Opinion
Thе plaintiffs, Desire Powell and Clayton Keyworth, appeal from the trial court’s grant of summary judgment in favor of the defendant, Infinity Insur
anee Company, on the basis of the doctrine of
The record discloses the following undisputed facts. In the initial action against the defendant commenced on March 29, 2001 (action I), Powell, as the owner-passenger, and Keyworth, as the driver, alleged that they had been involved in a motor vehicle accident оn Route 9 in New Britain, which occurred when an unknown vehicle veered into their lane of travel thereby causing Keyworth to strike three other vehicles. In counts one and two of the complaint, Keyworth and Powell respectively asserted claims against the defendant for their injuries resulting from the accident pursuant to the uninsured motorist coverage of an automobile policy that the defendant had issued to Powell and that was in effect on the date of the accident. Under the policy, coverage was limited to $20,000 per person and $40,000 per accident, the statutory minimum uninsured motorist benеfit. See General Statutes § 38a-336. The plaintiffs each filed offers of judgment in the amount of $20,000. Thereafter, the matter was tried to a jury, which reached a verdict on July 18, 2002, and awarded damages, in excess of the policy limits, of $361,800 to Powell ($4300 in economic damages and $357,500 in noneconomic damages) and $378,985 to Keyworth ($3610 in economic damages and $375,375 in noneconomic damages). The court then reduced the awards by a 10 percent comparative negligence finding. Following the defendant’s motion for remittitur, the trial court further reduced the awards for each plaintiff to $20,000, plus interest. The defendant then issued payments to each plaintiff in the amount of $24,292.31, as ordered by the court. Thereafter, the plaintiffs filed a satisfaction of judgment.
Approximately one year later, the plaintiffs commenced the present action against the defendant (action II). In a six count revised complaint, each plaintiff alleged one count of bad faith, breach of contract and a violation of CUTPA through CUIPA. Specifically, each count claiming bad faith described the circumstances of the February 18,2000 accident, the nature and extent of their injuries and the coverage under Powell’s uninsured motоrist policy issued by the defendant. Additionally, each plaintiff alleged that he or she had sent a letter to the defendant with a demand to settle the claim, that the defendant had sent notice to each regarding the applicable policy limits of $20,000, and that, despite offers by each to settle for the policy limits, the defendant had refused to pay said sum “although the reasonable value of the plaintiffs losses far exceeded that amount.” In addition, the bad faith counts recited the following: action I had been filed “as a result of the defendant’s continued refusal to settle the claim within the рolicy limits”; despite the plaintiffs’ offers of judgment in the amount of $20,000, the defendant had “refused to settle [their] claimfs] for a fair amount”; the defendant had refused to process diligently the plaintiffs’ claims, had delayed processing their claims “ [¶] or a period of
In the third and fourth counts of the complaint, the plaintiffs each alleged that the defendant had violated CUTPA by violating CUIPA. These counts incorporated by reference all of the allegations in the bad faith counts and then further alleged that the defendant: had failed to acknowledge communication with respect to the claims arising under Powell’s uninsured motorist policy; had not attempted in good faith to effectuate a settlеment; had compelled the plaintiffs to institute litigation to recover amounts due under the insurance policy; and had failed to provide a reasonable explanation of the basis in the insurance policy in relation to applicable facts for its denial of the offer of settlement. Finally, each plaintiff alleged that the defendant’s conduct indicated a general business practice of operating in this manner.
In counts five and six, the plaintiffs again incorporated by reference all of the allegations in their bad faith counts and alleged that the defendant had breached expressed or implied representations that it would investigate and process in good faith any claims submitted by the plaintiffs. Finally, each plaintiff alleged that the defendant had breached the insurance contract when it failed to pay the $20,000 demand of December 1, 2000, or, in the alternative, when it allowed the offer to settle within the policy limits to expire.
