Success Centers, Inc. v. Huntington Learning Centers, Inc.

613 A.2d 1320, 223 Conn. 761, 1992 Conn. LEXIS 284
CourtSupreme Court of Connecticut
DecidedSeptember 1, 1992
Docket14406
StatusPublished
Cited by61 cases

This text of 613 A.2d 1320 (Success Centers, Inc. v. Huntington Learning Centers, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Success Centers, Inc. v. Huntington Learning Centers, Inc., 613 A.2d 1320, 223 Conn. 761, 1992 Conn. LEXIS 284 (Colo. 1992).

Opinions

Glass, J.

The sole issue in this certified appeal is whether the Appellate Court properly dismissed the plaintiff’s appeal on the ground that it was not from a final judgment. The plaintiff, Success Centers, Inc., commenced this action in the Superior Court against the named defendant, Huntington Learning Centers, Inc., and others,1 alleging a violation of the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq.,2 and seeking damages and [763]*763temporary injunctive relief to prevent the enforcement of certain franchise agreements between the parties. Upon motion of the defendants pursuant to General Statutes § 52-409,3 the trial court ordered the parties to proceed with arbitration, as provided in their franchise agreements. The plaintiff appealed to the Appellate Court, which, upon motion of the defendants, dismissed the appeal for lack of a final judgment. We granted certification of the plaintiffs appeal and now affirm the judgment of the Appellate Court.

The facts relevant to the disposition of this appeal are as follows. The plaintiff alleged in its complaint that, in 1988, it entered into franchise agreements with the defendants for the purchase of franchised learning centers in Glastonbury and Farmington. The plaintiff alleged further that, “[subsequent to entering into said franchise agreements, [it] ascertained that the methods employed by the defendants are invalid and improper in that inter alia they prescribe remedial reading services for each and every student who is administered [764]*764the diagnostic tests irrespective of whether such student actually requires such remedial reading.” The plaintiff asserted that the alleged practices violate CUTPA and Connecticut public policy.

Prior to the commencement of this action, the defendants had demanded arbitration pursuant to the provisions of the franchise agreements in order to collect royalties that they claimed the plaintiff owed them for the operation of the franchises. The parties had selected an arbitrator and had scheduled an arbitration hearing. The defendants, in their answer and special defense to the plaintiffs complaint, requested that the trial court enter an order pursuant to General Statutes § 52-410,4 directing the plaintiff to proceed with arbitration.5 [765]*765The defendants separately moved the trial court, pursuant to § 52-409, for an order to stay the pending action and to proceed with arbitration. The trial court held a hearing on the defendants’ motion and, thereafter, ordered the parties to proceed with arbitration, as provided in their contract. In its ruling on the defendants’ § 52-409 motion, the trial court also denied the plaintiff’s motion for a temporary injunction.6

The plaintiff appealed to the Appellate Court. The defendants moved to dismiss the appeal for lack of a final judgment, claiming that the trial court’s order merely postponed the disposition of the underlying action. The Appellate Court granted the defendants’ motion to dismiss the plaintiff’s appeal. We granted the plaintiff’s petition for certification to appeal limited to the following question: “Did the Appellate Court properly dismiss for lack of a final judgment the plaintiff’s appeal from the trial court’s order compelling arbitration?” Success Centers, Inc. v. Huntington Learning Centers, Inc., 220 Conn. 930, 599 A.2d 382 (1991). We conclude that the Appellate Court’s judgment dismissing the plaintiff’s appeal was proper.

The plaintiff claims that the Appellate Court improperly dismissed its appeal for lack of a final judgment. Although the plaintiff concedes that the trial court’s § 52-409 order was interlocutory, the plaintiff urges this court to analyze the appealability of a § 52-409 order under the test set forth in State v. Curcio, 191 Conn. 27, 31, 463 A.2d 566 (1983). The plaintiff contends that [766]*766the trial court’s interlocutory order under § 52-409 terminates a separate and distinct proceeding and, thus, is immediately appealable. Id. Alternatively, the plaintiff argues that the trial court’s order meets the second test under Curcio, in that it “so concludes the rights of the parties that further proceedings cannot affect them.” Id. We are persuaded that the trial court’s order does not meet either exception set forth in Curcio, and, therefore, that the plaintiff must await completion of the arbitration proceedings before it is entitled to appellate review of its claim that the issues raised in its complaint are not arbitrable.7

The plaintiff asserts at the outset that the case law regarding the appealability of orders under §§ 52-409 and 52-410 is inconsistent, despite the fact that, under either statute, the trial court must decide the issue of arbitrability. The plaintiff criticizes this court’s divergent treatment of § 52-409 and § 52-410 orders, claiming that it “has evolved on-its own, leaving litigants and lower courts to guess at the distinguishing elements.” In support of its criticism, the plaintiff refers to the conclusion of certain commentators that “[i]t is difficult to see why these statutes should be treated differently.” W. Moller & W. Horton, Connecticut Practice, Practice Book Annotated, Supreme Court and Appellate Court Rules and Forms (1992) § 4000, p. 58.8 [767]*767We disagree with the plaintiff’s premise that the disparate treatment of orders under the two statutes is without logical foundation.9

Under § 52-409, when an action is brought in the trial court by a party to a written agreement that includes provisions for arbitration, and the trial court is satisfied that an issue involved in the action is arbitrable, the court, on motion of any party to the agreement, shall stay the action until arbitration has been had in compliance with the agreement. See footnote 3, supra. As a condition precedent to the issuance of a stay order by the trial court, the moving party must be ready and willing to proceed with arbitration. The authority of the court to stay a pending action under § 52-409 thus provides an incentive to participate to the party reluc[768]*768tant to engage in arbitration. On the other hand, the trial court’s denial of a § 52-409 motion leaves the parties where the court found them, requiring them to proceed with the pending litigation.

The trial court’s authority under § 52-410 is quite different from its authority under § 52-409. Section 52-410 creates an independent action that can be instituted only by a properly served writ of summons and complaint. See footnote 4, supra. No civil action need be pending between the parties for a § 52-410 action to be commenced. Cf. KND Corporation v. Hartcom, Inc., 5 Conn. App. 333, 336-37, 497 A.2d 1038 (1985) (“[i]t would make little sense to require a party being sued to initiate [a § 52-410] action”). Pursuant to § 52-410, a party to a written agreement for arbitration claiming the neglect or refusal of another to proceed with arbitration can apply to the trial court for an “order directing the parties to proceed with the arbitration in compliance with their agreement.”

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Cite This Page — Counsel Stack

Bluebook (online)
613 A.2d 1320, 223 Conn. 761, 1992 Conn. LEXIS 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/success-centers-inc-v-huntington-learning-centers-inc-conn-1992.