DiTullio v. LM General Ins. Co. ( 2022 )


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    GABRIELLE DITULLIO v. LM GENERAL
    INSURANCE COMPANY
    (AC 44114)
    Alvord, Suarez and Clark, Js.
    Syllabus
    The plaintiff sought to confirm an arbitration award against the defendant
    arising out of a separate action in which she sought to recover damages
    from the insurer L for underinsured motorist benefits. The plaintiff
    previously had received a $20,000 settlement from a tortfeasor in connec-
    tion with injuries she sustained in a motor vehicle collision. In bringing
    the underinsured motorist action against L, the plaintiff alleged that the
    $20,000 settlement was insufficient to fully compensate her and that
    L was legally responsible for damages in excess of the underinsured
    motorist’s coverage. The plaintiff, the defendant and L ultimately agreed
    to settle the case by means of binding arbitration and entered into a
    written arbitration agreement. Thereafter, an arbitrator issued an award
    in the amount of $33,807.50. The arbitrator made no findings regarding
    collateral sources, which were to be deducted from the total damages
    pursuant to the parties’ arbitration agreement. The parties subsequently
    agreed with each other as to the amounts of collateral sources, but
    disagreed as to whether the $20,000 settlement should be deducted from
    the award. The defendant filed an objection to the plaintiff’s application
    to confirm the award, in which it argued, inter alia, that it was legally
    responsible only for damages exceeding the $20,000 settlement that the
    plaintiff already had received from the tortfeasor. The defendant did
    not otherwise file a motion to modify or to correct the award. Thereafter,
    upon the parties’ request, the arbitrator issued an articulation stating
    that the award of $33,807.50 was a full value award, which did not take
    into account any collateral sources or offsets, or the $20,000 settlement.
    Subsequently, the trial court rendered judgment confirming the award
    with deductions of $1020.02 in collateral sources and $20,000 to offset
    the prior settlement, from which the plaintiff appealed to this court. Held:
    1. The trial court properly deducted $20,000 from the arbitration award to
    offset the settlement that the plaintiff had received from the tortfeasor:
    although the plaintiff claimed that the court lacked statutory and com-
    mon-law authority to modify the award, this court concluded that the
    trial court did not modify the award but, instead, merely conformed the
    award to the parties’ arbitration agreement; moreover, in light of the
    agreement’s reference to the plaintiff’s underinsured motorist lawsuit
    and the nature of her underlying claim, the only reasonable interpretation
    of the agreement was that the parties initially contemplated and agreed
    that the arbitrator’s gross award would be the sum of the plaintiff’s total
    economic and noneconomic damages, less the $20,000 she had received
    from the tortfeasor; furthermore, although the arbitration agreement
    provided that the arbitrator would calculate the gross award and then
    deduct damages determined to be collateral sources, the arbitrator made
    clear in his decision and in his articulation that his award was for the
    full value of the plaintiff’s damages, without considering the issues of
    collateral sources or offsets, demonstrating that the parties subsequently
    modified their written agreement and submitted to the arbitrator only
    the question of the plaintiff’s total economic and noneconomic damages
    and preserving the written agreement’s provisions limiting the defen-
    dant’s liability only to those damages in excess of the $20,000 settlement
    and any collateral sources.
    2. This court concluded that, although the trial court properly deducted
    the $20,000 settlement from the arbitration award, it miscalculated the
    amount of the judgment: subtracting the collateral sources and the
    settlement from the arbitrator’s full value award yielded the sum of
    $12,787.48, not the amount of $12,500 that the trial court had calculated.
    Argued May 11, 2021—officially released February 1, 2022
    Procedural History
    Application to confirm an arbitration award, brought
    to the Superior Court in the judicial district of Danbury,
    and tried to the court, Brazzel-Massaro, J.; judgment
    confirming and clarifying the award, from which the
    plaintiff appealed to this court. Affirmed in part;
    reversed in part; judgment directed.
    James M. Harrington, with whom, on the brief, was
    Joseph T. Coppola II, for the appellant (plaintiff).
    Matthias J. DeAngelo, with whom, on the brief, was
    Evan Tegtmeier, for the appellee (defendant).
