COMPUTER REPORTING SERVICE, LLC v. LOVEJOY AND ASSOCIATES, LLC, ET AL.
AC 37257
Appellate Court of Connecticut
July 19, 2016
Alvord, Prescott and Mullins, Js.
Argued March 2—officially released July 19, 2016
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(Appeal from Superior Court, judicial district of Fairfield, Hon. Michael Hartmere, judge trial referee.)
Frederick A. Lovejoy, self-represented, for the appellants (named defendant et al.).
John W. Mills, for the appellee (plaintiff).
Opinion
PRESCOTT, J. The defendants Lovejoy & Associates, LLC (law firm), and Attorney Frederick A. Lovejoy appeal from the judgment of the trial court rendered in favor of the plaintiff, Computer Reporting Service, LLC, on its complaint alleging, inter alia, breach of contract arising from the defendants’ failure to pay for court reporting services that the plaintiff provided for several depositions taken by Lovejoy in an unrelated federal action.1 The
On the basis of our review of the record, we agree with the defendants that the court improperly held Lovejoy individually liable for breach of contract, but we are not persuaded by the remainder of the defendants’ claims. Accordingly, we reverse the judgment of the trial court in part, and remand the case with direction to render judgment in favor of Lovejoy as to count one of the operative complaint alleging breach of contract. We affirm the judgment in all other respects, including the court‘s decision to award costs and attorney‘s fees.
The following facts, which either were found by the court in its oral memorandum of decision or are undisputed in the record, and procedural history are relevant to our consideration of the defendants’ appeal.2 The plaintiff is a Connecticut
On or around June 18, 2010, Lovejoy, on behalf of the law firm, noticed the deposition of a witness in a federal action. Lovejoy faxed a copy of the deposition notice to the plaintiff, which the parties understood to be a request that the plaintiff provide a court reporter to record and transcribe the noticed deposition, which was scheduled for June 24, 2010. The plaintiff performed as requested, and the defendants were later provided with a copy of a deposition transcript and a bill for $1401.32. This same procedure was followed with respect to two additional depositions, one conducted on August 20, 2010, and the other on August 23, 2010. In each instance, the plaintiff was faxed a copy of the deposition notice, provided the requested court reporting services, and later provided the defendants with a transcript and a bill. The bills for the latter two depositions were for $1246.56 and $812.49, respectively. The bills for the three depositions totaled $3460.37. The defendants accepted delivery of the transcripts and utilized them without raising any complaint about the plaintiff‘s services or the quality of the work product provided. The bills, however, were never paid, despite repeated collection efforts by the plaintiff.3
In January, 2013, the plaintiff commenced a small claims action against the defendants alleging breach of contract. The defendants successfully moved to transfer the matter to the regular docket of the Superior Court, arguing that they had a good defense to the plaintiff‘s claim and wished to preserve their right to appeal. See
Also on July 3, 2014, the plaintiff filed a motion for attorney‘s fees and prejudgment interest pursuant to
I
The defendants first claim that the court improperly determined that an enforceable contract existed. Specifically, they argue that the plaintiff failed to meet its burden of establishing that there was a “meeting of the minds,” which is a prerequisite to the formation of a valid contract. We are not persuaded.
“The elements of a breach of contract action are the formation of an agreement, performance by one party, breach of the agreement by the other party and damages.” (Internal quotation marks omitted.) Sullivan v. Thorndike, 104 Conn. App. 297, 303, 934 A.2d 827 (2007), cert. denied, 285 Conn. 907, 908, 942 A.2d 415, 416 (2008). “In order to form a binding and enforceable contract, there must exist an offer and an acceptance based on a mutual understanding by the parties. . . . The mutual understanding must manifest itself by a mutual assent between the parties.” (Internal quotation marks omitted.) Krondes v. O‘Boy, 37 Conn. App. 430, 434, 656 A.2d 692 (1995). In other words, to prove the formation of an enforceable agreement, a plaintiff must establish the existence of “a mutual assent, or a ‘meeting of the minds’ . . . .” Herbert S. Newman & Partners, P.C. v. CFC Construction Ltd. Partnership, 236 Conn. 750, 764, 674 A.2d 1313 (1996); see also Bridgeport Pipe Engineering Co. v. DeMatteo Construction Co., 159 Conn. 242, 246, 268 A.2d 391 (1970) (“burden rested on the plaintiff to prove a meeting of the minds to establish its version of the claimed contract“).
