MEADOWBROOK CENTER, INC. v. ROBERT BUCHMAN
(AC 34234)
Gruendel, Bear and Schaller, Js.
Argued May 22, 2013—officially released April 8, 2014
149 Conn. App. 177
The appeal is dismissed.
In this opinion the other judges concurred.
J. Xavier Pryor, for the appellant (defendant).
Edward M. Rosenthal, for the appellee (plaintiff).
Opinion
GRUENDEL, J. The defendant, Robert Buchman, appeals from the judgment of the trial court in favor of the plaintiff, Meadowbrook Center, Inc., on its claims for breach of contract and promissory estoppel. The principal issue to be decided, which is dispositive of
The record reveals the following relevant facts and procedural history. In November, 2006, the defendant entered into an admission agreement (agreement) with the plaintiff, a skilled nursing care facility, regarding residential care for the defendant‘s mother, Maude Buchman, who was suffering from dementia. The agreement identified the defendant‘s mother as “the [r]esident” and the defendant as “the [r]esponsible [p]arty.”
The agreement outlines, among other things, the responsibilities of the resident and the responsible party with respect to payment for the resident‘s care at the facility. Specifically, § II of the agreement, titled “Payment,” provides in relevant part that:
“[t]he resident . . . agrees to pay the [f]acility the total per diem rate, [defined in § XIV of the agreement as $323] . . . except to the extent that payment is made directly to the [f]acility by a third party such as Medicare [or] Medicaid . . . . The obligation to pay said total per diem rate shall commence with the day the [r]esident is admitted to the [f]acility and continue until the [r]esident has been discharged and payment in full has been made for all services rendered.”
Section III of the agreement, titled “Security Deposits,” states, inter alia, that upon admission to the facility, the resident “agrees to pay
The defendant‘s mother remained a resident at the facility until her death on May 11, 2009. At the time of her death, the defendant‘s mother had an unpaid balance of $99,820.78 due to the facility. The parties stipulated to the trial court that if the department had granted Medicaid benefits to the defendant‘s mother, the department would have paid the facility $47,561.18.
In its complaint, dated January 22, 2010, the plaintiff alleged, inter alia, that the defendant breached the agreement by failing to provide the department with the requested information for his mother‘s Medicaid
A court trial commenced on October 13, 2011. At the close of the plaintiff‘s case-in-chief, the defendant moved for summary judgment, asserting, inter alia, that the plaintiff had failed to name the defendant as a party to the action in his capacity as conservator of his mother‘s estate, and that any evidence of the defendant‘s actions or omissions in his role as conservator bore no relevance to the issues before the court.3 The defendant also argued that the agreement did not impose any
Following a luncheon recess, the court issued an oral decision in favor of the plaintiff. With respect to the plaintiff‘s breach of contract claim, the court found that: (1) the plaintiff entered into a contract with the defendant; (2) the contract provided that the defendant would timely supply all information requested by the department in connection with an application for Medicaid; (3) the consideration for the contract was the agreement of the plaintiff to supply care to the defendant‘s mother; (4) the defendant signed the contract as the responsible party; (5) the dеfendant failed to fulfill the terms of the contract by not supplying the requested information to the department; and (6) as a result, “the defendant caused the plaintiff to lose the Medicaid money.” The court found that the defendant‘s appointment as conservator did not relieve him of his duty to the plaintiff as the responsible party who signed the agreement, and that there was no need for the defendant, in his role as conservator, to be named as a separate party to the action. Additionally, the court found that the doctrine of promissory estoppel applied because (1) the defendant entered into a promise with the plaintiff to provide information to the department in connection with his mother‘s Medicaid application; (2) the plaintiff relied on this promise and provided care to the defendant‘s mother; and (3) the plaintiff lost
In accordance with its oral ruling, the court rendered judgment in the plaintiff‘s favor on October 18, 2011, and awarded damages in the amount of $47,561.15 plus attorney‘s fees to be determined postjudgment.4 The defendant thereafter filed motions for reargument, for articulation, and to open the judgment, which the court denied on January 3, 2012. This appeal followed.
I
We first address the defendant‘s claim that the award of damages stemming from his breach of the agreement was impermissibly speculative.5 Specifically, the defendant claims that the plaintiff failed to adduce any evidence to support the court‘s finding that his breach of the aforementioned contractual obligations “caused the plaintiff to lose the Medicaid money.”6 On our review of the record before us, we are compelled to agree.
