Konover v. Kolakowski , 186 Conn. App. 706 ( 2018 )


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    MICHAEL KONOVER ET AL. v. MICHAEL
    KOLAKOWSKI ET AL.
    (AC 40173)
    (AC 40434)
    Lavine, Sheldon and Bishop, Js.
    Syllabus
    The plaintiffs sought to recover damages from the defendants for, inter alia,
    breach of contract. The plaintiffs, K and four companies, had entered into
    an agreement with the defendants, a group of individuals and companies,
    including B Co., to purchase K’s stock in B Co., of which K was the
    sole director and shareholder. At the time of the agreement, B Co. was
    a defendant in two groups of pending lawsuits, which led the parties
    to include indemnification provisions in the purchase agreement regard-
    ing the existing litigation involving B Co. Specifically, K promised to
    indemnify B Co. and the defendants for damages resulting from any
    judgment rendered against B Co. and the defendants in the existing
    litigation. In return, K was given the exclusive right to manage the
    existing litigation, and the defendants were required to cooperate with
    K in the defense of the existing litigation and in any counterclaims or
    new actions brought by K in connection with the existing litigation.
    Thereafter, K demanded reimbursement from the defendants for legal
    fees incurred during the course of defending the existing litigation.
    Subsequently, the plaintiffs brought this action, alleging, inter alia,
    breach of contract for B Co.’s refusal to reimburse K for legal fees
    incurred during the existing litigation. Thereafter, the defendants filed a
    counterclaim, alleging, inter alia, that K’s mismanagement of the existing
    litigation constituted a breach of contract and a breach of fiduciary
    duty owed to them, and that they were not obligated, pursuant to the
    agreement, to reimburse K for expenses incurred in conjunction with
    the existing litigation. Subsequently, the trial court granted, in part, the
    defendants’ motion for summary judgment as to all claims pertaining
    to breach of contract for the defendants’ failure to pay attorney’s fees
    in the existing litigation, ruling that the agreement clearly and unambigu-
    ously did not require B. Co. to reimburse K for legal fees incurred during
    the course of the existing litigation. From the judgment rendered in part
    thereon, the plaintiffs appealed to this court. Held:
    1. The trial court properly rendered summary judgment in the defendants’
    favor, as the language of the agreement clearly and unambiguously did
    not obligate the defendants to reimburse K for legal fees incurred during
    the existing litigation; the plain language of the agreement required K
    to pay for legal fees incurred during the existing litigation and the
    defendants to pay for their own legal fees should further claims be
    brought against B Co., and it was devoid of any language that imposed
    an affirmative obligation on the defendants to indemnify K for any legal
    fees and, instead, placed an affirmative obligation on K to indemnify
    the defendants for any judgment rendered for the named plaintiffs in
    the existing litigation, and in the absence of any express language in
    the agreement, this court would not impose such an obligation on
    the defendants.
    2. The plaintiffs could not prevail on their claim that even if the agreement
    was clear and unambiguous, this court should look beyond the four
    corners of the agreement to consider the meaning that the parties
    ascribed to the indemnification provisions of the agreement by their
    course of conduct, which was based on their claim that the defendants
    should have been bound by certain judicial admissions in their pleadings
    and prevented from now making a contrary argument: where, as here,
    the contract language is clear and unambiguous, the intent of the parties
    is a question of law, subject to plenary review, the contract is to be
    given effect according to its terms and courts must look only to the
    four corners of the contract to discern the parties’ intent, and because
    judicial admissions are knowing concessions of fact, which inform a
    trier of fact but in no way bind the court in its independent, plenary
    and judicial determination of applicable law, and the contract language
    here was clear and unambiguous, the intent of the parties in utilizing
    the language in question was not binding on the court’s legal determina-
    tion of the import of the contract language, and this court declined to
    give deference to the erroneous construction of the agreement initially
    advanced by the defendants in their pleadings; moreover, even if there
    may be a circumstance in which extrinsic evidence may be referenced
    to glean the intent of the parties in their utilization of plain language,
    under the facts of this case, this court declined to stray from well
    reasoned jurisprudence that plain language should be accorded its
    plain meaning.