“The parties’ intentions manifested by their acts and words are essential to the court‘s determination of whether a contract was entered into and what its terms were. . . . Whether the parties intended to be bound without signing a formal written document is an inference of fact [to be made by] the trial court . . . .” (Internal quotation marks omitted.) MD Drilling & Blasting, Inc. v. MLS Construction, LLC, 93 Conn. App. 451, 454-55, 889 A.2d 850 (2006). “[M]utual assent is to be judged only by overt acts and words rather than by the hidden, subjective or secret intention of the parties.” 1 S. Williston, Contracts (4th Ed. Lord 2007) § 4.1, p. 325.
Turning to the present case, the court determined that there was “a contractual agreement between the plaintiff and the defendants.” Because there was no written agreement, and, therefore, no definitive contract language to interpret, determining who was a party to the contract and the intent of those parties with respect to the terms of any contractual agreement involved factual determinations that we will reverse only if clearly erroneous. See Joseph General Contracting, Inc. v. Couto, 317 Conn. 565, 574–75, 119 A.3d 570 (2015). Although its decision contains no specific reference to a “meeting of the minds” and, in fact, contains very few factual findings relative to the formation of a contract,8 a finding of mutual assent is nevertheless implicit within the court‘s express finding that a contract existed. See Tsionis v. Martens, 116 Conn. App. 568, 577, 976 A.2d 53 (2009). Moreover, our review of the record before the trial court reveals that there was sufficient evidence to support the court‘s finding that a valid contact existed.
The court found that Lovejoy had faxed copies of the deposition notices to the plaintiff.9 It was not disputed at trial that the purpose of providing the plaintiff with notice of the depositions was to alert the plaintiff of the defendants’ need for a court
II
The defendants next claim that the court‘s finding that they faxed copies of the deposition notices to the plaintiff was clearly erroneous. We disagree.
“[W]e will upset a factual determination of the trial court only if it is clearly erroneous. The trial court‘s findings are binding upon this court unless they are clearly erroneous in light of the evidence and the pleadings in the record as a whole. . . . We cannot retry the facts or pass on the credibility of the witnesses. A find-ing of fact is clearly erroneous when there is no evidence in the record to support it . . . or when although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed.” (Internal quotation marks omitted.) Surrells v. Belinkie, 95 Conn. App. 764, 767, 898 A.2d 232 (2006).
The defendants rely heavily upon the fact that the copies of the deposition notices admitted as exhibits at trial contained fax transmittal data that indicated that the notices had been faxed to the plaintiff long after this action was commenced and by someone other than the defendants. The plaintiff‘s principal testified at trial, however, that copies of the deposition notices were faxed to the plaintiff‘s office by the defendants prior to the depositions and that this was how the plaintiff knew to send a reporter to cover the depositions. The plaintiff also explained that it had not kept copies of the deposition notices faxed by Lovejoy as part of its business records, and, thus, it had to obtain copies from a third party, namely, the firm that opposed the defendants in the federal action for which the depositions were noticed. Lovejoy provided contradictory testimony at trial, first agreeing that he had faxed the notices to the plaintiff, but later claiming that he had not. The court was entitled to believe the plaintiff‘s testimony over the testimony of Lovejoy, and, as we have often stated, it is not our role to second-guess the court‘s credibility determinations. See State v. DeMarco, 311 Conn. 510, 519-20, 88 A.3d 491 (2014) (“It is the exclusive province of the trier of fact to weigh conflicting testimony and make determinations of credibility, crediting some, all or none of any given witness’ testimony. . . . Questions of whether to believe or to disbelieve a competent witness are beyond our review.” [Internal quotation marks omitted.]). Because there is
III
We turn next to the defendants’ claim that the court improperly failed to conclude that, even if the defendants entered into a contract with the plaintiff, they did so only as the disclosed agents for Ensign Yachts, and, therefore, Ensign Yachts was the only party legally responsible for the plaintiff‘s unpaid invoices. The defendants argue that their claim finds support in general principles of agency law, which the court failed to apply properly.10 They also argue that, although their research failed to uncover any Connecticut court decisions addressing whether an attorney could be held liable for not paying a court reporter for work con-ducted on behalf of the attorney‘s client, they brought to the court‘s attention New York case law indicating that the client generally is responsible for payment, and the court improperly refused to adopt that approach in the present case. We are not persuaded by either of the defendants’ arguments.
