Starboard Resources, Inc. v. Henry

196 Conn. App. 80
CourtConnecticut Appellate Court
DecidedFebruary 25, 2020
DocketAC41922
StatusPublished
Cited by2 cases

This text of 196 Conn. App. 80 (Starboard Resources, Inc. v. Henry) 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
Starboard Resources, Inc. v. Henry, 196 Conn. App. 80 (Colo. Ct. App. 2020).

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. *********************************************** STARBOARD RESOURCES, INC. v. CHARLES HENRY III ET AL. (AC 41922) Lavine, Prescott and Moll, Js.

Syllabus

The plaintiff sought an interlocutory judgment of interpleader to determine the rights of the defendants, certain individuals and companies (Group I defendants, Group H defendants and Group S defendants), to certain shares of the plaintiff’s common stock. The Group H defendants had commenced two actions, which were consolidated with the interpleader action, against the Group I defendants and the plaintiff, claiming, inter alia, fraud and breach of fiduciary duty, and seeking injunctive relief and monetary damages in connection with the investment by the Group H defendants in three limited liability partnerships. Thereafter, the Group H defendants’ actions were referred to an arbitrator, who issued an award in favor of the Group H defendants, which the trial court con- firmed. Subsequently, in the interpleader action, the Group H defendants filed a motion for an interlocutory judgment of interpleader, asserting that, pursuant to the arbitration award, they were the rightful owners of the disputed shares of stock. The Group H defendants also filed a motion to remand in which they requested that, if the trial court found that the arbitration award was ambiguous as to the ownership of the shares, the court remand the matter to the arbitrator for clarification regarding that issue. The defendant G Co. thereafter file a motion to dismiss the interpleader action on the ground that it was moot. Following a hearing, the trial court denied G Co.’s motion to dismiss, granted the Group H defendants’ motions to remand and for an interlocutory judgment of interpleader, and rendered judgment thereon. On the Group I defendants’ appeal to this court, held: 1. The Group I defendants’ claim that the trial court lacked subject matter jurisdiction over the interpleader action on the ground that the plaintiff lacked standing because its transfer agent, who was not a party to the action, allegedly was holding the subject shares on behalf of the plaintiff was unavailing; there was no appellate authority that supported the proposition that an interpleader action is jurisdictionally defective if the property at issue is held by a nonparty transfer agent of a named party. 2. The Group I defendants’ could not prevail on their claims that the trial court improperly denied G Co.’s motion to dismiss and improperly ren- dered the interlocutory judgment of interpleader; although the Group I defendants asserted that the interpleader action was moot because the Group S defendants did not have a viable adverse claim to the subject shares, it was premature, at the current stage of the proceedings, for this court to consider the merits of any of the parties’ purportedly adverse claims to the shares. 3. The trial court properly granted the Group H defendants’ motion to remand the matter to the arbitrator: contrary to the Group I defendants’ claim that by remanding the matter to the arbitrator, that court improperly opened and vacated the arbitration award, the court properly exercised its authority to remand the matter to the arbitrator to clarify the arbitra- tion award as to the ownership of the subject shares; moreover, the court did not violate the doctrine of functus officio, as the varying positions of the Group I defendants and Group S defendants regarding whether the arbitrator had determined the ownership of the shares demonstrated that the arbitration award was susceptible to more than one reasonable interpretation. Argued October 18, 2019—officially released February 25, 2020

Procedural History

Action for interpleader to determine the defendants’ rights to certain shares of common stock of the plaintiff, and for other relief, brought to the Superior Court in the judicial district of Stamford-Norwalk and transferred to the Complex Litigation Docket, where the court, Genuario, J., granted the motion to stay the proceed- ings pending arbitration filed by the defendant Gregory Imbruce et al.; thereafter, the court, Lee, J., denied the motion to dismiss filed by the defendant Giddings Investments, LLC, granted the motion to remand the matter to the arbitrator filed by the defendant Charles Henry III et al., granted the motion for an interlocutory judgment of interpleader filed by the defendant Charles Henry III et al. and rendered judgment thereon, from which the defendant Gregory Imbruce et al. appealed to this court. Affirmed. Richard S. Gora, with whom, on the brief, was Nicole O’Neil, for the appellants (defendant Gregory Imbruce et al.). David W. Rubin, with whom, on the brief, was Jona- than D. Jacobson, for the appellees (Bradford Higgins et al.). Opinion

MOLL, J. In this interpleader action, the Imbruce par- ties1 appeal from the trial court’s interlocutory judgment of interpleader. On appeal, the Imbruce parties claim that the trial court (1) does not have subject matter jurisdiction over this interpleader action because the plaintiff, Starboard Resources, Inc., lacks standing, (2) erroneously denied the defendant Giddings Invest- ments, LLC’s motion to dismiss this interpleader action as moot, (3) improperly rendered the interlocutory judg- ment of interpleader, and (4) erroneously granted a motion to remand the matter to the arbitrator who had entered an award in an arbitration involving the Imbruce parties and the SOSventures parties.2 We affirm the judgment of the trial court. The following facts, as found by the trial court, Gen- uario, J., in a memorandum of decision dated April 11, 2016, as set forth by this court in a prior appeal, and/ or as undisputed in the record, and procedural history are relevant to our resolution of this appeal. This inter- pleader action ‘‘arise[s] out of the . . . investment [by Charles Henry III, Ahmed Ammar, John P. Vaile, John Paul Otieno, William Mahoney, Giddings Oil & Gas, L.P., Hunton Oil Partners, L.P., ASYM Energy Fund III, L.P., SOSventures, LLC, Bradford Higgins, Edward M. Con- rads, and Robert J. Conrads (Henry parties)]3 in three limited partnerships: Giddings Oil & Gas, L.P. (Giddings, L.P.), Hunton Oil Partners, L.P. (Hunton, L.P.), and ASYM Energy Fund III, L.P. (ASYM, L.P.). [The Henry parties] are investors and limited partners in each of these limited partnerships. Each of the limited partner- ships had a general partner [that] is a limited liability company: Giddings Genpar, LLC (Giddings Genpar), Hunton Oil Genpar, LLC (Hunton Genpar), and ASYM [Capital] III, LLC (ASYM Genpar), respectively.

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Bluebook (online)
196 Conn. App. 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/starboard-resources-inc-v-henry-connappct-2020.