Neighborhood Builders, Inc. v. Town of Madison

986 A.2d 278, 294 Conn. 651, 2010 Conn. LEXIS 20
Supreme Court of Connecticut·Decided February 2, 2010·No. SC 18083·Published·Cited by 12 cases

Opinion

Opinion

ZARELLA, J.

The defendant, the town of Madison (town), appeals 1 from the order of the trial court granting the plaintiffs’ 2 motion for class certification in this action alleging violations of General Statutes §§ 7-130i 3 and 7-148, 4 article tenth of the Connecticut constitut *654 ion, 5 42 U.S.C. § 1983, 6 and the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq., 7 arising from the town’s “unlawful practices related to the collection, use, and allocation of [money] collected from the [plaintiffs and others similarly situated, under the mechanism of building permit fees.” 8 On appeal, the town initially claimed in its preliminary statement of the issues that the trial court improperly had granted the motion because the plaintiffs had failed to satisfy the applicable requirements for class certification in Practice Book § 9-7 9 and Practice Book (2007) § 9-8. 10 Thereafter, the trial court granted in part the *655 town’s motion to dismiss the complaint for lack of subject matter jurisdiction, leaving only the CUTPA claim intact.* 11 Following that decision, the town amended its preliminary statement of the issues and now claims that, because CUTPA does not apply to municipalities, it is entitled to judgment as a matter of law. The town also claims that, even if CUTPA applies to municipalities, the case should be remanded to the trial court for reconsideration of the class certification order in light of its dismissal of the non-CUTPA counts. The town finally claims that the trial court improperly applied the relevant standing and class action criteria when it granted class action status with respect to the CUTPA claim. The plaintiffs respond that the issue of whether a CUTPA claim may be alleged against a municipality is not before this court and thus cannot be reviewed. They also maintain that the trial court properly considered the CUTPA claim when it certified the class and that the court correctly applied the relevant standing and class action criteria. We affirm the trial court’s order granting class certification.

The following facts and procedural history are relevant to our resolution of this appeal. The named plaintiff, Neighborhood Builders, Inc., and four additional plaintiffs 12 filed a five count complaint on January 18, 2004. On January 21, 2005, they filed an amended com *656 plaint to include an additional plaintiff. On March 19, 2007, the plaintiffs filed a motion for class certification on behalf of all persons who are building permit holders, permit applicants, real property owners of record and permit payees. On May 16,2007, the town filed a motion for summary judgment, arguing, with respect to the CUTPA count, that CUTPA does not apply to municipalities and that, even if it does, the imposition of increased building permit fees is not a violation of CUTPA. The trial court heard arguments on the motion for class certification on June 5, 2007. On October 12, 2007, the court granted the motion as to “the entire complaint” and certified a class consisting of “entities that directly paid to the [town] the allegedly excessive building permit fees during the period of April 1, 2003, to the present.”

On October 25, 2007, the town appealed from the order granting class certification. On December 27, 2007, the town filed a motion to dismiss all counts of the plaintiffs’ amended complaint. The town argued, with respect to the CUTPA count, that the plaintiffs did not have standing because CUTPA does not provide for a private cause of action against a municipality. On May 14, 2008, the trial court granted the town’s motion to dismiss as to the first four counts but denied the motion as to the CUTPA count, explaining that, “[o]n the face of the statute, the plaintiffs have no issue with subject matter jurisdiction or standing.” The court did not hear arguments on, or decide, the town’s summary judgment motion. Thereafter, the town amended its statement of the issues on appeal to focus exclusively on the CUTPA count.

The standard for reviewing a class certification order is well established. “A trial court must undertake a rigorous analysis to determine whether the plaintiffs have borne the burden of demonstrating that the class certification requirements of Practice Book §§ 9-7 and *657 9-8 have been met. ... A trial court nonetheless has broad discretion in determining whether a suit should proceed as a class action. ... As long as the trial court has applied the proper legal standards in deciding whether to certify a class, its decision may ... be overturned [only] if it constitutes an abuse of discretion.” (Internal quotation marks omitted.) Artie’s Auto Body, Inc. v. Hartford Fire Ins. Co., 287 Conn. 208, 212-13, 947 A.2d 320 (2008). “[D]oubts regarding the propriety of class certification should be resolved in favor of certification.” (Internal quotation marks omitted.) Id., 213.

With respect to the governing legal principles, we have explained that, “[t]o prevail on a CUTPA claim, the plaintiffs must prove that (1) the defendant engaged in unfair or deceptive acts or practices in the conduct of any trade or commerce; General Statutes § 42-110b (a); 13 and (2) each class member claiming entitlement to relief under CUTPA has suffered an ascertainable loss of money or property as a result of the defendant’s acts or practices. General Statutes § 42-110g (a). 14 The ascertainable loss requirement is a threshold barrier [that] limits the class of persons who may bring a CUTPA action seeking either actual damages or equitable relief. . . . Thus, to be entitled to any relief under CUTPA, a plaintiff must first prove that he has suffered an ascertainable loss due to a CUTPA violation.” (Internal quotation marks omitted.) Artie’s Auto Body, Inc. v. Hartford Fire Ins. Co., supra, 287 Conn. 217-18.

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Neighborhood Builders, Inc. v. Town of Madison, 986 A.2d 278, 294 Conn. 651, 2010 Conn. LEXIS 20 (Colo. 2010).

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