    Opinion
    CLARK, J. This appeal concerns an arbitration award
    (award) that arose out of an underinsured motorist
    cause of action. The plaintiff, Gabrielle DiTullio,
    appeals from the judgment of the trial court ‘‘confirming
    the arbitration award with a deduction for the $20,000
    offset to clarify the amount to be awarded is $12,500
    in accordance with the law.’’ (Emphasis added.) On
    appeal, the plaintiff claims that the court improperly
    deducted $20,000 from the award because the court (1)
    lacked statutory authority to do so, as the defendant,
    LM General Insurance Company, failed to file a motion
    to modify, correct, or vacate the award pursuant to
    General Statutes § 52-407tt, § 52-407xx, or § 52-407ww,
    and also (2) lacked common-law authority to do so.1
    We conclude that the deduction was proper, but on
    different grounds than those relied upon by the court.2
    The court had authority to deduct the $20,000 settle-
    ment from the tortfeasor from the full value arbitration
    award to conform the award to the parties’ written
    agreement. The court, however, miscalculated the
    amount of the judgment, and thus, we affirm in part
    and reverse in part the judgment of the trial court.
    The record reveals the following undisputed facts.
    The plaintiff was injured on March 30, 2015, when her
    motor vehicle was struck in Bethel by a vehicle operated
    by Tracie Fabri-Lino (tortfeasor). At the time of the
    collision, the plaintiff’s vehicle was insured by Liberty
    Mutual Insurance Company (Liberty Mutual).3 The
    plaintiff settled her claims against the tortfeasor for
    $20,000. Thereafter, in January, 2018, the plaintiff com-
    menced an underinsured motorist action (UIM case)
    against Liberty Mutual,4 alleging that she had sustained
    injuries, damages, and other losses as a direct result of
    the tortfeasor’s negligence. She also alleged that she
    had settled her claim against the tortfeasor for $20,000,
    the limit of the tortfeasor’s liability policy. Significantly
    with respect to the present appeal, the plaintiff alleged
    that the settlement was ‘‘insufficient to fully compen-
    sate [her] for her damages and losses. . . . Wherefore
    [Liberty Mutual] . . . is legally responsible for all dam-
    ages in excess of the underinsured driver’s coverage.’’
    (Emphasis added.)
    A pretrial settlement conference in the UIM case was
    held in May, 2019, at which time the parties were unable
    to agree on a sum to resolve the litigation. They agreed,
    however, to settle the UIM case by means of binding
    arbitration and that the UIM case would be withdrawn.
    On May 31, 2019, the plaintiff, Liberty Mutual, and the
    defendant signed an arbitration agreement (written
    agreement) that provides in relevant part: ‘‘[The parties]
    have agreed to arbitrate the UM/UIM Plaintiff’s claim
    against the [defendant and Liberty Mutual] regarding a
    motor vehicle accident which occurred on March 30,
    2015 . . . . [T]he [p]arties hereby agree to the follow-
    ing:
    ‘‘1. The issues in the Lawsuit shall be resolved by
    means of binding arbitration, and the Lawsuit shall
    be resolved by way of release and withdrawal of
    action. . . .
    ‘‘2. The Arbitrator shall be mutually agreed upon
    . . . . All issues of liability, causation, and damages
    shall be decided by the Arbitrator.
    ***
    ‘‘6. Following the arbitration hearing in connection
    with this matter, the Arbitrator will render a decision
    containing a ‘Gross Award.’
    ‘‘7. After determining the Gross Award, the Arbitrator
    is to deduct from total damages, all economic damages
    determined to be collateral sources.
    ‘‘8. After the agreed deductions from the Gross Award
    per Paragraph 7, the resulting sum shall be the ‘Net
    Award.’
    ‘‘9. The parameters of the arbitration shall be subject
    to a confidential high/low agreement wherein the Net
    Award to the Plaintiff, per Paragraph 8, will be no higher
    than thirty-two thousand five hundred dollars ($32,500)
    and no lower than two thousand five hundred dollars
    ($2,500).
    ‘‘10. In the event that the Net Award is $32,500 or
    greater, then the sum due . . . shall be $32,500. In the
    event the Net Award is $2,500 or less, then the Sum
    Due shall be $2,500.
