Pavonix (Massachusetts), Inc. v. State of Connecticut, Judicial Branch

Connecticut Appellate Court·Decided August 25, 2026·No. AC48506·Published

Opinion

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PAVONIX (MASSACHUSETTS), INC. v. STATE OF CONNECTICUT, JUDICIAL BRANCH (AC 48506)

Moll, Wilson and Harper, Js.

Syllabus

The plaintiff appealed from the trial court’s judgment denying its motion to compel arbitration and to stay litigation and granting the defendant’s motion to permanently enjoin arbitration. The plaintiff claimed that the court improperly determined that, notwithstanding the permission the plaintiff had received from the claims commissioner to bring an action against the defendant, sovereign immunity barred the plaintiff from pursuing its claims against the defendant by way of private arbitration rather than by way of litigation in the Superior Court. Held:

This court concluded that it had subject matter jurisdiction to consider all of the plaintiff’s claims on appeal directed to the trial court’s order simultaneously denying its motion to compel arbitration and to stay litigation and granting the defendant’s motion to permanently enjoin arbitration, as the granting of a permanent injunction constitutes an appealable final judgment and the court’s rulings on both motions were inextricably intertwined, the motions having been based on the same facts and the court having addressed the motions together and relied on the same rationale to deny the plaintiff’s motion and to grant the defendant’s motion.

The trial court properly determined that the doctrine of sovereign immunity barred arbitration in this case, as the plain and unambiguous language of the statute (§ 4-160) under which the plaintiff received permission from the claims commissioner to sue the state does not authorize a waiver of the state’s sovereign immunity from private arbitration and this court could not, by judicial construction, read into statutes provisions that were not clearly stated.

Argued February 10—officially released August 25, 2026

Procedural History

Action to recover damages for, inter alia, breach of contract, and for other relief, brought to the Superior Court in the judicial district of Hartford, where the plaintiff filed a motion to compel arbitration and to stay litigation; thereafter, the defendant filed a motion for an order permanently enjoining arbitration ; subsequently, the court, Klau, J., rendered judgment granting the defendant’s motion for an order permanently enjoining arbitration and denying the plaintiff’s motion to compel arbitration and to stay litigation , from which the plaintiff appealed to this court; thereafter, this court denied the defendant’s motion to dismiss this appeal. Affirmed.

Benjamin B. Watson, pro hac vice, with whom were Kenneth J. Krayeske and, on the brief, Jonathan R. Chally, pro hac vice, and Katherine L. D’Ambrosio, pro hac vice, for the appellant (plaintiff).

Thadius Bochain, assistant attorney general, with whom were Emily Gait, assistant attorney general, and, on the brief, William Tong, attorney general, for the appellee (defendant).

Opinion

HARPER, J. The plaintiff, Pavonix (Massachusetts), Inc., formerly known as Softscape, Inc., appeals from the judgment of the trial court denying its motion to compel arbitration and to stay litigation and simultaneously granting the motion filed by the defendant, the State of Connecticut, Judicial Branch,1 to permanently enjoin arbitration. On appeal, the plaintiff claims that the court, Klau, J., improperly determined that, notwithstanding the permission the plaintiff received from the claims commissioner to bring an action against the defendant, sovereign immunity barred the plaintiff from pursuing its claims against the defendant by way of private arbitration rather than by way of litigation in the Superior Court. We affirm the judgment of the trial court.

The following undisputed facts and procedural history are relevant to the resolution of this appeal. The plaintiff is a technology company that designs and installs web based software products. On November 19, 1999, the defendant issued a written request for proposal (RFP) for the development and delivery of a new case management 1 The Judicial Branch is a department of the state of Connecticut. See Conn. Const., art. II (“[t]he powers of government shall be divided into three distinct departments, and each of them confided to a separate magistracy, to wit, those which are legislative, to one; those which are executive, to another; and those which are judicial, to another”).

system for its Court Support Services Division. The RFP listed certain terms and conditions that the defendant expected to be included in any resulting contract, including a “[s]ettlement of [c]laims” condition that specified that “[a]ny controversy or claim arising out of, or relating to this contract, or the breach thereof, shall be settled by Arbitration in accordance with the rules of The American Arbitration Association then in effect.”

The plaintiff submitted a response to the RFP on February 1, 2000. In that response, the plaintiff expressly agreed with the arbitration provision set forth in the “[s]ettlement of [c]laims” condition included in the RFP. Thereafter, the defendant selected the plaintiff for the job and the plaintiff “began work implementing, configuring , and customizing its state-of-the-art relational enterprise software application database for the [defendant ], referred to as the Case Management Information System or ‘CMIS.’ ”

The plaintiff did so in accordance with a Software Development and License Agreement (agreement) the parties entered into on June 20, 2000. The agreement delineated the parties’ respective rights and obligations with respect to the program the plaintiff was implementing and developing for the defendant (licensed program). It also incorporated by reference the arbitration provision from the “[s]ettlement of [c]laims” condition listed in the RFP and further stated that “ANY CLAIM UNDER THIS AGREEMENT MUST BE FILED WITH AN ARBITRA- TOR WITHIN ONE (1) YEAR FROM THE ACCRUAL OF THE CLAIM.” Moreover, the agreement specified that the defendant “is unable to waive [its] [s]overeign immunity in any form.”

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