Dept. of Administrative Services v. Bestech, Inc. of ConnecticutDept. of Administrative Services v. Bestech, Inc. of Connecticut
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Syllabus
The defendant contractor appealed from the trial court‘s judgment granting the plaintiff state agency‘s request for an injunction barring the defendant from pursuing arbitration of a certain claim related to a public works contract between the parties. The defendant claimed that the court improperly granted the plaintiff an injunction on the ground that the defendant‘s claim was barred by sovereign immunity because the waiver in the statute (
The trial court properly enjoined arbitration of the defendant‘s claim, as the claim did not fall within the limited waiver of sovereign immunity in
Procedural History
Action seeking, inter alia, a declaratory judgment that the named defendant is prohibited from arbitrating its claim against the plaintiff, and for other relief, brought to the Superior Court in the judicial district of Hartford, where the plaintiff withdrew its complaint as against the defendant American Arbitration Association; thereafter, the case was tried to the court, Chavey, J.; judgment for the plaintiff, from which the named defendant appealed to this court. Affirmed.
Steven B. Kaplan, with whom, on the brief, was Paul R. Fitzgerald, for the appellant (named defendant).
John M. Russo, Jr., assistant attorney general, with whom, on the brief, was William Tong, attorney general, for the appellee (plaintiff).
Opinion
SEELEY, J. The principal issue in this appeal is whether
The following procedural history and facts, as stipulated by the parties3 and as summarized by the court, are relevant. “In 2017, [the department] awarded a contract to Bestech and three other contractors for specified hazardous materials abatement and removal services. The contract was a multisupplier goods and services contract, which did not itself authorize Bestech to ship goods or begin performance absent a duly authorized purchase order or, as alleged by Bestech, a notice to proceed. If Bestech were authorized to begin performance on a particular project under the contract, the pricing was fixed pursuant to schedules in exhibits B-1, B-2, B-3 and B-4
“Bestech performed work at the former Bergin [Correctional Institution] prison property site and was paid for all work through the time of a stop work order in April 2021. Bestech did not provide abatement and demolition services under the contract from the time of the April 2021 stop work order through the expiration of the contract. Bestech alleges, however, that it kept its equipment at the project site in reliance on a state employee‘s representation that work would resume in June 2021. Bestech contends further that, through December 2021, the same state employee advised Bestech approximately monthly that work would resume shortly and that Bestech should keep its equipment on site. On or about April 26, 2022, [the department] advised Bestech that the project would not be performed under the contract and would be put out to bid. The contract expired on April 30, 2022. Bestech sought payment from [the department] for idle equipment costs after April 2021. On April 19, 2024, Bestech filed a demand for arbitration with [the American Arbitration Association] pursuant to
In a December 17, 2024 memorandum of decision, the court determined that the waiver of sovereign immunity in
We begin with the following relevant standards and legal principles. “It is well established law that the state is immune from suit unless it consents to be sued by appropriate legislation waiving sovereign immunity in certain prescribed cases . . . . The state legislature . . . [however] possesses the authority to abrogate any governmental immunity by statute that the common law gives to the state and municipalities.” (Internal quotation marks omitted.) Himmelstein v. Windsor, 304 Conn. 298, 307–308, 39 A.3d 1065 (2012).
“Prior to the enactment of
“In 1986, the legislature amended
On appeal, Bestech claims that the court improperly determined that the waiver of sovereign immunity in
As a preliminary matter, Bestech contends that the court “improperly substituted its own judgment for that of an arbitrator. Indeed, by interposing itself as the adjudicator of Bestech‘s contractual claims . . . [the] trial court ignored the express provision contained in . . .
Accordingly, in order to address Bestech‘s contention that its claim falls under the contract, we turn to the language of
We note that “[o]ur analysis is . . . specifically illuminated by the well settled principle that when the state waives sovereign immunity by statute a party attempting to sue under the legislative exception must come clearly within its provisions, because [s]tatutes in derogation of sovereignty should be strictly construed in favor of the state, so that its sovereignty may be upheld and not narrowed or destroyed . . . . Where there is any doubt about [the] meaning or intent [of a statute in derogation
Our Supreme Court in Dept. of Public Works v. ECAP Construction Co., 250 Conn. 553, 737 A.2d 398 (1999) (ECAP), stated that “[t]he legislature‘s use of the word ‘under,’ [in
Bestech argues that, because it alleged in its arbitration demand that the department breached the parties’ contract, its claim falls under the parties’ public works
Accordingly, given that (1) Bestech bears the burden of proving that its claim “fits precisely within the narrowly drawn reach of
With these principles in mind, we turn to the contractual provisions cited by Bestech in support of its
This is not a situation in which a contractor cites contractual provisions arguably providing for relief under the contract. Rather, Bestech cites contractual provisions that relate, in general, to the payment for services rendered even though its claim does not concern nonpayment for services or commodities and even though the department paid Bestech in full for all work performed prior to the stop work order, after which order no abatement or demolition services were performed. We agree with the trial court that “the contractual provisions cited in Bestech‘s arbitration demand are general provisions, which require, for example, payment for contracted goods and services. Given the necessarily strict construction of
The central focus of Bestech‘s claim is its alleged reliance on oral representations. Bestech claimed in its demand that it kept equipment on the project site in reliance on the representations of an agent of the department that the project would resume on June 1, 2021, and sought $1,428,388.75 in additional compensation arising from its alleged inability to use the equipment it mobilized to the property site. Specifically, in its demand for arbitration, Bestech relies on its assertion that, “[b]etween April 8, 2021, and April 26, 2022, on an approximately monthly basis, [an authorized
Bestech relies on the Superior Court case of Walter Kidde Constructors, Inc. v. State, 37 Conn. Supp. 50, 434 A.2d 962 (1981), written by former Chief Justice
Bestech contends that, “[l]ike the plaintiff[s] in Walter Kidde [Constructors, Inc.], Bestech has asserted a claim against the [department] for damages resulting from the [department‘s] failure to provide proper access to the project site and the [department‘s] issuance of multiple ‘hold orders.’ Per Walter Kidde [Constructors, Inc.], Bestech is entitled to bring such a claim against the [department] pursuant to . . .
The issue raised in the present appeal, however, does not depend on whether Connecticut recognizes the recovery of delay damages11 but, rather, whether Bestech‘s claim for damages for equipment that it left idle during a period in which no work was performed in reliance on oral representations fell under the parties’ contract. In Walter Kidde Constructors, Inc., the plaintiffs claimed that the actions of the state in failing to provide access to the project site and in otherwise delaying the plaintiffs’ completion of construction constituted breaches of the parties’ contract. In the present case, by contrast, Bestech has not cited any contractual provisions providing for recovery based on oral representations that work
Lastly, Bestech contends that the department‘s “assertion of contractual defenses” demonstrates that its claim arises under the contract.12 By this argument, Bestech seeks to prove that its claim falls directly under the contract by examining issues raised by the department, which include sovereign immunity and that the contract expressly prohibits the recovery of idle equipment damages.13 To the extent that these issues are inconsistent, Connecticut allows parties to assert alternative and/or inconsistent theories. See, e.g., Campbell v. Plymouth, 74 Conn. App. 67, 76, 811 A.2d 243 (2002). More significantly, the burden rests with Bestech to demonstrate
In sum, we conclude that Bestech‘s claim did not fall within the limited waiver of sovereign immunity in
The judgment is affirmed.
In this opinion the other judges concurred.
Notes
“(b) As an alternative to the procedure provided in subsection (a) of this section, any such person, firm or corporation having a claim under said subsection (a) may submit a demand for arbitration of such claim or claims for determination . . . .”