of the lack of subject matter jurisdiction, of the plaintiffs declaratory judgment action. The complaint alleged that the plaintiff, First Merchants Group Limited Partnership, and the defendant, Harriet Ford-ham, were the sole members of a limited liability company. The parties’ amended operating agreement, dated January 25, 2002, provided that any disputes between [222]*222them were to be settled by arbitration. In October, 2006, the defendant filed a demand for arbitration in connection with certain disputed issues arising out of the operating agreement. The plaintiff filed an answering statement the following month. Subsequently, the plaintiff and the defendant signed a “ ‘[memorandum of [understanding as to [arbitration’ ” dated December 12, 2006.1 Id., 137. Less than two weeks later, the arbitrator prepared a letter dated December 21, 2006, setting forth the terms under which the arbitration was to proceed.2 Thereafter, both parties submitted substantial materials to the arbitrator, who issued a decision on February 23, 2007, “disposing of all of the issues submitted to her pursuant to the . . . December 21, 2006 [letter].” (Internal quotation marks omitted.) Id. No party filed an application with the Superior Court to confirm, vacate or modify the award pursuant to General Statutes §§ 52-417 through 52-420.3 The plaintiff alleged that it made certain payments to the defendant and took other actions that purported to satisfy the arbitrator’s February 23, 2007 decision.

After the arbitrator’s February 23, 2007 decision, the defendant continued to serve the arbitrator with additional pleadings, seeking relief related to that decision and for issues that arose after the decision was issued. Almost one year after she had issued her decision, by correspondence dated February 19, 2008, the arbitrator suggested that her February 23, 2007 decision was not a final award.

[223]*223The plaintiff then commenced this declaratory judgment action under General Statutes § 52-29 in accordance with the provisions of Practice Book § 17-54 et seq. In its prayer for relief, the plaintiff requested a judgment determining whether the February 23, 2007 decision was a final award that had resolved fully the rights of the parties as set forth in the December 21, 2006 memorandum of agreement with the arbitrator. Specifically, the plaintiff contends that if the February 23, 2007 decision was a final award, the arbitrator had no further authority over the matter and all subsequent rulings by her had no legal effect. See Hartford Steam Boiler Inspection & Ins. Co. v. Underwriters at Lloyd’s & Cos. Collective, 271 Conn. 474, 484, 857 A.2d 893 (2004), cert. denied, 544 U.S. 974, 125 S. Ct. 1826, 161 L. Ed. 2d 723 (2005). The defendant filed a motion to dismiss the action for lack of subject matter jurisdiction. Without holding an evidentiary hearing, the court granted the motion to dismiss. The court concluded that it lacked subject matter jurisdiction because the arbitrator, in her February 19, 2008 correspondence to the parties, had concluded that the arbitration proceeding had not yet closed.

We reversed the judgment of the court after concluding that it improperly granted the defendant’s motion to dismiss without an evidentiary hearing when material issues of fact were in dispute. First Merchants Group Ltd. Partnership v. Fordham, supra, 121 Conn. App. 139-40. We expressly held that the court had jurisdiction over a declaratory action to determine whether the arbitrator’s February 23, 2007 decision was an interim decision or a final award. Id., 142. We remanded the case back to the court for further proceedings according to law. Id., 144.

On remand, the defendant filed an answer to the original complaint and a counterclaim, in which she sought a declaratory ruling that the arbitrator’s decision [224]*224was not final. On September 17, 2010, the defendant filed a motion for summary judgment, asserting that there was no genuine issue regarding any material fact. The court denied summary judgment, finding that at least three issues of material fact remained in dispute, including whether the arbitration was to continue, whether the defendant’s attorney had the authority to enter into the December 21, 2006 agreement and whether that agreement superseded the December 12, 2006 agreement.4 Despite its denial of summary judgment, the court remanded the case to the arbitrator “to make any findings she deemjed] appropriate to conclude this matter of arbitration.” The plaintiff filed a motion to reargue and/or reconsider, which the court denied. The defendant also filed a motion to reargue, which the court denied. The plaintiff subsequently filed this appeal.

“The denial of a motion for summary judgment ordinarily is an interlocutory ruling and, accordingly, not a final judgment for purposes of appeal. . . . We previously have determined [however] that certain interlocutory orders have the attributes of a final judgment and consequently are appealable under [General Statutes] § 52-263. . . . In State v. Curcio, [191 Conn. 27, 31, 463 A.2d 566 (1983)], we explicated two situations in which a party can appeal an otherwise interlocutory order: (1) where the order or action terminates a separate and distinct proceeding, or (2) where the order or action so concludes the rights of the parties that further proceedings cannot affect them.” (Citation omitted; internal quotation marks omitted.) Chadha v. Charlotte Hungerford Hospital, 272 Conn. 776, 785, 865 A.2d 1163 (2005). “The second test for finality, where the order on appeal so concludes the rights of the parties that further proceedings cannot affect them, focuses not on [225]*225the proceeding involved, but on the potential harm to the' appellant’s rights.” State v. Curcio, supra, 33.5

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Cite This Page — Counsel Stack

Bluebook (online)
50 A.3d 963, 138 Conn. App. 220, 2012 Conn. App. LEXIS 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-merchants-group-ltd-partnership-v-fordham-connappct-2012.