Hospital Media Network, LLC v. Henderson

209 Conn. App. 395
CourtConnecticut Appellate Court
DecidedDecember 28, 2021
DocketAC43986
StatusPublished
Cited by3 cases

This text of 209 Conn. App. 395 (Hospital Media Network, LLC v. Henderson) 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
Hospital Media Network, LLC v. Henderson, 209 Conn. App. 395 (Colo. Ct. App. 2021).

Opinion

*********************************************** The “officially released” date that appears near the be- ginning of each opinion is the date the opinion will be pub- lished in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the be- ginning of all time periods for filing postopinion motions and petitions for certification is the “officially released” date appearing in the opinion.

All opinions are subject to modification and technical correction prior to official publication in the Connecticut Reports and Connecticut Appellate Reports. In the event of discrepancies between the advance release version of an opinion and the latest version appearing in the Connecticut Law Journal and subsequently in the Connecticut Reports or Connecticut Appellate Reports, the latest version is to be considered authoritative.

The syllabus and procedural history accompanying the opinion as it appears in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be reproduced and distributed without the express written permission of the Commission on Official Legal Publica- tions, Judicial Branch, State of Connecticut. *********************************************** HOSPITAL MEDIA NETWORK, LLC v. JAMES G. HENDERSON ET AL. (AC 43986) Prescott, Moll and Suarez, Js.

Syllabus

The defendant H, a former employee of the plaintiff, appealed from the judgment rendered on remand awarding damages to the plaintiff for H’s breach of fiduciary duty. The plaintiff had employed H as its chief revenue officer until 2013 when it fired him for cause. Thereafter, the plaintiff brought an action against H, claiming, among other things, that he breached his fiduciary duty to the plaintiff by working for G Co., a private equity investment firm, to raise capital to acquire C Co., which was involved in the same business sector as the plaintiff, while he was employed by the plaintiff, during regular business hours, and without the plaintiff’s permission or knowledge. G Co.’s acquisition of C Co. closed in 2013 shortly after H’s employment was terminated, at which time H was paid a $150,000 finder’s fee by either G Co. or C Co., was awarded a three year consulting contract with C Co. at $50,000 annually, and was given the opportunity to purchase restricted stock of C Co. H was defaulted for failure to comply with a discovery order and the trial court granted the plaintiff’s motion for judgment on the default. Following a hearing, the trial court rendered judgment for the plaintiff and awarded damages against H. H appealed to this court, which reversed the judgment only as to the award of damages against him, concluding that the award did not achieve a just result, as it failed to take into account the equities of the case, and remanded the case for a new hearing in damages. On remand, the trial court rendered judgment in favor of the plaintiff in the amount of $323,545.84, which represented H’s 2013 salary, certain consulting fees paid to H by the plaintiff, the finder’s fee, and one year’s worth of consulting fees under the consulting contract, and H appealed to this court. Held: 1. In rendering its judgment, the trial court acted within the scope of this court’s remand order by making its own independent factual findings on the basis of the entire record before it and relying on those findings to assess the equities in the case: this court did not issue a circumscribed remand order binding the trial court to the factual findings in the first action but, rather, reversed the decision as to the damages award against H and remanded the case for a new hearing in damages; moreover, given that the record on remand included additional evidence, it followed that the trial court necessarily made its own findings on the basis of the totality of the evidence in the record and, in light of those findings, considered the relevant equitable factors in determining damages. 2. The damages award on remand was improper only insofar as the trial court ordered H to disgorge $50,000 in consulting fees paid pursuant to the consulting contract: contrary to H’s claim, the court’s finding that H did not perform substantial work before being hired by the plaintiff in 2013 that entitled him to the $150,000 finder’s fee was not clearly erroneous, as it was supported by portions of the hearing testimony and the court was free to resolve any inconsistency in the testimony by crediting only the portions that buttressed its findings; moreover, although the record did not support the court’s finding that H attempted to offer into evidence at the hearing in damages numerous exhibits that the plaintiff’s counsel had not seen previously, that unsupported finding did not undermine appellate confidence in the court’s fact-finding pro- cess and, accordingly, it was harmless; furthermore, although the court improperly ordered disgorgement of $50,000 of the $150,000 consulting fees, as it was prohibited by this court’s previous decision from ordering disgorgement of amounts earned by H outside of H’s period of employ- ment with the plaintiff and it assumed that H had earned the consulting fees for services performed after his employment with the plaintiff had ended, the trial court did not otherwise abuse its discretion in awarding damages but, rather, properly balanced the equities and utilized the equitable remedies of forfeiture and disgorgement, as it properly consid- ered the significant value of H’s services to the plaintiff as an employee and balanced that against its other factual findings, the court was not precluded from finding that H acted wilfully and engaged in disloyal acts throughout his employment or from relying on such findings to issue the damages award, as they were supported by the record and fit within the guidance set forth in Wall Systems, Inc. v. Pompa (324 Conn. 718), there was no suggestion in the court’s decision that it had used H’s discovery violations to supplant the plaintiff’s burden to demonstrate damages, and H’s assertion that the plaintiff was unjustly enriched by the award was unavailing. Argued February 2—officially released December 28, 2021

Procedural History

Action to recover damages for, inter alia, breach of fiduciary duty, and for other relief, brought to the Supe- rior Court in the judicial district of Stamford-Norwalk, where the court, Hon. A. William Mottolese, judge trial referee, granted the plaintiff’s motion for default against the defendants and for nonsuit on the defendants’ coun- terclaim; thereafter, the court, Hon. A. William Mot- tolese, judge trial referee, granted the plaintiff’s motion for judgment on the default and rendered a judgment of nonsuit as to the defendants’ counterclaim; subse- quently, following a hearing in damages, the court, Hon. Taggart D. Adams, judge trial referee, rendered judg- ment for the plaintiff, and the defendants appealed to this court, Alvord, Keller and Flynn, Js., which reversed the trial court’s judgment only with respect to the award of damages against the named defendant and remanded the matter for further proceedings; thereafter, following a hearing in damages, the court, Hon. Kenneth B. Povo- dator, judge trial referee, rendered judgment for the plaintiff, from which the named defendant appealed to this court. Reversed in part; judgment directed. James G. Henderson, self-represented, the appellant (named defendant). Gary S. Klein, with whom was Liam S. Burke, for the appellee (plaintiff). Opinion

MOLL, J. This matter returns to us following our decision in Hospital Media Network, LLC v. Henderson, 187 Conn. App. 40, 201 A.3d 1059

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Bluebook (online)
209 Conn. App. 395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hospital-media-network-llc-v-henderson-connappct-2021.