    ‘‘11. None of the parties will disclose the high and
    low figures of this Agreement to the Arbitrator. . . .’’5
    (Emphasis added.)
    On July 9, 2019, Attorney Christopher P. Kriesen
    (arbitrator) held an arbitration hearing, and on July 12,
    2019, he issued a written decision. In his decision, the
    arbitrator found that the tortfeasor’s negligence proxi-
    mately caused the plaintiff’s injuries. He also found
    that the plaintiff had received treatment from several
    medical providers, but was able to complete training
    at the police academy and become a patrol officer. The
    arbitrator found that the plaintiff’s economic damages
    were $13,807.50, her noneconomic damages were
    $20,000, and the award was $33,807.50. The arbitrator
    further stated that he made ‘‘no finding on collateral
    sources. If the parties are unable to agree on the issue,
    they may submit the issue to me.’’6 Neither the plaintiff
    nor the defendant and Liberty Mutual filed with the
    arbitrator a motion to modify or correct the award
    pursuant to § 52-407tt.7
    Thereafter, counsel for the plaintiff informed counsel
    for the defendant and Liberty Mutual that the collateral
    source payments totaled $1020.02. Counsel subtracted
    the collateral source amount from the arbitrator’s eco-
    nomic award, added the remainder to the arbitrator’s
    $20,000 noneconomic award, and stated that the net
    award was $32,787.48, which should be reduced to
    $32,500 in accordance with the ‘‘high/low’’ provision set
    forth in paragraphs 9 and 10 of the written agreement.
    Counsel for the defendant and Liberty Mutual agreed
    with respect to the amount of collateral source pay-
    ments, but countered that the $20,000 settlement that
    the plaintiff had received from the tortfeasor also had
    to be subtracted from the award, resulting in a net
    award of $12,787.48. Counsel for the plaintiff disagreed,
    contending that the agreement was for ‘‘new money’’
    and that the written agreement did not include a provi-
    sion regarding the $20,000 tortfeasor settlement. Coun-
    sel were unable to resolve their disagreement, and on
    July 19, 2019, the plaintiff moved to restore the UIM
    case. See footnote 4 of this opinion.
    On September 27, 2019, the plaintiff commenced the
    present proceeding to confirm the award; she also filed
    a motion to stay the UIM case. In her application to
    confirm the award, the plaintiff asked the court to
    ‘‘order that the defendant comply with the terms of
    the arbitration agreement and that the plaintiff be paid
    $32,500 pursuant to that agreement and the arbitrator’s
    award.’’ In her application, the plaintiff argued that the
    court must confirm the award unless it finds grounds
    to vacate, modify, or correct the award as permitted
    by statute. She also argued that the agreement was
    clear and unambiguous, made no mention of the $20,000
    settlement and provided that only collateral sources,
    which pursuant to General Statutes § 52-225b8 do not
    include amounts received as a settlement, were to be
    deducted from the gross award.
    On October 11, 2019, the defendant filed an objection
    to the plaintiff’s application to confirm the award on
    the ground that it was frivolous given that there was a
    prior lawsuit pending before the court. It also argued
    that the plaintiff was asking the court to confirm ‘‘an
    arbitration award without taking into account the
    nature of the claim. This claim is, and always was, a
    contractual claim for underinsured motorist benefits.’’
    The defendant argued, as well, that the complaint in
    the plaintiff’s underlying UIM case alleged that the
    defendant and Liberty Mutual are ‘‘legally responsible
    for all damages in excess of the [underinsured] driver’s
    coverage.’’ (Emphasis altered.) The defendant also
    argued that ‘‘it is well established that a plaintiff is not
    [to] be compensated twice for the same damages.’’ The
    defendant suggested that the parties return to the arbi-
    trator for clarification of the award, noting that the
    arbitrator had not made a finding with regard to collat-
    eral sources and that the arbitrator had invited the
    parties to return if they were unable to agree with
    respect to collateral sources.
