Straw Pond Associates, LLC v. Fitzpatrick, Mariano & Santos, P.C.
This text of 145 A.3d 292 (Straw Pond Associates, LLC v. Fitzpatrick, Mariano & Santos, P.C.) 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.
Opinion
LAVINE, J.
In this legal malpractice action, the plaintiffs, Straw Pond Associates, LLC, Straw Pond Real Estate, LLC, Straw Pond Holdings, LLC, and CUDA Associates, LLC, appeal from the summary judgment rendered by the trial court in favor of the defendants, Fitzpatrick, Mariano & Santos, P.C. (firm), and Edward G. Fitzpatrick, an attorney in the firm. On appeal, the plaintiffs claim that the court erred in granting the defendants' motion for summary judgment by (1) adjudicating, rather than identifying, issues of fact, (2) concluding that their claims were barred by the statute of limitations, and (3) deciding that there were no issues of fact as to the defendants' alleged breach of fiduciary duty. We agree with the plaintiffs' first two claims and, therefore, reverse, in part, the judgment of the trial court.
The plaintiffs commenced the present action by service of process on June 14, 2011. The complaint sounded in three counts: professional negligence, breach of fiduciary duty, and breach of contract. 1 In count one, the plaintiffs alleged that, in March, 2005, they retained the defendants to obtain approvals from various land use boards in the town of Middlebury, including the Water Pollution Control Authority (sewer authority), the Planning and Zoning Commission, and the Board of Selectmen, to enable them to develop a senior housing project (project). In August, 2005, the sewer authority conditionally approved the flow capacity for the project, and in September, 2005, sent a letter (2005 letter) to Straw Pond Real Estate, LLC, in care of Fitzpatrick. In the 2005 letter, the sewer authority set forth its conditional capacity approval and the conditions to which the plaintiffs were required to agree. 2 The sewer authority instructed the plaintiffs to sign the letter and return it. The complaint further alleged that on certain dates in 2006 and 2007, Kenneth J. Pocius, an attorney for the sewer authority, communicated with Fitzpatrick about the status of the 2005 letter. According to the plaintiffs, Fitzpatrick failed to respond to Pocius or to inform them of his inquiries. In October, 2007, the sewer authority invited Fitzpatrick to attend its November, 2007 meeting, but Fitzpatrick was unable to attend the meeting. 3 The plaintiffs alleged that Fitzpatrick did not tell them that they should attend the meeting. At the November, 2007 meeting, the sewer authority rescinded its conditional capacity approval for the project and thereafter so informed Fitzpatrick.
The plaintiffs alleged that the sewer authority rescinded its conditional capacity approval for the project and refused to reinstate it due to Fitzpatrick's inattention to the 2005 letter and Pocius' inquiries about the status of the 2005 letter. Moreover, the plaintiffs alleged that the defendants failed to inform them of the 2005 letter until December, 2007, after the conditional capacity approval had been rescinded. They also alleged that Fitzpatrick had failed to inform them of the action that they needed to take with respect to the 2005 letter or of the consequences of their failing to respond to it.
The plaintiffs appealed from the sewer authority's rescission of its approval to the Superior Court (sewer appeal), but the appeal was dismissed on March 8, 2011. 4 The sewer authority has denied the plaintiffs' efforts and subsequent application to regain capacity approval.
The plaintiffs further alleged that, in addition to obtaining initial approval from the sewer authority, the defendants acted on their behalf to secure other approvals needed for the project to move forward. Some of the plaintiffs' applications for those other approvals resulted in administrative appeals. The plaintiffs alleged that, from the time they retained the defendants until the time they commenced the present action, they had relied on the defendants, who were their lead counsel charged with getting all of the approvals needed for the project. On August 26, 2009, Fitzpatrick represented the plaintiffs at a global settlement conference to resolve all outstanding project related issues. According to the plaintiffs, the settlement conference failed to meet its objective due to the sewer authority's refusal to reinstate its capacity approval.
The plaintiffs alleged that the defendants continuously represented them on all permitting efforts related to the project up to, and including, the dismissal of the sewer appeal in March, 2011. 5 The plaintiffs alleged that they relied to their detriment on the defendants' expertise in obtaining the necessary approvals for similar projects. Moreover, the plaintiffs alleged that the defendants caused them to believe that the harm caused by the defendants' acts and omissions with respect to the sewer authority rescission could be mitigated and a viable final approval for the project obtained.
The plaintiffs further alleged that the defendants failed to exercise diligence and competence, and failed to communicate properly. The plaintiffs claimed that the defendants "put their own and other interests ahead of the plaintiffs' [interests] and failed to keep loyalty and fidelity to the plaintiffs' project as paramount." In addition, the plaintiffs alleged that the defendants' acts and/or omissions were in violation of the Rules of Professional Conduct, including rules 1.1 (competence), 1.3 (diligence), and 1.4 (communication). As a result of the defendants' claimed acts or omissions, the plaintiffs alleged that they have sustained and will sustain substantial damages.
