KONOVER DEVELOPMENT CORPORATION v. WATERBURY OMEGA, LLC
(AC 44537)
Appellate Court of Connecticut
Argued March 1—officially released August 30, 2022
Alvord, Clark and Harper, Js.
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Syllabus
The plaintiff, inter alia, sought to recover damages from the defendant property owner for breach of contract. The parties had entered into an oral management agreement for an unspecified term, pursuant to which the plaintiff agreed to act as the defendant‘s exclusive agent for the licensing of rooftop telecommunications equipment to be located at the defendant‘s property in exchange for a percentage of the monthly receipts generated by any licenses. The plaintiff procured two contracts for the placement of wireless telecommunications equipment on top of the building on the property and collected the commissions due in connection therewith for approximately eleven years. Thereafter, the defendant only intermittently remitted the commissions to the plaintiff. Additionally, unbeknownst to the plaintiff, the defendant had entered into similar contracts for the placement of wireless telecommunications equipment on the building with three other parties and had not remitted any commissions to the plaintiff in connection with those contracts. After commencing this action, the plaintiff filed an application for a prejudgment remedy, inter alia, to secure an amount equal to the amounts allegedly due to it with respect to the two original contracts and with respect to the commissions that it should have received in connection with the three additional contracts. In response, the defendant asserted special defenses, including that the plaintiff had violated the applicable statute (
- The trial court properly rejected the defendant‘s special defense that the plaintiff‘s claims were barred by
§ 20-325a because the plaintiff was exempt from its prerequisites pursuant to the applicable statute (§ 20-329 (9) ), which provided an exception for leases or licenses of space on buildings for unattended personal wireless services facilities, related devices, and ancillary equipment used to operate such devices in an area not to exceed 360 square feet for any one service: it was not improper for the trial court to rely on the testimony of the plaintiff‘s expert, A, in determining the meaning of the language of the§ 20-329 (9) exception because, pursuant to the applicable statute (§ 1-1 (a) ), the undefined, technical statutory terms relating to the calculation of the square footage requirement of the exception were to be accorded the meaning that they would convey to an informed person in the applicable field, and, having worked in the wireless industry for nineteen years, A was an informed person in the applicable field; moreover, the defendant‘s argument that the definitions contained in the applicable federal statute (47 U.S.C. § 332 ) and regulation (47 C.F.R. § 1.6002 ) required the conclusion that the space occupied by antennas must be included within the square footage calculation for purposes of determining the applicability of the exception was unavailing because those definitions did not relate to measurement; furthermore, the defendant‘s proposed construction of the exception, which would limit its applicability to a single wireless facility, was unreasonable because it ignored the context of the phrase at issue, which suggested that the square footage limitation applied to each such facility; additionally, the defendant‘s argument that A improperly added together the square footage of certain components of the installation, rather than measuring the entire area in which the components were contained, was unavailing. - The trial court properly determined that the defendant‘s defense with respect to the rule against perpetuities did not defeat the finding of probable cause because such rule concerned only the rights to property, the oral management agreement did not create or transfer any right in property, and the plaintiff did not claim any interest in the defendant‘s property.
- The trial court properly determined that the defendant‘s defense with respect to the statute of frauds did not defeat the finding of probable cause: the defendant‘s argument that the oral management agreement was unenforceable pursuant to statute (
§ 52-550 (a) (4) ) because the plaintiff‘s claims concerned real property was unavailing because the trial court correctly determined that the agreement was for services and did not confer any rights to an interest in real property; moreover, the defendant‘s argument that the oral management agreement was unenforceable pursuant to§ 52-550 (a) (5) because it was not to be performed within one year from the making thereof was also unavailing because the trial court determined that the agreement was one of indefinite duration, and, accordingly, it was outside of the proscriptive force of§ 52-550 (a) (5) regardless of how long it would actually take to complete performance.
Procedural History
Action to recover damages for breach of contract, and for other relief, brought to the Superior Court in the judicial district of Hartford, where the court, Noble, J., granted the plaintiff‘s application for a prejudgment remedy, from which the named defendant appealed and the plaintiff cross appealed to this court; thereafter, the plaintiff withdrew its cross appeal. Affirmed.