    Argued September 25—officially released December 18, 2018
    Procedural History
    Action to recover damages for, inter alia, breach of
    contract, and for other relief, brought to the Superior
    Court in the judicial district of Hartford, where the
    named defendant et al. filed a counterclaim; thereafter,
    the trial court, Moukawsher, J., granted in part the
    motion for summary judgment filed by the named defen-
    dant et al. and rendered judgment in part thereon for
    the named defendant et al., from which the plaintiff
    Konover Development Corporation et al., appealed to
    this court; subsequently, following the granting of per-
    mission by this court, the named plaintiff filed a sepa-
    rate appeal with this court, which consolidated the
    appeals. Affirmed.
    Frank J. Silvestri, Jr., with whom were Kristen G.
    Rossetti and Jeffrey R. Babbin, for the appellants
    (plaintiffs).
    Richard J. Buturla, with whom was Ryan P. Driscoll,
    for the appellees (defendants).
    Opinion
    BISHOP, J. This action arises from the indemnifica-
    tion provisions in a stock purchase and sales agreement
    (agreement) between the plaintiff Michael Konover1 and
    the defendants Michael Kolakowski, Simon Etzel, and
    Eric Brown (the buyers)2 for the buyers’ purchase of
    Konover’s stock in the KBE Building Corporation
    (KBE).3 The plaintiffs appeal from the trial court’s ren-
    dering of partial summary judgment in favor of the
    defendants. On appeal, the plaintiffs claim that the trial
    court erroneously ruled that the parties’ agreement does
    not obligate the defendants to reimburse Konover for
    legal fees incurred while litigating certain legal actions
    that had been pending against Konover and KBE at the
    time the agreement was executed. In the alternative,
    the plaintiffs claim that, even if the language of the
    agreement does not require the defendants to reimburse
    Konover for any legal fees, the trial court should have
    considered admissions in the defendants’ pleadings and
    other extrinsic evidence, which evinced an understand-
    ing between the parties that the defendants were
    responsible for paying their own legal fees incurred in
    conjunction with the referenced litigation. We affirm
    the judgment of the trial court.
    The following undisputed facts and procedural his-
    tory are relevant to the resolution of this appeal.
    Konover was the sole director and shareholder of KBE.
    The buyers formed KBE Holdings, Inc., to acquire all
    of Konover’s KBE stock. On March 30, 2007, the buyers
    and Konover executed the agreement at issue, which
    set forth the terms for the stock purchase and sale of
    all of Konover’s stock.
    At the time the agreement was executed, KBE was
    a defendant in two separate groups of civil actions,
    which the agreement referred to as the ‘‘Existing Litiga-
    tion.’’4 One group of actions, denominated the Archam-
    bault litigation, arose from personal injuries suffered
    by several construction workers, employed by a sub-
    contractor of KBE, while building a BJ’s Wholesale Club
    in Willimantic.5 The second group of actions, referred
    to as the Wells Fargo litigation, stemmed from a foreclo-
    sure action in Maryland, in which Wells Fargo had
    obtained a judgment of foreclosure relating to a failed
    shopping center. In the Wells Fargo litigation, both
    Konover individually, and other entities related to him,
    had been named as defendants. KBE, however, had not
    been named as a defendant. After a final judgment was
    rendered in Maryland against both Konover in his indi-
    vidual capacity, as well as several other entities, the
    prevailing plaintiffs commenced an action against
    Konover and several entities owned by him, including
    KBE, seeking enforcement of the Maryland judgment
    in the United States District Court for the District of
    Connecticut.
    Recognizing the possibility that KBE would need to
    satisfy potential judgments and would incur substantial
    legal fees as a result of the existing litigation, Konover
    and the buyers included indemnification provisions in
    the stock purchase and sales agreement. Pursuant to
    § 4.3 (b) (i) and (ii) of the agreement, Konover promised
    to indemnify KBE and the buyers for ‘‘Damages’’
    resulting from ‘‘any judgment’’ rendered against KBE
    or the buyers in the existing litigation. In exchange,
    Konover was given the exclusive right to manage the
    existing litigation, and the defendants were required to
    cooperate with Konover in the defense of the existing
    litigation. The defendants were obligated, as well, to
    cooperate with Konover in any counterclaims or new
    actions brought by Konover against any parties to the
    existing litigation. These potential actions were referred
    to as ‘‘Successor Actions’’ in the parties’ agreement.6
    Section 4.4 further provided, however, that Konover
    was responsible for the cost of any successor actions.