The defendants filed an amended answer and five special defenses on October 8, 2013. They admitted that the plaintiffs "authorized" them to acquire approvals for the project from land use boards and the Middlebury Board of Selectmen, and to negotiate pending zoning and Conservation Commission appeals. The defendants, however, denied that they filed sewer capacity applications on behalf of the plaintiffs. 6 The defendants admitted that the plaintiffs received capacity approval from the sewer authority " 'subject to technical approval, assessment and payment discussions and decisions,' " and that the 2005 letter "required a signature on the part of Straw Pond Real Estate, LLC, verifying its agreement, amongst other things, to the assessment of hookup fees and expenses to which it did not agree...." The defendants also admitted that Fitzpatrick received e-mail correspondence from Pocius.
The defendants, however, denied that they failed to tell the plaintiffs about the 2005 letter until December, 2007, failed to inform them of the action they needed to take in response to the letter or the consequences of failing to respond to the letter, and that they "continued to represent the plaintiffs during 'this entire time.' " The defendants alleged that the plaintiffs had retained other counsel to represent them with respect to "specific performance, breach of contract, and zoning appeal matters," and to prosecute certain appeals. In addition, although Fitzpatrick attended the August, 2009 settlement conference, the defendants denied that he was the plaintiffs' lead counsel.
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LAVINE, J.
In this legal malpractice action, the plaintiffs, Straw Pond Associates, LLC, Straw Pond Real Estate, LLC, Straw Pond Holdings, LLC, and CUDA Associates, LLC, appeal from the summary judgment rendered by the trial court in favor of the defendants, Fitzpatrick, Mariano & Santos, P.C. (firm), and Edward G. Fitzpatrick, an attorney in the firm. On appeal, the plaintiffs claim that the court erred in granting the defendants' motion for summary judgment by (1) adjudicating, rather than identifying, issues of fact, (2) concluding that their claims were barred by the statute of limitations, and (3) deciding that there were no issues of fact as to the defendants' alleged breach of fiduciary duty. We agree with the plaintiffs' first two claims and, therefore, reverse, in part, the judgment of the trial court.
The plaintiffs commenced the present action by service of process on June 14, 2011. The complaint sounded in three counts: professional negligence, breach of fiduciary duty, and breach of contract. 1 In count one, the plaintiffs alleged that, in March, 2005, they retained the defendants to obtain approvals from various land use boards in the town of Middlebury, including the Water Pollution Control Authority (sewer authority), the Planning and Zoning Commission, and the Board of Selectmen, to enable them to develop a senior housing project (project). In August, 2005, the sewer authority conditionally approved the flow capacity for the project, and in September, 2005, sent a letter (2005 letter) to Straw Pond Real Estate, LLC, in care of Fitzpatrick. In the 2005 letter, the sewer authority set forth its conditional capacity approval and the conditions to which the plaintiffs were required to agree. 2 The sewer authority instructed the plaintiffs to sign the letter and return it. The complaint further alleged that on certain dates in 2006 and 2007, Kenneth J. Pocius, an attorney for the sewer authority, communicated with Fitzpatrick about the status of the 2005 letter. According to the plaintiffs, Fitzpatrick failed to respond to Pocius or to inform them of his inquiries. In October, 2007, the sewer authority invited Fitzpatrick to attend its November, 2007 meeting, but Fitzpatrick was unable to attend the meeting. 3 The plaintiffs alleged that Fitzpatrick did not tell them that they should attend the meeting. At the November, 2007 meeting, the sewer authority rescinded its conditional capacity approval for the project and thereafter so informed Fitzpatrick.
The plaintiffs alleged that the sewer authority rescinded its conditional capacity approval for the project and refused to reinstate it due to Fitzpatrick's inattention to the 2005 letter and Pocius' inquiries about the status of the 2005 letter. Moreover, the plaintiffs alleged that the defendants failed to inform them of the 2005 letter until December, 2007, after the conditional capacity approval had been rescinded. They also alleged that Fitzpatrick had failed to inform them of the action that they needed to take with respect to the 2005 letter or of the consequences of their failing to respond to it.
The plaintiffs appealed from the sewer authority's rescission of its approval to the Superior Court (sewer appeal), but the appeal was dismissed on March 8, 2011. 4 The sewer authority has denied the plaintiffs' efforts and subsequent application to regain capacity approval.
The plaintiffs further alleged that, in addition to obtaining initial approval from the sewer authority, the defendants acted on their behalf to secure other approvals needed for the project to move forward. Some of the plaintiffs' applications for those other approvals resulted in administrative appeals. The plaintiffs alleged that, from the time they retained the defendants until the time they commenced the present action, they had relied on the defendants, who were their lead counsel charged with getting all of the approvals needed for the project. On August 26, 2009, Fitzpatrick represented the plaintiffs at a global settlement conference to resolve all outstanding project related issues. According to the plaintiffs, the settlement conference failed to meet its objective due to the sewer authority's refusal to reinstate its capacity approval.