It is well established that “[t]he 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.) Pelletier v. Galske, 105 Conn. App. 77, 81, 936 A.2d 689 (2007), cert. denied, 285 Conn. 921, 943 A.2d 1100 (2008). Although this court has intimated that causation is an additional element thereof; see McCann Real Equities Series XXII, LLC v. David McDermott Chevrolet, Inc., 93 Conn. App. 486, 503-504, 890 A.2d 140, cert. denied, 277 Conn. 928, 895 A.2d 798 (2006); proof of causation more properly is classified as part and parcel of a party‘s claim for breach of contract damages. As the United States Court of Appeals for the Federal Circuit aptly explained, “damages for breach of contract are recoverable where: (1) the damages were reasonably foreseeable by the breaching party at the time of contracting; (2) the breach is a substantial causal factor in the damages; and (3) the damages are shown with reasonable certainty.” (Internal quotation marks omitted.) Kansas Gas & Electric Co. v. United States, 685 F.3d 1361, 1369 (Fed. Cir. 2012); see also National Market Share, Inc. v. Sterling National Bank, 392 F.3d 520, 525 (2d Cir. 2004) (“[c]ausation is an essential element of damages in a breach of contract action“); West Haven Sound Development Corp. v. West Haven, 201 Conn. 305, 316, 514 A.2d 734 (1986) (“[w]е believe that the evidence was sufficient to support the jury‘s determination that the breach of contract caused the plaintiff to suffer damages in this case” [emphasis added]); 11 J. Perillo, Corbin on Contracts (Rev. Ed. 2005) § 55.7, p. 26 (in action for breach of contract “a causal relation [must] be shown to exist between the defendant‘s conduct and the harm for which damages are sought“); 3 Restatement (Second), Contracts § 346 (1981) (in order to receive anything other than nominal damages, party must prove both that breach of contract “caused” loss and amount of loss).
The specific calculation of damages incurred in the present case definitively was established due to the parties’ stipulation. The more problematic question is whether the plaintiff presented sufficient evidence to
The causation requirement focuses on whether a loss “may fairly and reasonably be considered [as] arising naturally, i.e., according to the usual course of things, from such breach of contract itself.” (Internal quotation marks omitted.) West Haven Sound Development Corp. v. West Haven, supra, 201 Conn. 319, quoting Hadley v. Baxendale, 9 Ex. 341, 354, 156 Eng. Rep. 145 (1854). This court also has stated that “in order to recover for breach of contract, a plaintiff must prove that he or she sustained damages as a direct and proximate result of the defendant‘s breach.”7 Warning Lights & Scaffold Service, Inc. v. O & G Industries, Inc., 102 Conn. App. 267, 271, 925 A.2d 359 (2007), citing McCann Real Equities Series XXII, LLC v. David McDermott Chevrolet, Inc., supra, 93 Conn. App. 503-504; see also Carco Group, Inc. v. Maconachy, 383 Fed. Appx. 73, 75 (2d Cir. 2010) (damages for breach of contract must be directly and proximately caused by breach); Kay Petroleum Corp. v. Piergrossi, 137 Conn. 620, 624, 79 A.2d 829 (1951) (“[u]nless they are too speculative and remote, prospective profits are allowable as an element of damage whenever their loss arises directly from and as a natural consequence of the breach“).