Richard P. Weinstein, with whom, on the brief, was Sarah Black Lingenheld, for the appellant (named defendant).
Richard F. Wareing, with whom were Angela M. Vickery and, on the brief, Anthony J. Natale, for the appellee (plaintiff).
Opinion
ALVORD, J. The defendant Waterbury Omega, LLC1
The court found the following facts, which are undisputed.2
“[The defendant] is the owner of property located at 330 Bishop Street, Waterbury (property), on which is present a multistory building (building). In 2005, [the parties] entered into an oral contract, for no specified term, in which [the plaintiff] agreed to act as the property‘s exclusive telecommunications managing agent for the licensing of rooftop telecommunication[s] equipment including antennas ([oral management] agreement).3 Pursuant to the terms of the [oral management] agreement, [the plaintiff] was to market, license and collect usage payments in exchange for a commission of 30 percent of monthly receipts generated by any license.
“In 2005, [the plaintiff] procured two contracts for the placement of wireless telecommunications equipment on the building‘s rooftop [collectively, the two original leases]. The first was dated March 3, 2005, with Nextel Communications of Mid-Atlantic, Inc. [(Nextel), later Sprint] and the second was dated July 20, 2005, with New Cingular Wireless PCS, LLC [(New Cingular), later AT&T] . . . . In the two original leases, [the defendant] acknowledged that ‘[the plaintiff] has been appointed as [the defendant‘s] telecommunications managing agent4 for the [p]roperty and is compensated by [the defendant] based on a percentage of the revenue generated by this [l]ease and any future telecommunications leases pertaining to the [p]roperty.’ [The plaintiff] was identified specifically as the third-party beneficiary of the two [original leases], each identified as an ‘Antenna Facility Lease.’ The [two original leases] differed, pertinently, in that the contract with New Cingular included an equipment shelter adjacent to the building on the ground. . . .
“Unbeknownst to [the plaintiff], [the defendant] entered into additional, similar [building/rooftop wireless telecommunications agreements], with [Omnipoint Communications, Inc., now known as T-Mobile
(Omni-point)] in 2006, with [Youghiogheny Communications-Northeast, LLC, doing business as Pocket Communications (Pocket)] in 2009 and with [Cellco Partnership, doing business as Verizon Wireless (Verizon)] in 2015. At no time did [the defendant] pay [the plaintiff] a commission for these additional contracts.5 From 2005 through 2016, [the plaintiff], without interruption, collected the rent from the two original leases, remitted 70 percent to [the defendant] and reserved for itself the 30 percent commission. In August of 2016, [the defendant] began to collect the monthly payments for the two original leases as a consequence of a freeze on [the plaintiff‘s] banking account that prevented [the plaintiff] from issuing payments from its bank. Thereafter, between August of 2016 and February of 2018, [the defendant] only intermittently remitted the 30 percent commission from the two original leases to [the plaintiff]. Repeated communications between [Matthew Guglielmo, an agent of the plaintiff] and [the defendant‘s] representatives took place, in which payment of the commissions was requested. The present action was commenced on April 9, 2018. Ultimately, the commissions due pursuant to the two original leases were paid through April of 2018. No further payment has been made.” (Footnotes in original.)
The following procedural history is also relevant. The plaintiff commenced this action in April, 2018, by way of a complaint seeking a declaratory judgment. In the complaint, the plaintiff alleged that the defendant had made required payments “only under the threat of legal action and only after counsel was engaged for both parties . . . .” The plaintiff alleged that the defendant had “repudiated its obligations under the [two original] leases.” The plaintiff additionally alleged that, “[g]iven [the defendant‘s] repudiation of the parties’ [oral management] agreement, there is an actual bona fide and substantial question or issue in dispute, which requires settlement between the parties.”