The plaintiffs alleged that the defendants continuously represented them on all permitting efforts related to the project up to, and including, the dismissal of the sewer appeal in March, 2011. 5 The plaintiffs alleged that they relied to their detriment on the defendants' expertise in obtaining the necessary approvals for similar projects. Moreover, the plaintiffs alleged that the defendants caused them to believe that the harm caused by the defendants' acts and omissions with respect to the sewer authority rescission could be mitigated and a viable final approval for the project obtained.
The plaintiffs further alleged that the defendants failed to exercise diligence and competence, and failed to communicate properly. The plaintiffs claimed that the defendants "put their own and other interests ahead of the plaintiffs' [interests] and failed to keep loyalty and fidelity to the plaintiffs' project as paramount." In addition, the plaintiffs alleged that the defendants' acts and/or omissions were in violation of the Rules of Professional Conduct, including rules 1.1 (competence), 1.3 (diligence), and 1.4 (communication). As a result of the defendants' claimed acts or omissions, the plaintiffs alleged that they have sustained and will sustain substantial damages.
The defendants filed an amended answer and five special defenses on October 8, 2013. They admitted that the plaintiffs "authorized" them to acquire approvals for the project from land use boards and the Middlebury Board of Selectmen, and to negotiate pending zoning and Conservation Commission appeals. The defendants, however, denied that they filed sewer capacity applications on behalf of the plaintiffs. 6 The defendants admitted that the plaintiffs received capacity approval from the sewer authority " 'subject to technical approval, assessment and payment discussions and decisions,' " and that the 2005 letter "required a signature on the part of Straw Pond Real Estate, LLC, verifying its agreement, amongst other things, to the assessment of hookup fees and expenses to which it did not agree...." The defendants also admitted that Fitzpatrick received e-mail correspondence from Pocius.
The defendants, however, denied that they failed to tell the plaintiffs about the 2005 letter until December, 2007, failed to inform them of the action they needed to take in response to the letter or the consequences of failing to respond to the letter, and that they "continued to represent the plaintiffs during 'this entire time.' " The defendants alleged that the plaintiffs had retained other counsel to represent them with respect to "specific performance, breach of contract, and zoning appeal matters," and to prosecute certain appeals. In addition, although Fitzpatrick attended the August, 2009 settlement conference, the defendants denied that he was the plaintiffs' lead counsel. They denied that they had violated the Rules of Professional Conduct and that they failed to exercise diligence and competence, and failed to communicate properly. The defendants also denied that the plaintiffs sustained damages as a result of their alleged acts or omissions. Moreover, the defendants denied that they breached their fiduciary duties and breached their contract with the plaintiffs.
In their special defenses, the defendants alleged that all three counts of the complaint were barred by General Statutes § 52-577 in that the action was commenced more than three years after the act or omission complained of. The defendants also alleged that, if the plaintiffs sustained any damages, those damages were proximately caused by the plaintiffs' own carelessness and negligence in that they failed to agree to the sewer authority's hookup costs and failed to authorize Fitzpatrick to accept the conditions stated in the 2005 letter. The defendants further pleaded that the plaintiffs failed to mitigate their damages. The plaintiffs replied to the defendants' special defenses in a one sentence general denial. 7
On April 9, 2014, the defendants filed a motion for summary judgment as to all counts of the complaint on the ground that each was barred by § 52-577. 8 In the alternative, the defendants asserted that all counts of the plaintiffs' complaint fail, as a matter of law, in that the plaintiffs cannot establish a breach of the standard of care, a breach of fiduciary duty, breach of the parties' fee agreement, or that the plaintiffs' alleged damages were caused by the defendants. In their accompanying memorandum of law, the defendants represented that the plaintiffs fully were aware of the 2005 letter and that they declined to sign the letter because they disagreed with the $2.057 million hookup fees and the time constraints the sewer authority had imposed on them with respect to obtaining other board and agency approvals. The defendants also argued that there was no evidentiary support for the plaintiffs' claims.
The defendants appended numerous documents, including Fitzpatrick's affidavit, to their memorandum of law. In his affidavit, Fitzpatrick attested, in part: "I personally met with and spoke to Ben Morris, the principal member of Straw Pond with whom I dealt, on multiple occasions concerning the project, including many discussions from September, 2005 through 2007, concerning Straw Pond's refusal to sign the ... 2005 letter of conditional capacity approval.... Ben Morris communicated to me personally that Straw Pond and its affiliates refused to sign the ... letter because it did not agree to the conditions specified, especially the assessment of over [$2 million] in hook-up fees and the two year deadline for obtaining all government agency approvals." They also appended copies of the plaintiffs' briefs filed in the sewer appeal in which the plaintiffs admitted that they were aware of the conditions contained in the 2005 letter and that they intentionally refused to sign off on those conditions because they were inconsistent with the sewer authority's August, 2005 authorization.
