Joe's Pizza, Inc. v. Aetna Life & Casualty Co.

675 A.2d 441, 236 Conn. 863, 1996 Conn. LEXIS 128
CourtSupreme Court of Connecticut
DecidedMay 7, 1996
Docket15164
StatusPublished
Cited by77 cases

This text of 675 A.2d 441 (Joe's Pizza, Inc. v. Aetna Life & Casualty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joe's Pizza, Inc. v. Aetna Life & Casualty Co., 675 A.2d 441, 236 Conn. 863, 1996 Conn. LEXIS 128 (Colo. 1996).

Opinion

PALMER, J.

The sole issue presented by this appeal is whether the trial court properly rendered summary judgment against the plaintiff, Joe’s Pizza, Inc. (Joe’s Pizza), on the ground that its claim against the defendant, Aetna Life and Casualty Company (Aetna), is barred by principles of res judicata. We affirm the summary judgment of the trial court.

The pertinent facts and procedural history are not in dispute. At all times relevant to this appeal, Joe’s Pizza was a closely held corporation owned and operated as a restaurant in Windsor by its sole shareholders, Giuseppe and Tina Cappello, who are husband and wife. On November 28, 1991, the restaurant was severely damaged by fire. Prior thereto, the Cappellos, acting on behalf of Joe’s Pizza, had purchased a fire insurance policy from Aetna.1 Following the fire, the Cappellos filed a claim with Aetna seeking payment for the fire damage sustained by Joe’s Pizza. Shortly thereafter, Aetna notified the Cappellos that it intended to question them about the claim at an examination under oath scheduled for January 17,1992. In its notice, Aetna also requested that the Cappellos provide it with certain documents, including copies of the books and records of Joe’s Pizza.2 At the time the Cappellos received this [865]*865notice, however, Giuseppe Cappello was the subject of a criminal investigation for setting the fire that had damaged the restaurant. On the advice of counsel, therefore, both he and Tina Cappello asserted their constitutional privilege against self-incrimination and refused either to submit to an examination under oath or to produce the books and records of Joe’s Pizza. Aetna twice rescheduled the examination under oath, but on each occasion the Cappellos failed to appear.3

Following these unsuccessful attempts by Aetna to obtain the information that it sought from Joe’s Pizza pursuant to the policy provision, Giuseppe Cappello was arrested and charged with arson in the first degree for his alleged role in the fire at the restaurant.4 After the filing of the criminal charges, the Cappellos, claiming that they were entitled to invoke their constitutional privilege against self-incrimination in response to Aetna’s request for information, initiated an action in the Superior Court, Cappello v. Aetna Life & Casualty Co., Superior Court, judicial district of Hartford-New Britain at Hartford, Docket No. CV92-0510478S (April 5, 1993), seeking a “declaratory judgment adjudicating [their] rights and obligations . . . with respect to [Aetna’s] request for the production of [Joe’s Pizza’s] documents and an examination under oath and that [Aetna] be restrained and enjoined from attempting [866]*866such examination or request for production prior to a final ruling of [the] court.”

Aetna moved for summary judgment on the ground that it had been relieved of its obligation to pay the fire damage claim under the policy because of the Cappellos’ refusal to submit to an examination under oath. The Cappellos, in response, did not address this claim. They argued, rather, that their constitutional right to remain silent took precedence over Aetna’s contractual right to obtain the information it had sought under the policy and, accordingly, that they were entitled to a postponement of the examination pending a resolution of the criminal case against Giuseppe Cappello. On April 5,1993, the trial court, Aurigemma, J., granted Aetna’s motion for summary judgment, concluding that the Cappellos’ refusal to submit to an examination under oath constituted a material breach of the insurance contract that relieved Aetna of its payment obligation under the policy. The Cappellos neither sought an articulation under Practice Book § 4051 nor took an appeal from the judgment of the trial court.

On May 17, 1993, the Cappellos notified Aetna that they were willing to submit to an examination under oath at a mutually agreeable date and time. Aetna, however, informed the Cappellos that it did not intend to proceed with the examination in light of Judge Aurigemma’s determination that it had no payment obligation to Joe’s Pizza due to the Cappellos’ breach of the insurance contract.5 Thereafter, on July 28, 1993, Joe’s Pizza [867]*867brought this action, seeking payment under the policy for its losses from the fire, as well as interest and attorney’s fees. Aetna moved for summary judgment, claiming that the judgment rendered by Judge Aurigemma in its favor in Cappello v. Aetna Life & Casualty Co., supra, barred this action under principles of res judicata. The trial court, Hale, J., granted Aetna’s motion without opinion,6 and this appeal followed.7

On appeal, Joe’s Pizza makes two claims. First, it contends that it is not bound by the summary judgment rendered by Judge Aurigemma in Cappello v. Aetna Life & Casualty Co., supra, because it was not a party to that action. Second, it claims that the summary judgment rendered in that case does not bar it from proceeding with this action because Judge Aurigemma improperly exceeded the scope of the Cappellos’ declaratory judgment action in concluding that the Cappellos’ refusal to answer questions under oath relieved Aetna of any liability under the policy.8 We reject both of these arguments and conclude that principles of res judicata [868]*868bar Joe’s Pizza from relitigating the breach of contract issue decided by Judge Aurigemma.9

I

Joe’s Pizza first claims that this action is not barred by the summary judgment rendered in Cappello v. Aetna Life & Casualty Co., supra, because it was not a party to that litigation.10 Aetna, on the other hand, contends that Joe’s Pizza is bound by the judgment rendered therein because the Cappellos, as the owners, operators and sole shareholders of Joe’s Pizza, are in privity with Joe’s Pizza for purposes of res judicata. We agree with Aetna.

“While it is commonly recognized that privity is difficult to define, the concept exists to ensure that the interests of the party against whom collateral estoppel [or res judicata] is being asserted have been adequately represented because of his purported privity with a party at the initial proceeding. ... A key consideration in determining the existence of privity is the sharing of the same legal right by the parties allegedly in privity.” (Citation omitted; internal quotation marks omitted.) Aetna Casualty & Surety Co. v. Jones, 220 Conn. 285, 304, 596 A.2d 414 (1991). “Although ‘there is no bright line rule as to whether or not [corporate officers or] shareholders are in privity with their corporation for res judicata purposes’; Amalgamated Sugar Co. v. NL [869]*869Industries, Inc., 825 F.2d 634, 640 (2d Cir.), cert. denied, 484 U.S. 992, 108 S. Ct. 511, 98 L. Ed. 2d 511 (1987); the Restatement (Second) of Judgments provides useful guidance.” Commissioner of Environmental Protection v. Connecticut Building Wrecking Co., 227 Conn. 175, 194, 629 A.2d 1116 (1993).

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Cite This Page — Counsel Stack

Bluebook (online)
675 A.2d 441, 236 Conn. 863, 1996 Conn. LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joes-pizza-inc-v-aetna-life-casualty-co-conn-1996.