Pointe Residential Builders BH, LLC v. TMP Construction Group, LLC

213 Conn. App. 445
CourtConnecticut Appellate Court
DecidedJune 28, 2022
DocketAC44063
StatusPublished
Cited by7 cases

This text of 213 Conn. App. 445 (Pointe Residential Builders BH, LLC v. TMP Construction Group, 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
Pointe Residential Builders BH, LLC v. TMP Construction Group, LLC, 213 Conn. App. 445 (Colo. Ct. App. 2022).

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. *********************************************** POINTE RESIDENTIAL BUILDERS BH, LLC v. TMP CONSTRUCTION GROUP, LLC, ET AL. (AC 44063) Alvord, Prescott and Clark, Js.

Syllabus

The plaintiff general contractor sought to recover damages for, inter alia, an alleged violation of the Connecticut Unfair Trade Practices Act (CUTPA) (§ 42-110a et seq.), in connection with a breach of contract claim between the plaintiff and the defendants, a subcontractor, T Co., and its manager, P. Under the contract, T Co. was to perform certain work on a construc- tion project to build a condominium complex at a fixed sum. Although the contract called for payment upon delivery for furnished materials and equipment, the defendants convinced the plaintiff to pay a 30 percent deposit for all of the estimated costs of materials and equipment up front, claiming that the deposit would be used to buy materials ahead of time to avoid an anticipated price increase and to avoid delivery delays. Unknown to the plaintiff, the defendants did not intend to use these funds as promised but, instead, intended to use the funds to finance its payroll and work on other projects. When the invoices for supplies remained unpaid by the defendants, a mechanic’s lien was placed on the property and, thereafter, the plaintiff terminated the contract. The trial court concluded that the defendants breached the contract, inter alia, in failing to perform the work and to pay for materials, equipment and labor used, and that the defendants were unjustly enriched. It also found the defendants’ conduct was deceptive, unethical and unscrupu- lous and constituted an unfair and deceptive business practice in viola- tion of CUTPA. On the defendants’ appeal to this court, held: 1. Contrary to the defendants’ claims, there was sufficient evidence of inten- tional, reckless, unethical and unscrupulous conduct by both defendants to establish a violation of CUTPA: the record supported a finding that P, as the manager and controlling member of T Co., knowingly or recklessly engaged in the unscrupulous acts, because he personally represented to the plaintiff that the deposit would be used for materials, labor, and overhead for the plaintiff’s project, and P controlled how the deposit was ultimately spent; moreover, the court’s finding of ascertainable loss was not clearly erroneous, as the court expressly found that, although the plaintiff deposited a certain sum of money, the plaintiff only received value in completed work in an amount less than the deposit and, accord- ingly, there was little question that the difference between the money paid and the value received constituted an ascertainable loss for the purposes of CUTPA. 2. The court did not abuse its discretion in awarding the plaintiff punitive damages, as the evidence sufficiently supported the court’s findings that the defendants’ false representations to the plaintiff that the deposit would be used to purchase materials and rent equipment was intentional, deceptive, unethical, and unscrupulous and that the defendants fully intended to use the deposit to fulfill obligations under other projects unrelated to the plaintiff’s project; moreover, the record also supported the court’s finding that it was known to P that T Co. was in a shaky financial condition when it convinced the plaintiff to pay the deposit and, thus, these findings supported the court’s conclusion that the defendants acted with reckless indifference to the plaintiff’s rights; furthermore, the court did not abuse its discretion in awarding attorney’s fees to the plaintiff, as the court properly found that the defendants violated CUTPA. Argued November 17, 2021—officially released June 28, 2022

Procedural History

Action to recover damages for, inter alia, a violation of the Connecticut Unfair Trade Practices Act, brought to the Superior Court in the judicial district of Stamford- Norwalk and tried to the court, Hon. Edward T. Kru- meich II, judge trial referee; judgment for the plaintiff, from which the defendants appealed to this court; there- after, the court, Hon. Edward T. Krumeich II, judge trial referee, awarded attorney’s fees and costs to the plaintiff, and the defendants filed an amended appeal. Affirmed. James Colin Mulholland, for the appellants (defen- dants). Opinion

CLARK, J. This appeal arises out of a contract for the construction of a condominium complex in Greenwich. The defendants, TMP Construction Group, LLC (TMP), and Olin Paige III, appeal from the judgment of the trial court, rendered in favor of the plaintiff, Pointe Residential Builders BH, LLC,1 following a trial to the court. On appeal, the defendants claim that the court erred by rendering judgment for the plaintiff with respect to the plaintiff’s count alleging a violation of the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq., and the plaintiff’s count alleging unjust enrichment. We conclude that the court did not improperly render judgment on the plain- tiff’s CUTPA claim. In light of this conclusion, we need not address the defendants’ claims pertaining to the unjust enrichment claim.2 Accordingly, the judgment of the trial court is affirmed. The following procedural history and facts, as found by the trial court, are relevant to this appeal. In a three count complaint dated June 1, 2018, the plaintiff alleged that the defendants breached a construction contract between the parties, that the defendants were unjustly enriched, and that they violated CUTPA. Following a trial to the court, the court issued a memorandum of decision on February 18, 2020. The court found that the plaintiff, as general contractor, entered into a con- struction contract with TMP, as subcontractor, dated December 8, 2016 (contract), in relation to the construc- tion of a condominium complex in Greenwich (project). At the time, Paige was the manager and controlling member of TMP. Under the contract, TMP was to per- form certain work on the project at a fixed contract sum of $1,071,500. Although the contract called for payment upon delivery for furnished materials and equipment stored on-site, TMP convinced the plaintiff to pay an upfront 30 percent deposit for all of the estimated costs of materials and equipment by representing that those funds would be used to buy the materials ahead of time to avoid an anticipated 20 percent price increase on drywall and to avoid delays on the delivery of material needed for the first few weeks on the job. Relying on these representations, the plaintiff paid TMP $305,377.50 on December 13, 2016, which had been requisitioned by TMP for ‘‘material procurement’’.

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Bluebook (online)
213 Conn. App. 445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pointe-residential-builders-bh-llc-v-tmp-construction-group-llc-connappct-2022.