Grabarek v. J's Construction Masonry, No. Cv-00-0092444s (Jul. 8, 2002)
Opinion of the Court
The trial transcript was presented to the court. Having reviewed the record and the report, and having considered the objection, as well as the parties' written and oral arguments, the court now issues this memorandum of decision.
The defendants filed an original answer and a counterclaim on September CT Page 8579 8, 2000. Subsequently, they filed an amended answer and counterclaim, dated November 6, 2001. The defendants allege in the counterclaim that the plaintiffs have refused to pay the defendants sums due and owing pursuant to a written contract. The defendants also allege that the plaintiffs owe them a total of $416,540.00. On October 3, 2000, the plaintiffs filed an answer and special defenses to the original counterclaim. The plaintiffs allege in their five special defenses that any damages suffered by the defendants were caused by their own breach of the agreement (First Special Defense); J's Construction, if found to be neither a de facto or a de jure corporation, lacks standing to assert the counterclaim (Second Special Defense); any contract alleged to exist does not comply with the Home Improvement Act (Third Special Defense); any contract alleged to exist was procured by fraud and misrepresentation (Fourth Special Defense); and that the defendant was fully paid (Fifth Special Defense).
This case was referred to an attorney trial referee (ATR). The ATR heard the case on November 27-28, 2001. On February 20, 2002, the ATR submitted a report. The ATR made the following findings of fact and conclusions of law. On or about March 3, 1999, J's Construction, a de facto corporation, "agreed to provide certain "home improvement' construction services to the plaintiff's property." (Report, ¶ 3.) Londin was not a party to the agreement and the work that the defendants were hired to do did not involve any "land or building or portion of land or building used or designed to be used as a private residence, dwelling place or residential real property. The building that was the subject of the agreement was a barn being converted to use exclusively as an office and place of business."(Report, ¶ 3.) A contract existed between the plaintiffs and J's Construction which the ATR concluded "was not a statutory home improvement contract for home improvements. . . ." (Report, ¶¶ 11, 23.) J's Construction gave the plaintiffs a written estimate for the work and the ATR concluded that the plaintiffs did not prove that this estimate obliged either defendant to complete the work for the price in the estimate. (Report, ¶¶ 4, 5.) Further, the ATR stated that the plaintiffs did not prove that either defendant failed to complete work that they had an obligation to perform or that they failed to provide materials owed to the plaintiffs. (Report, ¶¶ 5, 9.) In addition, the ATR found that the plaintiffs did not meet their burden of proof on the allegations of breach of contract, negligent misrepresentation, reckless misrepresentation, intentional misrepresentation and violation of CUTPA. (Report, ¶¶ 11-20.)
With respect to the defendants' claims, the ATR found that the salient allegations had not been proven. (Report, ¶¶ 24-27.)1 The ATR recommended that judgment enter for the defendants on all counts of the plaintiffs' complaint and that judgment enter for the plaintiffs on the CT Page 8580 defendants' counterclaim. The defendants have not objected to the ATR's findings concerning the counterclaim.