    The parties returned to the arbitrator on October 30,
    2019, and requested that he articulate his July 12, 2019
    award. On the same date, the arbitrator issued an articu-
    lation, stating that ‘‘the award of $33,807.50 is a ‘full
    value’ award, taking into account only the facts and
    basis set forth in the decision. . . . The award does
    not take into account any collateral sources or offsets.
    . . . The award does not take into account in any way
    the $20,000 payment apparently made by the alleged
    tortfeasor. This amount was disclosed to the arbitrator
    in a position statement (which was not evidence) by
    the plaintiff and in a deposition transcript submitted
    by the defendant (but which was not considered since
    it was irrelevant to the arbitrator’s determination of
    the award and was therefore not deemed a fact by the
    arbitrator). . . . The arbitrator will consider any
    issues of collateral sources and/or offsets if the parties
    have agreed, or do agree, to have these issues consid-
    ered by the arbitrator.’’ (Emphasis added.)
    On March 9, 2020, the parties appeared before the
    court for a hearing on the plaintiff’s application to con-
    firm the award. The court issued a memorandum of
    decision on May 19, 2020, in which it noted that the
    plaintiff had moved to confirm the award, and that,
    under Connecticut law, a court must confirm an award
    unless a motion to vacate, modify or correct the award
    is filed and granted in accordance with the statutes
    governing such motions.9 The plaintiff argued that
    because no motion to vacate, modify or correct had
    been filed, the court’s review was limited to determining
    whether the arbitrator decided only matters the parties
    submitted to arbitration, as defined by the written
    agreement. She also argued that the written agreement
    is clear and unambiguous and only permits deductions
    for collateral sources, which, according to her, do not
    include prior settlements.
    The court also noted the defendant’s objection, in
    which the defendant argued that the application to con-
    firm was frivolous when filed because the UIM case
    had been restored to the docket and remained pending
    at that time. The defendant noted that the plaintiff was
    asking the court to confirm the award without taking
    into account the nature of the underlying contractual
    claim for underinsured motorist benefits or the plain-
    tiff’s UIM lawsuit, which were incorporated into the
    written agreement by reference, and the defendant
    alleged that it was legally responsible only for damages
    exceeding the $20,000 settlement that the plaintiff
    already had received from the tortfeasor.
    In addition, during the March 9, 2020 hearing on the
    plaintiff’s application to confirm, ‘‘the defendant also
    alleged that the parties agreed to an offset and stated
    in front of the arbitrator that he did not need to take
    that into consideration because the parties had agreed
    to the offset.’’ The plaintiff denied that there had been
    any conversation with the arbitrator about an offset
    and the court ultimately concluded that it was ‘‘not
    necessary . . . to address any disagreement between
    the parties about the subject of discussing the offset
    with the arbitrator, as the arbitrator explained that the
    award was a full value award, and though he was aware
    of the offset, he did not consider it because it was
    irrelevant in determining the award.’’
    Turning to the merits of the plaintiff’s application to
    confirm, the court found that the plaintiff’s underlying
    claim was a contractual one for underinsured motorist
    benefits. It also found that the written agreement was
    clear and unambiguous, but that it did not mention
    offsets for prior settlements. In addition, neither party
    took issue with the decision rendered by the arbitrator.
    Instead, they disagreed about whether an offset should
    be subtracted from the arbitrator’s full value award.
    Even though the defendant had not filed with the
    court a motion to vacate, modify, or correct the award
    pursuant to the statutory provisions authorizing such
    filings, the court nevertheless considered the defen-
    dant’s objection and reviewed the law governing under-
    insured motorist coverage. In considering the plaintiff’s
    application to confirm, the court stated that it was ‘‘nec-
    essary to also apply to the present case the fundamental
    principle of the purpose of underinsured motorist insur-
    ance recognized by [Connecticut courts], which is to
    place the insured in the same, but not better, position
    as the insured would have been if the underinsured
    tortfeasor had been fully insured, and the requirement
    regarding automobile liability policies in [General Stat-
    utes] § 38a-335 (c) that no one is entitled to receive
    duplicate payments for the same element of loss,’’ citing
    Haynes v. Yale-New Haven Hospital, 
    243 Conn. 17
    ,
    27, 
    699 A.2d 964
     (1997) (public policy established by
    underinsured motorist statute is that every insured enti-
    tled to recover for damages he or she would have been
    able to recover if underinsured motorist had maintained
    adequate policy of liability insurance), and Fahey v.