    During the course of the existing litigation, the defen-
    dants became discontent with Konover’s management
    of the litigation. Also, Konover demanded reimburse-
    ment from the defendants for legal fees incurred during
    the course of defending these matters.7 Unable to
    resolve these disagreements, Konover and the plaintiffs
    filed a twelve count complaint against the defendants,
    alleging, inter alia, breach of contract for KBE’s refusal
    to reimburse Konover for legal fees he incurred during
    the existing litigation. In turn, the defendants filed a
    counterclaim, alleging, inter alia, that Konover’s mis-
    management of the litigation constituted a breach of
    contract and a breach of fiduciary duty owed to them.
    The defendants also claimed, in response to the com-
    plaint, that they were not obligated pursuant to the
    agreement to reimburse Konover for expenses he
    incurred in conjunction with the existing litigation. The
    defendants subsequently filed a motion for summary
    judgment on the same basis.
    After briefing and argument, the trial court granted
    the motion for summary judgment on all claims per-
    taining to breach of contract for failure to pay attorney’s
    fees in the existing litigation, ruling that the agreement
    clearly and unambiguously did not require KBE to reim-
    burse Konover for legal fees incurred during the course
    of the existing litigation, and only required the defen-
    dants to pay legal fees for any future claims brought
    by the Archambault or Wells Fargo plaintiffs. Specifi-
    cally, the court ordered: ‘‘Summary judgment is granted
    on all claims premised on breach of a contract to pay
    attorneys’ fees in the existing litigation in favor of the
    defendants that moved for summary judgment. . . .
    Because all counts of the current complaint are through
    incorporation by reference premised on the existence
    of the contract obligation rejected in this opinion, the
    plaintiffs may have [thirty] days leave to file a new
    complaint if they believe they can state causes of action
    without the contract based premise that KBE promised
    to pay fees in existing litigation.’’ The trial court’s ruling
    disposed of all claims made by Konover Development
    Corporation, Konover and Associates, Inc., Blackboard,
    LLC, and Ripple, LLC. These entities subsequently filed
    an appeal as a matter of right. The trial court’s ruling
    did not, however, dispose of all claims made by Konover
    in the complaint. As a result, Konover sought and was
    granted permission from the trial court, Moukasher, J.,
    and this court to appeal, pursuant to Practice Book
    § 61-4. In a separate motion, this court consolidated the
    appeals. Additional facts will be set forth as necessary.
    At the outset, we note the applicable standard of
    review and legal principles relating to motions for sum-
    mary judgment. ‘‘Summary judgment shall be granted if
    the pleadings, affidavits and any other proof submitted
    show that there is no genuine issue as to any material
    fact and that the moving party is entitled to judgment
    as a matter of law. Practice Book § 17-49. A fact is
    material when it will make a difference in the outcome
    of a case.’’ (Internal quotations omitted.) McFarline v.
    Mickens, 
    177 Conn. App. 83
    , 90, 
    173 A.3d 417
     (2017),
    cert. denied, 
    327 Conn. 997
    , 
    176 A.3d 557
     (2018). ‘‘Appel-
    late review of the trial court’s decision to grant summary
    judgment is plenary.’’ 
    Id.
     ‘‘On appeal, we must deter-
    mine whether the legal conclusions reached by the trial
    court are legally and logically correct and whether they
    find support in the facts set out in the memorandum
    of decision of the trial court.’’ Lopes v. Farmer, 
    286 Conn. 384
    , 388, 
    944 A.2d 921
     (2008).
    I
    We begin with the plaintiffs’ claim that the trial court
    erroneously determined that the agreement clearly and
    unambiguously did not obligate the defendants to reim-
    burse Konover for any legal fees incurred during the
    existing litigation. The plaintiffs assert that the provi-
    sions of the agreement, read in the context of the entire
    agreement, unambiguously require the defendants to
    pay for their own legal fees in the existing litigation.