On March 13, 2002, the plaintiffs filed, pursuant to Practice Book §
The Supreme Court, in Killion v. Davis,
Other principles governing ATR reports provide that "[a] reviewing authority may not substitute its findings for those of the trier of facts. This principle applies no matter whether the reviewing authority is the Supreme Court . . . the Appellate Court . . . or the Superior Court reviewing the findings of . . . attorney trial referees. . . . This court has articulated that attorney trial referees and factfinders share the same function . . . whose determination of the facts is reviewable in accordance with well established procedures prior to the rendition of judgment by the court." (Internal quotation marks omitted.) Killion v.Davis, supra,
The plaintiffs contend that the defendants' admission in their answer, that they agreed to perform certain "home improvement" services for the plaintiffs, is a binding judicial admission. Thus, the plaintiffs argue that the ATR erred in finding that the HIA did not apply. The defendants assert that they did provide home improvement services with respect to the plaintiffs' residence, however, this case involves construction work on a barn located on the plaintiffs' property, not the plaintiffs' home. Thus, the defendants claim that the HIA is inapplicable. CT Page 8582
Under the HIA, services furnished for commercial or business uses are outside the scope of the act. See General Statutes §
The first task for the court is to determine whether there is support in the record for the ATR's findings of fact that the HIA did not apply in this case. The plaintiff, Cathye Grabarek, testified that she and her husband intended to convert the barn into an office space used for business. (Transcript, November 27, 2001, p. 22, lines 18-23; p. 25, lines 25-27, p. 26, lines
The next issue is whether the referee's conclusion that the contract between the plaintiffs and J's Construction was not a statutory home improvement contract follows logically and legally from those facts. SeeKillion v. Davis, supra,
The plaintiffs do not claim that the trial record before the ATR shows that the work in dispute was residential in nature. Instead, as noted, they assert that the defendants' answer admitted that it was. (See CT Page 8583 plaintiff's Memorandum of Law, pp. 7-11.) In the complaint, first count, paragraph 3, the plaintiffs allege that "[o]n or about March 3, 1999, the Defendants agreed to provide certain home improvement, construction services to the Plaintiff's [sic] property." In their initial answer (#109), this paragraph of the complaint was admitted. In their amended answer (#128), the defendants responded to this allegation as follows: "[t]he defendants admit that Jay Londin Construction, Inc. d/b/a J's Construction Masonry, Inc. agreed to provide home improvement construction services to the plaintiff's [sic] property; the defendants deny that Jay R. Londin entered into said agreement."
Further, in the complaint, the plaintiffs allege, in paragraph 4 of the first count, that a written estimate was provided, and signed by the plaintiffs, a copy of which was attached to the complaint as Exhibit A. Exhibit A, which is undated, states that the work in question was "for addition to barn office."6
Our Supreme Court recently reiterated the principles which govern judicial admissions. "`Factual allegations contained in pleadings upon which the case is tried are considered judicial admissions and hence irrefutable as long as they remain in the case.' (Internal quotation marks omitted.) West Haven Sound Development Corp. v. West Haven,
Nevertheless, an admission of fact must be seen in context. At trial, a party may seek to withdraw, explain, or modify his admission. See Ferreirav. Pringle, supra (quoting West Haven Sound Development Corp. v. WestHaven, supra,
There is conflicting evidence in the record regarding the scope of work. The plaintiffs testified that the original estimate provided by the defendants, in the amount of $43,280.00, was for a two-story addition to the barn. (Transcript, November 27, 2001, p. 25, lines 25-27, p. 26, lines
Upon conflicting evidence, it is within the province of the trier of fact to judge the credibility of the witnesses and to draw proper inferences. Levy, Miller, Maretz, L.L.C. v. Vuoso,
Next, the court must determine whether the report is legally and logically correct. "The essential elements of a cause of action in fraud are: (1) a false representation was made as a statement of fact; (2) it was untrue and known to be untrue by the party making it; (3) it was made to induce the other party to act upon it; and (4) the other party did so act upon that false representation to his injury. . . . All of these ingredients must be found to exist; and the absence of any one of them is fatal to a recovery. . . . Additionally, [t]he party asserting such a cause of action must prove the existence of the first three of [the] elements by a standard higher than the usual fair preponderance of the evidence, which higher standard [the court has] described as `clear and satisfactory' or "clear, precise and unequivocal.'" Anastasia v.Beautiful You Hair Designs, Inc.,
In this case, the ATR found that "[t]he plaintiffs did not prove that either one of the defendants acted falsely and fraudulently with actual intent to deceive in dealings with the plaintiffs." (Report, ¶ 14.) In addition, the ATR found that any representations made by the defendants were not untrue and that the plaintiffs did not rely upon these representations. (Report, ¶ 16.) Finally, the ATR concluded that the plaintiffs were not damaged by any representations made by the defendants. (Report, ¶ 16.) The ATR's report fully supports his conclusions that plaintiffs did not prove their allegations of negligent, reckless and intentional misrepresentation. Thus, the ATR's report is logically and legally correct.