As to count two, which alleged breach of fiduciary duty, the defendants asserted that it failed to state a claim upon which relief can be granted. They argued that a proper cause of action for breach of fiduciary duty requires factual allegations impugning an attorney's honesty, morality, or loyalty. The plaintiffs' complaint, they continued, solely alleged conduct that objectively pertains to the alleged breach of the standard of care. They asserted that the plaintiffs' allegations of disloyalty were merely conclusory.
On September 17, 2014, the plaintiffs filed an objection to the motion for summary judgment, contending that there were genuine issues of material fact as to whether the defendants had been retained to obtain project approval from the sewer authority. They appended numerous documents, including the transcript of Fitzpatrick's deposition testimony, and an affidavit of John Nelson, one of the plaintiffs' principals. 9 The plaintiffs argued that the defendants had represented them at least through the global settlement conference held on August 26, 2009, and that the continuous representation doctrine tolled the running of the statute of limitations. Therefore, they concluded, the action was timely "filed" in June, 2011. 10
The plaintiffs also argued in their memorandum of law that Fitzpatrick had a conflict of interest in that, while he was representing the plaintiffs before the sewer authority, he represented other applicants seeking an allocation of the limited sewer capacity that was available, and at times he served as counsel for the Naugatuck Regional Water Authority, which provided sewer services for Middlebury. The plaintiffs argued that Fitzpatrick failed to disclose the alleged conflicts of interest.
The defendants submitted a supplemental memorandum of law and presented evidence that in December, 2007, the plaintiffs retained Robert Fuller, an attorney, to pursue the sewer appeal, and Robin M. Pearson, an attorney, to file a new sewer capacity application. 11 The defendants argued that by retaining Fuller and Pearson, the plaintiffs de facto terminated Fitzpatrick's representation for the purpose of obtaining sewer capacity approval for the project.
The trial court issued a memorandum of decision on December 5, 2014, in which it granted the defendants' motion for summary judgment. On the basis of the evidence presented, the court concluded with respect to the count of professional negligence that the defendants were not the cause of the plaintiffs' alleged damages. With respect to the count of breach of fiduciary duty, the court stated that the plaintiffs submitted no evidence to raise an issue of fact as to the defendants' loyalty or honesty, but merely alleged a "bald assertion of disloyalty." The court also found that the plaintiffs' claims were barred by the statute of limitations, § 52-577, and that the continuous representation doctrine did not toll the running of the statute.
The plaintiffs filed a motion to reargue in which they claimed that the court had misapprehended or overlooked significant issues of material fact and that this court's decision in
Cefaratti v. Aranow,
"Summary judgment is a method of resolving litigation when pleadings, affidavits, and any other proof submitted show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.... [S]ummary judgment is designed to eliminate the delay and expense of litigating an issue when there is no real issue to be tried.... However, since litigants ordinarily have a constitutional right to have issues of fact decided by a jury ... the moving party for summary judgment is held to a strict standard ... of demonstrating his entitlement to summary judgment." (Citation omitted; footnote omitted; internal quotation marks omitted.)
Grenier v. Commissioner of Transportation,
"This court's review of a trial court's granting of a motion for summary judgment is plenary in nature.... Our
task is to determine whether [the trial court's]
conclusions are legally and logically correct and find support in the facts that appear in the record.... Practice Book § 17-49 provides that summary judgment shall be rendered forthwith if the pleadings, affidavits and any other proof submitted show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. In deciding a motion for summary judgment, the trial court must view the evidence in the light most favorable to the nonmoving party.... The party moving for summary judgment has the burden of showing ... that the party is ... entitled to judgment as a matter of law." (Internal quotation marks omitted.)
Targonski v. Clebowicz,
I
The plaintiffs claim that the court improperly rendered summary judgment by resolving issues of fact, rather than by determining whether any genuine issues of material fact exist as to the element of causation. We agree.
"The party moving for summary judgment bears the burden of proving the absence of a dispute as to any material fact.... The court must view the evidence in the light most favorable to the nonmovant.... In ruling on a motion for summary judgment, the court's function is not to decide issues of material fact, but rather to determine whether any such issues exist." (Citations omitted; internal quotation marks omitted.)
Lomangino v. LaChance Farms, Inc.,
In its memorandum of decision, the court set forth the elements of a cause of action for professional negligence. "In general, the plaintiff in an attorney malpractice action must establish: (1) the existence of an attorney-client relationship; (2) the attorney's wrongful
act or omission; (3) causation; and (4) damages." (Internal quotation marks omitted.)
Lee v. Harlow, Adams & Friedman, P.C.,
In granting the motion for summary judgment, the court concluded that the plaintiffs had failed to raise an issue of fact as to whether the defendants were the cause of their alleged loss. In coming to that conclusion, the court drew inferences from the affidavits before it and chose to credit Fitzpatrick, rather than Nelson, as to whether Fitzpatrick had informed the plaintiffs of the 2005 letter and that it was to be signed and returned. The court also was influenced by the language in the briefs the plaintiffs submitted in their sewer appeal, 12 which, according to the court, established that the plaintiffs would not in any event have accepted the conditions that the sewer authority sought to impose on them. For these reasons, the court concluded that the defendants had demonstrated the absence of a genuine issue of material fact as to whether Fitzpatrick committed an act or omission that might constitute professional negligence because he did not inform the plaintiffs of the conditions in the 2005 letter, or that the plaintiffs were damaged by his alleged negligence.
