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126 Conn. App. 274
Conn. App. Ct.
2011
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Background

  • Department of Environmental Protection issued orders in 2002 requiring corrective actions for the 46 South Street, Danbury site.
  • In 2005 the department filed a complaint alleging multiple violations and seeking injunctive relief.
  • On November 15, 2006 the parties entered a stipulated judgment with section A (Injunctive Relief) and section B (Civil Penalty) totaling $150,000, payable in installments and with a trigger for full payment if injunctive obligations or payment deadlines were breached.
  • Defendants were required to respond to the department’s Stevens letter highlighting deficiencies in the site investigation report; the department later demanded full $150,000 payment, plus interest and costs.
  • After delays and disputed responses, the department moved for contempt in May 2008 for failures to submit revised reports, perform and monitor remedial measures, and pay the civil penalty.
  • The trial court denied contempt in March 2009, holding that the stipulated judgment created a plausible interpretation that monetary liability could be an alternative to remedial action, and thus no wilful contempt was shown; on appeal the court affirmed, finding ambiguity in the stipulation.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the stipulated judgment was sufficiently clear to support contempt McCarthy: judgment unambiguous; penalties combine with injunctive relief Custom Design: judgment ambiguous; monetary remedy could bar additional enforcement Ambiguity; not sufficiently clear to support contempt
Whether the civil penalty provision precludes contempt for noncompliance with injunctive provisions Penalty is a tool within the order to enforce injunctive relief Penalty preempts other remedies; contempt not available Ambiguous interplay; no contempt based on ambiguity
Whether ownership status of the property forecloses contempt for failing to perform remedial actions Defendants had access and obligation to ensure compliance regardless of ownership No ownership or access; cannot perform remedial actions Ownership/access issues contribute to ambiguity; contempt not supported

Key Cases Cited

  • Rocque v. Northeast Utils. Service Co., 254 Conn. 78 (2000) (stipulated judgment defined as a contract of the parties)
  • In re Leah S., 284 Conn. 685 (2007) (contempt standards; clarifies ambiguity analysis for contempt)
  • Sablosky v. Sablosky, 258 Conn. 713 (2001) (wilfulness not precluded by ambiguity in some contexts)
  • Cantonbury Heights Condominium Assn., Inc. v. Local Land Development, LLC, 273 Conn. 724 (2005) (contract interpretation governs ambiguity in stipulations)
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Case Details

Case Name: McCarthy v. Custom Design Services, Inc.
Court Name: Connecticut Appellate Court
Date Published: Jan 25, 2011
Citations: 126 Conn. App. 274; 11 A.3d 1094; 2011 Conn. App. LEXIS 25; AC 31117
Docket Number: AC 31117
Court Abbreviation: Conn. App. Ct.
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