Our Supreme Court distinguished the causation standards applicable to tort and breach of contract actions
With that standard in mind, we turn to the measure of proof in the present case. “It is incumbent on the party asserting either direct or consequential damages to provide sufficient evidence to prove such damages.” (Emphasis added.) Sullivan v. Thorndike, 104 Conn. App. 297, 304, 934 A.2d 827, cert. denied, 285 Conn. 907, 908, 942 A.2d 415, 416 (2008). Generally, “[p]roof of damages should be established with reasonable certainty and not speculatively and problematically.” (Internal quotation marks omitted.) Leisure Resort Technology, Inc. v. Trading Cove Associates, 277 Conn. 21, 35, 889 A.2d 785 (2006); see also Doeltz v. Longshore, Inc., 126 Conn. 597, 601, 13 A.2d 505 (1940) (“evidence of such certainty as the nature of the case permits should be produced“). At the same time, the quantum of proof required is relaxed in instances involving the wrongful breach of a contract by the defendant. As the United States Supreme Court observed more than one-half century ago: “[E]ven where the defendant by his own wrong has prevented a more precise computation, the jury may not render a verdict based on speculation or guesswork. But the jury may make a just and reasonable estimate of the damage based on relevant data, and render its verdict accordingly. In such circumstances juries are allowed to act on probable and inferential, as well as direct and positive proof. . . . Any other rule would enable the wrongdoer to profit by his wrongdoing at the expense of his victim. It would be an inducement to make wrongdoing so effective and complete in every case as to preclude any recovery, by rendering the measure of damages uncertain.” (Citations omitted; internal quotation marks omitted.) Bigelow v. RKO Radio Pictures, Inc., 327 U.S. 251, 264–65 (1946);
Even under a more relaxed standard, the plaintiff must furnish some proof that the breach caused the damages of which it complains. As one court has noted, while “damages need not be ascertainable with absolute exactness or mathematical precision . . . recovery for speculative damages is precluded.” (Internal quotation marks omitted.) Indiana Michigan Power Co. v. United States, 422 F.3d 1369, 1373 (Fed. Cir. 2005); accord Leisure Resort Technology, Inc. v. Trading Cove Associates, supra, 277 Conn. 35 (award of damages may not be based on conjecture). Put simply, the trial court ”must have evidence by which it can calculate the damages, which is not merely subjective or speculative . . . .” (Emphasis added.) Bronson & Townsend Co. v. Battistoni, 167 Conn. 321, 326-27, 355 A.2d 299 (1974).
Such evidence of causation is lacking in the present case. It is true that the record contains testimonial and documentary evidence demonstrating that the depаrtment denied the Medicaid application because the defendant failed to comply with his contractual obligation to provide the required financial information to the department. The record also contains the parties’ stipulation that if the department had granted the application for Medicaid benefits, the department would have paid the facility $47,561.18—a figure further supported in the record by invoices from the plaintiff.8 Yet, the plaintiff produced no evidence that established or
The testimonial evidence submitted to the court demonstrated, on the one hand, that submitting the proper information to the department merely triggered a review of the resident‘s eligibility and, on the other hand, the submission of such information was not a guarantee of approval to receive such benefits. John Leveque, an eligibility services supervisor at the department, testified that the department could not determine whether an applicant qualified for Medicaid absent a review of the applicant‘s financial information, which was not furnished to the department in the present case. As the defendant notes in his appellate brief, the plaintiff did not ask Leveque “if, based upon the defendant‘s testimony regarding the assets maintained by [his mother], he had an opinion regarding whether . . . [she] would have qualified for [such] benefits.” In addition, the record before us does not indicate that the plaintiff was prevented from presenting the proper financial documentation, expert testimony, or other evidence that would have otherwise established the resident‘s likelihood of approval, nor has the plaintiff in this appeal directed our attention to any such evidence. As a result, the court‘s implicit yet necessary finding that the plaintiff would have received the Medicaid funds had the defendant complied with his obligations under the agreement was little more than “a pure guess and was wholly unsupported” by the evidence adduced at trial. Doeltz v. Longshore, Inc., supra, 126 Conn. 602.9
“Causation [is] a question of fact for the [fact finder] to determine“; West Haven Sound Development Corp. v. West Haven, supra, 201 Conn. 316; and, thus, is governed by the clearly erroneous standard of review.
II
The defendant also claims that the court erred in finding in the plaintiff‘s favor on its promissory estoppel claim. For three distinct reasons, we agree.
First, the plaintiff has not alleged any promise by the defendant independent of that made as part of his entering into the agreement at the time of his mother‘s admission to the plaintiff‘s facility. As a result, the defendant is entitled to rely on the agreement as the final integration of his rights and duties with respect to that promise. See Levine v. Massey, 232 Conn. 272, 279, 654 A.2d 737 (1995).