    As a result, the defendants must reimburse Konover
    for legal fees that he advanced during the course of
    the existing litigation. In support of this argument, the
    plaintiffs urge this court to read § 4.3 (b) (i) and (ii) of
    the agreement to exclude KBE’s attorney’s fees in the
    existing litigation from Konover’s indemnification obli-
    gation. We are not persuaded.
    We first set forth the standard of review and legal
    principles that guide our analysis. ‘‘The court’s determi-
    nation as to whether a contract is ambiguous is a ques-
    tion of law; our standard of review, therefore, is de
    novo.’’ (Internal quotation marks omitted.) Meridian
    Partners, LLC v. Dragone Classic Motorcars, Inc., 
    171 Conn. App. 355
    , 364, 
    157 A.3d 87
     (2017). ‘‘A contract is
    unambiguous when its language is clear and conveys
    a definite and precise intent. . . . The court will not
    torture words to impart ambiguity where ordinary
    meaning leaves no room for ambiguity. . . . Moreover,
    the mere fact that the parties advance different interpre-
    tations of the language in question does not necessitate
    a conclusion that the language is ambiguous. . . .
    ‘‘In contrast, a contract is ambiguous if the intent of
    the parties is not clear and certain from the language
    of the contract itself. . . . [A]ny ambiguity in a contract
    must emanate from the language used by the parties.
    . . . The contract must be viewed in its entirety, with
    each provision read in light of the other provisions . . .
    and every provision must be given effect if it is possible
    to do so. . . . If the language of the contract is suscepti-
    ble to more than one reasonable interpretation, the
    contract is ambiguous.’’ (Internal quotation marks omit-
    ted.) Hirschfeld v. Machinist, 
    181 Conn. App. 309
    , 323–
    24, 
    186 A.3d 771
    , cert. denied, 
    329 Conn. 913
    , 
    186 A.3d 1170
     (2018).
    Section 4.3 (b) (i) and (ii) are provisions that detail
    Konover’s indemnification obligations to the defen-
    dants regarding both the existing litigation and any fur-
    ther actions. These sections state, in relevant part: ‘‘The
    indemnification for Damages by [Konover] as it relates
    to the [existing litigation], inclusive, shall be limited to
    [Konover’s] obligation to satisfy any judgment in favor
    of the named plaintiff against [the defendants] pursuant
    to such actions, and specifically excludes the cost of
    [the defendants’] legal fees as well as the costs or
    expenses incurred by the [defendants] as a result of
    any further claims brought by the plaintiffs in such
    actions against [the defendants] . . . .’’ The term ‘‘judg-
    ment’’ is defined in § 4.3 (b) (iii) to include ‘‘actual
    Damages assessed against [the defendants] . . . and
    in every instance, shall expressly exclude and be limited
    by those matters otherwise specifically set forth above
    in [§ 4.3 (b) (i) and (ii)] . . . .’’ Additionally, the term
    ‘‘Damages’’ is defined in § 4.6 to include ‘‘fees and rea-
    sonable expenses of attorneys.’’
    The plaintiffs assert that this language clearly and
    unambiguously requires the defendants to reimburse
    Konover for legal fees incurred in conjunction with the
    existing litigation. It does not. The plaintiffs’ construc-
    tion of § 4.3 (b) (i) and (ii) requires the use of the
    language ‘‘as well as’’ to serve as a buffer between ‘‘cost
    of [the defendants’] legal fees’’ and ‘‘further claims.’’
    Put differently, the plaintiffs argue that the phrase ‘‘as
    well as’’ must be construed to exclude the ‘‘cost of [the
    defendants’] legal fees’’ from ‘‘further claims,’’ and must
    instead be attributed to the cost of legal fees for the
    existing litigation. This interpretation tortures the
    words of the agreement to conform to the will of the
    plaintiffs. The words ‘‘as well as’’ are commonly used
    as an inclusive, connecting phrase, rather than a divid-
    ing one.8 Here, ‘‘as well as’’ plainly includes the cost of
    the defendants’ legal fees in the category of expenses
    specifically excluded from Konover’s indemnification
    obligations for further claims. In other words, the plain
    language of the contract requires Konover to pay for
    legal fees incurred during the existing litigation, but the
    defendants must pay for their own legal fees should
    further claims be brought against KBE.9 This reading
    of § 4.3 (b) (i) and (ii) is supported when construing
    the language of the agreement as a whole.
