Valencis v. Nyberg

CourtConnecticut Appellate Court
DecidedOctober 27, 2015
DocketAC36320
StatusPublished

This text of Valencis v. Nyberg (Valencis v. Nyberg) 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
Valencis v. Nyberg, (Colo. Ct. App. 2015).

Opinion

****************************************************** The ‘‘officially released’’ date that appears near the beginning of each opinion is the date the opinion will be published in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the beginning of all time periods for filing postopinion motions and petitions for certification is the ‘‘officially released’’ date appearing in the opinion. In no event will any such motions be accepted before the ‘‘officially released’’ date. All opinions are subject to modification and technical correction prior to official publication in the Connecti- cut Reports and Connecticut Appellate Reports. In the event of discrepancies between the electronic version of an opinion and the print version appearing in the Connecticut Law Journal and subsequently in the Con- necticut Reports or Connecticut Appellate Reports, the latest print version is to be considered authoritative. The syllabus and procedural history accompanying the opinion as it appears on the Commission on Official Legal Publications Electronic Bulletin Board Service and 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 repro- duced and distributed without the express written per- mission of the Commission on Official Legal Publications, Judicial Branch, State of Connecticut. ****************************************************** STANLEY VALENCIS ET AL. v. DAVID NYBERG ET AL. (AC 36320) Alvord, Mullins and Schaller, Js. Argued April 7—officially released October 27, 2015

(Appeal from the Superior Court, judicial district of Hartford, Peck, J.) Christopher M. Licari, for the appellants (defendants). Jill Hartley, for the appellees (plaintiffs). Opinion

SCHALLER, J. The defendants David Nyberg and CSM North, LLC (CSM),1 appeal from the judgment of the trial court awarding a prejudgment remedy in favor of the plaintiffs, Stanley Valencis, ACSYS, Inc. (ACSYS), and MIG Ventures, LLC (MIG), in the amount of $1,517,389.40.2 On appeal, the defendants claim that (1) the court improperly granted the application for a prejudgment remedy without taking into account the defenses raised by the defendants, (2) there was insuffi- cient evidence to grant the application for a prejudg- ment remedy, and (3) the court improperly failed to make a specific finding of damages for each count for which it found probable cause. We disagree with these claims, and, accordingly, affirm the judgment of the trial court. The following facts and procedural history are rele- vant to our resolution of this appeal, which stems from what the court described as a ‘‘construction contract gone awry.’’ In the plaintiffs’ unsigned complaint attached to their application for a prejudgment remedy, they alleged, inter alia, the following causes of action: breach of express contract, breach of implied contract, and breach of the covenant of good faith and fair dealing (contract claims); promissory estoppel, unjust enrich- ment, breach of fiduciary duty, fraud, negligent misrep- resentation, conversion, statutory theft, and violation of General Statutes § 42-110a et seq., the Connecticut Unfair Trade Practices Act (CUTPA).3 All of the counts were directed at the defendants, with the exception of the breach of fiduciary duty, fraud and negligent misrepresentation counts, which applied only to Nyberg individually. The parties presented evidence, made oral argument, and filed briefs. The court found probable cause on all but the breach of fiduciary duty count and granted a prejudgment remedy in the amount of $1,517,389.40. In granting the prejudgment remedy, the court found the following facts as stated in its memorandum of decision. In 2011, Nyberg negotiated the purchase of a property located at 1577 New Britain Avenue in Farm- ington (property) in the name of CSM.4 The plaintiffs acquired the property from CSM. Valencis, the president of ACSYS, entered into an oral agreement with Nyberg, who described himself as a ‘‘ ‘handshake kind of busi- ness person,’ ’’ regarding the renovation of the property, which would act as the new headquarters of ACSYS. Under the contract, Nyberg was to act as general contractor of the project to ‘‘gut and totally renovate the building,’’ with Gerald Ginsberg, an independent contractor hired by CSM, acting as the project manager. Early on in the project, the budget was approximately $2 million, consisting of a $1.5 million purchase price and $647,000 for the anticipated design and ‘‘build out.’’ The project initially was projected to be completed in December, 2011, or January, 2012. The project was not completed until August, 2012, at a total cost of between $3.7 and $3.8 million. In 2011 and early 2012, the plaintiffs made a number of payments to CSM in advance on the basis of Nyberg’s representation that he could save 30 to 40 percent by paying for labor and materials up front. This included payments to CSM for construction work before any was performed and for materials before they were delivered. Amid questioning by the plaintiffs regarding when the work would be performed and when the materials they had paid for would be delivered, Ginsberg resigned as project manager and was replaced by Frank Cotrona, another independent contractor, in late January or early February, 2012. Cotrona began investigating the status of payments made by the plaintiffs and the overall prog- ress of the project. With his help, the plaintiffs eventu- ally concluded that a number of subcontractors had not been paid and a variety of materials had not been purchased, despite the payments made by the plaintiffs to the defendants. The plaintiffs also discovered that the defendants never obtained a general building permit. The court determined that the plaintiffs had met their burden of establishing probable cause with respect to, inter alia, their contract claims and the claims for prom- issory estoppel, unjust enrichment, fraud, negligent mis- representation, conversion, statutory theft and violation of CUTPA. The court found treble damages of $1,205,115.12 pursuant to the statutory theft count; see General Statutes § 52-564; and $312,374.28 for the remaining damages, for a total of $1,517,389.40. The court declined to award punitive damages pursuant to the CUTPA claim because Nyberg invoked his fifth amendment privilege against self-incrimination.5 This appeal followed. At the outset, we identify the relevant legal principles and our standard of review. ‘‘We begin with the law governing prejudgment remedies and our limited role on review. A prejudgment remedy means any remedy or combination of remedies that enables a person by way of attachment, foreign attachment, garnishment or replevin to deprive the defendant in a civil action of, or affect the use, possession or enjoyment by such defendant of, his property prior to final judgment . . . . General Statutes § 52-278a (d). A prejudgment remedy is available upon a finding by the court that there is probable cause that a judgment in the amount of the prejudgment remedy sought, or in an amount greater than the amount of the prejudgment remedy sought, taking into account any defenses, counterclaims or set- offs, will be rendered in the matter in favor of the plaintiff . . . . General Statutes § 52-278d (a) (1). . . . Proof of probable cause as a condition of obtaining a prejudgment remedy is not as demanding as proof by a fair preponderance of the evidence. . . . The legal idea of probable cause is a bona fide belief in the exis- tence of the facts essential under the law for the action and such as would warrant a man of ordinary caution, prudence and judgment, under the circumstances, in entertaining it. . . . Probable cause is a flexible com- mon sense standard. It does not demand that a belief be correct or more likely true than false. . . .

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Valencis v. Nyberg, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valencis-v-nyberg-connappct-2015.