Second, it is well settled that breach of contract and promissory estoppel are inconsistent theories of recovery, as promissory estoppel is appropriate only when there is an absence of consideration to support a contract. See Glazer v. Dress Barn, Inc., 274 Conn. 33, 88-89, 873 A.2d 929 (2005); Harley v. Indian Spring Land Co., 123 Conn. App. 800, 831, 3 A.3d 992 (2010). As this court has stated previously, “[a] duty of construction is placed upon the trial court whenever a party pleads inconsistent theories of recovery. . . . Although a party may plead, in good faith, inconsistent facts and theories, a court may not award a judgment on inconsistent facts and conclusions. . . . [I]t is the responsibility of the trial court to determine which of the inapposite sets of facts the party has proved, and
Third, we note that this court in certain circumstances has held that an inconsistent judgment is harmless, and does not constitute reversible error, where there is sufficient evidence to support a judgment under either theory of reсovery. See, e.g., 300 State, LLC v. Hanafin, 140 Conn. App. 327, 331-32, 59 A.3d 287 (2013) (judgment rendered after court trial in plaintiff‘s favor on “mutually exclusive” claims for breach of lease and quantum meruit was not reversible error “because the plaintiff produced sufficient evidence to support the judgment under either count“); Pleines v. Franklin Construction Co., 30 Conn. App. 612, 616, 621 A.2d 759 (1993) (although “proof of a contract ordinarily precludes the remedy of unjust enrichment,” judgment in favor of the plaintiff on both counts after court trial was harmless error because sufficient evidence was presented to support judgment under either theory); cf. Harley v. Indian Spring Land Co., supra, 123 Conn. App. 831, 833 n.25 (considering, inter alia, whether to treat inconsistent judgment on promissory estoppel and breach of contract counts as harmless error, citing Pleines, and ultimately invoking supervisory powers to vacate judgment on promissory estoppel count due to unique procedural circumstances present in case). Even if we were to apply such an analysis to the present case, the plaintiff cannot prevail.
Proof of detrimental reliance necessarily entails evidence of injury to a plaintiff. See, e.g., Stewart v. Cendant Mobility Services Corp., 267 Conn. 96, 113, 837 A.2d 736 (2003) (“[T]o rely, in the law of promissory estoppel, is not merely to do something in response to the inducement offered by the promise. There must be a cost to the promisee of doing it.” [Internal quotation marks omitted.]); W. v. W., 256 Conn. 657, 661, 779 A.2d 716 (2001) (promisee “must actually change his position or do something to his injury which he otherwise would not have done” [internal quotation marks omitted]); Curcio v. Hartford Financial Services Group, 472 F. Supp. 2d 239, 245 (D. Conn. 2007) (promissory estoppel claim not viable “due to failure to allege sufficient detrimental reliance injury“). In ruling in favor of the plaintiff on its promissory estoppel claim, the court specifically found that the defendant‘s failure “to fulfill the terms of the agreement of the promise to [the plaintiff]” caused the plaintiff to lose the benefit of Medicaid payments.10 As detailed in part I of this opinion, there is
no evidentiary support in the record before us to substantiate that finding, as the plaintiff‘s receipt of any Medicaid payments was dеpendent on the department‘s approval of Maude Buchman‘s application. Accordingly, even if subject to a harmlessness analysis, the plaintiff has not met its burden in providing sufficient evidence to support a judgment under a promissory estoppel theory.III
Mindful that “sound principles of judicial restraint and judicial economy counsel [an appellate court] to resolve only those issues that are necessary to the proper determination of [an] appeal“; (internal quotation marks omitted) Stuart v. Stuart, 297 Conn. 26, 48, 996 A.2d 259 (2010); accord State v. Carrasquillo, 290 Conn. 209, 217 n.10, 962 A.2d 772 (2009) (“we will not entertain an appeal when the question presented is purely academic“); we ordinarily would not engage in an interpretation of certain disputed contractual provisions. In light of our conclusion in part I of this opinion that the plaintiff cannot prevail on its breach of contract claim because the record does not disclose any evidence indicating that the defendant‘s conduct caused the damages complained of,11 interpretation of the disputed contractual provisions is a purely academic exercise. See Kevin Roche-John Dinkeloo & Associates v. New Haven, 205 Conn. 741, 748-49, 535 A.2d 1287 (1988) (“[a]s we find that the [defendant] did not offer appropriate evidence to establish damages for breach of contract, we need not address whether the allegations in the complaint were sufficient to establish the cause of action“). The concurrence nevertheless has determined to decide that issue. We thus, with great reluctance, join that academic exercise because the legal exposition