    Under § 4.4 of the agreement, Konover had the exclu-
    sive authority to manage the existing litigation. Further,
    he was obligated to satisfy any judgment against the
    defendants in the existing litigation under § 4.3 (b) (i)
    and (ii). If this court were to accept the plaintiffs’ read-
    ing of the agreement, and §§ 4.3 and 4.4 in particular,
    Konover could effectively use his managerial authority
    to incur an open ended amount of legal expenses, at
    the defendants’ expense, to defend against a judgment
    that he alone would be obligated to satisfy. As the trial
    court aptly observed in rendering summary judgment
    in favor of the defendants: ‘‘There is no way to convert
    any language limiting what Konover must do into lan-
    guage requiring KBE to do something that would be
    extraordinary and was not mentioned in the contract:
    assume an affirmative obligation to pay an unlimited
    amount of attorneys’ fees to defend against claims that
    ultimately Konover alone might have to pay. Indeed,
    such an interpretation is not only disconnected from
    any language in the contract but is made absurd by the
    contract provision that gives Konover the sole right to
    manage the litigation—including how much is spent
    defending it and for how long. With someone else’s
    millions for defense, Konover would have precious little
    incentive to pay even a penny for tribute regardless [of]
    whether it would make the cases go away entirely.’’
    Our courts refuse to ‘‘construe a contract’s language
    in such a way that it would lead to an absurd result.’’
    Welch v. Stonybrook Gardens Cooperative, Inc., 
    158 Conn. App. 185
    , 198, 
    118 A.3d 675
    , cert. denied, 
    318 Conn. 905
    , 
    122 A.3d 634
     (2015).
    The plaintiffs also argue that the trial court’s reading
    of § 4.3 (b) (i) and (ii) renders the word ‘‘costs’’ superflu-
    ous because the manner in which the court interpreted
    the agreement would exclude both the cost of KBE’s
    legal fees and the costs incurred by the buyers as a
    result of further claims. In other words, the plaintiffs
    argue that the words ‘‘cost’’ and ‘‘costs’’ are synonymous
    and, thus, cannot both be understood to apply to ‘‘future
    claims’’ without being duplicative. We disagree.
    The plaintiffs would have the court interchange the
    term ‘‘cost’’ and ‘‘costs’’ in its construction. These
    words, however, commonly have different meanings.
    ‘‘We often consult dictionaries in interpreting contracts
    . . . to determine whether the ordinary meanings of
    the words used therein are plain and unambiguous, or
    conversely, have varying definitions in common par-
    lance.’’ (Internal quotation marks omitted.) NPC
    Offices, LLC v. Kowaleski, 
    320 Conn. 519
    , 528, 
    131 A.3d 1144
     (2016). The word ‘‘cost’’ is often defined as the
    ‘‘amount paid or charged for something.’’ Black’s Law
    Dictionary (9th Ed. 2009). Conversely, the word ‘‘costs’’
    commonly refers to ‘‘charges or fees taxed by a court’’
    or ‘‘expenses of litigation, prosecution, or other legal
    transaction, [especially] those allowed in favor of one
    party against the other.’’ Id., 398. ‘‘[T]he term costs is
    a term of art having a limited, well-defined legal mean-
    ing as statutory allowances to a prevailing party in a
    judicial action in order to reimburse him or her for
    expenses incurred in prosecuting or defending the pro-
    ceeding.’’ (Internal quotation marks omitted.) Yeager
    v. Alvarez, 
    134 Conn. App. 112
    , 121, 
    38 A.3d 1224
     (2012).
    Consequently, the ordinary reading of § 4.3 (b) (i) and
    (ii) would exclude from Konover’s indemnification obli-
    gation the cost (sum or amount charged) of KBE’s attor-
    ney’s fees and the costs (statutory allowances of the
    prevailing party) or expense incurred by KBE as a result
    of future claims, but not the existing litigation.
    As noted by the trial court, the stock purchase
    agreement is devoid of any language that imposes an
    affirmative obligation on the defendants to indemnify
    Konover for any legal fees incurred during the existing
    litigation. Rather, the agreement squarely places an
    affirmative obligation on Konover to indemnify the
    defendants for any judgment rendered for the named
    plaintiffs in the existing litigation. We decline to impose
    such an obligation on the defendants in the absence of
    any express language in the agreement. ‘‘[A] court can-
    not import into the agreement a different provision nor
    can the construction of the agreement be changed to
    vary the express limitations of its terms.’’ Deming v.