On appeal, the plaintiffs claim that the court decided issues of fact and too narrowly defined their claims of professional negligence. They argue that their malpractice claim is founded not only on Fitzpatrick's failure to inform them of the 2005 letter, but also on his failure to inform them of the sewer authority's ongoing inquiries and concerns in 2006 and 2007, his failure to respond to the sewer authority's inquiries, his failure to advise them as to how they should deal with the sewer authority, and, particularly, his failure to inform them that the sewer authority would discuss the project at its November, 2007 meeting, which Fitzpatrick did not attend. Nelson averred that the plaintiffs would have attended that meeting had they known about it. As to the court's findings that the plaintiffs' admitted in their sewer appeal that they did not agree with the conditions the sewer authority imposed in the 2005 letter, the plaintiffs argue in their reply brief to this court, for the first time on appeal, that arguments made in another proceeding are not judicial admissions.
13
We agree that the court improperly made credibility determinations when ruling on the defendants' motion for summary judgment, but disagree that the court improperly considered the plaintiffs' briefs in the sewer appeal. See
Nationwide Mutual Ins. Co. v. Allen,
A
We first address the plaintiffs' assertion that the court improperly relied on statements made in their sewer appeal briefs when concluding that there were no genuine issues of material fact as to causation. See footnote 12 of this opinion. We do not agree.
The case of
Nationwide Mutual Ins. Co. v. Allen,
supra,
"Factual allegations contained in pleadings upon which the cause is tried are considered judicial admissions and hence irrefutable as long as they remain in the case.... The admission of the truth of an allegation in a pleading is a judicial admission conclusive on the pleader." (Citation omitted; internal quotation marks omitted.) Id., at 541-42,
"In contrast with a judicial admission, which prohibits any further dispute of a party's factual allegation contained in its pleadings on which the case is tried, [a]n evidential admission is subject to explanation by the party making it so that the trier may properly evaluate it.... Thus, an evidential admission, while relevant as proof of the matter stated ... [is] not
conclusive." (Citation omitted; internal quotation marks omitted.) Id., at 542,
In the present case, the defendants submitted statements from the sewer appeal briefs in support of their motion for summary judgment. We agree with the plaintiffs that the statements in the briefs of their sewer appeal were not judicial admissions. However, as explained in Nationwide Mutual Ins. Co., the statements properly were before the court as evidence of the plaintiffs' refusal to sign the 2005 letter because they did not agree with the conditions contained in it. Given that the role of the court in deciding a motion for summary judgment is to determine whether there were genuine issues of material fact, in the face of the evidence in the sewer appeal briefs, the plaintiffs should have presented evidence to put in question whether they objected to the hookup fees and time limitations imposed by the sewer authority.
"Any adverse party shall at least five days before the date the motion is to be considered on the short calendar file opposing affidavits and other available documentary evidence...." Practice Book § 17-45. The record before us does not disclose any evidence submitted by the plaintiffs regarding their acceptance of or objection to the sewer authority's conditions or to explain the statements made in the briefs in the sewer appeal on their behalf. Moreover, the plaintiffs did not object to the court's considering the sewer appeal briefs in the trial court. We therefore disagree that the court improperly considered the sewer appeal briefs when deciding the motion for summary judgment.
B
The plaintiffs claim that the court decided issues of fact and focused its examination of their malpractice claim too narrowly by limiting it to Fitzpatrick's alleged failure to inform them of the 2005 letter. We agree.
In addressing the evidence before it, the court focused on the affidavits of Nelson and Fitzpatrick. The court credited Fitzpatrick's attestations that he discussed the 2005 letter with Morris, and found that Nelson's affidavit invited the court to infer that because Morris did not tell him of his conversations with Fitzpatrick they did not occur. "Issue[s] of fact [encompass] not only evidentiary facts in issue but also questions as to how the trier would characterize such evidentiary
facts and what inferences and conclusions it would draw from them." (Internal quotation marks omitted.)
United Oil Co. v. Urban Redevelopment Commission,
We agree with the plaintiffs that their claims of professional negligence encompassed more than Fitzpatrick's alleged failure to inform them of the 2005 letter. Nelson attested that the plaintiffs did not know of the sewer authority's invitation for them to attend the November, 2007 meeting. He attested, in relevant part, that "[i]f we had known that there was going to be a [sewer authority] meeting in November, 2007, where the subject of our sewer capacity allocation was going to be discussed, and if we had known that [Fitzpatrick]
couldn't be at that meeting representing our interests, we would have taken steps to ensure that someone from our group was there to explain our position to the [sewer authority] and to represent our interests." In their motion to reargue, the plaintiffs contended that the November, 2007 meeting was the " 'last clear chance' " for them to negotiate with the sewer authority about the conditions of approval and to reach an accord or not.
