Pointe Residential Builders BH, LLC v. TMP Construction Group, LLC
Case Details
- Judge(s)
- Alvord; Prescott; Clark
- Status — whether other courts must follow this ruling
- Published
- Procedural Posture — the stage the case had reached
- appeal
Related Laws
No specific laws identified for this ruling.
Claim Types
Outcome
Trial court found defendants violated CUTPA through deceptive misrepresentation about use of construction deposit funds, and appellate court affirmed judgment for plaintiff including punitive damages and attorney's fees.
Excerpt
The plaintiff general contractor sought to recover damages for, inter alia, an alleged violation of the Connecticut Unfair Trade Practices Act (CUTPA) (§ 42-110a et seq.), in connection with a breach of contract claim between the plaintiff and the defendants, a subcontractor, T Co., and its manager, P. Under the contract, T Co. was to perform certain work on a construc- tion project to build a condominium complex at a fixed sum. Although the contract called for payment upon delivery for furnished materials and equipment, the defendants convinced the plaintiff to pay a 30 percent deposit for all of the estimated costs of materials and equipment up front, claiming that the deposit would be used to buy materials ahead of time to avoid an anticipated price increase and to avoid delivery delays. Unknown to the plaintiff, the defendants did not intend to use these funds as promised but, instead, intended to use the funds to finance its payroll and work on other projects. When the invoices for supplies remained unpaid by the defendants, a mechanic's lien was placed on the property and, thereafter, the plaintiff terminated the contract. The trial court concluded that the defendants breached the contract, inter alia, in failing to perform the work and to pay for materials, equipment and labor used, and that the defendants were unjustly enriched. It also found the defendants' conduct was deceptive, unethical and unscrupu- lous and constituted an unfair and deceptive business practice in viola- tion of CUTPA. On the defendants' appeal to this court, held: 1. Contrary to the defendants' claims, there was sufficient evidence of inten- tional, reckless, unethical and unscrupulous conduct by both defendants to establish a violation of CUTPA: the record supported a finding that P, as the manager and controlling member of T Co., knowingly or recklessly engaged in the unscrupulous acts, because he personally represented to the plaintiff that the deposit would be used for materials, l
What This Ruling Means
This summary was generated to explain the ruling in plain English and is not legal advice.
Similar Rulings
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