    Nationwide Mutual Ins. Co., 
    279 Conn. 745
    , 781–82,
    
    905 A.2d 623
     (2006).
    We conclude that the language of the agreement is
    clear and unambiguous; the defendants are not obli-
    gated to reimburse Konover for legal fees incurred dur-
    ing the existing litigation. Accordingly, we conclude
    that the court properly rendered summary judgment in
    the defendants’ favor.
    II
    The plaintiffs next claim that even if the agreement
    is clear and unambiguous, we should look beyond the
    four corners of the agreement to consider the meaning
    the parties ascribed to the indemnification provisions
    of the agreement by their course of conduct. We reject
    this invitation to error.
    The following additional facts are pertinent to the
    plaintiffs’ claim. The defendants initially took the posi-
    tion in their counterclaim and memorandum in support
    of their motion for summary judgment that KBE was
    required to pay for its own legal fees in the existing
    litigation. At oral argument on the defendants’ motion
    for summary judgment, the trial court opined that the
    agreement was clear and unambiguous, and did not
    obligate the defendants to indemnify Konover for legal
    fees incurred during the existing litigation. Conse-
    quently, after oral argument, the defendants adopted
    the trial court’s interpretation of the agreement in their
    supplemental memorandum of law in support of their
    motion for summary judgment. Conversely, the plain-
    tiffs argued that the trial court’s reading of the contract
    was inconsistent with the intent of the parties.
    As a preliminary matter, the plaintiffs urge the court
    to look to the admissions in the defendants’ pleadings
    to discern the parties’ understanding of the contract
    language. In essence, Konover asserts that the defen-
    dants should be bound by their judicial admissions and,
    therefore, they should be prevented from now making
    a contrary argument. ‘‘Judicial admissions are voluntary
    and knowing concessions of fact by a party or a party’s
    attorney occurring during judicial proceedings. . . .’’
    Kopacz v. Day Kimball Hospital of Windham County,
    Inc., 64 Conn App. 263, 272, 
    779 A.2d 862
     (2001). ‘‘Admis-
    sions, whether judicial or evidentiary, are concessions
    of fact, not concessions of law.’’ Borrelli v. Zoning
    Board of Appeals, 
    106 Conn. App. 266
    , 271, 
    941 A.2d 966
     (2008). ‘‘[C]oncessions of fact inform the trier of
    the fact, court or jury, but they in no way bind the court
    in its independent, plenary, and judicial determination
    of the applicable law.’’ C. Tait & E. Prescott, Connecti-
    cut Evidence (5th Ed. 2014) § 8.16.3 (a), p. 529. The
    issue at hand is a question of law and not fact. Because
    we hold that the language of the contract is clear and
    unambiguous, the intent of the parties in utilizing the
    language in question is not binding on the court’s legal
    determination of the import of the contract language.
    Accordingly, the trial court and we, on review, decline
    to give deference to the erroneous construction of the
    agreement initially advanced by the defendants in
    their pleadings.
    ‘‘If the language of a contract is clear and unambigu-
    ous, the intent of the parties is a question of law, subject
    to plenary review.’’ Schimenti v. Schimenti, 
    181 Conn. App. 385
    , 396, 
    186 A.3d 739
     (2018). ‘‘Where the language
    of the contract is clear and unambiguous, the contract
    is to be given effect according to its terms.’’ Awdziewicz
    v. Meriden, 
    317 Conn. 122
    , 129–30, 
    115 A.3d 1084
     (2015).
    ‘‘When only one interpretation of a contract is possible,
    the court need not look outside the four corners of the
    contract.’’ (Internal quotation marks omitted.) Isham v.
    Isham, 
    292 Conn. 170
    , 180, 
    972 A.2d 228
     (2009); accord
    Dejana v. Dejana, 
    176 Conn. App. 104
    , 115, 
    168 A.3d 595
    , cert. denied, 
    327 Conn. 977
    , 
    174 A.3d 195
     (2017).