    Safeco Ins. Co. of America, 
    49 Conn. App. 306
    , 309–10,
    
    714 A.2d 686
     (1998) (purpose of underinsured motorist
    coverage is to protect named insured and additional
    insured from suffering inadequately compensated
    injury caused by accident with inadequately insured
    automobile; in no event shall any person be entitled to
    duplicate payments for same element of loss).
    In ruling on the plaintiff’s motion to confirm, the
    court noted the articulation that the award is a ‘‘full
    value award has significance in deciphering the award
    as no more than $32,500, which would not [have been]
    so if the court awarded the entire sum in addition to the
    settlement amount of $20,000.’’ (Emphasis in original.)
    Therefore, pursuant to General Statutes § 52-407vv, the
    court confirmed the award, but also ordered that ‘‘in
    confirming the award, the $20,000 offset must be
    deducted to clarify the amount to be awarded’’ to the
    plaintiff is ‘‘$12,500 in accordance with the law.’’
    (Emphasis added.) The plaintiff appealed.
    On appeal, the plaintiff’s principal claim is that the
    court lacked statutory and common-law authority to
    modify the award. We agree that it would have been
    improper for the court to modify the arbitrator’s award.
    It is well settled that courts generally lack the author-
    ity to review unrestricted arbitration awards for errors
    of law, particularly in the absence of a motion to vacate.
    Harty v. Cantor Fitzgerald & Co., 
    275 Conn. 72
    , 80,
    
    881 A.2d 139
     (2005); 
    id., 81
     (motion to vacate should
    be granted when arbitrator exceeded powers or so
    imperfectly executed them that mutual, final, definite
    award not made). ‘‘Judicial review of arbitral decisions
    is narrowly confined.’’ (Internal quotation marks omit-
    ted.) State v. New England Health Care Employees
    Union, District 1199, AFL-CIO, 
    265 Conn. 771
    , 777,
    
    830 A.2d 729
     (2003). ‘‘[T]he law in this state takes a
    strongly affirmative view of consensual arbitration.
    . . . Arbitration is a favored method to prevent litiga-
    tion, promote tranquility and expedite the equitable set-
    tlement of disputes.’’ (Citation omitted; internal quota-
    tion marks omitted.) Rocky Hill Teachers’ Assn. v.
    Board of Education, 
    72 Conn. App. 274
    , 278, 
    804 A.2d 999
    , cert. denied, 
    262 Conn. 907
    , 
    810 A.2d 272
     (2002).
    ‘‘Where the submission does not otherwise state, the
    arbitrators are empowered to decide factual and legal
    questions and an award cannot be vacated on the
    grounds that . . . the interpretation of the agreement
    by the arbitrators was erroneous. Courts will not review
    the evidence nor, where the submission is unrestricted,
    will they review the arbitrators’ decision of the legal
    questions involved. . . . In other words, [u]nder an
    unrestricted submission, the arbitrators’ decision is
    considered final and binding; thus courts will not review
    the evidence considered by the arbitrators nor will they
    review the award for errors of law or fact. . . .’’
    (Emphasis added; internal quotation marks omitted.)
    Harty v. Cantor Fitzgerald & Co., 
    supra, 80
    .10
    We, however, conclude that the court did not modify
    the arbitrator’s award, but, in confirming the award as
    it did, merely effectuated the parties’ written agreement.
    As it did at trial, the defendant claims that the trial
    court’s decision to deduct $20,000 from the award was
    proper because making that deduction conformed the
    arbitrator’s award to the parties’ agreement. For the
    reasons that follow, we agree.