The plaintiff filed its third amended complaint in August, 2019.6 In the nine count complaint, the plaintiff alleged, inter alia, that the defendant had “not made any payments to [the plaintiff] since April of 2018.” The defendant filed an answer and asserted several special defenses, including that the plaintiff had violated
On August 2, 2019, the plaintiff filed an application for a prejudgment remedy to “secure the sum of at least $351,184,” which was accompanied by an affidavit of the plaintiff‘s president, Michael Konover.7
The parties filed posthearing briefs. The defendant argued therein: “First, the plaintiff‘s claims are barred by [
In its February 9, 2021 memorandum of decision, the court granted the application for a prejudgment remedy on the plaintiff‘s breach of contract count. The court determined that the plaintiff had “proven probable cause that the parties entered into a valid and enforceable oral agreement for [the plaintiff] to provide the exclusive marketing, licensing and management of accounts for the placement of wireless telecommunication[s] equipment on the property and building in exchange for payment of 30 percent of monthly receipts therefrom. [The plaintiff] has also proved that the [oral management agreement] was breached by [the defendant‘s] failure to remit the contracted for commission from the subsequently obtained agreements with Omnipoint, Pocket, and Verizon.” The court expressly considered and rejected the defendant‘s special defenses, concluding that
The court then turned to the question of the amount of damages that had been established
The court found that the plaintiff had proven probable cause that it would recover damages based on its breach of contract claim9 in the amount of $107,400.07, which amount consisted of payments made to the defendant from Omnipoint, Verizon, and Pocket through March 31, 2018, in the amount of $354,007.26, multiplied by the commission rate of 30 percent. The court found that no commissions were due for the two original leases because they were paid through April, 2018. Accordingly, the court ordered that the plaintiff may attach the assets of the defendant in the amount of $107,400.07. This appeal followed. On the same day that the appeal was commenced, the plaintiff filed a motion to reargue, reconsider, or correct the judgment, alleging an error in the computation of damages, and the defendant and Schwartz filed an objection. The court granted the motion and corrected its previous order to reflect that the plaintiff may attach the defendant‘s assets in the amount of $157,075.96.
Before turning to the claims on appeal, we first set forth the law governing prejudgment remedies and our limited role on review. “A prejudgment remedy means any remedy or combination of remedies that enables a person by way of attachment, foreign attachment, garnishment or replevin to deprive the defendant in a civil action of, or affect the use, possession or enjoyment by such defendant of, his property prior to final judgment . . .
“Section 52-278d (a) explicitly requires that a trial court‘s determination of probable cause in granting a prejudgment remedy include the court‘s taking into account any defenses, counterclaims or set-offs . . . . Therefore, it is well settled that, in determining whether to grant a prejudgment remedy, the trial court must evaluate both parties’ evidence as well as any defenses, counterclaims and setoffs. . . . Such consideration is significant because a valid defense has the ability to defeat a finding of probable cause.” (Citation omitted; emphasis in original; internal quotation marks omitted.) Id., 141.
As for our standard of review, our Supreme Court has stated that an appellate “court‘s role on review of the granting of a prejudgment remedy is very circumscribed. . . . In its determination of probable cause, the trial court is vested with broad discretion which is not to be overruled in the absence of clear error. . . . Since Augeri [v. C. F. Wooding Co., 173 Conn. 426, 429, 378 A.2d 538 (1977)] . . . we have consistently enunciated our standard of review in these matters. In the absence of clear error, this court should not overrule the thoughtful decision of the trial court, which has had an opportunity to assess the legal issues which may be raised and to weigh the credibility of at least some of the witnesses. . . . [On appeal], therefore, we need only decide whether the trial court‘s conclusions were reasonable under the clear error standard.” (Citations omitted; internal quotation marks omitted.) TES Franchising, LLC v. Feldman, supra, 286 Conn. 137-38. Additionally, “we do not conduct a plenary review of the merits of defenses . . . raised, but rather our review is confined to a determination of whether the trial court‘s finding of probable cause constitutes clear error.” Id., 140 n.8.
I
We first consider the defendant‘s claim on appeal related to the court‘s rejection of its special defense that the plaintiff‘s action was barred for its failure to satisfy the requirements contained in
The following procedural history is relevant. At the hearing on the plaintiff‘s application for a prejudgment remedy, the plaintiff introduced the testimony of Allen,
As background, Allen testified as to the components of a wireless installation. Specifically, he testified: “Essentially, the cell tower consists of equipment—which they may refer to as either ground equipment or rooftop equipment—that‘s placed either in a concrete bunker or a metal bunker or placed on a concrete pad. It would have things that look like refrigerators, which are called equipment cabinets, or it could be in a room in the basement of a building or on the top floor of a building or it could be placed on a metal platform on the roof. So those are just four examples of where the base station equipment would be, or ground equipment, or equipment room or equipment shelter, they‘re all synonymous. And then they would have antennas, which would be located high in the air, so they can provide coverage. And along with the antennas they may have little boxes.”