For his part, Fitzpatrick testified at his deposition that he had no recollection as to whether he informed the plaintiffs of the November, 2007 meeting. We conclude, on the basis of our review of the evidence submitted in support of, and in objection to, the defendants' motion for summary judgment, that there are genuine issues of material fact concerning the November, 2007 meeting. It is unclear whether Fitzpatrick informed the plaintiffs of the meeting and what might have transpired if the plaintiffs had attended. We, therefore, agree with the plaintiffs that the court too narrowly focused the plaintiffs' claim of professional negligence solely on the alleged failure of Fitzpatrick to inform the plaintiffs of the 2005 letter. Because there are genuine issues of material fact related to the allegations of professional negligence, we conclude that the court improperly granted the motion for summary judgment on that ground.
II
The plaintiffs second claim is that the court improperly granted the defendants' motion for summary judgment on the ground that their claims were barred by the statute of limitations, § 52-577. They argue that the statute of limitations was tolled by the continuous representation doctrine in that the defendants continuously represented them through at least the settlement conference held in August, 2009. We conclude that there are genuine issues of material fact as to whether the defendants were professionally negligent, and if so, whether the plaintiffs' claims are barred by the statute of limitations.
"Summary judgment may be granted where the claim is barred by the statute of limitations.... Summary judgment is appropriate on statute of limitations grounds when the material facts concerning the statute of limitations [are] not in dispute...." (Citation omitted; internal quotation marks omitted.)
Romprey v. Safeco Ins. Co. of America,
The essence of the plaintiffs' claim is that they retained the defendants in 2005 to represent them before all relevant boards and agencies to obtain the approvals needed to move the project forward, including the sewer authority, and that they never limited the scope and nature of the defendants' representation through the time of the global settlement conference held in August, 2009. Despite the fact that they retained Fuller and Pearson in December, 2007, the plaintiffs insist that they did not terminate their attorney-client relationship with the defendants with respect to the sewer authority representation. The defendants have taken the position that by retaining Fuller and Pearson, the plaintiffs de facto terminated their relationship with them with respect to the sewer authority representation.
In granting the defendants' motion for summary judgment, the trial court stated, among other things,
14
that
the uncontradicted evidence demonstrated that the plaintiffs knew of the defendants' alleged negligence more than three years prior to their commencing the present action and that the continuous representation doctrine did not toll the statute of limitations because the plaintiffs had retained two other attorneys to represent them in their dealings with the sewer authority. In their motion to reargue, the plaintiffs stated that
Cefaratti v. Aranow,
supra,
The court reviewed
Cefaratti,
and determined that the facts and legal theories in that case were distinguishable.
15
The court then turned to
DeLeo v. Nusbaum,
The trial court found that the defendants submitted undisputed evidence that immediately after the sewer authority rescinded its approval, the plaintiffs retained new counsel to deal with the sewer authority. The court also found it to be undisputed that the plaintiffs did not commence the present action until June, 2011. To support their position that the defendants continuously had represented them, the plaintiffs relied exclusively on Fitzpatrick's participation in the August, 2009 global settlement conference, where the sewer authority was discussed along with land use agencies that needed to approve the project. The court concluded that there
were no genuine issues of material fact to support the plaintiffs' claim that the continuous representation doctrine was applicable.
An action alleging legal malpractice or negligence is a tort claim subject to the three year statute of limitations set forth in § 52-577. See footnote 8 of this opinion. "Although allowing a statute of limitations defense may result in meritorious claims being foreclosed, that must be so. A statute of limitations promotes two important interests: (1) it reflects a policy of law, as declared by the legislature, that after a given length of time a [defendant] should be sheltered from liability and furthers the public policy of allowing people, after the lapse of a reasonable time, to plan their affairs with a degree of certainty, free from the disruptive burden of protracted and unknown potential liability ... and (2) to avoid the difficulty in proof and record keeping which suits involving older [claims] impose." (Internal quotation marks omitted.)
Targonski v. Clebowicz,
supra,
"This court has determined that [§ ] 52-577 is an occurrence statute, meaning that the time period within which a plaintiff must commence an action begins to run at the moment the act or omission complained of occurs.... Moreover, our Supreme Court has stated that [i]n construing our general tort statute of limitations ... § 52-577, which allows an action to be brought within three years from the date of the act or omission complained of, we have concluded that the history of that legislative choice of language precludes any construction thereof delaying the start of the limitation period until the cause of action has accrued or the injury has occurred.... The three year limitation period of § 52-577, therefore, begins with the date of the act or omission complained of, not the date when the plaintiff first discovers an injury." (Internal quotation marks omitted.) Id., at 106-107,
In the present case, the plaintiffs claim that Fitzpatrick failed to advise them of the 2005 letter, his ongoing communications with Pocius, and the November, 2007 meeting. There appears to be no dispute that the plaintiffs learned that the sewer authority rescinded its conditional capacity approval in December, 2007, and that they did not commence the present action until June, 2011-more than three years later. The defendants claim that the plaintiffs' action is barred by § 52-577 ; the plaintiffs claim that the statute was tolled by the continuous representation doctrine.
