Kent Literary Club of Wesleyan University v. Wesleyan University

CourtSupreme Court of Connecticut
DecidedMarch 5, 2021
DocketSC20226
StatusPublished

This text of Kent Literary Club of Wesleyan University v. Wesleyan University (Kent Literary Club of Wesleyan University v. Wesleyan University) 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
Kent Literary Club of Wesleyan University v. Wesleyan University, (Colo. 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. *********************************************** KENT LITERARY CLUB OF WESLEYAN UNIVERSITY AT MIDDLETOWN ET AL. v. WESLEYAN UNIVERSITY ET AL. (SC 20226) Robinson, C. J., and Palmer, McDonald, D’Auria, Mullins, Kahn and Ecker, Js.*

Syllabus

The plaintiffs, K Co., the owner of a certain fraternity house on the campus of Wesleyan University, the local chapter of the fraternity, and a member of the fraternity, sought, inter alia, injunctive relief and damages from the defendants, the university, its president, and its vice president for student affairs, in connection with the university’s decision to preclude the fraternity from allowing its members to reside in the fraternity house. Following the university’s announcement in 2014 that all residential fraternities on campus would be required to coeducate, and following a series of unsuccessful negotiations between the parties to establish a mutually agreeable coeducation plan, the university notified the plain- tiffs that fraternity members could no longer reside in or use the frater- nity house as of the 2015–2016 academic year. A Greek Organization Standards Agreement (agreement) between K Co. and the fraternity, on the one hand, and the university, on the other, which was a prerequisite to allowing the use of the fraternity house for residential purposes, permitted any party to terminate the relationship for any reason upon thirty days’ notice and required the fraternity to comply with and be bound by all university rules and policies, which the university could amend or modify at any time. In their action against the defendants, the plaintiffs alleged promissory estoppel, negligent misrepresentation, tortious interference with business expectancies, and violations of the Connecticut Unfair Trade Practices Act (CUTPA). Following a trial, the jury awarded K Co. damages. In addition, the trial court issued an injunction requiring that the university enter into a new agreement with K Co. and the fraternity, allow the housing of fraternity members in the fraternity house, and afford the fraternity three years in which to coeducate. Moreover, the trial court, pursuant to CUTPA, awarded the plaintiffs attorney’s fees and costs. The defendants appealed, raising various challenges to the trial court’s jury instructions, the sufficiency of the evidence with respect to both liability and damages, and the award of injunctive relief. Held: 1. The trial court improperly declined to instruct the jury, in accordance with the defendants’ request, that a party cannot prevail on a claim of promissory estoppel based on alleged promises that contradict the terms of a written contract, as the relationship between the parties was gov- erned by a written agreement that allowed the university to terminate its arrangement with the plaintiffs without cause upon thirty days’ notice and the plaintiffs’ claims revolved around the contention that the univer- sity wrongfully terminated its housing arrangement with them; neverthe- less, the trial court was not required to instruct the jury, in accordance with the defendants’ request, that the principle of promissory estoppel applies only when there is no enforceable contract between the parties, as the existence of a contract does not create an absolute bar to a promissory estoppel claim when that claim addresses aspects of the parties’ relationship that are collateral to the subject matter, and does not vary or contradict the terms, of the written agreement, and, because the plaintiffs arguably claimed that the university promised the fraternity that, if it took good faith steps to develop a viable coeducation plan, it could then allow members to reside in the fraternity house, the trial court should have instructed the jury that the plaintiffs’ promissory estoppel claim is cognizable but only insofar as the plaintiffs alleged that the university made promises or commitments that did not alter or contradict the terms of the agreement. 2. The trial court should have instructed the jury as to the legal implications of the parties’ agreement in connection with the plaintiffs’ CUTPA claim, and its failure to do so entitled the defendants to a new trial on that claim. 3. The plaintiffs, having expressly eschewed any claim that the university modified the parties’ agreement, waived any rights thereunder, or breached a provision of that agreement that requires consistent treat- ment of all residential fraternities on the university’s campus, had no legal grounds for contesting the university’s unilateral decision not to continue to allow the fraternity to house its members during the 2015– 2016 academic year, and, accordingly, the trial court improperly failed to instruct the jury that, in light of the parties’ agreement, the plaintiffs could not, as a matter of law, reasonably have relied on any perceived extracontractual promise or representation by the university that the fraternity could continue to house its members during that academic year and beyond. 4. This court having determined that any damages in connection with the plaintiffs’ claim for tortious interference with business expectancies should be assessed in terms of net profits, the trial court improperly failed to instruct the jury that it should have subtracted K Co.’s expenses of operating an occupied versus an unoccupied fraternity house from its anticipated lost revenue in order to calculate lost profits; because the most reasonable reading of the jury’s damages award was that the award included K Co.’s total anticipated lost revenues for the 2015–2016 academic year, without regard to any savings from expenses it did not incur, the trial court’s failure to properly instruct the jury as to the correct method of calculating tortious interference damages resulted in an improper award. 5. The trial court improperly failed to instruct the jury that the parties’ agreement limited the defendants’ potential exposure to only those losses that K Co. incurred before the termination of the agreement for the 2015–2016 academic year, as a defendant cannot be held liable for tortious interference of business expectancies merely for exercising its legitimate contractual rights, regardless of the motive therefor; more- over, damages, if any were incurred, were available to compensate K Co. for interference with its rights only under the parties’ agreement covering the 2014–2015 academic year, as K Co.

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Kent Literary Club of Wesleyan University v. Wesleyan University, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kent-literary-club-of-wesleyan-university-v-wesleyan-university-conn-2021.