137 Conn. App. 578
Conn. App. Ct.2012Background
- Plaintiffs were principals and majority stockholders of Midcore Software, which developed Midpoint software.
- Defendant Parrella was CEO/chair of NCT Group and its subsidiaries involved in the merger.
- On Aug. 29, 2000, merger terms promised stock and royalties to plaintiffs.
- Jury found negligent misrepresentations re stock availability/issuance, awarding damages.
- Jury found intentional misrepresentations about postmerger continuation of Midcore business, awarding more damages.
- Jury found CUTPA violation leading to punitive damages and attorney’s fees to be determined by the court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the court err in denying the motion to set aside the verdict? | Metcoff; Wilson argue verdict supported by evidence | Parrella contends verdict against law/evidence | No abuse of discretion; verdict not set aside. |
| Are attorney’s fees and punitive damages properly awarded under CUTPA and common law? | Fees and punitive damages were warranted | Discretionary awards abused or unjust | Court did not abuse discretion; awards affirmed. |
| Were common-law punitive damages properly awarded? | Punitive damages justified by intentional misrepresentation | Insufficient evidence to support punitive damages | Affirmed as properly awarded. |
| Was the business judgment rule properly not instructed to the jury? | Rule not applicable here; no defense raised | Rule should have been instructed | Instruction not required; rule not in case. |
Key Cases Cited
- Costanzo v. Gray, 112 Conn. App. 614 (2009) (standard for set-aside review; discretionary)
- Mickey v. Mickey, 292 Conn. 597 (2009) (adequacy of record; articulation burden)
- Votto v. American Car Rental, Inc., 273 Conn. 478 (2005) (discretion in CUTPA punitive damages/fees)
- Metcoff v. NCT Group, Inc., 52 Conn. Sup. 363, 50 A.3d 1004 (2011) (2011) (trial court decisions on fees and punitive damages ( CT. Sup. Ct. ))
- Metcoff v. NCT Group, Inc., 52 Conn. Sup. 388 (2011) (2011) (supplementary CT. Sup. Ct. decision; addressed issues on appeal)
