Raspberry Junction Holding, LLC v. Southeastern Connecticut Water Authority , 331 Conn. 364 ( 2019 )


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    RASPBERRY JUNCTION HOLDING, LLC v.
    SOUTHEASTERN CONNECTICUT
    WATER AUTHORITY
    (SC 19974)
    Robinson, C. J., and Palmer, McDonald, D’Auria,
    Mullins, Kahn and Ecker, Js.
    Syllabus
    The plaintiff sought to recover damages from the defendant municipal water
    authority, S Co., for the loss of revenue resulting from the interruption
    of water service at its hotel property. The plaintiff alleged that the
    interruption was caused by S Co.’s negligence in its maintenance and
    operation of a pumping station. S Co. had been created by a special act
    of the General Assembly (33 Spec. Acts 478, No. 381 [1967]) that set
    forth S Co.’s powers and duties, including the power to be sued and
    the power to make rules for the ‘‘sale of water and the collection of
    rents and charges therefor.’’ S Co. thereafter adopted rules governing
    its water service, including a rule limiting its liability for its negligence
    in supplying water. Citing that rule, S Co. moved for summary judgment
    on the ground that it was immune from liability for the plaintiff’s damages
    and that the rule was a proper exercise of its authority under the special
    act’s grant of power to make rules for the sale of water and the collection
    of rents and charges. The plaintiff opposed the motion, claiming that S
    Co., as a municipal corporation engaged in a proprietary function, was
    not immune from suit and that the special act did not provide any
    authority, express or implied, to promulgate rules that waive liability
    for negligence. The trial court recognized that, generally, S Co. could
    be sued like a private water company but that, as an administrative
    agency, it had the power to promulgate regulations having the force
    and effect of law. The court, relying on authority from other jurisdictions,
    determined that reasonable rates for the provision of water services
    depended in part on a rule limiting liability, enforceable only to the
    extent that ordinary negligence was involved. The trial court therefore
    found that S Co.’s rule limiting liability for service outages was a reason-
    able exercise of its rule-making authority, and, because the plaintiff
    alleged only ordinary negligence, the rule limiting S Co.’s liability was
    enforceable as to the plaintiff’s action. In light of this conclusion, the
    court did not address S Co.’s alternative ground for summary judgment,
    granted S Co.’s motion for summary judgment, and rendered judgment
    thereon, from which the plaintiff appealed. Held that the trial court
    improperly granted S Co.’s motion for summary judgment on the ground
    that S Co. had the authority to promulgate a rule that limited its liability
    for disruptions to water service, and, accordingly, the judgment was
    reversed and the case was remanded for consideration of the defendant’s
    alternative ground for summary judgment: it was clear, from the text
    of the special act, that the legislature did not expressly empower the
    defendant to promulgate a rule immunizing itself from liability for the
    failure to supply water, and the defendant’s authority to limit its liability
    for the negligent disruption of water could not be necessarily implied,
    as there was no textual or rational basis in the special act to infer that
    such authority was necessary to effectuate any other authority expressly
    conferred, the imposition of liability for the disruption of water service
    would not impair S Co.’s authority to set rates and sell water, or impair
    the ability of S Co. to set rates sufficient to cover costs, and S Co.
    was not subject to comprehensive regulation of its rates, services and
    facilities by the state’s public utilities regulatory authority and, therefore,
    faced no impediment to setting rates sufficient to cover the cost of
    insurance or its liability in the absence of insurance; moreover, S Co.’s
    reliance on both the special act’s catchall provision granting S Co. the
    power to do all things necessary or convenient to carry out the provisions
    of the special act and the act’s statement of purpose did not provide S
    Co. with authority to limit its liability for the disruption of water service.
    Argued November 13, 2018—officially released April 9, 2019
    Procedural History
    Action to recover damages sustained as a result of
    the alleged negligence of the defendant, and for other
    relief, brought to the Superior Court in the judicial dis-
    trict of New London, where the court, Vacchelli, J.,
    granted the defendant’s motion for summary judgment
    and rendered judgment thereon, from which the plain-
    tiff appealed. Reversed; further proceedings.