A
The concurrence concludes that the defendant cannot be held personally liable for breaching his obligations under the agreement.13 Central to its analysis is the discussion of a body of federal law concerning admissions practices that the parties to this appeal did not raise in any manner before the trial court, or in their appellate briefs and arguments before this court. Unfortunately, the narrative provided in the concurrence tells but half the story with respect to that body of federal law, which, in turn, leads it to mistakenly declare that “[w]hen an individual with legal access to
Courts across this country have held that a responsible party may voluntarily undertake contractual obligations in agreements such as the one at issue here. For example, in Podolsky v. First Healthcare Corp., 50 Cal. App. 4th 632, 646, 58 Cal. Rptr. 2d 89 (1996), the court explained that “[c]ontrary to appellant‘s position, we do not believe that the solicitation of otherwise voluntary third party guarantors violates or subverts the terms of applicable federal or state law in and of itself. Neither federal nor state law prohibits nursing homes from voluntarily obtaining the signature of a willing responsible party or third party guarantor when admitting nursing home residents. Instead, the applicable statutes make it unlawful to require third party guarantees as a condition of admission or continued residence in such facilities. . . . Had Congress intended to forbid third party guarantees under any circumstances, we presume it would have said so.” (Citations omitted.) Likewise, the court in Pioneer Ridge Nursing Facility Operations, L.L.C. v. Ermey, 41 Kan. App. 2d 414, 419, 203 P.3d 4 (2009), concluded that although the trial court properly stated that the nursing facility could not require a third party guarantee as a condition of admission under federal law, its decision “fails to account for the fact that [the responsible party] could have voluntarily made himself responsible for any valid charges incurred by his mother.” (Emphasis altered.)
B
Notably, the defendant entered into the agreement as “the [r]esponsible [p]arty.” That designation is something of a term of art in admission agreements, appearing routinely in such contracts. See, e.g., Aaron Manor, Inc. v. Irving, 307 Conn. 608, 57 A.3d 342 (2013); Olympus Healthcare Group, Inc. v. Muller, 88 Conn. App. 296, 870 A.2d 1091 (2005); Sunrise Healthcare Corp. v. Azarigian, supra, 76 Conn. App. 800; Athena Holdings, LLC v. Marcus, Superior Court, judicial district of Danbury, Docket No. CV-10-6003581 (April 23, 2013); Orchard Grove Specialty Care Center, LLC v. Clairwood, Superior Court, judicial district of New London, Docket No. CV-11-6008580 (April 9, 2012); Cook Willow Health Center v. Andrien, supra, 52 Conn. L. Rptr. 329; Torrington Health & Rehabilitation Center v. Cisowski, Superior Court, judicial district of Litchfield, Docket No. CV-10-5007241 (April 29, 2011);
In Sturman v. Socha, 191 Conn. 1, 11, 463 A.2d 527 (1983), our Supreme Court addressed a claim that the term “responsible party,” as used in admission agreements, was ambiguous. In that case, the plaintiff nursing facility brought an action against the defendant pursuant to a contract between the parties for an unpaid bill for services rendered to the defendant‘s father. Id., 2. Although the defendant signed the admission agreement as the “responsible party“; id., 4; he argued on appeal that “he is not personally liable on the admission agreement which he signed with the nursing home. He argues that the words ‘Responsible Party,’ which appear in the admission agreement immediately below his signature, are ambiguous with regard to his personal liability on the agreement.” Id., 9. Our Supreme court disagreed, stating in relevant part: “From an examination of the admission agreement between the parties, it is clear that the words ‘responsible’ and ‘responsible party’ as they describe the defendant in the context of
We also note that, in Sunrise Healthcare Corp. v. Azarigian, supra, 76 Conn. App. 800, this court rejected a claim that a responsible party as to an admission agreement is merely an agent of the resident. Although the defendant in that case had executed the agreement “both as [the resident‘s] power of attorney and as the ‘responsible party‘“; id., 812; the court distinguished those two capacities, stating: “The defendant clearly signed the contract as the ‘responsible party.’ In so doing, the defendant assumed the obligations of the ‘responsible party’ as set forth under the contract. These obligations extend well beyond the defendant‘s role” as the resident‘s agent. Id., 813.
