Konover Development Corporation v. Zeller, No. 053231 (Aug. 18, 1992)

1992 Conn. Super. Ct. 7806
CourtConnecticut Superior Court
DecidedAugust 18, 1992
DocketNo. 053231
StatusUnpublished

This text of 1992 Conn. Super. Ct. 7806 (Konover Development Corporation v. Zeller, No. 053231 (Aug. 18, 1992)) is published on Counsel Stack Legal Research, covering Connecticut Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Konover Development Corporation v. Zeller, No. 053231 (Aug. 18, 1992), 1992 Conn. Super. Ct. 7806 (Colo. Ct. App. 1992).

Opinion

[EDITOR'S NOTE: This case is unpublished as indicated by the issuing court.] MEMORANDUM OF DECISION RE: INTEREST The plaintiff Konover Development Corporation commenced this action by writ, summons and complaint dated September 18, 1990, filed September 19, 1990, and bearing a return date of October 2, 1990 against the defendant A. James Zeller. Pursuant to the provisions of Connecticut General Statutes Section 52-192, the plaintiff filed an offer of judgment on March 5, 1992, in the amount of one million ($1,000,000.00) dollars, which offer the defendant failed to accept. Subsequently, the jury returned a verdict for the plaintiff on June 24, 1992, in the amount of $1,052,663.67. The jury also awarded statutory interest pursuant to the provisions of General Statutes Section 37-3a. That interest ran from February 22, 1990, the date the parties stipulated CT Page 7807 was appropriate.

In Connecticut, a plaintiff is entitled to prejudgment interest "on the entire award, that is, the `amount recovered.'" Gillis v. Gillis, 21 Conn. App. 549,556, cert. denied, 215 Conn. 815, 576 A.2d 544, (1990). In Gillis, the Appellate Court found plain error because the trial court did not compete prejudgment interest on the Section 37-3a interest in arriving at the amount "recovered".

Although this is not raised as an issue on cross appeal, we find that, based upon the statutory language of Section 52-192a, it was plain error for the trial court to compute interest only on a portion of the award. See Practice Book Section 4185. `The plain language of General Statutes Section 52-192a specifies that the court shall add to the amount so recovered twelve percent annual interest on said amount. . . .' Edward Denike Tree Co., v. Butler, 21 Conn. App. 366, 573 A.2d 349 (1990). The trial court clearly did not act in accordance with the mandate of Section 52-192a when it awarded interest only on the damages portion of the award.

Id., 566.

The amount the plaintiff recovered in this action was $1,052,663.67 plus interest pursuant to General Statutes Section 37-3a. That statute provides in pertinent part:

Rate Recoverable as Damages. Except as provided in sections 37-3b and 52-192a, interest at the rate of ten percent a year, and no more, may be recovered and allowed in civil actions or arbitration proceedings under chapter 909, including actions to recover money loaned at a greater rate, as damages for the detention of money after it becomes payable except as otherwise provided with respect to demand obligations in section 42a-3-122 (4)(a).

General Statutes Section 37-3a.

According to General Statutes Section 37-3a, the plaintiff is entitled to ten percent (10%) interest on the verdict ($1,052,633.67) from February 22, 1990, the date the money became due, until June 24, 1992, (845 days) when the jury entered its verdict. Thus, the computed amount recovered by the plaintiff is $1,296,362.52.1 CT Page 7808

The plaintiff is also entitled to twelve percent (12%) interest on the amount recovered ($1,296,362.52) pursuant to the provisions of General Statutes Section52-192a, which statute provides in pertinent part:

(b) After trial the court shall examine the record to determine whether the plaintiff made an `offer of judgment' which the defendant failed to accept. If the court ascertains from the record that the plaintiff has recovered an amount equal to or greater than the sum certain stated in his `offer of judgment', the court shall add to the amount so recovered twelve per cent annual interest on said amount, competed from the date such offer was filed in actions commenced before October 1, 1981. In those actions commenced on or after October 1, 1981, the interest shall be computed from the date the complaint in the civil action was filed with the court if the `offer of judgment' was filed not later than eighteen months from the filing of such complaint. . . .

General Statutes Section 52-192a.

The plaintiff filed its offer of judgment in the amount of one million ($1,000,000.00) dollars on March 5, 1992, within eighteen months from September 19, 1990, the date upon which the action was filed, and the defendant failed to accept it. Therefore, the total amount the plaintiff is due is twelve percent (12%) interest on the amount recovered ($1,296,362.52) from September 19, 1990 to June 24, 1992, (645 days) which total amount is $1,571,262.42.2

Under Gillis, the plaintiff is entitled to both awards of interest because the two statutes are separate and distinct statutes, to be applied separately. Whereas interest awarded pursuant to General Statutes Section 37-3a is part of the damages recoverable for the detention of money, the award of interest pursuant to General Statutes Section 52-192a(b) is:

[P]unitive in nature, and it is meant to serve the purpose of promoting `fair and reasonable compromise of litigation without trial. . .' This interest is mandated when the amount recovered is greater than or equal to the offer of judgment; and that amount can include interest and attorney's fees; as well as double or treble damages. (Citations omitted.) CT Page 7809

Gillis, supra, 554.

Based upon the authorities cited, the plaintiff is entitled to interest in accordance with the computation set forth and therefore the total judgment is found to be $1,571,262.42 plus costs.

PICKETT, J. MEMORANDUM RE: MOTION TO SET ASIDE VERDICT (#117)

The defendant, A. James Zeller, has moved to set aside a verdict in favor of the plaintiff, Konover Development Corporation in the amount of $1,052,663.67 with interest from February 22, 1990. The defendant claims that the verdict is contrary to law, against the evidence and excessive.

On April 2, 1986 the plaintiff, Alan Temkin and the defendant entered into a limited partnership agreement under the name of Torringford Commercial Associates Limited Partnership for the purpose "to purchase, own, construct, repair, alter, lease, finance, refinance, sell and otherwise develop, manage and operate a certain piece or parcel of land together with all present and future improvements thereon and appurtenances thereto situated in the City of Torrington. . ." Konover was named as the general partner with Temkin a 29% limited partner and Zeller a 21% limited partner. The agreement provided in part 2. Expenses Prior to Property Acquisition:

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Bluebook (online)
1992 Conn. Super. Ct. 7806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/konover-development-corporation-v-zeller-no-053231-aug-18-1992-connsuperct-1992.