Allen further testified as to which components of a wireless installation typically and customarily are considered for purposes of calculating the square footage of the installation. He testified that landlords and tenants “consider the ground equipment or base station equipment, which would consist of radio cabinets and various other ancillary cabinets, like a power cabinet or a telephone cabinet, and those are all contained on either the concrete pad or within the concrete building or on top of the platform on the roof or in the room, the equipment room in the basement or top floor of a building.”
Allen testified that they do not “count the antennas,” “the wires that connect the antennas to the equipment,” or cable trays and explained why the industry custom and practice is to exclude these items from the computation of square footage.10 Allen testified that antennas are separately enumerated in wireless agreements. For example, the Verizon agreement states that the defendant would provide “approximately [40] square feet of space and approximately [170] square feet on the roof” for its wireless installation. The agreement also provides for “such additional space on the roof of the [b]uilding” for the installation of antennas, which are identified in exhibit B to the Verizon agreement only by the number of antennas. Allen explained: “[I]n exhibit B, it shows two sections of the roof and says ‘proposed lessee alpha sector panel antennas typical total of four mounted within proposed concealment tubes atop building roof,’ and it has another section where it refers to beta [sector panel antennas] with another four. So they have rights to eight antennas.” With respect to the Nextel antennas, Allen testified that they
Allen explained that “cable trays on a rooftop site serve to cover the cables so the landlord can walk on the roof or walk on top of it or . . . [t]hey can put other wires on top and we don‘t damage the wires for AT&T or Verizon or whoever.” For example, Allen testified with respect to the Omnipoint installation that “[a]ll the wires were contained underneath the platform” and that “there were cable trays for Verizon and AT&T underneath the Omnipoint . . . equipment.”
With respect to wires, Allen testified that, “[i]n the lease, we don‘t count the square footage of wires because wires don‘t have square footage.” He also testified that “the lease is always silent on . . . wires because the landlord has the ability to control the location of the equipment shelter.” Specifically, Allen testified that, had the Nextel shelter been located on the roof, the wires would have been attached in a similar manner as the Omnipoint installation. Allen testified, however, that Nextel was “forced to go on the ground, so now they have some wires.” Thus, Allen did not measure the wires running from the roof to the equipment shelter located on the ground.
In its memorandum of decision, the court expressly credited Allen‘s testimony in determining that the plaintiff had “proven probable cause that the building/rooftop wireless telecommunications agreements at issue were for unattended personal wireless services facilities, related services and ancillary equipment that did not exceed 360 square feet for any one service.” Accordingly, the court concluded that the exception set forth in
We first set forth the relevant statutes. Pursuant to
Analysis of the defendant‘s claim requires us to construe
We first consider the defendant‘s two related arguments with respect to the admission of Allen‘s testimony as to the meaning of the statutory phrases “related devices” and “ancillary equipment used to operate such devices and equipment shelters therefor“;
We note that the terms “related devices,” “ancillary equipment,” and “equipment shelters” are not defined in the statute. See
The defendant‘s arguments also implicate the standard for admissibility of expert testimony. Section 7-2 of the Connecticut Code of Evidence provides: “A witness qualified as an expert by knowledge, skill, experience, training, education or otherwise may testify in the form of an opinion or otherwise concerning scientific, technical or other specialized knowledge, if the testimony will assist the trier of fact in understanding the evidence or in determining a fact in issue.” “It is well settled that [t]he true test of the admissibility of [expert] testimony is not whether the subject matter is common or uncommon, or whether many persons or few have some knowledge of the matter; but it is whether the witnesses offered as experts have any peculiar knowledge or experience, not common to the world, which renders their opinions founded on such knowledge or experience any aid to the court or the jury in determining the questions at issue. . . . Implicit in this standard is the requirement . . . that the expert‘s knowledge or experience must be directly applicable to the matter specifically in issue.” (Citations
In the present case, the court was called on to construe and apply the undefined, technical terms present in the statute, and, pursuant to
Having determined that the court did not abuse its discretion in admitting and relying on Allen‘s testimony, we turn to the defendant‘s arguments concerning the court‘s interpretation of the statute. The defendant points to federal law to support its argument that “the area occupied by any antennas and any equipment, switches, wiring, cabling, power sources, shelters, or cabinets associated with an antenna must be included in the square footage calculation of ‘personal wireless services facilities’ set forth in [