    Santa Mendoza, for the appellant (plaintiff).
    Stephanie S. Berry, with whom were Ryan L.
    McLean and, on the brief, Lloyd L. Langhammer, for
    the appellee (defendant).
    Opinion
    McDONALD, J. The dispositive question in this appeal
    is whether the special act creating the defendant, South-
    eastern Connecticut Water Authority, authorized the
    defendant to promulgate a rule immunizing itself from
    liability for failures or deficiencies in its supply of water
    to its customers. The plaintiff, Raspberry Junction Hold-
    ing, LLC, appeals from the trial court’s judgment render-
    ing summary judgment in favor of the defendant on the
    basis of such a rule. We reverse the judgment of the
    trial court.
    The record reveals the following undisputed facts
    and procedural history. The defendant was created in
    1967 by a special act of the General Assembly as a body
    politic and corporate of the state, designated to perform
    the ‘‘essential government function’’ of planning,
    operating, and maintaining a water supply system for
    the benefit of the southeastern Connecticut planning
    region. 33 Spec. Acts 478, No. 381 (1967) (special act).1
    Section 14 of that act sets forth the powers and duties
    conferred on the defendant, including ‘‘the power: (a)
    to sue and be sued . . . (i) to make . . . rules for the
    sale of water and the collection of rents and charges
    therefor . . . (m) to fix rates and collect charges . . .
    such as to provide revenues sufficient at all times to
    pay . . . the princip[al] and interest on the bonds or
    notes of the authority together with the maintenance
    of proper reserves, in addition to paying . . . the
    expense of operating and maintaining the properties of
    the authority together with proper reserves for depreci-
    ation, maintenance and contingencies and all other obli-
    gations and indebtedness of the authority . . . (p) to
    do all things necessary or convenient to carry out the
    powers expressly given in this act . . . .’’ 33 Spec. Acts
    481, 483–84, No. 381, § 14 (1967).
    On the basis of the authority purportedly granted to
    it by § 14 of the special act, the defendant adopted
    ‘‘Rules Governing Water Service,’’ including rule 5, enti-
    tled ‘‘SUPPLY OF WATER.’’ Rule 5 provides in relevant
    part: ‘‘It is expressly agreed that the [defendant] shall
    not be liable for a deficiency or failure in the supply of
    water or the pressure thereof for any cause whatsoever,
    or for any damage caused thereby, or for the bursting
    or breaking of any main or service pipe or any attach-
    ment to the [defendant’s] property. . . .’’2
    In 2016, the plaintiff commenced the present action
    against the defendant, seeking damages on the basis of
    a loss of water service at The Bellissimo Grande Hotel
    in North Stonington, operated by the plaintiff. In its one
    count complaint, the plaintiff alleged that the hotel lost
    water service for several days in June, 2015, due to
    the explosion of a hydropneumatic tank at a pumping
    station operated by the defendant as a result of the
    defendant’s negligent construction, operation, inspec-
    tion or maintenance of the tank and its valves. The
    plaintiff further alleged that the water outage caused
    the plaintiff to lose revenue due to its inability to rent
    rooms and the need to give refunds to hotel guests
    during the water outage.
    The defendant moved for summary judgment on two
    grounds. First, it contended that rule 5 immunized it
    from liability for the plaintiff’s damages, and that the
    rule was a proper exercise of its authority under the
    special act’s grant of power to make ‘‘rules for the
    sale of water and the collection of rents and charges
    therefor.’’ See 33 Spec. Acts 483, No. 381, § 14 (i) (1967).
    Second, it contended that, because the plaintiff was
    seeking damages for monetary loss only, the claim is
    barred by the common-law economic loss doctrine.3
    The plaintiff opposed the motion, arguing that the
    defendant, as a municipal corporation engaged in a
    proprietary function, is not immune from suit and has
    no authority, express or implied, to promulgate rules
    that waive liability for negligence. The plaintiff also
    argued that the economic loss doctrine does not apply
    under the circumstances presented.