C
With that context in mind, we turn to the disputed contractual provisions addressed by the concurring
“Where the language of the contract is clear and unambiguous, the contract is to be given effect according to its terms. . . . [I]n construing contracts, we give effect to all the language included therein, as the law of contract interpretation . . . militates against interpreting a contract in a way that renders a provision superfluous. . . . If a contract is unambiguous within its four corners, intent of the parties is a question of law requiring plenary review.”14 (Internal quotation marks omitted.) Assn. Resources, Inc. v. Wall, 298 Conn. 145, 183, 2 A.3d 873 (2010).
The defendant first contends that the language of the agreement clearly and unambiguously limits the responsible party‘s personal liability to the plaintiff, and, thus, that the court erred by awarding the plaintiff damages in a circumstance purportedly not authorized under the agreement‘s terms. According to the defendant, § IV (5) of the agreement sets forth the only circumstance under which the plaintiff could seek satisfaction from the responsible party‘s personal funds—where the responsible party has received a transfer of assets from the resident that results in the resident‘s ineligibility for Medicaid, and the responsible party is required to use those assets, or at least an equal amount of his own assets, to pay for the resident‘s care until the resident is determined eligible for Medicaid assistance.15 In all other circumstances, the defendant
As we read it, the concurring opinion suggests that the scope of the defendant‘s liability, and hence any ensuing remedies, must be expressly provided for in the agreement. See concurring opinion and footnote 15 of concurring opinion (“the responsible party was liable only for using the resident‘s funds for purposes other than payment to the facility“; “[t]he agreement obligated the responsible party to pay the plaintiff only to the extent that it had access and control of the resident‘s resources” [emphasis omitted]). Significantly, however, § XVIII (2) does not say that responsible party liability shall be determined as “set forth” in the other provisions of the agreement; it simply says that it shall be determined ”in accordance with” the other provisions of the agreement. (Emphasis added.) In our view, that diction plainly leaves open the possibility that liability for a breach must be determined by looking at the language of the provision breached and then applying well established principles of contract law and expectation damages to place the plaintiff in the position that it would have been in had the responsible party performed as promised. Although § XVIII (2) does not specify its own remedies, contract law imposes no such requirement. See, e.g., International Marine Holdings, Inc. v. Stauff, 44 Conn. App. 664, 676, 691 A.2d 1117 (1997) (The court noted that parties to a contract “may agree on the remedies available in the event of a breach . . . . If the language of the agreement discloses that the parties intended to limit the remedies to those stated, the agreement will be enforced and the party will be limited to the exclusive remedies outlined in the agreement. . . . A contract will not be construed to limit remedial rights unless there is a clear intention that the enumerated remedies are exclusive,” and the court concluded that there was no intention to limit the available remedies where the plaintiff‘s proposed reading of the agreement required a “bizarre result . . . .” [Citation omitted; internal quotation marks omitted.]). In the present case, it would be a bizarre result indeed if § XVIII (2) provides for the imposition of remedies “in accordance with” the other provisions of the agreement, yet none of those other provisions provide a remedy.
Sunrise Healthcare Corp. v. Azarigian, supra, 76 Conn. App. 800, on which the concurrence relies, is instructive in this regard. That case concerned a contract with provisions nearly identical to those in the agreement at issue here. On appeal, this court found that the language of the agreement did not violate the Medicaid statutes. Further, we held that the responsible party was properly found liable for transferring the resident‘s assets—over which she had control—instead of using them to pay the facility, which was specifically prohibited under the agreement. Id., 808. Notably, it does not appear
Reading the agreement as a whole, as we must, we cannot conclude that the responsible party‘s liability for a breach of the agreement is as limited as the defendant and the concurrence suggest. Section XVIII (1) provides that, in executing the agreement, the responsible party accepts a duty to “undertake faithfully all of the obligations of [the] agreement.” (Emphasis added.) Although the first sentence of § XVIII (2) does establish that the responsible party is not a surety fоr payment as described in three enumerated sections of the agreement, the second sentence of the section explicitly leaves open the possibility that the responsible party can be found liable “for failure to perform any of the other obligations set forth in [the] agreement,” and provides that such liability “shall be determined in accordance with the provisions of [the] agreement.”16 (Emphasis added.)