A
We first address the defendants’ contention that, on the basis of well understood principles of agency law, the court should not have found them liable to the plaintiff for the unpaid court reporting services. We disagree.
“Unless a statute provides to the contrary . . . principals may act through agents . . . and may appoint agents by written or spoken words or other conduct.” (Citations omitted; footnote omitted; internal quotation marks omitted.) Fairfield County National Bank v. DeMichely, 185 Conn. 463, 470–71, 441 A.2d 569 (1981), citing Restatement (Second), Agency §§ 17, 26 (1958). It long has been recognized “that an agent is not liable to be sued upon contracts made [o]n behalf of his principal, if the name of his principal is disclosed, and made known to the party contracted with, at the time of entering into the contract.” (Emphasis added; internal quotation marks omitted.) Adams v. Whittlesey, 3 Conn. 560, 566 (1821); see also Joseph General Contracting, Inc. v. Couto, supra, 317 Conn. 579 (“[a]n authorized agent for a disclosed principal, in the absence of circumstances showing that personal responsibility was incurred, is not personally liable to the other contracting party” [internal quotation marks omitted]); Rich-Taubman Associates v. Commissioner of Revenue Services, 236 Conn. 613, 619, 674 A.2d 805 (1996) (“[u]nder the rules of agency, [u]nless otherwise agreed, a person making or purporting to make a contract with another as agent for a disclosed principal does not become a party to the contract” [internal quotation marks omitted]).
It is also well settled law in this state that “[i]t is the duty of the agent, if he would avoid personal liability on a contract entered into by him on behalf of his principal, to disclose not only the fact that he is acting in a representative capacity, but also the identity of his principal, as the person dealt with is not bound to inquire
The defendants argued at trial that the plaintiff should have known from reading the deposition notices that the depositions were being conducted by the defendants for their client, Ensign Yachts, whose name appeared on the deposition notice. According to the defendants, this should have been sufficient to inform the plaintiff that the defendants intended to contract for the plaintiff‘s services solely in their capacity as an agent for their disclosed principal. The defendants also submitted into evidence a letter that Lovejoy had sent to the plaintiff on behalf of his law firm in 2007, regarding overdue payments for other deposition invoices. In the letter, Lovejoy indicated that the defendants would not pay the late invoices because “1) we are hiring [the plaintiff] as a disclosed agent of our client; thus, it is our client‘s responsibility to pay [the plaintiff], and 2) because of the extremely small size of this law firm, it cannot act as a bank . . . .”
In its oral decision, the court rejected the defendants’ arguments. The court found that the faxing of the notice of depositions to the plaintiff did not equate to notice by the defendants that they “did not feel obligated to pay for the court reporting services.” We construe this as an implicit finding that the defendants failed to give the required notice that they were contracting only in a representative capacity for Ensign Yachts. The court also found that the 2007 letter that Lovejoy had mailed years earlier involved outstanding invoices for unrelated depositions, and that “[i]t [was] not a blanket statement or notice to the plaintiff that the [defendants] did not feel obligated to pay for future services and invoices.”
The law clearly places the burden on the agent to ensure that any party the agent contracts with is on notice that the agent is acting only in a representative capacity if the agent wishes to avoid personal liability. It follows that any ambiguity in that notice obligation properly should be resolved against the agent, as the other party has no obligation to investigate. The notice of deposition certainly identified that Lovejoy intended to take a deposition on behalf of a client whose name was clearly disclosed. There is no definitive language in the deposition notice, however, that reasonably can be construed as giving any clear indication as to which party would be responsible for payment of court reporting services. This is further borne out by the fact that the defendants have failed to identify how the content of the notice of deposition would have changed had the defendants wished to signal that they intended to pay the plaintiff rather than payment being made by their client. As correctly indicated by the court, the 2007 letter does not contain any language suggesting that it was intended to pertain to all future dealings between the parties, and, thus, it has little relevance to the issues at hand. If the
B
The defendants also argue that the court improperly failed to consider and apply certain New York court decisions that they brought to the court‘s attention and that the defendants argue demonstrate that they should not be liable to the plaintiff. We agree with the plaintiff that the defendants have failed to adequately brief this argument on appeal.
