195 Conn.App. 21
Conn. App. Ct.2019Background
- Plaintiff Starboard Fairfield Development, LLC (Starboard) and RR One, LLC (RR One) sued defendants William C. Gremp and W C Gremp, LLC (WCG) over disputes arising from ownership/management of two Bridgeport rental properties (Newfield and Deacon).
- In 2012 Starboard acquired 99% of RR One; operating agreement barred members from claiming individual interests in RR One’s properties. Gremp remained property manager and later agreed to buy the Deacon property individually.
- At the Deacon closing Gremp took title personally after obtaining mortgage financing in RR One’s name without disclosing the 2012 operating agreement or his intent to take title individually. He also executed a general release in favor of Starboard that waived claims relating to RR One and Newfield and agreed to cooperate in the Newfield sale.
- After the release, Gremp and WCG filed suit seeking to enjoin the Newfield sale and recorded a lis pendens and later filed an affidavit claiming 100% ownership of RR One; the temporary injunction was denied and the suit withdrawn, but the title claims were recorded and later released.
- RR One sold Newfield; $5,000 remained in escrow per the indemnity agreement. Plaintiffs then brought claims for breach of the release, slander of title, intentional interference with contract, breach of promissory note, and other counts; after a bench trial the court entered judgment for plaintiffs on several counts and awarded damages including punitive damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of general release | Gremp/WCG breached by suing and recording title claims contrary to their release and obligation to cooperate | Release language (transfer of RR One effective Dec 31, 2015) required plaintiffs to transfer RR One, excusing defendants’ actions | Affirmed for plaintiffs; defendants’ briefing inadequate and trial court’s factual finding that plaintiffs did not agree to transfer RR One stands |
| Slander of title | Recording lis pendens and affidavit falsely disparaged RR One’s title and harmed RR One | Gremp had a reasonable, good-faith belief in an ownership interest, making filings colorable | Affirmed for plaintiffs; trial court credited evidence against Gremp and finding of slander of title is supported |
| Intentional interference with contract | Defendants intentionally and tortiously interfered with RR One’s sale to third party, causing legal fees and loss of use of escrow | No intentional/bad‑faith interference; no actual loss caused by defendants | Affirmed for plaintiffs; defendants abandoned intent argument and court’s finding of actual loss (attorney fees and loss of use of $5,000 escrow) is supported |
| Interest on escrow funds | RR One entitled to interest for loss of use of $5,000 held in escrow due to defendants’ actions | Escrow was unrelated to defendants’ acts and cannot be a basis for loss | Affirmed; interest award upheld as tied to loss of use caused by defendants |
| Punitive damages notice & amount | Plaintiffs sought hearing; court properly gave hearing and awarded reasonable punitive damages (attorney’s fees and nontaxable costs) | Defendants claim inadequate notice and insufficient time to prepare; procedural rules violated | Affirmed; record shows adequate notice, attendance, and opportunity to be heard; calculation not reversible error |
Key Cases Cited
- Bellemare v. Wachovia Mortgage Corp., 284 Conn. 193 (2007) (defines slander of title as false written communications harming pecuniary interests)
- Rioux v. Barry, 283 Conn. 338 (2007) (elements required for intentional interference with contractual relations)
- Langley v. Langley, 137 Conn. App. 588 (2012) (trial court may discredit a witness’s claimed good‑faith belief)
- McClancy v. Bank of America, N.A., 176 Conn. App. 408 (2017) (appellate courts may decline review of inadequately briefed issues)
- Bodner v. United Services Automobile Assn., 222 Conn. 480 (1992) (common‑law punitive damages limited to reasonable attorney’s fees and nontaxable costs)
- Hylton v. Gunter, 313 Conn. 472 (2014) (judgment awarding punitive damages is final and appealable)
- Aldin Associates Ltd. Partnership v. Hess Corp., 176 Conn. App. 461 (2017) (standard of review for bench trials regarding credibility and factual support)