We disagree with the defendant that the definitions contained within
We find persuasive the plaintiff‘s contention in its appellate brief that Allen‘s testimony was consistent with the building/rooftop wireless telecommunications agreements. For example, the Omnipoint agreement indicated a “proposed 15’ x 15’ lease area and equipment platform,” and the antenna was not included within that area. The Nextel agreement indicated an equipment shelter measuring twelve feet by twenty feet located on the roof. Similarly, the Verizon agreement states that the defendant would provide “approximately [40] square feet of space . . . and approximately [170] square feet on the roof” for its wireless installation and separately enumerates the number of antennas. The New Cingular agreement indicates a proposed equipment shelter measuring twelve feet by twenty feet. As to Pocket, Allen testified that the lease did not give an indication of the size of the installation at the property, and there was no installation at the property when Allen visited. However, Allen previously had worked as a leasing agent for Pocket and testified that Pocket “typically leased for a small concrete pad, at least six feet by ten feet at a maximum.”
The defendant next argues that the court improperly failed to acknowledge that
We disagree with the defendant‘s proposed construction, which is unreasonable in that it wholly ignores the context of the phrase at issue. The larger clause provides in relevant part: “[I]n an area not to exceed [360] square feet for any one service established by the Federal Communications Commission . . . by a provider of any such service . . . .”
The defendant‘s final argument is that the court improperly determined that the exception set forth in
Accordingly, we conclude that the court properly considered the defendant‘s special defense that the plaintiff‘s claims are barred by
II
The defendant‘s second claim on appeal is that the court improperly determined that enforcement of the oral management agreement is not barred by the rule against perpetuities.
The following additional procedural history is relevant to our resolution of this claim. In its memorandum of decision on the application for a prejudgment remedy, the court referenced its previous summary judgment decision as holding “that neither the common-law nor the statutory rules against perpetuities applied because the [oral management] agreement provided an immediate fixed right to a present or future enjoyment of a lease or license related contract.” In the summary judgment decision, the court considered both the common-law and statutory rules, noting that both rules “implicate only interests that are not vested at the time of creation. Where a party has an immediate fixed right to a present or future enjoyment, the rule is inapplicable even where the right extends in apparent perpetuity.” The court stated that, “[i]n the present case, whatever rights [the plaintiff] possessed vested upon execution of the agreements. Thus, neither the common-law [n]or statutory rule of perpetuit[ies] bars the present action.”16
The defendant argues on appeal that only the common-law rule is applicable to the present case. The defendant argues that the plaintiff‘s rights vested not at the time of the oral management agreement, but when the defendant later entered into the building/rooftop wireless telecommunications agreements. According to the defendant, the plaintiff had no rights with respect to the defendant‘s property until the building/rooftop wireless telecommunications agreements came into existence, and the plaintiff‘s claim to a percentage of revenue from “any future telecommunications leases“; (emphasis omitted); is “just the sort of perpetual interest that the rule against perpetuities is intended to prevent.” The plaintiff responds that the rule against perpetuities does not apply because the trial court‘s order with respect to the prejudgment remedy addressed only whether the plaintiff had shown probable cause that it could prove breach of contract under the oral management agreement. Because the oral management agree- ment created no property rights in the plaintiff, the plaintiff
“The rule against perpetuities states that [n]o interest is good unless it must vest, if at all, not later than twenty-one years after some life in being at the creation of the interest.” (Internal quotation marks omitted.) Tolland Enterprises v. Commissioner of Transportation, 36 Conn. App. 49, 53 n.2, 647 A.2d 1045 (1994). “The underlying and fundamental purpose of the common law rule against perpetuities is the protection of society by allowing full utilization of land. As commonly noted, [t]he rule [against perpetuities] evolved to prevent . . . property from being fettered with future interests so remote that the alienability of the land and its marketability would be impaired, preventing its full utilization for the benefit of society at large as well as of its current owners.” (Internal quotation marks omitted.) Id., 54. “The rule against perpetuities concerns rights of property only, and does not affect the making of contracts which do not create rights of property.” (Internal quotation marks omitted.) H. J. Lewis Oyster Co. v. West, 93 Conn. 518, 529, 107 A. 138 (1919); see also 61 Am. Jur. 2d 63, Perpetuities, Etc. § 53 (1981) (same); 70 C.J.S. 385-86, Perpetuities § 10 (2005) (“[t]he rule against perpetuities is a restriction on the right of the disposition of property, and is by far the most important restraint which the law places on the right to create future interests” (footnote omitted)).
