E & M Custom Homes, LLC v. Negron
140 Conn. App. 92
| Conn. App. Ct. | 2013Background
- Plaintiff E & M Custom Homes, LLC, pursued foreclosure of a mechanic’s lien and defended against counterclaims by Alberto Negron and Luz Maria Negron.
- Two contracts existed: a lot agreement for $69,900 and a construction contract for $230,000, with an initial $6,000 deposit.
- Construction loan funds were disbursed in stages; contractor’s affidavits conditioned further draws and referenced paid status.
- Defendants moved into the home in late 2007; the house failed inspections initially but ultimately received a certificate of occupancy on December 31, 2007.
- Plaintiff filed a mechanic’s lien claim in 2008; defendants counterclaimed under Connecticut’s construction and CUTPA statutes, alleging misrepresentation and other violations.
- Trial court found for defendants on the mechanic’s lien claim and awarded damages on counterclaims under 20-417c(6) and 20-417c(7); plaintiff appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ascertainable loss supports CUTPA damages despite contract balance | Hees controls; damages should be limited to unpaid contract balance. | ASCERTAINABLE loss exists; loss includes defects and unrepaired items beyond contract balance. | ASCERTAINABLE loss supported; damages affirmed. |
| How the mechanic’s lien amount is calculated: contract vs budget and waiver | Lien should reflect unpaid contract balance; budget/waiver not controlling. | Budget controls value; waiver via affidavit limits lien to stage five. | Budget-based value and waiver interpretation upheld. |
| Admissibility of an unregistered home improvement contractor as an expert | D’Averso lacks required registrations; not qualified. | Expert testimony helpful; qualifications based on peculiar knowledge. | Court did not abuse; D’Averso qualified as an expert. |
| Whether setoff was properly exercised against the construction balance | Equitable setoff should offset against contract balance. | Setoff appropriate based on budget value and completion credits. | Equitable setoff correctly applied; judgment affirmed. |
Key Cases Cited
- Hees v. Burke Construction, Inc., 290 Conn. 1 (Conn. 2009) (contract damages principle; unpaid balance not the sole measure)
- Intercity Development, LLC v. Andrade, 286 Conn. 177 (Conn. 2008) (mechanic’s lien value; not limited to contract price)
- Intercity Development, LLC v. Andrade, 96 Conn. App. 608 (Conn. App. 2006) (foreclosure; substantial performance principle)
- Dreambuilders Construction, Inc. v. Diamond, 121 Conn. App. 554 (Conn. App. 2010) (mechanic’s lien valuation approaches)
- M. J. Daly & Sons, Inc. v. New Haven Hotel Co., 91 Conn. 280 (Conn. 1917) (historic valuation of labor and materials under lien)
- FCM Group, Inc. v. Miller, 300 Conn. 774 (Conn. 2011) (mechanic’s lien valuation; substantial completion context)
- Artie’s Auto Body, Inc. v. Hartford Fire Ins. Co., 287 Conn. 208 (Conn. 2008) (ascertainable loss; damages framework under CUTPA)
- Capp Industries, Inc. v. Schoenberg, 104 Conn. App. 101 (Conn. App. 2007) (contract ambiguity; interpretation of terms)
- Cohen v. Roll-A-Cover, LLC, 131 Conn. App. 443 (Conn. App. 2011) (expert qualification standards)
- D’Angelo Development & Construction Corp. v. Cordovano, 121 Conn. App. 165 (Conn. App. 2010) (ascertainable loss; CUTPA damages framework)