    ‘‘[E]xtrinsic evidence may be considered in determining
    contractual intent only if a contract is ambiguous.’’
    (Internal quotation marks omitted.) Orange Palladium,
    LLC v. Readey, 
    144 Conn. App. 283
    , 297, 
    72 A.3d 1191
    (2013). ‘‘When the intention conveyed by the terms of
    an agreement is clear and unambiguous, there is no
    room for construction.’’ (Internal quotation marks omit-
    ted.) Levine v. Massey, 
    232 Conn. 272
    , 278, 
    654 A.2d 737
     (1995). ‘‘The circumstances surrounding the making
    of the contract, the purposes which the parties sought
    to accomplish and their motives cannot prove an intent
    contrary to the plain meaning of the language used.’’
    (Internal quotation marks omitted.) Id., 279. In sum,
    decisional law holds that if the language of the contract
    is clear and unambiguous, our courts must look only
    to the four corners of the contract to discern the par-
    ties’ intent.
    The plaintiffs rely on Sims v. Honda Motor Co., Ltd.,
    
    225 Conn. 401
    , 
    623 A.2d 995
     (1993), to support the
    proposition that our courts do not strictly adhere to
    the four corners rule in all circumstances. We find Sims,
    however, to be inapplicable to the current case. In Sims,
    our Supreme Court recognized that its holding, which
    enabled the court to look beyond the four corners of
    a contract, even if the language was clear and unambigu-
    ous, was limited to the application of General Statutes
    §52-572e, which relates to general releases.10 For addi-
    tional support, Konover cites to numerous treatises and
    Justice Berdon’s dissenting opinion in Levine v. Massey,
    supra, 
    232 Conn. 284
    , for the proposition that, under
    the appropriate circumstances, a court may look
    beyond the plain language of a contract to glean the
    intention of the parties to the agreement. We do not
    find these authorities determinative of the issue we
    confront.
    In Levine, supra, 
    232 Conn. 280
    –83, our Supreme
    Court strictly adhered to the four corners approach to
    contract interpretation, holding that the plain language
    of the contract was clear and unambiguous and did not
    entitle the defendant to royalty payments for a new
    medical device invented by one of the plaintiffs. In
    his dissent, Justice Berdon rejected the four corners
    approach as a constant limitation to analysis and
    instead advocated for the use of extrinsic evidence in
    all instances to determine the parties’ intent. 
    Id.,
     286–87
    (Berdon, J., dissenting). Similarly, Justice Berdon relied
    on numerous treatises to support the proposition that
    language is inherently ambiguous and that a court must
    not ascribe a meaning to a contract outside the contem-
    plation of the parties.11 Id., 287.
    Even if there may be a circumstance in which extrin-
    sic evidence may be referenced to glean the intent of
    the parties in their utilization of plain language, we
    are unwilling, in this instance, to stray from our well
    reasoned jurisprudence that plain language should be
    accorded its plain meaning.
    Accordingly, we reject the plaintiffs’ argument that
    this court should embrace a more modern theory of
    contract interpretation that looks outside the four cor-
    ners of the contract to discern the intention of the
    parties irrespective of whether the contract is
    ambiguous.
    The judgment is affirmed.
    In this opinion the other judges concurred.
    1
    Additional plaintiffs in this appeal include Konover Development Corpo-
    ration, Konover & Associates, Inc., Blackboard, LLC, and Ripple, LLC. For
    clarity, we refer to Michael Konover individually as Konover, and the parties
    associated with him collectively as the plaintiffs.
    2
    Additional defendants in this appeal include KBE Building Corporation,
    KBE Holdings, Inc., Konover Construction Corporation South, Sturdy Fence
    Corp., Elite Construction Rentals, LLC, and Conn-struction, LLC. For clarity,
    we refer to the defendants individually by name and collectively as the
    defendants.
    3
    The company was named Konover Construction Company before its
    sale to the buyers. For simplicity, we refer to the entity as KBE even when
    the events described occurred prior to KBE’s renaming.
    4
    For clarity, we also refer to these lawsuits collectively as the existing liti-
    gation.
    5
    The Archambault litigation also included issues relating to insurance
    coverage.