    ‘‘Arbitration agreements are contracts and their
    meaning is to be determined . . . under accepted rules
    of [state] contract law . . . .’’ (Internal quotation
    marks omitted.) Levine v. Advest, Inc., 
    244 Conn. 732
    ,
    745, 
    714 A.2d 649
     (1998). ‘‘When a party asserts a claim
    that challenges the . . . construction of a contract, we
    must first ascertain whether the relevant language in
    the agreement is ambiguous. . . . A contract is ambig-
    uous if the intent of the parties is not clear and certain
    from the language of the contract itself. . . . When the
    language of a contract is ambiguous, the determination
    of the parties’ intent is a question of fact . . . . If a
    contract is unambiguous within its four corners, intent
    of the parties is a question of law requiring plenary
    review. . . . Where the language of a contract is clear
    and unambiguous, the contract is to be given effect
    according to its terms.’’ (Citation omitted; internal quo-
    tation marks omitted.) O’Connor v. Waterbury, 
    286 Conn. 732
    , 743–44, 
    945 A.2d 936
     (2008).
    The parties’ written agreement in this case provides,
    in relevant part, that ‘‘[the plaintiff] and [the defendant
    and Liberty Mutual] . . . have agreed to arbitrate the
    UM/UIM Plaintiff’s claim against the [defendant and
    Liberty Mutual] regarding a motor vehicle accident
    . . . . The issues in the [l]awsuit shall be resolved by
    means of binding arbitration . . . .’’ (Emphasis added.)
    The circumstances surrounding the making of the writ-
    ten agreement were the parties’ inability to settle the
    UIM case. The parties, therefore, entered into the agree-
    ment to resolve the plaintiff’s UIM lawsuit. The plain-
    tiff’s complaint in that lawsuit specifically alleged that
    the tortfeasor’s $20,000 settlement with the plaintiff was
    insufficient to fully compensate her for her damages
    and losses and that Liberty Mutual was legally responsi-
    ble for all damages in excess of the tortfeasor’s coverage.
    The written agreement further provides that the arbi-
    trator would render a ‘‘Gross Award.’’ After determining
    the ‘‘Gross Award,’’ the written agreement stated that
    the arbitrator would ‘‘deduct from total damages, all
    economic damages determined to be collateral
    sources.’’ The resulting sum would constitute the ‘‘Net
    Award.’’ The ‘‘Sum Due’’ would be the ‘‘Net Award,’’
    subject to the agreement’s ‘‘high/low’’ provision.11 In
    light of the written agreement’s reference to the plain-
    tiff’s lawsuit and the nature of her underlying claim,
    the only reasonable interpretation of the agreement is
    that the parties initially contemplated and agreed that
    the arbitrator’s ‘‘Gross Award’’ would be the sum of the
    plaintiff’s total economic and noneconomic damages,
    less the $20,000 she had received from the tortfeasor.
    The ‘‘Net Award,’’ in turn, would be that sum less ‘‘all
    economic damages determined to be collateral
    sources.’’ The arbitrator’s decision and articulation
    make clear, however, that the parties ultimately submit-
    ted a different question to him.
    In his decision, the arbitrator found that the tortfea-
    sor caused the plaintiff’s injuries and that the plaintiff
    sustained $20,000 in noneconomic damages and
    $13,807.50 in economic damages. He issued an ‘‘Award’’
    in the amount of $33,807.50. He made no mention of a
    ‘‘Gross Award’’ or ‘‘Net Award’’ and made no findings
    regarding ‘‘collateral sources.’’ Instead, he informed the
    parties that if they were ‘‘unable to agree on the issue,
    they may submit the issue to me.’’ (Emphasis added.)
    The parties subsequently agreed to return to the arbi-
    trator for a clarification of his award. The arbitrator
    articulated that the award was a ‘‘ ‘full value’ award,
    taking into account only the facts and basis set forth
    in the decision.’’ The arbitrator also stated in his articu-
    lation that ‘‘[t]he award does not take into account any
    collateral sources or offsets. . . . The award does not
    take into account in any way the $20,000 payment
    apparently made by the alleged tortfeasor. This
    amount was disclosed to the arbitrator in a position
    statement (which was not evidence) by the plaintiff
    and in a deposition transcript submitted by the defen-
    dant (but which was not considered since it was irrele-
    vant to the arbitrator’s determination of the award
    and was therefore not deemed a fact by the arbitrator).’’