The defendant moved for summary judgment in the present action, claiming that: action II was barred by the doctrine of res judicata because the plaintiffs could have asserted the causes of action in the present case in action I; its investigative conduct had been proper and in accordance with the terms and conditions of the insurance policy; and, by filing the satisfaction of judgment, the plaintiffs had waived their claims that the defendant’s refusal to settle in accordance with the jury’s verdict for full settlement of their claims constituted bad faith, breach of contract, or a violation of CUTPA/CUIPA.
Following the filing of memoranda of law and oral argument, the trial court granted the defendant’s motion for summary judgment, concluding, inter alia, that the action was barred by res judicata. 1 The court rendered judgment in favor of the defеndant, and this appeal followed. 2
“The doctrine of res judicata holds that an existing final judgment rendered upon the merits without fraud or collusion, by a corut of competent jurisdiction, is conclusive of causes of action and of facts or issues thereby litigated as to the parties and their privies in all other actions in the same or any other judicial tribunal of concurrent jurisdiction. ... If the same cause of action is again sued on, the judgment is a bar with respect to any claims relating to the cause of action which were actually made or which might hаve been made.” (Citations omitted.)
Wade’s Dairy, Inc.
v.
Fairfield,
The applicability of the doctrines of collateral estoppel or res judicata presents a question of law that we review de novo. See, e.g.,
R & R Pool & Patio, Inc.
v.
Zoning Board of Appeals,
supra,
We also have recognized, however, that the application of either doctrine has dramatic consequences for the party against whom it is applied, and that we “should be careful that the effect of the doctrine does not work an injustice.”
Gladysz
v.
Planning & Zoning Commission,
The plaintiffs claim that the trial court improperly determined that res judicata barred their claims of bad faith, breach of contract and CUTPA/CUIPA. Specifically, they contend that the claims raised in action II were not adjudicated in action I, do not arise out of the same transaction that gave rise to action I, and are based on different facts than those alleged in action I. Additionally, they claim that the policies underlying the doctrine of res judicata are not furthered by its application in the present case and that the administration of justice would be better served by allowing action II to proceed. Our examination of the facts that gave rise to action I and those claims that could have been litigated in connection with action II persuades us that the claims asserted in the present action are barred by res judicata.
In deciding whether the doctrine of res judicata is determinative, we begin with the question of whether the second action stems from the same transaction as the first. “We have adopted a transactional test as a guide to determining whether an action involves the same claim as an earlier action so as to trigger operation of the doctrine of res judiсata. [T]he claim [that is] extinguished [by the judgment in the first action] includes all rights of the plaintiff to remedies against the defendant with respect to all or any part of the transaction, or series of connected transactions, out of which the action arose. What factual grouping constitutes a transaction,' and what groupings constitute a series, are to be determined pragmatically, giving weight to such considerations as whether the facts are related in time, space, origin, or motivation, whether they form a convenient trial unit, and whether their treatment as a unit conforms to the parties’ еxpectations or business understanding or usage. . . .
Orselet
v.
DeMatteo,
[
. . .
Commissioner of Environmental Protection
v.
Connecticut Building Wrecking Co.,
Turning to the allegations in the complaints, it is apparent that both actions allege a breach of contract,
3
involve the
Beyond the breach of contract counts in both actions, the bad faith and CUTPA/CUIPA counts in action II also arise out of the defendant’s refusal to pay the policy bеnefits despite its contractual obligations. The plaintiffs consistently have complained of the defendant’s wrongful failure to honor its obligation to make payments in accordance with the terms of the uninsured motorist insurance policy issued to Powell. Their claims turn on essentially one event — the defendant’s refusal to pay in accordance with the terms of Powell’s policy. In particular, they allege that the defendant engaged in bad faith by refusing to settle for the policy limits and, thereafter, by refusing to settle their claims for the policy limits in connection with the offer of judgment. The unfair and unscruрulous conduct of which the defendant is accused pertains to its refusal to settle within the policy limits, both before and after the offer of judgment, its delaying of the resolution of the claims and its harassment of the plaintiffs in order to force them to settle for an unfair amount. Appropriately, the trial court recognized that this case was markedly similar to, and indeed controlled by,
Duhaime
v.