    The trial court rendered summary judgment in favor
    of the defendant. The court recognized that the defen-
    dant’s authority to promulgate rule 5 depended on an
    express or implied grant in the special act. It further
    recognized that, as a general matter, the defendant
    could be sued like a private water supply company.
    Nonetheless, it reasoned that, unlike a private company,
    the defendant is an administrative agency that has the
    power to promulgate regulations having the force and
    effect of law. On the basis of that conclusion, the court
    focused its analysis exclusively on the question of
    whether a rule limiting a water company’s liability for
    service outages was a reasonable exercise of the defen-
    dant’s rule-making authority. Finding no Connecticut
    authority on this question, it relied on authority from
    other jurisdictions holding that reasonable rates
    required for such services depend in part on a rule
    limiting liability. It also noted that other jurisdictions
    generally have held that such limitations on liability are
    enforceable only to the extent of ordinary negligence.
    Because the present case alleged only ordinary negli-
    gence, the court held that rule 5 was enforceable as to
    the present action.4 In light of this conclusion, the court
    did not address the applicability of the economic loss
    doctrine. The plaintiff appealed from the trial court’s
    judgment to the Appellate Court, and, pursuant to Gen-
    eral Statutes § 51-199 (c) and Practice Book § 65-1, we
    transferred the appeal to this court.
    On appeal, the plaintiff renews its claim that rule
    5 is unenforceable because the special act does not
    expressly or impliedly grant to the defendant the power
    to promulgate a rule limiting its liability otherwise
    established when it acts in its proprietary capacity. The
    plaintiff further asserts that rule 5 would not be a rea-
    sonable exercise of authority because the defendant is
    not subject to regulation that might otherwise circum-
    scribe its ability to set rates to cover liability costs.5 In
    response, the defendant contends that rule 5 was validly
    promulgated pursuant to the special act’s express grant
    of power to set reasonable rates for service and make
    rules for the sale of water. Alternatively, the defendant
    asserts that such authority is properly implied because
    it is necessary to carry into effect its stated purpose
    under the special act of benefitting the people of its
    region and the state, and for the improvement of their
    health, welfare and prosperity. The defendant also
    argues that rule 5 is enforceable because it is essential
    to its duty to set reasonable rates.
    We conclude that the defendant lacked authority to
    promulgate a rule, such as rule 5, that immunizes it from
    liability for disruptions to water service. Therefore, we
    do not reach the issue of whether rule 5 would be a
    reasonable exercise of such authority.
    ‘‘Our review of the trial court’s decision to grant [a]
    motion for summary judgment is plenary.’’ (Internal
    quotation marks omitted.) Boone v. William W. Backus
    Hospital, 
    272 Conn. 551
    , 559, 
    864 A.2d 1
    (2005). Because
    the resolution of the issue concerning the defendant’s
    authority to promulgate rule 5 presents a question of
    statutory interpretation over which we also exercise
    plenary review, we are guided by settled principles of
    construction. See Hicks v. State, 
    297 Conn. 798
    , 800–
    801, 
    1 A.3d 39
    (2010) (setting forth process of ascertain-
    ing legislative intent pursuant to General Statutes § 1-
    2z, and noting that, ‘‘[w]hen construing a statute, [o]ur
    fundamental objective is to ascertain and give effect to
    the apparent intent of the legislature’’ [internal quota-
    tion marks omitted]).
