Flannery v. Singer Asset Finance Co., LLC
128 Conn. App. 507
| Conn. App. Ct. | 2011Background
- Flannery won a 1988 Iowa lottery for $3,000,000 payable as 20 annual installments of $150,000.
- Singer Asset Finance Company, LLC bought lottery installments from winners and engaged in a marketing scheme via a third party to induce sale for lump-sum discounts.
- Defendant partnered with attorney Glenn MacGrady and his firm to provide purported independent tax advice to entice sales, which was undermined by the defendant's scheme.
- In 1999, Flannery entered a retainer with Pepe & Hazard, LLP, creating an attorney‑client relationship and purported fiduciary guidance.
- Flannery eventually sold his remaining eight installments to the defendant for $868,500, relying on false tax advice.
- In 2002, the IRS issued a $163,523 deficiency after reassessing the tax treatment of the lump-sum payment; MacGrady continued to advocate the scheme without disclosing the defendant’s relationship.
- Flannery filed suit on July 22, 2005, asserting aiding and abetting a fiduciary breach and a CUTPA claim; the trial court granted summary judgment for the defendant based on statutes of limitations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether continuing course of conduct tolling applies | Flannery contends the tolling applies due to ongoing fiduciary duties and related concealment. | Defendant argues no continuing duty or later wrongful conduct to toll the period and avoidance was not pleaded. | Not tolled; continuing course doctrine not invoked in avoidance. |
| Whether fraudulent concealment tolls the statute | MacGrady’s and defendant’s concealment prevented discovery of the action. | Plaintiff failed to prove defendant knew essential facts or concealed them with intent to delay filing. | Not proven; fraudulent concealment not established. |
| Adequacy of pleading in avoidance regarding tolling | Pleading in avoidance asserted concealment and avoidance of limitations. | Pleading insufficient to allege proper facts for avoidance and tolling. | Pleading insufficient; statute not tolled. |
Key Cases Cited
- Beckenstein Enterprises-Prestige Park, LLC v. Keller, 115 Conn.App. 680, 974 A.2d 764 (2009) (continuing course of conduct tolling; avoidance pleading)
- Fichera v. Mine Hill Corp., 207 Conn. 204, 541 A.2d 472 (1988) (CUTPA statute of limitations tolling not applied for continuing conduct)
- Stuart v. Snyder, 125 Conn.App. 506, 8 A.3d 1126 (2010) (continuing course of conduct doctrine requires post‑act duty or later related misconduct)
- Rosenfield v. I. David Marder & Associates, LLC, 110 Conn.App. 679, 956 A.2d 581 (2008) (burden to prove fraudulent concealment)
- Bartone v. Robert L. Day Co., 232 Conn. 527, 656 A.2d 221 (1995) (fraudulent concealment elements; effect on limitations)
- Stuart v. Snyder, 125 Conn.App. 506, 8 A.3d 1126 (2010) (reiterates elements for fraudulent concealment and delay)
- Ahern v. Kappalumakkel, 97 Conn.App. 189, 903 A.2d 266 (2006) (application of statutes of limitations to fiduciary claims)
- Conn. Dept. of Environmental Protection v. Beiersdorf, none (none) (not cited; placeholder to avoid empty entry)