Joseph General Contracting, Inc. v. Couto

144 Conn. App. 241
CourtConnecticut Appellate Court
DecidedJuly 23, 2013
DocketAC 34100; AC 34102
StatusPublished
Cited by3 cases

This text of 144 Conn. App. 241 (Joseph General Contracting, Inc. v. Couto) 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
Joseph General Contracting, Inc. v. Couto, 144 Conn. App. 241 (Colo. Ct. App. 2013).

Opinion

Opinion

PETERS, J.

These appeals arise out of consolidated actions in which the trial court rendered judgments holding a builder personally hable for breach of a construction contract and tortious conduct. The dispositive issue is whether the homeowners proved that the builder, in his individual capacity, had incurred contractual obligations to them and was personally hable for the damages that they sustained as a result of the builder’s nonperformance. We affirm the judgments of the trial court.

On June 27, 2007, the plaintiff in AC 34100, Joseph General Contracting, Inc. (Joseph General), filed two separate complaints against the defendants in AC 34100, John Couto and Jane Couto.1 The first action contained five counts and raised claims of breach of contract,2 [244]*244and the second action sought to foreclose a mechanic’s hen held by Joseph General on the Coutos’ property.3 The Coutos denied their liability and asserted various special defenses, including allegations that the owner and president of Joseph General, Anthony J. Silvestri, personally had induced them to enter into a contract through material misrepresentations, that its claims were barred by its own breach of contract and warranty, and that Joseph General had been fully paid for the work it completed in accordance with the contractual agreement.

The Coutos also filed a six count counterclaim against Joseph General, alleging violation of General Statutes § 47-200 et seq., the Common Interest Ownership Act, breach of contract, fraud, breach of implied warranty, trespass and violation of General Statutes § 42-110b et seq., the Connecticut Unfair Trade Practices Act (CUTPA). Subsequently, the Coutos, in AC 34102, commenced a separate action on February 6, 2009, against Silvestri, the sole owner and shareholder of Joseph General, and Landel Realty, LLC (Landel), of which Silvestri is also the sole owner. That action incorporated the allegations of the Coutos’ counterclaim, in addition to alleging intentional infliction of emotional distress and seeking declaratory relief pursuant to the Common Interest Ownership Act.4 A consolidated trial5 of the [245]*245pending actions filed against the Coutos, Joseph General, Landel and Silvestri was held before the court on May 17 to 31, 2011.

After trial, the court rendered judgment in favor of Joseph General, Landel, and Silvestri as to the Coutos’ claims of fraud, violation of the Common Interest Ownership Act and intentional infliction of emotional distress.6 The court rendered judgment in favor of the Coutos as to all other counts, holding Joseph General, Landel and Silvestri each jointly and severally hable for breach of contract and implied warranty, trespass and violation of CUTPA, awarding a total of approximately $573,659 in damages.7 On appeal, Silvestri challenges the propriety of these adverse rulings with respect to his personal Lability.8

In view of the evidence presented in the consolidated trial of these actions, the court reasonably could have found the following facts. In 2006, the Coutos entered into a written contract with Joseph General for the purchase and construction of a home and carriage house to be built on a piece of property in the Admiral Cove subdivision in Stonington (lot 5), for the price of $1,980,000. The carriage house was intended for use [246]*246as a separate dwelling for the Coutos’ special needs daughter, a purpose of which Silvestri was aware. At the time the contract was signed, Silvestri assured the Coutos that if they did not like the home and the carriage house, they would not be obligated to buy lot 5 or the completed dwellings. Although the contract terms were vague, they specified that the new home was to be of like kind and quality, and built with the same materials as used in a model home also located in Admiral Cove, which previously had been constructed by Joseph General, Landel and Silvestri, collectively. The architect who designed the model house was also to design the two dwellings on lot 5 for the Coutos. Silvestri knew, however, that the zoning requirements regulating Admiral Cove contained a single-family dwelling restriction applicable to each of the lots in the development.9 At the time they signed the contract, the Coutos were unaware of this zoning restriction.

Although the original contract for the development of the new home and carriage house was executed between the Coutos and Joseph General, the parties also proceeded to negotiate additional oral agreements to supplement its terms.10 These subsequent modifications essentially replaced the prior written contract, and were negotiated individually with Silvestri. The trial court apparently found credible the testimony of the Coutos that, throughout the continued construction process, they were confused as to whom they were [247]*247dealing with. The Coutos also entered into a written agreement to deliver funds to escrow in payment for a security card system, docking installation, docking permits and estate paving, as well as a second written contract relating to a construction loan obtained by the Coutos. Both of these agreements were signed by Silvestri, individually, and on behalf of Landel. In light of this evidence presented at trial, the trial court determined that a contract existed not only between Joseph General and the Coutos, but also between the Coutos, Landel and Silvestri.

The evidence at trial showed that, as the construction process continued, Silvestri had financial difficulties in performing his obligations. The Chelsea Groton Savings Bank declined to provide financing because the bank did not believe that extending further funds to Silvestri was prudent. Silvestri represented to the Coutos that the reason for the bank’s refusal to finance the project was that the Coutos were reserving their right to decline to buy the property until after the two buildings had been constructed. He misinformed the Coutos that, regardless of the express terms of their contract, they were likely to lose their deposits under the contract if they did not pay for the construction upfront. So threatened, the Coutos acquiesced and agreed to purchase lot 5 from Landel, giving up their contractual right to reject the construction development in its entirety if it was not completed to their satisfaction. The Coutos paid a total of $880,000 to purchase lot 5 from Landel and to have Silvestri and Joseph General complete the construction of their new home and carriage house. The Coutos also obtained a construction loan from the Chelsea Groton Savings Bank to help finance the construction. A new agreement incorporating these modifications was drafted by the Coutos and Joseph General, but was never signed by either party.

[248]*248After the Coutos’ payment of the purchase price for lot 5 and the construction of the two contemplated dwellings, work pursuant to the contract began, but not without further setbacks. First, Silvestri informed the Coutos that the agreed upon architect was no longer available, and that he would have to substitute a different designer. The first design of the primary dwelling produced by the substitute architect was larger than the design previously agreed to, and Silvestri instructed him to reduce its size.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

One Eighty-Five Stagg Associates v. Linwood Avenue III, LLC
232 Conn. App. 520 (Connecticut Appellate Court, 2025)
Joseph General Contracting, Inc. v. Couto
Supreme Court of Connecticut, 2015
Brown v. State Farm Fire & Casualty Co.
Connecticut Appellate Court, 2014

Cite This Page — Counsel Stack

Bluebook (online)
144 Conn. App. 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-general-contracting-inc-v-couto-connappct-2013.