    In considering whether the legislature, through the
    special act, conferred on the defendant the authority
    to immunize itself from liability for failures or deficienc-
    ies in its water supply, we also must be mindful of
    certain settled principles that inform the nature and
    source of the defendant’s powers. By virtue of the spe-
    cial act, the defendant is a municipal corporation. See,
    e.g., Monroe v. Middlebury Conservation Commission,
    
    187 Conn. 476
    , 483, 
    447 A.2d 1
    (1982); Rocky Hill Conva-
    lescent Hospital, Inc. v. Metropolitan District, 
    160 Conn. 446
    , 450, 
    280 A.2d 344
    (1971); see also Sachem’s
    Head Property Owners’ Assn. v. Guilford, 
    112 Conn. 515
    , 517–18, 
    152 A. 877
    (1931) (explaining attributes of
    municipal corporation). As a creation of the state, a
    municipal corporation has no inherent legislative
    authority. See, e.g., Monroe v. Middlebury Conserva-
    tion 
    Commission, supra
    , 484. Rather, ‘‘[i]t can exercise
    only such powers as are expressly granted or necessar-
    ily implied to enable it to carry into effect the objects
    and purposes of its creation.’’ 
    Id. ‘‘In determining
    whether a municipality has the authority to adopt a
    challenged . . . provision, we do not search for a statu-
    tory prohibition against such an enactment; rather, we
    must search for statutory authority for the enactment.’’
    (Internal quotation marks omitted.) Simons v. Canty,
    
    195 Conn. 524
    , 530–31, 
    488 A.2d 1267
    (1985).
    It is clear from the text of the special act that the
    legislature did not expressly empower the defendant
    to promulgate a rule immunizing itself from liability
    for the failure to supply water. To the contrary, § 14
    specifically provides that the defendant may ‘‘be sued
    . . . .’’ See 33 Spec. Acts 481, No. 381, § 14 (a) (1967).
    This provision appears to incorporate long-standing,
    common-law principles, since codified in large part,
    dictating the contours of a municipality’s liability and
    immunities. See Considine v. Waterbury, 
    279 Conn. 830
    , 841–44, 
    905 A.2d 70
    (2006) (setting forth common-
    law principles of municipal immunity and recognizing
    that General Statutes § 52-557n codified common-law
    rule and exceptions to immunity). One such principle
    provides that a political subdivision is immune from
    liability when it is engaged in the performance of a
    public duty for the public’s benefit but may be subject to
    liability for negligent acts committed in its proprietary
    capacity. 
    Id., 842; see
    General Statutes § 52-557n (a)
    (1);6 Martel v. Metropolitan District Commission, 
    275 Conn. 38
    , 56, 
    881 A.2d 194
    (2005) (requiring inextricable
    link or inherently close connection between specific
    allegations of negligence and alleged proprietary func-
    tion). ‘‘[I]t is assumed that all legislation is interpreted
    in light of the common law at the time of its enactment.’’
    (Internal quotation marks omitted.) State v. Courch-
    esne, 
    296 Conn. 622
    , 669, 
    998 A.2d 1
    (2010); see also
    Pacific Ins. Co., Ltd. v. Champion Steel, LLC, 
    323 Conn. 254
    , 265, 
    146 A.3d 975
    (2016) (‘‘[i]t is axiomatic that the
    legislature is presumed to be aware of the common
    law when it enacts statutes’’). Indeed, ‘‘[i]n determining
    whether . . . a statute abrogates or modifies a [com-
    mon-law] rule the construction must be strict, and the
    operation of a statute in derogation of the common law
    is to be limited to matters clearly brought within its
    scope.’’ (Emphasis added; internal quotation marks
    omitted.) Rumbin v. Utica Mutual Ins. Co., 
    254 Conn. 259
    , 265, 
    757 A.2d 526
    (2000); see Kuchta v. Arisian,
    
    329 Conn. 530
    , 535, 
    187 A.3d 408
    (2018) (because grant
    of municipal authority to enact zoning regulations is
    in derogation of common law, ‘‘this grant of authority
    should receive a strict construction and is not to be
    extended, modified, repealed or enlarged in its scope
    by the mechanics of [statutory] construction’’ [internal
    quotation marks omitted]).