    6
    Section 4.4 of the agreement states, in relevant part: ‘‘As to the indemnifi-
    cations set forth in [§] 4.3 [of the agreement] with respect to the Existing
    Litigation and the Successor Actions (as hereinafter defined) . . .
    [Konover] shall have and retain the sole right to manage the litigation,
    including without limitation, the settlement thereof or the right to prosecute
    appeals with respect to any judgment arising thereunder . . . . [The defen-
    dants] shall, at no cost to [Konover], cooperate in good faith with reasonable
    diligence to assist [Konover] in connection with the defense of the Existing
    Litigation and the prosecution, as the case may be, upon request of [Konover]
    in the name of any of the Companies, of counter-claims and/or new litigation
    against any party . . . . [Konover] will pay the cost of any such Successor
    Actions (including reasonable legal fees of the Companies) . . . .’’
    7
    Specifically, in the Archambault litigation, the defendants objected to
    Konover’s decision to retain Attorney Wesley Horton to supplement KBE’s
    existing appellate defense counsel, alleging that they were unaware that
    Horton had been retained until after Konover sought reimbursement. More-
    over, in the Wells Fargo litigation, the defendants claimed that Konover
    failed to settle claims involving KBE so that funds from a director and officer
    insurance policy could instead be used for his personal defense. The plaintiff
    sought to compel KBE to pay its fair share of legal fees, which he calculated
    by evenly apportioning legal fees incurred by all defendants in the litigation.
    8
    ‘‘As well as’’ is commonly understood to mean ‘‘and in addition [to]’’ or
    ‘‘and also.’’ See Merriam-Webster Collegiate Dictionary (11th Ed. 2003);
    Ballentine’s Law Dictionary (3rd Ed. 1969).
    9
    In the alternative, the plaintiffs argue that the reading of the connecting
    phrase is, at a minimum, ambiguous, ‘‘creating a factual issue of interpreta-
    tion that precludes summary judgment for the defendants.’’ An ambiguity,
    however, ‘‘must emanate from the language used in the contract rather than
    from one party’s subjective perception of the terms.’’ (Internal quotation
    marks omitted.) Bassford v. Bassford, 
    180 Conn. App. 331
    , 348, 
    183 A.3d 680
     (2018).
    10
    In Sims, our Supreme Court stated: ‘‘We recognize that our conclusion is
    a departure from the general rule of contract construction that unambiguous
    contract provisions are to be given their plain meaning without reference
    to evidence outside the four corners of the agreement. . . . Rigid applica-
    tion of that general rule would, however, frustrate the purposes of [General
    Statutes] § 52-572e, which counsels against uncritical enforcement of boil-
    erplate general release language and, therefore, justifies treating such lan-
    guage differently from how we treat other contractual provisions.
    Accordingly, we hold that, in light of the purposes of § 52-572e, general
    releases like that executed by Sims are not subject to that traditional rule
    of contract construction.’’ Id., 415.
    11
    Specifically, Justice Berdon stated, in relevant part: ‘‘[W]hile it is true
    that under the ‘four corners’ doctrine, a court may not consider any extrinsic
    evidence unless a contract is ambiguous, the more modern view, propounded
    by Professors Corbin and Farnsworth, recognizes that ‘the meaning of lan-
    guage may vary greatly according to the circumstances’ and that ‘all language
    is infected with ambiguity and vagueness and that even language that seems
    on its face to have only one possible meaning may take on a different
    meaning when all the circumstances are disclosed . . . .’ 2 E. Farnsworth,
    Contracts (1990) § 7.12, pp. 277–78. Under this theory, extrinsic evidence
    is always available to be used for interpreting the intent of the parties. Id.,
    p. 272. After all, as Professor Corbin observed, ‘[n]o contract should ever
    be interpreted and enforced with a meaning that neither party gave it.’ 3 A.
    Corbin, Contracts (Sup.1994) § 572B, p. 443 . . . . ’’ Levine v. Massey,
    supra, 
    232 Conn. 286
    –87 (Berdon, J., dissenting).
    

Document Info

Docket Number: AC40173, AC40434

Citation Numbers: 200 A.3d 1177, 186 Conn. App. 706

Judges: Lavine, Sheldon, Bishop

Filed Date: 12/18/2018

Precedential Status: Precedential

Modified Date: 10/19/2024