In the present case, the oral management agreement at issue does not create or transfer any right in property, and the plaintiff does not claim any interest in the defendant‘s property.18 The rights at issue are illustrated by the plaintiff‘s requested recovery, which is limited to the portion of the monthly rent it claims it was entitled to under the oral management agreement. The defendant has not directed this court to any authority supporting the applicability of the rule against perpetuities to the type of agreement at issue in the present case. Accordingly, we conclude that the court properly determined that the defendant‘s defense with respect to the rule against perpetuities did not defeat a finding of probable cause.
III
The defendant‘s final claim on appeal is that the court improperly determined that the statute of frauds did not bar enforcement of the oral management agreement. First, it contends that
The following additional facts and procedural history are relevant to our resolution of this claim. In its memorandum of decision on the application for a prejudgment remedy, the court concluded that the defendant‘s reliance on the statute of frauds as a special defense was unavailing. It stated that the defendant‘s “assertion, without citation to authority, that the [oral management] agreement falls within the purview of the statute of frauds because it is an agreement ‘for any interest in or concerning real property,’ ignores that what is at issue is an agreement for services that is not within the purview of
Section 52-550 (a) provides in relevant part: “No civil action may be maintained in the following cases unless the agreement, or a memorandum of the agreement, is made in writing and signed by the party, or the agent of the party, to be charged . . . (4) upon any agreement for the sale of real property or any interest in or concerning real property; [or] (5) upon any agreement that is not to be performed within one year from the making thereof . . . .” “Under Connecticut law, the statute of frauds operates as a special defense to a civil action. . . . Its function is evidentiary, to prevent enforcement through fraud or perjury of contracts never in fact made.” (Citation omitted; internal quotation marks omitted.) Patrowicz v. Peloquin, 190 Conn. App. 124, 138, 209 A.3d 1233 (2019), cert. denied, 333 Conn. 915, 216 A.3d 651 (2019). “The primary purpose of the statute of frauds is to provide reliable evidence of the existence and the terms of the contract . . . .” (Internal quotation marks omitted.) Reid & Riege, P.C. v. Bulakites, 132 Conn. App. 209, 217, 31 A.3d 406 (2011), cert. denied, 303 Conn. 926, 35 A.3d 1076 (2012).
The defendant first argues that the plaintiff claims an interest in the building/rooftop wireless telecommunications agreements, “as well as claiming an interest in any future agreements with any cellular providers. Because the cellular agreements convey an interest in land (albeit only as to a portion of the premises), the plaintiff‘s claims here concern real property and, thus, the statute of frauds applies pursuant to [
This argument is unpersuasive, as it is premised on the defendant‘s assertion that the plaintiff‘s claims “concern real property . . . .” In determining that the plaintiff had shown probable cause with respect to its breach of contract claim, the court correctly noted that the oral management agreement is one for services. Specifically, the court stated that, pursuant to the oral management agreement, the plaintiff was “to market, license and collect usage payments in exchange for a commission of 30 percent of monthly receipts generated by any license.” The oral management agreement did not confer on the plaintiff any rights to an interest in or concerning real property. See Pagano v. Ippoliti, 245 Conn. 640, 645, 647, 716 A.2d 848 (1998) (contract claims as formulated by plaintiff were for damages arising out of loss of financial, rather than real property, interests in development project, and, as such, contracts did not violate
Therefore, we conclude that the court‘s finding of probable cause did not constitute clear error.
The judgment is affirmed.
In this opinion the other judges concurred.