    One example of such a clear expression is found
    in § 28 of the special act. That section immunizes the
    defendant’s members from personal liability for torts
    committed while acting within the scope of their author-
    ity. See 33 Spec. Acts 492, No. 381, § 28 (1967) (‘‘[n]ei-
    ther the members of the authority, nor any person acting
    in its behalf, while acting within the scope of their
    authority, shall be subject to any personal liabilities
    resulting from the erection, construction, reconstruc-
    tion, maintenance or operation of the properties or any
    of the improvements of the authority or from carrying
    out any of the powers expressly given in this act’’).7
    There is no other language in the special act expressly
    addressing the subject of liability or immunity.
    The defendant’s reliance on the special act’s express
    grant of power to ‘‘make . . . rules for the sale of
    water’’ and to ‘‘fix rates . . . to provide revenues suffi-
    cient [to meet its financial obligations]’’; 33 Spec. Acts
    483–84, No. 381, § 14 (i) and (m) (1967); reflects a funda-
    mental misunderstanding of the clarity required to evi-
    dence such an express grant. See Marchesi v. Board
    of Selectmen, 
    309 Conn. 608
    , 618, 
    72 A.3d 394
    (2013)
    (‘‘it is a well settled principle of statutory construction
    that the legislature knows how to convey its intent
    expressly’’ [internal quotation marks omitted]). The
    degree of clarity required to manifest such an express
    intent would be especially high given the language of
    the special act that unambiguously makes the defendant
    amenable to suit. See 33 Spec. Acts 481, No. 381, § 14
    (a) (1967).
    Moreover, even if we were to assume, without decid-
    ing, that the grant of authority to ‘‘make . . . rules for
    the sale of water’’ indicates an intent to confer law-
    making authority on the defendant,8 providing immunity
    to the defendant for its negligent disruption of water
    service would not expressly constitute a rule ‘‘for the
    sale of water.’’ The relationship between the sale of
    water and liability for disruption to water service is too
    attenuated. If the defendant’s construction prevailed,
    every municipality and municipal corporation author-
    ized to regulate a given matter would have express
    authority to immunize itself for its negligence in the
    performance of those matters. Such an absurd result
    would largely obliterate § 52-557n and its common-law
    foundation. See footnote 6 of this opinion.
    Because there is no explicit authorization in the spe-
    cial act, rule 5 can stand only if the defendant’s authority
    to immunize itself from negligent disruption of water
    supply can be ‘‘necessarily implied to enable it to carry
    into effect the objects and purposes of its creation.’’
    Monroe v. Middlebury Conservation 
    Commission, supra
    , 
    187 Conn. 484
    . In considering this question, we
    underscore that ‘‘[m]unicipal corporations are more
    strictly limited in respect to their implied power than
    private corporations. The test of their right by implica-
    tion to exercise any particular power is the necessity
    of such power, not its convenience.’’ Wallingford v.
    Wallingford, 
    15 Conn. Supp. 344
    , 347 (1948); see also
    City Council v. Hall, 
    180 Conn. 243
    , 248, 
    429 A.2d 481
    (1980). ‘‘Necessary implication refers to a logical neces-
    sity; it means that no other interpretation is permitted
    by the words of the [statute] construed; and so has
    been defined as an implication which results from so
    strong a probability of intention that an intention con-
    trary to that imputed cannot be supported.’’ United
    States v. Jones, 
    204 F.2d 745
    , 754 (7th Cir.), cert. denied,
    
    346 U.S. 854
    , 
    74 S. Ct. 67
    , 
    98 L. Ed. 368
    (1953). ‘‘If there
    is reasonable doubt as to the existence of the power,
    it does not exist. . . . Any doubt or ambiguity arising
    out of the question as to whether or not a municipal
    corporation has certain powers by implication must be
    resolved in favor of the public.’’ (Citations omitted.)
    Wallingford v. 
    Wallingford, supra
    , 347; see also Pratt
    v. Litchfield, 
    62 Conn. 112
    , 118, 
    25 A. 461
    (1892).