    (Emphasis added.) Last, the arbitrator stated that he
    would ‘‘consider any issues of collateral sources and/
    or offsets if the parties have agreed, or do agree, to have
    these issues considered by the arbitrator.’’ (Emphasis
    added.)
    The arbitrator’s decision and articulation, therefore,
    make clear that, although the written agreement
    between the parties was to have the arbitrator decide
    ‘‘[a]ll issues of liability, causation, and damages’’ and
    issue a ‘‘Gross Award’’ that accounted for the plaintiff’s
    $20,000 settlement with the tortfeasor, the parties sub-
    sequently agreed to submit to him only the question of
    the plaintiff’s total economic and noneconomic dam-
    ages as result of the motor vehicle accident. That is
    precisely the question that the arbitrator answered in
    his articulation, and, in doing so, he made clear that his
    award was for the full value of the plaintiff’s damages.
    There is nothing in the record to support a claim that,
    when they modified their written agreement about what
    to submit to the arbitrator, the parties also agreed to
    alter that agreement to limit the extent of the defen-
    dant’s liability to the amount it allegedly owed the plain-
    tiff under the underinsured motorist policy. Concluding
    otherwise would require us to infer that the defendant
    agreed to change the written agreement in a way that
    would make it liable to the plaintiff for amounts that
    the plaintiff had never sought in the underlying lawsuit
    and was not entitled to under the laws governing under-
    insured motorist coverage in our state. See General
    Statutes § 38a-335 (c); see also Haynes v. Yale-New
    Haven Hospital, supra, 
    243 Conn. 27
    ; Fahey v. Safeco
    Ins. Co. of America, supra, 
    49 Conn. App. 309
    –10. Noth-
    ing in the record supports such an inference.
    On the basis of our review of the entire record, includ-
    ing the written agreement, the plaintiff’s UIM complaint,
    the arbitrator’s decision, the parties’ agreement to
    return to the arbitrator, and the articulation, we con-
    clude that the parties agreed to submit to the arbitrator
    only the question of the plaintiff’s total economic and
    noneconomic damages as a result of the underlying
    automobile collision, but also preserved the written
    agreement’s provisions limiting the defendant’s liability
    to only those damages in excess of the $20,000 settle-
    ment and any ‘‘collateral sources,’’ up to a maximum
    of $32,500. For this reason, the court properly con-
    firmed the award, and effectuated the parties’ written
    agreement, by deducting from the arbitrator’s ‘‘full
    value’’ award the plaintiff’s $20,000 settlement with the
    tortfeasor, plus the amounts the parties agreed repre-
    sent ‘‘collateral sources.’’
    There is, however, another issue for us to consider.
    In its brief, the defendant has identified an error in the
    court’s calculation of the amount of the judgment, i.e.,
    $12,500. We agree with the defendant. The amount due
    to the plaintiff is the arbitrator’s full value award less
    collateral sources and the $20,000 settlement with the
    tortfeasor. Subtracting from the arbitrator’s gross
    award of $33,807.50 the undisputed amount of $1020.02
    in collateral sources and the $20,000 settlement amount
    yields the sum of $12,787.48. Therefore, the net award
    due to the plaintiff is $12,787.48.
    The judgment is reversed only as to the amount of
    the award, and the case is remanded with direction to
    render judgment in accordance with this opinion; the
    judgment is affirmed in all other respects.
    In this opinion the other judges concurred.
    1
    The plaintiff also claims that the court’s improper deduction of $20,000
    from the award (1) violates the public policy favoring arbitration as an
    alternative to litigation and (2) permits parties to arbitration agreements to
    seek judicial intervention when they are dissatisfied with the arbitrator’s
    award, which will have a chilling effect on arbitration. Because we conclude
    that the court properly confirmed the arbitration award, we need not reach
    these claims.
    2
    The parties entered into the arbitration agreement on May 31, 2019. In
    the trial court, the parties litigated, and the trial court adjudicated, the issues
    pursuant to General Statutes § 53-408 et seq. The parties also cited § 53-408
    et seq. in their appellate briefs. Pursuant to No. 18-94 of the 2018 Public
    Acts, the legislature adopted the Revised Uniform Arbitration Act (revised
    act), General Statutes § 52-407aa et seq. General Statutes § 52-407cc provides
    in relevant part that ‘‘[s]ections 52-407aa to 52-407eee, inclusive, govern an
    agreement to arbitrate made on or after October 1, 2018 . . . .’’