Although the question of whether a party's claim is barred by the statute of limitations is a question of law, the issue "of whether a party engaged in a continuing course of conduct that tolled the running of the statute of limitations is a mixed question of law and fact." (Internal quotation marks omitted.)
Vanliner Ins. Co. v. Fay,
In
Cefaratti v. Aranow,
Our Supreme Court has recognized the continuing course of conduct doctrine in a variety of cases sounding in tort, including professional malpractice.
Watts v. Chittenden,
"Therefore, a precondition for the operation of the continuing course of conduct doctrine is that the defendant must have committed an initial wrong upon the plaintiff....
"A second requirement for the operation of the continuing course of conduct doctrine is that there must be evidence of the breach of a duty that remained in existence after commission of the original wrong related thereto.... [Our Supreme Court] has held this requirement to be satisfied when there was wrongful conduct of a defendant related to the prior act." (Citation omitted; internal quotation marks omitted.) Id., at 585,
"Where [our Supreme Court has] upheld a finding that a duty continued to exist after the cessation of the act or omission relied upon, there has been evidence of either a special relationship between the parties giving rise to such a continuing duty or some later wrongful conduct of a defendant related to the prior act." (Internal quotation marks omitted.)
Vanliner Ins. Co. v. Fay,
supra,
Both this court and our Supreme Court have had occasion to address the continuing course of conduct doctrine in the context of a claim of legal malpractice. Both parties here cite the case of
DeLeo v. Nusbaum,
supra,
In
DeLeo,
our Supreme Court discussed this court's decision in
Rosenfield v. Rogin, Nassau, Caplan, Lassman & Hirtle, LLC,
DeLeo
v. Nusbaum,
supra,
Although our Supreme Court identified many reasons it considered adoption of the continuous representation doctrine to be advisable, it was mindful that "any tolling of the statute of limitations may compromise the goals of the statute itself." Id., at 596,
With the foregoing considerations in mind, our Supreme Court concluded that the "continuous representation doctrine, suitably modified to reflect these competing interests, should be adopted." Id., at 596-97,
1) that the defendant continued to represent him with regard to the same underlying matter;
and
(2) either the plaintiff did not know of the alleged malpractice
or
that the attorney could still mitigate the harm allegedly caused by that malpractice during the continued representation period." (Emphasis in original; footnote omitted.) Id., at 597,
Despite this limitation,
DeLeo
is instructive in that it defines what is meant by legal representation. The test is
two-pronged.
In
Targonski v. Clebowicz,
supra,
On August 1, 2008, the seller's attorney informed the defendant attorney that the buyers had built a stone wall on the seller's land. Id., at 102,
After citing the continuing course of conduct doctrine adopted in
Watts v. Chittenden,
supra,
The facts of the present action are dissimilar to those of
Targonski,
in which the defendant attorney's negligence and its resulting harm were not discovered by the buyers until years later. Importantly, in the present case, both the plaintiffs and the defendants learned that the sewer authority withdrew its conditional capacity approval at approximately the same time in December, 2007, which was the consequence of the defendants' alleged failure to inform the plaintiffs of the 2005 letter and the November, 2007 meeting. Within one month, the plaintiffs retained Fuller to pursue the sewer appeal and Pearson to file another sewer capacity application. The defendants claim, therefore, that the plaintiffs ceased to rely on their professional judgment with respect to the sewer authority at this time. The defendants, however, continued to represent the plaintiffs before land use agencies and the Middlebury Board
of Selectmen to obtain approvals for the project. The plaintiffs contend that because Fitzpatrick was present at the global settlement conference held in August, 2009, where the sewer authority was discussed, Fitzpatrick continued to represent them with regard to the sewer authority.
"[A] plaintiff may invoke the [continuous representation] doctrine, and thus toll the statute of limitations, when the plaintiff can show: (1) that the defendant continued to represent him with regard to the same underlying matter;
and
(2) either the plaintiff did not know of the alleged malpractice
or
that the attorney could still mitigate the harm allegedly caused by that malpractice during the continued representation period." (Emphasis in original; footnote omitted.)
DeLeo v. Nusbaum,
supra,
If the trier of fact determines that the defendants breached the standard of care, it must then consider whether the continuous representation doctrine tolled the running of the statute of limitations. The trier of fact will have to determine whether the defendants continued to represent the plaintiffs after they retained Fuller and Pearson. See
DeLeo v. Nusbaum,
supra,
After reviewing the record and considering the law regarding professional negligence, the statute of limitations, and the continuous representation doctrine, we conclude that there are many genuine issues of material fact and that the court improperly granted the defendants' motion for summary judgment on the ground that the plaintiffs' claims were barred by the statute of limitations.