    We find no textual or rational basis to infer that such
    authority is necessary to effectuate any other authority
    expressly conferred. Liability for the negligent disrup-
    tion of water supply services would not impair the
    defendant’s authority to set rates and sell water. Nor
    is there any basis to conclude that the impact of such
    liability would impair the defendant’s ability to set rates
    sufficient to cover costs, the sole limitation imposed
    under the special act.9 The defendant readily could mini-
    mize the impact of such liability by engaging in the
    common business practice of procuring insurance,
    which would allow the defendant to plan its business
    and pass along its costs to the consumer.
    Moreover, the defendant is not subject to comprehen-
    sive regulation of its rates, services, and facilities by
    this state’s public utilities regulatory authority. See 33
    Spec. Acts 490, No. 381, § 24 (1967).10 It faces no impedi-
    ment to setting rates sufficient to cover the cost of
    insurance or its liability in the absence of insurance. It
    is not compelled to serve customers regardless of their
    ability to pay for services. As such, the case law from
    other jurisdictions on which the trial court relied, which
    involved water authorities subject to such regulatory
    restrictions and thus implicated a corresponding public
    policy justification for the right to limit liability, are
    inapposite.11 See Los Angeles Cellular Telephone Co. v.
    Superior Court, 
    65 Cal. App. 4th 1013
    , 1018, 76 Cal.
    Rptr. 2d 894 (1998) (‘‘it is an equitable trade-off—the
    power to regulate rates and to set them below the
    amount an unregulated provider might otherwise
    charge requires a concomitant limitation on liability’’);
    see also Fax Telecommunicaciones, Inc. v. AT&T, 
    138 F.3d 479
    , 489 (2d Cir. 1998) (liability limitation provi-
    sions serve two goals—prevention of price discrimina-
    tion among rate payers and preservation of regulatory
    agencies’ roles in deciding reasonable rates for public
    utilities and services); Adams v. Northern Illinois Gas
    Co., 
    211 Ill. 2d 32
    , 57, 
    809 N.E.2d 1248
    (2004) (‘‘Liability
    limitations reflect: the status of public utilities as regu-
    lated monopolies whose operations are subject to
    extensive restrictions; the requirements of uniform,
    nondiscriminatory rates; and the goal of universal ser-
    vice, achieved through the preservation of utility prices
    that virtually all customers can afford. . . . The under-
    lying theory of liability limitations is that, because a
    public utility is strictly regulated, its liability should be
    defined and limited so that it may be able to provide
    service at reasonable rates. A reasonable rate is in part
    dependent on a rule limiting liability. . . . The goal is
    to secure reasonable and just rates for all without undue
    preference or advantage to any. Since that end is attain-
    able only by adherence to the approved rate, based
    upon an authorized classification, that rate represents
    the whole duty and the whole liability of the company.’’
    [Citations omitted; internal quotation marks omitted.]).
    Finally, the defendant cites both the special act’s
    catchall provision, granting it the power to ‘‘do all things
    necessary or convenient to carry out the powers
    expressly given in this act’’; 33 Spec. Acts 484, No. 381,
    § 14 (p) (1967); and its statement of purpose, creating
    the defendant to benefit the people of its region and
    the state and to improve their health, welfare and pros-
    perity; 33 Spec. Acts 481, No. 381 § 1 (1967); but does
    not explain how either provides the requisite authority.
    We previously explained why it is not necessary to
    immunize the defendant from liability to carry out the
    powers granted and that mere convenience is not
    enough. Moreover, we previously have required a
    clearer relationship between a general statement of pur-
    pose and the authority claimed. See Kuchta v. 
    Arisian, supra
    , 
    329 Conn. 544
    –45 (This court noted the expansive
    safety and aesthetic purposes of zoning regulations but
    concluded that ‘‘[t]he mere fact that a broader interpre-
    tation of advertising might more fully accomplish these
    purposes does not permit us to ignore the meaning
    of the term compelled under the applicable rules of
    construction. We are obliged to construe the grant of
    authority narrowly, as it is in derogation of common-
    law property rights.’’). Indeed, it is hardly conceivable
    that the legislature would have delegated to one of
    its creations the wholesale power to establish its own
    public policy with regard to its exposure to liability by
    virtue of such aspirational terms. See generally Simons
    v. 
