Dept. of Administrative Services v. Bestech, Inc. of Connecticut, AC48336

The Department of Administrative Services awarded Bestech and others a hazardous materials abatement contract for state work at the former Bergin Correctional Institution site. 1
After a April 2021 stop-work order, Bestech left equipment at the site and claimed state representatives repeatedly told it work would resume soon. 2
Bestech later sought over $1.4 million for idle equipment costs and filed an arbitration demand under General Statutes § 4-61. 3
The department refused arbitration, asserted sovereign immunity, and sought injunctive relief because the claim did not arise under the contract and the contract barred idle-equipment recovery. 4
The trial court held § 4-61(a)'s waiver did not apply, granted an injunction, and barred Bestech from arbitrating. 5

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does § 4-61 waive sovereign immunity for Bestech’s arbitration claim? 6	Department said the claim did not arise under the contract and was barred.	Bestech said its claim arose under the contract and was arbitrable.	No; the claim fell outside § 4-61(a)'s limited waiver. 7
May the court examine the contract language to decide § 4-61 coverage? 8	Department said the court must determine waiver before arbitration.	Bestech said the arbitrator, not the court, should decide.	Yes; courts decide sovereign-immunity coverage and may inspect the cited contract language. 9
Did Bestech's idle-equipment theory fall 'under' the contract? 10	Department said no contract term authorized idle-equipment damages.	Bestech said general payment and breach provisions were enough.	No; the claim was only related to the contract, not directly under it. 11
Did Walter Kidde allow this delay-damages claim? 12	Department said Walter Kidde was distinguishable.	Bestech said delay damages are recoverable under § 4-61.	No; Walter Kidde was inapposite because this claim rested on oral representations and idle equipment. 13

Himmelstein v. Windsor, 304 Conn. 298 (Conn. 2012) (state immunity is waived only by clear legislative consent 14)
Dept. of Transportation v. White Oak Corp., 287 Conn. 1 (Conn. 2008) (§ 4-61 is a narrow waiver; arbitration depends on a qualifying claim under subsection (a) 15)
Dept. of Public Works v. ECAP Construction Co., 250 Conn. 553 (Conn. 1999) ('under' § 4-61 means directly under the contract, not merely related to it 16)
Sagamore Group, Inc. v. Commissioner of Transportation, 29 Conn. App. 292 (Conn. App. 1992) (claimant must show a precise fit between the statute and the contractual language invoked 17)
Bacon Construction Co. v. Dept. of Public Works, 294 Conn. 695 (Conn. 2010) (ECAP correctly interprets the scope of § 4-61's sovereign-immunity waiver 18)
Walter Kidde Constructors, Inc. v. State, 37 Conn. Supp. 50 (Conn. Super. 1981) (recognized certain delay damages in a public-works contract case, but on different facts 19)