State v. Bacon Construction Co.

Connecticut Appellate Court·Decided September 22, 2015·No. AC36829·Published

Opinion

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STATE OF CONNECTICUT v. BACON CONSTRUCTION COMPANY,

INC., ET AL. (AC 36829) Beach, Sheldon and Bear, Js.

Argued March 17—officially released September 22, 2015

(Appeal from Superior Court, judicial district of Waterbury, Complex Litigation Docket, Dooley, J.) Jared Cohane, with whom were Timothy T. Corey and, on the brief, Peter J. Martin, for the appellant (named defendant).

Charles D. Ray, with whom were Benjamin F. Elliott and, on the brief, Thomas J. Finn and John J. Robinson, for the appellee (plaintiff).

Opinion

SHELDON, J. The named defendant, Bacon Construction Company, Inc.,1 appeals from the trial court’s denial of its motion for summary judgment, in which it argued that the claims herein asserted by the plaintiff, the state of Connecticut, are all barred by the doctrines of res judicata and collateral estoppel2 because such claims were or could have been made and decided in an earlier arbitration proceeding initiated by the defendant pursuant to General Statutes § 4-61.3 We affirm the judgment of the trial court.

This action arises out of a contract between the plaintiff and the defendant for the construction of the York Correctional Institution in Niantic. After completion of its work under the contract, the defendant filed a demand for arbitration, in which it sought money damages against the plaintiff for alleged breach of contract. The arbitrator ruled in favor of the defendant, and thus awarded it damages as requested. That award was later confirmed by the Superior Court and upheld by our Supreme Court on the plaintiff’s appeal from the Superior Court’s judgment confirming the award. See Bacon Construction Co. v. Dept. of Public Works, 294 Conn. 695, 987 A.2d 348 (2010).

The plaintiff thereafter brought the present action in the Superior Court. This action arises out of the same contract that was the subject of the previous arbitration proceeding, and is based on allegations that the defendant was negligent and breached its contract with the plaintiff in performing its work at the York Correctional Institution. At the outset of this action, the plaintiff filed an application for a prejudgment remedy against the defendant, seeking various forms of relief. In its objection to that application, the defendant asserted, inter alia, that, in light of the arbitrator’s determination that the defendant had performed all of its obligations under the contract, the plaintiff’s claims were all barred by the doctrines of res judicata and collateral estoppel. In a memorandum of decision dated December 16, 2008, which we will discuss more fully in this opinion, the trial court rejected the defendant’s claims of res judicata and collateral estoppel, and thus overruled the defendant ’s objection.4 The defendant thereafter filed a motion for summary judgment, wherein it once again alleged, inter alia, that the plaintiff’s claims were all barred by the doctrines of res judicata and collateral estoppel, and thus that the defendant was entitled to judgment on those claims as a matter of law. On January 21, 2014, the court denied the defendant’s motion for summary judgment. The court explained, in so ruling, that it had ‘‘reviewed the records from the arbitration proceeding and all of the exhibits upon which the parties rel[ied] in their respective submissions,’’ and found that the issues raised in the motion for summary judgment ‘‘were correctly decided’’ by the court when, on December 16, 2008, it overruled the defendant’s objection to the plaintiff’s application for a prejudgment remedy.5 The court concluded : ‘‘No useful purpose would be served by a reiteration of the law and analysis set forth in [the December 16, 2008] memorandum of decision. [The defendant’s] argument that [the court’s earlier determination of the preclusion claims] runs contrary to fundamental breach of contract law is not persuasive and is rebutted by the principles and concepts relied upon . . . in [that] . . . decision. The doctrines of res judicata and collateral estoppel do not bar the [plaintiff’s] claims against [the defendant]. The motion for summary judgment is denied.’’6 The following relevant factual and procedural history was set forth in the trial court’s December 16, 2008 memorandum of decision on the defendant’s objection to the plaintiff’s application for a prejudgment remedy. ‘‘[The defendant] is one of ten defendants whom the [plaintiff] alleges are responsible for substantial defects in the design and construction of the correctional facility for women (York) at Niantic. . . .

‘‘The allegations of the complaint filed [in this action], very briefly stated, are as follows. [The defendant], a Rhode Island corporation, performed masonry and related services on a project which involved the design and construction of twenty-two buildings at York (project ). The project began in 1990 with design activities; construction commenced in 1991 and was completed in 1996. Over time the state experienced problems with water intrusion into the buildings, cracks in the masonry facade and efflorescence and organic growth on the masonry facade, which problems continued and worsened. Engineers retained by the state identified numerous defects in the design, construction and installation of the masonry work.

‘‘In its first two counts the complaint alleges that these defects were proximately caused by [the defendant ]’s breach of its contract with the [plaintiff] and its negligence in performing under the contract. In the third and fourth counts the [plaintiff] claims that, in order to receive partial payments for its work, [the defendant] either intentionally or negligently made misrepresentations when it filed periodic certifications that it had performed its work in compliance with the plans, specifications and contract documents. As a result, the [plaintiff ] claims to have incurred costs to correct the defects and to repair or replace damaged furnishings and equipment , suffered a diminution in the value and service life of York, lost the beneficial use of York or portions of it and experienced increased operating costs and inefficiencies in its operation of York. . . .

‘‘[The defendant]’s demand for arbitration was filed with the American Arbitration Association (AAA) on

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