    Canty, supra
    , 
    195 Conn. 532
    (‘‘[w]e have consistently
    rejected claims that municipalities may exercise
    important functions based solely on their power to pro-
    mote good government’’). The legislature has estab-
    lished the public policy of this state with regard to
    municipal liability, and, ‘‘[i]n areas where the legislature
    has spoken . . . the primary responsibility for formu-
    lating public policy must remain with the legislature.’’
    State v. Whiteman, 
    204 Conn. 98
    , 103, 
    526 A.2d 869
    (1987).
    We conclude that the trial court improperly granted
    the defendant’s motion for summary judgment on the
    basis of immunity under rule 5. Therefore, the trial court
    must consider the defendant’s alternative ground for
    summary judgment on the basis of the economic loss
    doctrine.
    The judgment is reversed and the case is remanded
    for further proceedings in accordance with the preced-
    ing paragraph.
    In this opinion the other justices concurred.
    1
    The special act has been amended several times since 1967. See, e.g.,
    37 Spec. Acts 222, No. 133 (1973); Public Acts 2002, No. 02-76. The changes
    effected by those amendments, however, are not relevant to this appeal.
    All references herein are to the 1967 special act.
    2
    The record does not reflect whether rule 5 was adopted when the defen-
    dant initially adopted its rules governing service in 1969, or some time
    thereafter.
    3
    The economic loss doctrine or rule, generally characterized, reflects
    the principle that a plaintiff cannot sue in tort for purely monetary loss
    unaccompanied by physical injury or property damage. See generally Law-
    rence v. O & G Industries, Inc., 
    319 Conn. 641
    , 661 n.15, 
    126 A.3d 569
    (2015);
    Black’s Law Dictionary (9th Ed. 2009) p. 590. We have found it unnecessary
    thus far to decide whether ‘‘we should adopt the economic loss doctrine
    as a categorical bar to claims of economic loss in negligence cases without
    property damage or physical injury.’’ (Internal quotation marks omitted.)
    Lawrence v. O & G Industries, 
    Inc., supra
    , 648 n.8.
    4
    The trial court recognized that rule 5 purported to limit the defendant’s
    liability beyond that caused by ordinary negligence but noted that the fact
    that the rule may be unenforceable in other circumstances would not be
    dispositive in the present case.
    5
    The plaintiff also claims that the defendant, as a municipal corporation,
    is liable, pursuant to General Statutes § 52-557n (a) (1) (B), for damages
    caused by its negligence in the performance of its proprietary function of
    selling water. See Martel v. Metropolitan District Commission, 
    275 Conn. 38
    , 53, 
    881 A.2d 194
    (2005). We do not reach this issue as governmental
    immunity was not a basis for the defendant’s motion for summary judgment.
    6
    General Statutes § 52-557n (a) (1) provides in relevant part: ‘‘Except as
    otherwise provided by law, a political subdivision of the state shall be liable
    for damages to person or property caused by . . . (B) negligence in the
    performance of functions from which the political subdivision derives a
    special corporate profit or pecuniary benefit . . . .’’ Section 52-557n was
    enacted almost two decades after the legislature enacted the special act.
    See Public Acts 1986, No. 86-338, § 13.
    At oral argument before this court, the defendant asserted that the preface
    to subdivision (1), the phrase ‘‘[e]xcept as otherwise provided by law,’’
    acknowledges that a municipal corporation with the power to promulgate
    rules having the force and effect of law can adopt such rules to bar liability
    otherwise imposed by statute. We disagree. Although this savings clause
    includes common-law doctrines that implicate the liabilities and immunities
    of municipalities; see Grady v. Somers, 
    294 Conn. 324
    , 334, 
    984 A.2d 684
    (2009); the statute prescribes the rule, and, therefore, a coequal governmen-
    tal body must also prescribe the exception, or at least the legislature must
    clearly delegate the power to do so to another body with legislative powers.
