Gianetti v. NORWALK HOSP.
304 Conn. 754
| Conn. | 2012Background
- Gianetti sued Norwalk Hospital for breach of contract after his medical staff privileges were not renewed in 1983, leading to a long procedural history and multiple remands regarding damages.
- The trial court initially awarded nominal damages, found Gianetti not a lost volume seller, and later proceedings on remand determined he was a lost volume seller with damages for 1984–1988.
- Appellate courts held the lost volume seller theory could apply to personal service contracts and remanded for a damages calculation with guidance on how to compute lost profits.
- On remand (2009 memorandum and 2009 articulation), the trial court held Gianetti was a lost volume seller and awarded damages of $258,610 for 1984–1988 plus costs, denying damages after 1988 due to substantial variable effects.
- The hospital appealing argued three main points about lost volume status and damages; Gianetti cross-appealed on calculation, interest, and attorney’s fees, all of which the Supreme Court ultimately affirmed in part.
- Procedural posture included multiple certifications and appeals culminating in this final affirmance of damages for 1984–1988 and rejection of broader post-1988 damages and related claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Gianetti was properly found to be a lost volume seller. | Gianetti contends he could perform at multiple hospitals simultaneously and that profitability prong was met. | Norwalk Hospital asserts lack of capacity and profitability to support lost volume status. | Yes; Gianetti properly found as lost volume seller. |
| Whether damages for 1984–1988 were proven with reasonable certainty. | Gianetti argues sufficient evidence supports lost profits for those years. | Hospital claims calculations were speculative and uncertain beyond 1988. | Sufficient evidence supported damages for 1984–1988. |
| Whether the court properly limited evidence on the parties’ expectations for contract duration. | Evidence of intent longer than 1988 should have been considered. | Evidence was irrelevant to objective intent at contract inception. | Trial court acted within its discretion in excluding that evidence. |
| Whether prejudgment and postjudgment interest were properly denied. | Interest should accrue given breach and timing of liability determination. | Interest award rests on eventual lost volume finding and timing. | |
| Denied; court did not abuse discretion. | |||
| Whether attorney’s fees were warranted based on bad faith or fiduciary theories. | Hospital’s prolonging litigation warranted fees; fiduciary duty argued. | No bad faith or fiduciary duty basis supported fee award. | Affirmed denial of attorney’s fees. |
Key Cases Cited
- Gianetti v. Norwalk Hospital, 211 Conn. 51 (1989) (established contractual relationship via medical staff bylaws; bylaw mechanics not a contract per se)
- Gianetti v. Norwalk Hospital, 266 Conn. 544 (2003) (retired to remand on lost volume seller issues; severity of evidentiary requirements discussed)
- Gianetti II, 266 Conn. 544, 833 A.2d 891 (2003) (remand for damages; lost volume status and duration of relationship; profitability test)
- Gavin v. Schatz & Schatz, 247 Conn. 48 (1998) (lost profits must be proven with reasonable certainty)
- Westport Taxi Service, Inc. v. Westport Transit District, 235 Conn. 1 (1995) (prejudgment interest and equitable considerations in damages)
- Owens v. New Britain General Hospital, 229 Conn. 592 (1994) (fiduciary duty and bylaws compliance in hospital physician terminations)
- Kutner Buick, Inc. v. American Motors Corp., 868 F.2d 614 (1989) (expense allocation for lost profits; fixed vs. variable costs)
- Harris v. Bradley Memorial Hospital & Health Center, Inc., 296 Conn. 315 (2010) (bad faith context; punitive damages not at issue here)