“We do not reverse the judgment of a trial court on the basis of challenges to its rulings that have not been adequately briefed. . . . The parties may not merely cite a legal principle without analyzing the relationship between the facts of the case and the law cited. . . . [A]ssignments of error which are merely mentioned but not briefed beyond a statement of the claim will be deemed abandoned and will not be reviewed by this court.” (Internal quotation marks omitted.) Coppola Construction Co. v. Hoffman Enterprises Ltd. Partnership, 157 Conn. App. 139, 179, 117 A.3d 876, certs. denied, 318 Conn. 902, 122 A.3d 631, 123 A.3d 882 (2015). Other than providing a few case citations, the defendants’ brief is devoid of any discussion or legal analysis of the New York cases cited or why this court should find them instructive in light of the particular facts of the present case. Because the defendants have failed to adequately brief this argument, we decline to review it.
Perhaps more troubling than the lack of legal analysis is the apparent mischaracterization of New York law. According to the defendants, in all judicial departments of the Appellate Division of the New York Supreme Court, with the exception of the First Department, the law is that the client is responsible for court reporting costs unless those costs are specifically acknowledged and assumed by the attorney. In the First Department, the defendants state that the responsibility for payment lies with the attorney unless disclaimed. The case relied on by the defendants, however, in support of their proposition that, in all but the First Department, an attor-ney‘s client generally is responsible for paying for court reporting services, Sullivan v. Greene & Zinner, P.C., 283 App. Div. 2d 420, 723 N.Y.S.2d 869 (2001), is no longer good law. Its holding has been superseded by
IV
The defendants next claim that the court improperly concluded that Lovejoy was personally liable to the plaintiff for breach of contract. According to the defendants, Lovejoy never contracted with the plaintiff in his individual capacity, but acted at all relevant times as a member of his law firm, which is a limited liability company. Thus, the defendants contend, any debt incurred as a result of Lovejoy‘s actions was the law firm‘s alone, and the plaintiff proffered no evidence on which the court could have relied to “pierce the corporate veil” or otherwise hold Lovejoy personally liable for the debt claimed by the plaintiff. We agree, and reverse that portion of the judgment holding Lovejoy liable for breach of contract.
We exercise plenary review in considering whether the court properly imposed individual liability on Lovejoy based on the facts found by the court, which themselves are subject to review only for clear error. See Joseph General Contracting, Inc. v. Couto, supra, 317 Conn. 581. In so doing, we examine the record to determine if there is sufficient evidence from which the court could have concluded that Lovejoy was acting as anything other than an agent of his law firm. Id. If no such evidence exists, the court lacked a legal basis to impose personal liability.