    7
    Such a clear expression would abrogate the common-law rule. See San-
    zone v. Board of Police Commissioners, 
    219 Conn. 179
    , 193, 
    592 A.2d 912
    (1991) (at common law, ‘‘municipal officers were liable for their own torts’’);
    Gordon v. Bridgeport Housing Authority, 
    208 Conn. 161
    , 165, 
    544 A.2d 1185
    (1988) (at common law, municipal employees faced ‘‘the same personal tort
    liability as private individuals’’).
    Insofar as the defendant argues that the plaintiff cannot rely on section
    28 because it is limited on appeal to the language in the special act that it
    relied on before the trial court, namely, the defendant’s authority to ‘‘be
    sued,’’ the defendant confuses a claim with authority or evidence in support
    of a claim. Even if a party fails to bring such authority or evidence to an
    appellate court’s attention, the court would be free to consider any such
    relevant matter.
    8
    Cf. General Statutes § 7-130d (b) (empowering authority that was created
    by municipal ordinance as public body politic and corporate of state under
    General Statutes § 7-130b ‘‘to make and, from time to time, amend and repeal
    bylaws, rules and regulations not inconsistent with general law to carry
    out its purposes’’ [emphasis added]); General Statutes § 7-148 (b) and (c)
    (requiring municipality to exercise powers conferred on it by ordinance
    when exercise has effect of creating permanent local law of general applica-
    bility and conferring power to regulate various matters).
    9
    The defendant repeatedly mischaracterizes the special act as requiring
    it to set ‘‘reasonable’’ rates, but the special act simply requires rates to be
    sufficient to cover operating expenses.
    10
    Section 24 of the special act provides in relevant part that ‘‘[n]either
    the public utilities commission nor any other board or commission of like
    character shall, unless expressly authorized herein, have jurisdiction over
    the authority in the management and control of its properties or operations
    or any power over the regulations of the rates fixed or charges collected
    by the authority. . . .’’ 33 Spec. Acts 490, No. 381, § 24 (1967). There is
    no provision in the special act expressly granting to the public utilities
    commission power over the rates fixed or charges collected by the defendant.
    Cf. 33 Spec. Acts 482, No. 381, § 14 (d) (1967) (expressly granting public
    utilities commission authority to approve any purchase by defendant of
    existing water supply systems).
    11
    Other cases cited by the defendant in support of its position that its
    authority to promulgate rule 5 derives from the defendant’s power to set
    reasonable rates for service and to make rules for the sale of water are
    similarly inapposite. In those cases, the regulated utility was protected by
    a liability limiting policy adopted by the regulatory commission pursuant
    to its broad supervisory and regulatory powers. See Waters v. Pacific Tele-
    phone Co., 
    12 Cal. 3d 1
    , 4, 10, 
    523 P.2d 1161
    , 
    114 Cal. Rptr. 753
    (1974) (award
    of damages against regulated public utility is contrary to policy of limiting
    liability that was adopted by regulatory commission); Danisco Ingredients
    USA, Inc. v. Kansas City Power & Light Co., 
    267 Kan. 760
    , 765–68, 
    986 P.2d 377
    (1999) (determining that regulatory commission had authority to
    approve liability limiting tariffs as integral part of its rate-making process);
    Bulbman, Inc. v. Nevada Bell, 
    108 Nev. 105
    , 106–10, 
    825 P.2d 588
    (1992)
    (regulated public utility was immune from negligence action on basis of
    generally applicable liability limiting tariff promulgated by public service
    commission); see also Landrum v. Florida Power & Light Co., 
    505 So. 2d 552
    , 553–54 (Fla. App.) (setting forth public policy of Florida that recognizes
    validity of liability limiting tariffs approved by that state’s regulatory commis-
    sion), review denied, 
    513 So. 2d 1061
    (Fla. 1987).