The court will review the transcript to determine if there is support in the record for the ATR's findings. It is well recognized that whether a contract has been breached is an issue of fact for the trier of fact.Bowman v. 1477 Central Avenue Apartments, Inc.,
After reviewing the record, it is clear that the referee chose to believe the testimony offered by the defendants and not that of the plaintiffs regarding the contract terms and whether there was a breach. Londin testified that the contract did not contain a fixed price, a start date or an end date. (Transcript, November 27, 2001, p. 166, lines 8-16.) Cathye Grabarek testified that the contract price would vary based upon the scope of the job. (Transcript, November 27, 2001, p. 51-52.) She also testified that there was not a fixed contract price. (Transcript, November 27, 2001, p. 53, lines
The ATR found that the plaintiffs had not proved breach of contract. In making this finding, "the attorney trial referee implicitly found certain witnesses to be credible and believable in their testimony. This was precisely [his] function as a fact finder." Nor'easter Group, Inc. v.Colossale Concrete, Inc., supra,
In addition, the ATR concluded that the plaintiffs did not prove that they sustained damage as a result of any breach of contract by either defendant. "In making its assessment of damages for breach of [any] contract the trier must determine the existence and extent of any deficiency and then calculate its loss to the injured party. The determination of both of these issues involves a question of fact which will not be overturned unless the determination is clearly erroneous." (Internal quotation marks omitted.) Maloney v. PCRE, L.L.C.,
As noted above, it was the ATR's province to assess the credibility of the witnesses. He found that no breach occurred; as stated above, there CT Page 8587 is support in the record for this finding. Thus, the ATR's finding, that the plaintiffs did not prove that they sustained damage as a result of any breach of contract by either defendant is supported by the evidence. The ATR's findings concerning the plaintiffs' breach of contract claim are not clearly erroneous.
The next issue is whether the ATR's conclusions are logically and legally correct. "An action for breach of contract requires proof of three elements: (1) the formation of an agreement; (2) performance by one party; (3) breach of the agreement by the other party and (4) damages." (Internal quotation marks omitted.) Ferrone v. Resnick, Superior Court, judicial district of New Haven at New Haven, Docket No. 443779 (February 20, 2002, Meadow, J.T.R.). The ATR's conclusion that the plaintiffs did not prove breach of contract follows logically and legally from his findings of fact.
Connecticut recognizes the de facto corporation doctrine "where there is a law authorizing such a corporation and where the company has made an effort to organize under the law and is transacting business in a corporate name." (Internal quotation marks omitted.)Clark-Franklin-Kingston Press v. Romano,
Contrary to the plaintiffs' assertion, after reviewing the transcript, CT Page 8588 this court finds that there are sufficient facts in the record to support the ATR's finding that J's Construction was a de facto corporation. William Woods, Londin's accountant and attorney, testified that he prepared the appropriate documents to set up a corporation in the name of J's Construction, Inc. and submitted them to the secretary of state. (Transcript, November 28, 2001, p. 121-22.) Woods also testified that the documents were sent back because the secretary of state did not accept the corporation's name. (Transcript, November 28, 2001, p. 122.) Woods testified that he resubmitted the documents under the name of Jay's Construction, Inc. and, again, they were returned because the name of the corporation was already taken or too similar to another corporation's name. (Transcript, November 28, 2001, p. 122.) Finally, Woods testified that once again he submitted the documents under the name of Jay Londin Construction, Inc. and that he did not receive a rejection from the secretary of state. (Transcript, November 28, 2001, p. 122.)
In addition, Londin testified that he always did business as a corporation. (Transcript, November 27, 2001, p. 172, lines 24-26.) There was also evidence that he had maintained a corporate checking account and filed corporate tax returns. (Transcript, November 27, 2001, p. 173; November 28, 2001, pp. 51-55, plaintiffs' Exhibits 19-22.) Cathye Grabarek testified that the heading on a billing statement that she received from the defendants stated "Jay's Construction Masonry, Inc." (Transcript, November 27, 2001, p. 72.)
The record supports the ATR's finding that Jay Londin Construction, Inc. was a de facto corporation doing business under the trade name of J's Construction Masonry, Inc. There was evidence that the defendants attempted to incorporate and the testimony indicates that the corporation held itself out as a corporation. Thus, the ATR's finding is supported by the facts in the record and is not clearly erroneous. His conclusion follows logically and legally from his findings of fact.
BY THE COURT
ROBERT B. SHAPIRO JUDGE OF THE SUPERIOR COURT
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