Even more directly on point is Glastonbury Healthcare Center, Inc. v. Esposito, supra, 45 Conn. L. Rptr. 671. In Glastonbury Healthcare Center, Inc., the plaintiff nursing care facility brought an action against the defendant to recover expenses incurred for the care of his mother after the department denied his mother‘s Medicaid application “‘due to the lack of sufficient information‘” regarding his mother‘s assets. Id., 673. As in the present case, the admission agreement at issue in Glastonbury Healthcare Center, Inc., “[required] the responsible party to provide all information that may be requested by [the department] in connection with an application for Medicaid and to promptly and expeditiously establish and maintain eligibility for [Medicaid assistance] . . . .” Id., 672. Though the defendant in Glastonbury Healthcare Center, Inc., signed the agreement only as his mother‘s representative, and not as the responsible party, the court nevertheless found that the defendant had entered into an oral contract with the facility to undertake the obligations of the responsible party because the facility informed him that he was the responsible party at the time he signed the agreement and informed him of his duties as the responsible party—including to establish his mother‘s eligibility for Medicaid and provide all information requested by the department—and the defendant did not object. Id., 672-73. The court then found that the defendant violated this contract by failing to provide the department with the requested information regarding his mother‘s assets and failing to act promptly to establish and maintain her Medicaid eligibility. Id., 674. The court stated explicitly that the defendant‘s “liability . . . in breach of contract is not based upon the promise to answer for the debt of [his mother], but rather for his failure to meet his entirely separate responsibility as a responsible party,” and awarded the plaintiff damages resulting from the defendant‘s breach. (Emphasis added.) Id. We find the reasoning of Andrien and Glastonbury Healthcare Center, Inc., to be highly persuasive and instructive.
In conflating the concepts of “guarantor” and “responsible party” liаbility, the concurrence reasons that a responsible party who breaches a specific contractual obligation that it voluntarily agreed to perform and which allegedly resulted in the nonpayment of tens of thousands of dollars in nursing care costs nevertheless is immune from liability. We disagree. The trial court found that the defendant breached his contractual obligations to comply with all requests from the department, and to act promptly and expeditiously to establish and maintain his mother‘s eligibility for Medicaid assistance. The defendant does not challenge that finding in this appeal. In our view, finding the defendant liable for breach of contract for failing to perform obligations he voluntarily undertook as a signatory to the agreement is not the same as making him a guarantor for his mother‘s care under all circumstances. By way of example, we agree that the defendant could not be held personally responsible for paying for his mother‘s care if he had furnished all of the necessary documentation, but the department nevertheless denied Medicaid benefits, because in that case, the defendant would have satisfied his obligations under the agreement, and there would have been no breach. Moreover, § XVIII (2) of the agreement expressly leaves open the possibility that the responsible party can be held liable for failure to perform any obligations other than the payment obligations set forth in §§ II, III, and XIV. To allow the defendant to evade liability for his voluntary contractual obligation under a provision that does not specify a remedy effectively rewrites the parties’ agreement and removes all references to the responsible party‘s
Accordingly, we disagree with the concurrence that the court improperly concluded that the defendant could be held personally liable for breaching specific contractual obligations that he voluntarily elected to undertake.
The judgment is reversed and the case is remanded with direction to render judgment in favor of the defendant.
In this opinion BEAR, J., concurred.
SCHALLER, J., concurring. I concur with the result reached in the majority opinion. I write separately, however, because I believe the result should be reached instead by addressing the claim by the defendant, Robert Buchman, that the trial court improperly determined that he was personally liable for the financial obligations of his mother, Maude Buchman, as a result of his having breached § IV of the admission agreement he entered into with the plaintiff nursing care facility, Meadowbrook Center, Inc.1 In my view, the contract interpretation issue, which precedes the damage issue
The record reveals the following relevant facts and procedural history, which are set forth more fully in the majority opinion. In order to secure admission for his mother to the plaintiff‘s nursing facility, the defendant entered into the admission agreement with the plaintiff in November, 2006. The agreement, drafted by the plaintiff, described the defendant as the “responsible party.”3 The defendant later failed to comply with § IV of the agreement when he did not provide the Department of Social Services (department) with information it requested with respect to the resident‘s Medicaid application. The plaintiff brought suit against the defendant, seeking to recover the entire debt incurred during the resident‘s stay at its facility between July, 2008, and May, 2009, a total sum of $99,820.78.4 In its oral decision, the court rendered judgment in favоr of the plaintiff with respect to its breach of contract claim. The court determined that the defendant, as the “responsible party” in breach of the agreement, was personally liable for the plaintiff‘s financial losses, measured at the Medicaid rate, of $47,561.18.5 This appeal followed.