Individual members of a limited liability company generally are not liable for debts incurred by members on behalf of the company. See
Our Supreme Court has stated that it is improper to hold an owner or officer of a business entity jointly and severally liable with that business solely on the basis of a theory that they engaged in “joint action.” (Internal quotation marks omitted.) Joseph General Contracting, Inc. v. Couto, supra, 317 Conn. 577. Specifically, the court stated: “We disagree with the notion that proving joint action between an entity and one of its owners and officers is the basis for finding liability. Indeed, such a theory ignores the reality that this court has recognized that the fact that [an owner of a corporation] acted on behalf of [the corporation] is no more than a reflection of the reality that all corporations act through individuals. It is axiomatic that while such an entity has a distinct legal life, it can act
Our review of the record and the findings of the trial court reveals no evidence indicating that Lovejoy acted in his individual capacity rather than as a member of the law firm. Although each of the deposition notices was signed by Lovejoy, his signature appears after the name of the law firm, which is identified as the entity representing Ensign Yachts and, therefore, the law firm noticing the deposition. Accordingly, to the extent that the deposition notice represents an offer to enter into a contractual agreement, the evidence tended to show that offer was extended to the plaintiff by the law firm, not by Lovejoy individually. The court in its decision makes no factual findings on which it could have imposed individual liability. The court‘s decision is completely silent as to whether the court believed that Lovejoy had acted in such a way as to suggest he was contracting in his individual capacity or that it was appropriate under the facts of this case to somehow “pierce the corporate veil.”12 The plaintiff states that Lovejoy is a sole practitioner and that he and the law firm are “one and the same.” That fact alone, however, simply cannot support the imposition of individual liability in contravention of
V
The defendants next claim that the court improperly awarded attorney‘s fees and costs totaling $13,564.64 pursuant to
A
The defendants’ first argument concerns the applicability of
Section 52-251a provides: “Whenever the plaintiff prevails in a small claims matter which was transferred to the regular docket in the Superior Court on the motion of the defendant, the court may allow to the plaintiff his costs, together with reasonable attorney‘s fees to be taxed by the court.” By its operation, “[s]ection 52-251a . . . creates a substantial and effective disincentive for a defendant who might otherwise raise defenses bordering on the frivolous in an effort to gain a tactical advantage over a plaintiff by obtaining a transfer of a case from the Small Claims division. . . . [T]he very purpose of
In Lee v. Stanziale, supra, 161 Conn. App. 534, this court established that a determination as to the applicability of
The docket of the small claims session of the Superior Court is barred from hearing claims seeking money damages of more than $5000 or any action alleging libel and
B
The defendants next argue that the court improperly ordered them to pay for attorney‘s fees that they allege were solely or partially attributable to the plaintiff‘s prosecution of the unjust enrichment count against Ensign Yachts. The defendants, however, have failed to provide any analysis in support of this argument, including any legal support for their proposition that the trial court was required to engage in some apportionment of the attorney‘s fees. Although the defendants raised this argument to the court in their objection to the plaintiff‘s motion for attorney‘s fees, that objection also contained no legal analysis, but merely identified what the defendants noted from their review of the billing records as $6745 in fees allegedly attributable to Ensign Yachts. The court overruled the defendants’ objection without comment. Because the defendants have failed to adequately brief this argument, we decline to review it further.
C
Lastly, the defendants argue that the court utilized an incorrect hourly rate of $350 in calculating its award of attorney‘s fees. We find no merit in this argument.
As we have indicated, we will disturb a court‘s calculation of attorney‘s fees only upon a showing of a clear abuse of discretion. Here, the court did not issue a written decision setting forth its calculations, and none of the parties sought an articulation or clarification. Nevertheless, the court awarded attorney‘s fees in the amount requested in the plaintiff‘s motion, to which were attached billing statements and an affidavit from a practicing trial attorney, who averred that both the hourly rate of $350 and the amount of time billed were reasonable and customary for the work provided. We can infer from the court‘s adoption of the amount of fees requested that it found the plaintiff‘s calculations reasonable, including the hourly rate of $350. The defendants produced no evidence suggesting that the $350 hourly rate is unreasonable or inappropriate given the nature of this type of litigation. Because there is evidentiary support for the court‘s award, we will not disturb its calculations.
VI
The defendants next claim that the court improperly ruled in favor of the plaintiff on their counterclaim alleging abuse of process.13 According to the defendants,
case, including the briefs and arguments of the parties on appeal, we are not persuaded that the court committed reversible error in rejecting the defendants’ abuse of process counterclaim and rendering judgment in favor of the plaintiff. This claim warrants no further discussion.
VII
Finally, the defendants claim that the court should have precluded the plaintiff from submitting any evidence at trial in light of either (a) the plaintiff‘s failure to comply with the civil court trial management order or (b) its alleged spoliation of other evidence. Neither of those arguments, however, was raised to or decided by the trial court. Accordingly, they have not properly been preserved for appellate review, and we decline to review them. See Billboards Divinity, LLC v. Commissioner of Transportation, 133 Conn. App. 405, 411, 35 A.3d 395, cert. denied, 304 Conn. 916, 40 A.3d 783 (2012).
The judgment is reversed in part and the case is remanded to the trial court with direction to render judgment in favor of Lovejoy on count one of the operative complaint. The judgment is affirmed in all other respects.
In this opinion the other judges concurred.