19
In reaching this
conclusion, we are mindful
of the legislative policy underlying statutes of limitation: "to prevent the unexpected enforcement of stale claims concerning which the persons interested have been thrown off their guard by want of prosecution";
Vilcinskas v. Sears, Roebuck & Co.,
Because the court improperly concluded that the plaintiffs' claims were barred by the statute of limitations, it improperly granted the motion for summary judgment as to the plaintiffs' claim of professional negligence. The matter must, therefore, be remanded for further proceedings.
III
The plaintiffs' third claim is that the court improperly granted summary judgment regarding count two of the complaint, which alleged that the defendants breached their fiduciary duty. We disagree.
In count two, the plaintiffs realleged all of the allegations contained in count one plus that the "actions or omissions of the defendants described above, were in
breach of the fiduciary duties they owed to the plaintiffs." In their motion for summary judgment, the defendants asserted that summary judgment should be granted as to all three counts of the plaintiffs' complaint because the factual allegations in count one relate to the violation of duties owed by attorneys in general. In their memorandum of law in support of the motion for summary judgment, the defendants argued that the plaintiffs' breach of fiduciary duty count failed to state a claim upon which relief can be granted. Relying on
Beverly Hills Concepts, Inc. v. Schatz & Schatz, Ribicoff & Kotkin,
In granting the defendants' motion for summary judgment as to count two, the court cited
Beverly Hills Concepts, Inc. v. Schatz & Schatz, Ribicoff & Kotkin,
supra,
On appeal, the plaintiffs have presented a convoluted argument that the court improperly granted summary judgment as to the breach of fiduciary duty count because the defendants failed to disclose certain documents regarding the disclosure of or waiver of the defendants' conflicts of interest and, therefore, there are genuine issues of material fact regarding conflicts of interest. 20 In their brief, the defendants argue that the trial court properly granted summary judgment in their favor because the complaint fails to contain factual allegations impugning their honesty, morality, or loyalty. We agree with the defendants.
It is again worth noting the principles underlying summary judgment. "Practice Book § 17-49 provides that summary judgment shall be rendered forthwith if the
pleadings,
affidavits and any other proof submitted show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. A material fact is a fact that will make a difference in the result of the case." (Emphasis added; internal quotation marks omitted.)
Stevens v. Carlton Helming,
"A genuine issue of material fact must be one which the party opposing the motion is
entitled to litigate under his pleadings
and the mere existence of a factual dispute apart from the pleadings is not enough to preclude summary judgment....
The facts at issue
[
in the context of summary judgment
]
are those alleged in the pleadings
.... The purpose of the complaint
is to limit the issues to be decided at the trial of a case and is calculated to prevent surprise." (Citation omitted; emphasis in original; internal quotation marks omitted.)
"[T]he interpretation of pleadings is always a question of law for the court.... We have pointed out that [t]he burden [is] upon the pleaders to make sure averments that the material facts should appear with reasonable certainty; and for that purpose [the pleaders] were allowed to use their own language. Whenever that language fails to define
clearly
the issues in dispute, the court will put such reasonable construction as will give effect to the pleadings in conformity with the general theory which it was intended to follow, and do substantial justice
between the parties.
" (Citations omitted; emphasis in original; internal quotation marks omitted.)
Cahill v. Board of Education,
We agree with the court that the plaintiffs' allegation that the defendants "put their own or other interests ahead of the plaintiffs' [interests] and failed to keep loyalty and fidelity to the plaintiffs' project as paramount" is insufficient to constitute an alleged breach of fiduciary duty. This allegation is a conclusion that is insufficient to advise the defendants or the court of the facts on which the plaintiffs intended to rely in proving that the defendants breached their fiduciary duty. On the basis of our plenary review of the complaint, we conclude that the plaintiffs' allegations that the defendants were negligent in failing to apprise them of the 2005 letter and other communications from the sewer authority fail to state a cause of action for breach of fiduciary duty. Moreover, the complaint alleges that the defendants violated the Rules of Professional Conduct concerning competency, diligence, and communication. It does not allege that the defendants had a conflict of interest or that they violated rule 1.7 of the Rules of Professional Conduct, which concerns conflicts of interest. The plaintiffs' factual representations and arguments in opposing the defendants' motion for summary judgment, and here on appeal, therefore, are unavailing because they do not concern material facts alleged in the complaint.
In conclusion, we agree with the defendants that count two of the complaint fails to state a cause of action for breach of fiduciary duty. The court, therefore, properly granted summary judgment with respect to the breach of fiduciary duty count in favor of the defendant. 21
The judgment is reversed as to count one, and the case is remanded for further proceedings on that count; the judgment is affirmed in all other respects.
In this opinion the other judges concurred.
Related
Cite This Page — Counsel Stack
145 A.3d 292, 167 Conn. App. 691, 2016 Conn. App. LEXIS 327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/straw-pond-associates-llc-v-fitzpatrick-mariano-santos-pc-connappct-2016.