LeBlanc v. New England Raceway, LLC

976 A.2d 750, 116 Conn. App. 267, 2009 Conn. App. LEXIS 350
CourtConnecticut Appellate Court
DecidedAugust 4, 2009
DocketAC 29724
StatusPublished
Cited by20 cases

This text of 976 A.2d 750 (LeBlanc v. New England Raceway, LLC) 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
LeBlanc v. New England Raceway, LLC, 976 A.2d 750, 116 Conn. App. 267, 2009 Conn. App. LEXIS 350 (Colo. Ct. App. 2009).

Opinion

Opinion

DiPENTIMA, J.

This contract dispute stems from an unsuccessful attempt to convert a dog racing track into *269 a NASCAR 1 racetrack in Plainfield. The plaintiffs, Jeffrey J. LeBlanc and Diane M. LeBlanc, appeal from the judgment of the trial court rendered in favor of the defendants, New England Raceway, LLC, and its principal, Gene Arganese. On appeal, the plaintiffs claim that the court improperly (1) shifted the burden to them to prove that the defendants approved the changes made to the contract, (2) found that by signing a dual agency agreement the parties revoked the authority of the real estate agent to bind the defendants, (3) made or failed to make various findings of fact and (4) allowed the defendants to amend their answer to the plaintiffs’ complaint. We disagree with the plaintiffs and, accordingly, affirm the judgment of the trial court. 2

The court made the following findings of fact. In 2004, the defendants began to accumulate properties in the Plainfield area to acquire land for a proposed NASCAR raceway. The defendants approached the plaintiffs regarding the sale of their home, also located in Plainfield. The plaintiffs’ home had a fair market value of $295,000. On May 12, 2004, the parties entered into a purchase and sale agreement in which the defendants agreed to purchase the plaintiffs’ property. The contract was presented to the plaintiffs by real estate agent Sandra Com, who had a dual agency agreement with the plaintiffs and the defendants. At that time, the contract had been signed by Arganese and had listed a sale price of $834,750. The plaintiffs made three changes to the contract prior to signing it. First, they increased the purchase price to $894,700. This price reflected the *270 value of the property if the defendants obtained the zoning approvals necessary for building the proposed NASCAR racetrack. Com spoke with Arganese, who approved the change over the telephone. Com then initialed the change on the contract on Arganese’s behalf. Second, the plaintiffs added the phrase, “but no later than [December 31, 2005,” to paragraph ten of the contract, which then provided that the closing would take place “within 60 days of all [zoning] approvals, but no later than [Dec]ember 31, 3005.” (Emphasis added.) Finally, the plaintiffs added the phrase, “whichever is earlier,” to paragraph eleven of the contract, which then provided that the plaintiffs would convey marketable title “on or before the 31 [st] day of Dec[ember], 2005 or within 60 days of all [zoning] approvals, whichever is earlier.” (Emphasis added.) Com did not initial the last two changes, nor did she confer with Arganese regarding them.

The defendants were unable to obtain the necessary zoning approvals, and the sale did not take place. On May 10, 2006, the plaintiffs filed a four count amended complaint, alleging breach of contract and seeking specific performance. The plaintiffs also alleged that New England Raceway, LLC, is a mere shell and alter ego for Arganese and that it exists solely for his economic benefit. On October 17, 2006, the defendants filed an amended answer in which they admitted two of the plaintiffs’ allegations and asserted five special defenses. The defendants claimed that because they did not obtain the necessary zoning approvals, the plaintiffs could not enforce the contract. On September 7, 2007, the defendants filed a second amended answer in which they denied all of the plaintiffs’ allegations and again asserted five special defenses.

On March 4, 2008, after a court trial, the court rendered judgment in favor of the defendants. On March 17,2008, the plaintiffs filed a motion for reconsideration *271 and articulation. On March 24, 2008, the plaintiffs filed this appeal. Thereafter, the trial court denied the plaintiffs’ motion for reconsideration and articulation. 3

I

The plaintiffs first claim that the court improperly shifted the burden onto them to prove that Arganese, acting for the New England Raceway, LLC, approved the changes made to the May 12, 2004 contract. The plaintiffs argue that Arganese had a duty to read the contract in its entirety and that his knowledge of the contract is imputed to the defendants.

Whether a trial court applied the correct burden of proof is a question of law that we review de novo. Cadle Co. v. D’Addario, 268 Conn. 441, 455, 844 A.2d 836 (2004). It is well settled that the party seeking to establish the existence of an enforceable contract bears the burden of proving a meeting of the minds between the parties. Cheverie v. Ashcraft & Gerel, 65 Conn. App. 425, 439, 783 A.2d 474 (burden rests on plaintiff to prove meeting of minds to establish its version of claimed contract), cert. denied, 258 Conn. 932, 785 A.2d 228 (2001). Thus, the burden properly rested on the plaintiffs.

The plaintiffs rely on our Supreme Court’s decision in Pacelli Bros. Transportation, Inc. v. Pacelli, 189 Conn. 401, 456 A.2d 325 (1983), in support of their proposition that if Arganese did not read the contract or ask Com what it said, apart from the change in price, he therefore was satisfied with his knowledge of the contract’s terms and is deemed to have assumed the risk of a mistake as to those terms. In particular, the plaintiffs rely on the court’s recitation of the principle *272 that “[w]here a party realizes he has only limited information upon the subject of a contract, but treats that knowledge as sufficient in making the contract he is deemed to have assumed the risk of the mistake. 1 Restatement (Second), Contracts § 154 [1981].” Pacelli Bros. Transportation, Inc. v. Pacelli, supra, 408. A close reading of Pacelli Bros. Transportation, Inc., and an understanding of the context of the quoted language, however, defeat the plaintiffs’ argument.

In Pacelli Bros. Transportation, Inc., the plaintiffs entered into a settlement with the defendant regarding the defendant’s departure from the family business. Id., 403-406. The plaintiffs then learned that the defendant had misappropriated company funds, and they sought damages for fraud and unauthorized diversion of corporate assets. Id., 402, 406. The court concluded that the principle from the Restatement was inapplicable because the plaintiffs, who suspected the defendant of dishonesty but had no knowledge of his misappropriation of funds, were entitled to assume that the defendant was correctly maintaining the company’s finances. Id., 408-409.

That principle similarly is inapplicable in the present case. The court found that Com did not discuss the changes to the closing date with Arganese and that the plaintiffs failed to prove that Arganese approved those changes. Thus, it cannot be said that Arganese realized he had limited information regarding the subject of the contract and therefore had assumed the risk of mistake.

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Cite This Page — Counsel Stack

Bluebook (online)
976 A.2d 750, 116 Conn. App. 267, 2009 Conn. App. LEXIS 350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leblanc-v-new-england-raceway-llc-connappct-2009.