American Reserve Life Ins. Co.,
supra,
The plaintiffs contend, however, that, because some of the defendant’s conduct
We emphasize the well settled rule that “[a] judgment is final not only as to every matter which was offered to sustain the claim,
but also as to any other admissible matter which might have been offered for that purpose.
. . . 1 Restatement (Second), [supra] §§ 19, 25; [F.] James & [G.] Hazard, Civil Procedure [2d Ed. 1977] § 11.3.” (Citation omitted; emphasis added; internal quotation marks omitted.)
Delahunty
v.
Massachusetts Mutual Life Ins. Co.,
supra,
Moreover, as the trial court remarked, even “[i]f the plaintiffs did not form a belief that the defendant was acting in bad faith, and/or in violation of CUTPA/CUIPA, until after their offer of judgment was not accepted, they, soon after, could have amended their complaint to include those allegations. . . . The first case went to trial only thirteen months after the return date. The trial date certainly could have been adjusted to accommodate any amendments to the complaint.” See
Monterey Plaza Hotel Ltd. Partnership
v.
Local 483 of the Hotel Employees & Restaurant Employees Union,
In deciding whether the trial court properly granted summary judgment, we also consider, however, whether
The plaintiffs contend nevertheless that, independent of the degree to which the evidence supporting each claim overlaps, there are two primary grounds that favor nonjoinder of the actions and, accordingly, undermine application of the doctrine of res judicata. First, they posit that a “procedural quagmire” would ensue
In conclusion, we are not persuaded that the nominal concerns raised by the plaintiffs are sufficient to ovеrcome the policy goals of stability in judgments and certainty in the management of affairs that the doctrine of res judicata advances. Accordingly, we conclude that the trial court properly applied the doctrine of res judicata to render summary judgment in the defendant’s favor.
The judgment is affirmed.
In this opinion the other justices concurred.
Notes
The trial court determined that, although the plaintiffs had not asserted claims of bad faith and violations of CUTPA/CIUPA in action I, they could have done so. The court held that the contract counts were barred because, although the plaintiffs had advanced a different theory in action II, “[t]he first lawsuit was an actiоn in contract that went to judgment, and the judgment was satisfied by the defendant.” The trial court noted that there was one aspect of the plaintiffs’ complaint that must be addressed separately from the res judicata determination, namely, their allegation in each count that the defendant’s failure to pay them their demand for the jury verdict constituted bad faith, and concluded that this claim failed as a matter of law under General Statutes § 38a-336 (b) because the defendant “was not required to pay more than its contractual liability.” Thus, the court granted the defendant’s motion for summary judgment as to all cоunts of the plaintiffs’ complaint,.
The plaintiffs appealed from the trial court’s judgment to the Appellate Court, and we thereafter transferred the appeal to this court pursuant to General Statutes § 51-199 (c) and Practice Book § 65-1.
Although the plaintiffs label the first action as a claim for uninsured motorist benefits and not as one in contract, this is a distinction without a difference for our purposes. See
Dodd
v.
Middlesex Mutual Assurance
Co.,
For essentially the same reasons, we conclude that it would not have been beyond the reasonable expectations of the parties for this group of facts to have been treated as a single cause of action. See
Delahunty
v.
Massachusetts Mutual Life Ins. Co.,
supra,
Additionally, we note that any potential prejudice resulting from facts that are not related could be resolved by bifurcating the trial. With bifurcation, the evidence common to both claims, which was considerable, could have been presented at once and not “ ‘in separate lawsuits commenced at a distance of months or years.’ ”
Porn
v.
National Grange Mutual Ins. Co.,
In this regard, we note that in a case like the present one, when all the claims properly are brought in one action, should the plaintiffs make a good faith argument that, to establish some claims, they need to elicit testimony from the attorney defending the case, the proper course may be for the trial court to bifurcate the issues or require the defendant to obtain new counsel. Such circumstances do not, however, override the proper application of the doctrine of res judicata.
