311 Conn. 707
Conn.2014Background
- Plaintiff Lisa Robbins, administratrix of her son’s estate, sued Shoreline and others for medical malpractice arising from care at Lawrence and Memorial Hospital; Shoreline was sold to defendants about nine months after the events.
- In 2008, after settlement with some defendants, Robbins executed covenants not to sue Shoreline and its nurse, Burke-Howes, with Shoreline tendering policy limits; Levine and Burke-Howes settled, leaving Physicians for Women’s Health, LLC and Women’s Health USA, Inc. as remaining defendants.
- Defendants moved for summary judgment in 2008 and again in 2009 arguing the covenant foreclosed successor liability; the trial court denied the first motion but granted the second.
- The Appellate Court reversed in part, holding that successor liability could be imposed despite the covenant and remanding for whether Shoreline remained a viable source of recovery.
- The Supreme Court granted certiorari to decide whether a covenant not to sue a corporate tortfeasor forecloses successor liability against a purchaser of the corporate assets as a legal matter.
- The Court held that a covenant not to sue Shoreline terminates Shoreline’s liability and, therefore, forecloses any successor liability against the defendants under the mere continuation theory; the Appellate Court’s reversal was improper and the trial court’s judgment should be affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does a covenant not to sue foreclose successor liability as a matter of law? | Robbins argues covenant preserves claims against successors. | Defendants contend covenant extinguishes Shoreline’s liability and thus bars successor liability. | Yes; covenant forecloses successor liability. |
| Is successor liability available when a covenant not to sue is in place against the predecessor? | Robbins relies on continuation or other theories to reach defendants. | Defendants rely on the covenant terminating Shoreline’s liability, preventing successor liability. | No; covenant terminates liability and bars successor liability; mere continuation theory does not bypass it. |
Key Cases Cited
- Chamlink Corp. v. Merritt Extruder Corp., 96 Conn. App. 183 (2006) (Connecticut Appellate Court discusses successor liability limits)
- LiButti v. United States, 178 F.3d 124 (2d Cir. 1999) (federal successor liability principles cited)
- Golden State Bottling Co. v. National Labor Relations Board, 414 U.S. 168 (Supreme Court 1973) (four exceptions to corporate nonliability; continuation theories discussed)
- Bridgeport-City Trust Co. v. Hirsch, 119 Conn. 586 (1935) (early Connecticut treatment of liability and releases/surrenders)
- Dwy v. Connecticut Co., 89 Conn. 74 (1915) (joint tortfeasor concepts and related liability principles)