On appeal, it is undisputed that the defendant executed the agreement in the sole capacity as the “responsible party,” as specified in the plaintiff‘s agreement,
The standard of review for interpretation of a contract is well settled. “[I]n the absence of a claim of ambiguity, the interpretation of [a] contract presents a question of law.” (Internal quotation marks omitted.) Reid v. Landsberger, 123 Conn. App. 260, 285, 1 A.3d 1149 (Bishop, J., concurring in part and dissenting in part), cert. denied, 298 Conn. 933, 10 A.3d 517 (2010). On appeal, the parties do not assert that the agreement is ambiguous.6 Accordingly, the interpretation of the
In the present case, the parties’ dispute centers on the potential liability of the “responsible party” under the agreement. The defendant, by virtue of executing the agreement as the “responsible party,” agreed to perform certain obligations related to facilitating the resident‘s Medicaid eligibility.7 Although the designation “responsible party” is not defined within the four corners of the agreement, § XVIII, entitled “Obligation of the Parties,” is instructive. Specifically, § XVIII (2)
What both parties fail to acknowledge, however, is that § XVIII (2) must be construed in light of the law from which it is unmistakably derived. “[P]arties contract with reference to existing law, except when the contract discloses a contrary intention . . . . [A] statute existing at the time [a contract] is executed becomes a part of it and must be read into it just as if an express provision to that effect were inserted therein.”9 (Citation omitted.) Hatcho Corp. v. Della Pietra, 195 Conn. 18,
The question in the present case, by contrast, is whether the “responsible party” can be held personally liable for the resident‘s financial obligations as a result of failing to perform “other obligations” that do not involve the appropriation of the resident‘s funds but, rather, involve merely helping to secure Medicaid benefits for the resident. Specifically, the “other obligations” that the defendant failed to perform are found in § IV of the agreement, entitled “Resident‘s Assets: Medicaid Assistance.” It appears that the defendant‘s failure to provide the department with the information it requested in connection with the resident‘s Medicaid application constituted a breach of § IV (2) and (4), or both.14 Section IV (2) provides that “[t]he . . . Responsible Party agree[s] to provide all information that may be requested by the [department] in connection with the [Medicaid] application in accordance with any deadlines established by the department.” Section IV (4) provides in relevant part that “[t]he . . . Responsible Party agree[s] to act promptly and expeditiously to establish and maintain eligibility for Medicaid . . . .” Pursuant to § XVIII (1), the defendant agreed to “undertake faithfully” his obligations under § IV. The trial court determined that the defendant was personally liable for
In sum, the plaintiff was not without a remedy for the defendant‘s breach but, instead, is simply without the remedy it wants to have and now seeks.17 By virtue
Notes
“Section IV.2. of the agreement states: ‘The responsible party does not personally guarantee or serve as surety for payment for the care provided to the resident by the facility. The responsible party acknowledges and agrees that he or she wants the resident to be admitted to and to receive the care and services provided by the facility; that he or she is making certain promises in this agreement; and that the facility is admitting the resident and providing care and services in reliance upon these promises. The responsible party is personally liable for any damage incurred by the facility due to the responsible party‘s failure to fulfill thеse promises.’ This provision of the agreement clearly indicates that the defendant as the responsible party is not guaranteeing the payment. Her failure to meet her obligations would only indicate that she breached the agreement, resulting in damages to the plaintiff because of nonpayment for her mother‘s care that would have been available through Medicaid had the defendant acted properly.
“The defendant relies on Sunrise Healthcare Corp. v. Azarigian, [supra, 76 Conn. App. 800], for the proposition that the use of the term ‘personally liable’ in a nursing home admission contract per se violates the federal and state statutes. In that case, the Appellate Court held that the contract before it did not violate
