Flannery v. Singer Asset Finance Co., LLC
94 A.3d 553
Conn.2014Background
- In 1988, Flannery won $3 million in the Iowa lottery payable in installments; Singer Asset Finance sought to purchase those installments.
- Singer formed a relationship with attorney Glenn MacGrady to provide allegedly independent tax advice to lottery winners, tainted by conflict of interest.
- MacGrady advised Flannery to sell his payments; Flannery executed a June 1999 sale of eight remaining installments for $868,500.
- MacGrady and Pepe & Hazard represented Flannery in the sale (March 1999 retainer) and then also represented Singer in related matters; the attorney-client relationship ended September 1999.
- Flannery later discovered IRS tax issues in 2002; in 2005 he filed suit alleging aiding and abetting a fiduciary breach and CUTPA against Singer, claiming tolling under the continuing course of conduct doctrine.
- Lower courts granted summary judgment, holding the statutes of limitations ran and were not tolled; Appellate Court affirmed; this court granted certification on tolling and applicability to CUTPA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the continuing course of conduct doctrine was properly invoked | Flannery adequately invoked tolling despite not using exact phrase. | Appellate court correct that pleading isolation failed under 10-57. | Plaintiff adequately invoked; but tolling not available on undisputed facts. |
| Whether continuing course of conduct tolls CUTPA (and related claims) | MacGrady’s ongoing fiduciary duties and 2002 referral tolled the limitations period. | No continuing duty after 1999; tolling cannot extend to 2002; even if imputing to Singer, gaps preclude tolling. | Undisputed facts preclude tolling; CUTPA tolling not allowed; affirmed Appellate Court. |
Key Cases Cited
- Beckenstein Enterprises-Prestige Park, LLC v. Keller, 115 Conn. App. 680 (Conn. App. 2009) (pleading tolling in avoidance not strictly required under 10-57 when no prejudice)
- Bellemare v. Wachovia Mortgage Corp., 94 Conn. App. 593 (Conn. App. 2006) (nonjurisdictional defenses may be waived if no prejudice and notice given)
- Watts v. Chittenden, 301 Conn. 575 (Conn. 2011) (continuing course of conduct in negligence requires breach and ongoing duty; gaps extinguish tolling)
- Fichera v. Mine Hill Corp., 207 Conn. 204 (Conn. 1988) (limits tolling analyses for CUTPA and related claims)
- Witt v. St. Vincent’s Medical Center, 252 Conn. 363 (Conn. 2000) (test for continuing course of conduct: initial wrong, continuing duty, and breach)
- Romprey v. Safeco Ins. Co. of America, 310 Conn. 304 (Conn. 2013) (continuing course doctrine; tolling when record shows ongoing conduct)