    Following oral argument before us, we ordered the parties to file simulta-
    neous supplemental briefs ‘‘addressing whether the [revised act] governs
    the arbitration at issue in this case, and if so, whether that has any effect
    on the present appeal.’’ In their supplemental briefs, the parties agree that
    the revised act applies to the present appeal, and they each assert that the
    revised act does not alter their respective positions regarding the issues on
    appeal. In this opinion, we refer to statutes in the revised act when relevant.
    3
    In the confirmation proceeding and on appeal, the defendant was identi-
    fied as the insurer of the vehicle.
    4
    See DiTullio v. Liberty Mutual Ins. Co., Superior Court, judicial district
    of Danbury, Docket No. CV-XX-XXXXXXX-S (withdrawn). The plaintiff with-
    drew the UIM case on May 31, 2019, the date that the parties signed the
    written agreement. She, however, moved to restore the UIM case on July
    19, 2019, following receipt of the arbitrator’s decision. On September 26,
    2019, the plaintiff filed a motion to stay the restored UIM case pending a
    resolution of the arbitration. In response to the motion for stay, the trial
    court issued an order stating in part: ‘‘Counsel appeared at short calendar
    and addressed the issue of whether the arbitrator will rule on the impact
    if any for the $20,000 payment to the plaintiff as damages for the accident
    and whether such insurance proceeds were considered by the arbitrator in
    entering an award for $32,500.’’ The plaintiff again withdrew the UIM case
    on October 30, 2019, when the case was called for jury selection.
    5
    The agreement referred to the underlying UIM case, but did not otherwise
    make any express reference to the $20,000 settlement that the plaintiff had
    received from the tortfeasor.
    6
    See paragraphs 7 and 8 of the written agreement previously set forth in
    this opinion.
    7
    General Statutes § 52-407tt provides in relevant part: ‘‘(a) On motion to
    an arbitrator by a party to an arbitration proceeding, the arbitrator may
    modify or correct an award:
    ‘‘(1) Upon a ground stated in subdivision (1) or (3) of subsection (a) of
    section 52-407xx . . . .’’
    General Statutes § 52-407xx (a) provides in relevant part: ‘‘(1) There was
    an evident mathematical miscalculation or an evident mistake in the descrip-
    tion of a person, thing or property referred to in the award . . . (3) The
    award is imperfect in a matter of form not affecting the merits of the decision
    on the claims submitted.’’
    8
    General Statutes § 52-225b defines collateral sources for purposes of
    General Statutes §§ 52-225a through 52-225c, inclusive. It provides in relevant
    part: ‘‘ ‘Collateral sources’ means any payments made to the claimant, or
    on his behalf, by or pursuant to: (1) Any health or sickness insurance,
    automobile accident insurance that provides health benefits, and any other
    similar insurance benefits, except life insurance benefits available to the
    claimant, whether purchased by him or provided by others; or (2) any
    contract or agreement of any group, organization, partnership or corporation
    to provide, pay for or reimburse the costs of hospital, medical, dental or other
    health care services. ‘Collateral sources’ do not include amounts received
    by a claimant as a settlement.’’ General Statutes § 52-225b. As the court
    noted, however, the written agreement did not define ‘‘collateral sources’’
    or make reference to § 52-225b.
    9
    General Statutes § 52-407vv provides: ‘‘After a party to an arbitration
    proceeding receives notice of an award, the party may make a motion to
    the court for an order confirming the award at which time the court shall
    issue a confirming order unless the award is modified or corrected pursuant
    to section 52-407tt or 52-407xx or is vacated pursuant to section 52-407ww.’’
    10
    We agree with the parties that the submission in the present case was
    unrestricted.
    11
    The written agreement prohibited the parties from disclosing to the
    arbitrator the ‘‘high/low’’ provision of the agreement.
    

Document Info

Docket Number: AC44114

Filed Date: 2/1/2022

Precedential Status: Precedential

Modified Date: 2/3/2022