Tallmadge Bro. v. Iroquois Gas Trans., No. Cv 92 0124088 (Aug. 14, 1998)

1998 Conn. Super. Ct. 8638
CourtConnecticut Superior Court
DecidedAugust 14, 1998
DocketNo. CV 92 0124088
StatusUnpublished

This text of 1998 Conn. Super. Ct. 8638 (Tallmadge Bro. v. Iroquois Gas Trans., No. Cv 92 0124088 (Aug. 14, 1998)) is published on Counsel Stack Legal Research, covering Connecticut Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tallmadge Bro. v. Iroquois Gas Trans., No. Cv 92 0124088 (Aug. 14, 1998), 1998 Conn. Super. Ct. 8638 (Colo. Ct. App. 1998).

Opinion

[EDITOR'S NOTE: This case is unpublished as indicated by the issuing court.]

MEMORANDUM OF DECISION
This case involves damage to shellfish beds in Long Island Sound off Milford. The plaintiffs, Tallmadge Brothers, Inc. (Tallmadge) and Robert J. Sabo d/b/a Milford Oyster Farm and Coastal Oyster Farms, Inc. (Sabo), lease a large amount of acreage where they cultivate and harvest oysters and clams. CT Page 8639 The defendant, Iroquois Gas Transmission System, L.P., constructed a natural gas pipeline from the Connecticut shore at Milford, across the Sound to Long Island, during the spring and summer of 1991.

In the first and fifth counts of their amended complaint of March 5, 1993, the plaintiffs allege that the defendant advised them that construction would take place in an area 100 feet on either side of the pipeline; that the defendant proposed and the plaintiffs accepted a formula for compensation for damages to the shellfish beds and entered into a "Full and Final Settlement Agreement," dated on or about March 1, 1992; that the defendant's work corridor was in fact 300 feet wide; that the defendant's representation about the width of the work area was false, the plaintiffs relied on such representation and only agreed to the formula for compensation because of that representation. In the second and sixth counts of the complaint, the plaintiffs complain that the defendant breached its agreement to work within a corridor 200 feet wide. The plaintiffs allege in the third and seventh counts that the defendant's conduct violated General Statutes § 42-110a, et seq., the Connecticut Unfair Trade Practices Act (CUTPA). In the fourth and eighth counts, the plaintiffs allege that the defendant committed a trespass on their property. The ninth and tenth counts claim that the representations about the width of the work corridor were negligently made by the defendant. The plaintiffs seek monetary damages plus punitive damages and attorney's fees under CUTPA, and for fraud and trespass.

The defendant denied the material allegations of the complaint except it admitted that: (1) the plaintiff Tallmadge held a perpetual franchise for the seeding, cultivation and harvesting of shellfish in Long Island Sound off Milford; (2) Sabo had a lease from an owner or lessee of a franchise in the same area; (3) the plaintiffs were advised that the most severe impact on the shellfish beds would be within 100 feet of the pipeline and that there would be some "incidental" damage outside of this corridor; and (4) it did perform construction work outside a 200 foot corridor and that its construction contract refers to a 300 foot work area.

The defendant also filed special defenses alleging that: (1) by signing a "Full and Final Settlement Agreement" the plaintiffs waived any right to further compensation; (2) the plaintiffs had agreed to accept certain sums as "liquidated damages" in full CT Page 8640 settlement of their respective claims; and (3) the plaintiffs, who were seeking rescission of the settlement agreement, never returned the money that they received from the defendant as compensation for loss related to the construction of the pipeline.

The defendant also filed a counterclaim with five counts. In the first count, the defendant claims that it reached an agreement for compensation with the plaintiffs containing a liquidated damage clause; the plaintiffs agreed that they would release the defendant from any liability for further damages; and the plaintiffs have breached their agreement with the defendant by instituting the present action. In the second count, the defendant alleges that the plaintiffs committed fraud by misrepresenting and exaggerating the extent of their oyster beds and the anticipated damages to those beds; that because of these misrepresentations the defendant paid $5,199,998 to the plaintiffs, which is substantially greater in amount than it would have paid under eminent domain. In the third count, the defendant claims that the plaintiffs violated CUTPA by agreeing to liquidated damages and then commencing a suit for additional compensation. In the fourth and fifth counts, the defendant seeks restitution of the $3,661,536 paid to Tallmadge and $1,538,462 paid to Sabo, rescission of the settlement agreement, and authorization to commence eminent domain proceedings pursuant to General Statutes § 16-266.1

On March 5, 1996, the parties agreed that the case would be submitted to a committee as authorized by General Statutes §52-425.2 They further agreed that the committee would be Nicholas A. Cioffi3, who would hear the evidence and "report[ing] the facts to the Court." The committee also would make a "recommendation to the Court as to the conclusions of law to be applied thereto," all in accordance with "Chapter 10 of the Connecticut Practice Book" which pertains to procedures for civil trials.

The committee conducted a trial4 and then issued "findings" and a"suggested opinion" in accordance with Practice Book (1998 Rev.) § 19-8. The committee found the following facts: (1) at a meeting of all interested parties in December of 1990, the defendant represented, and the plaintiffs agreed and understood, that the pipeline would be constructed in a 200 foot corridor, that all the shellfish within that area would be destroyed, and that there would be some "incidental" damage CT Page 8641 beyond the 200 foot zone from siltation, anchors and cables, but not direct construction damage; (2) the construction contract between the defendant and its contractor defines the "work area" as a 300 foot wide work corridor and the defendant sent a plan to the Connecticut Siting Council indicating the same 300 foot wide work area or corridor; (3) the parties met again in January of 1991, at which time the plaintiffs were advised by the defendant that the construction area would be 100 feet either side of the pipeline and that the shellfish in 20.66 acres of Tallmadge's property and in 9.8 acres of Sabo's property would be destroyed; (4) the permit issued to the defendant by the state Department of Environmental Protection (DEP) provided, among other things, that the defendant would "financially reimburse leaseholders for full market value of the resource impacted to satisfaction of shellfish bed leaseholders;" (5) the agreement, which permits the defendant to enter upon the property leased by the plaintiffs and refers to a 200 foot wide corridor,5

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Bluebook (online)
1998 Conn. Super. Ct. 8638, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tallmadge-bro-v-iroquois-gas-trans-no-cv-92-0124088-aug-14-1998-connsuperct-1998.