author: Glass, J.

text:
    The Canaan National Bank, Executor (Estate of Elsie E. Junod) v. Marie E. Peters et al.
    (13930)
    Peters, C. J., Shea, Callahan, Glass and Hull, Js.

      Argued December 13, 1990
    decision released February 5, 1991

      Jo-Ann L. Bowen, with whom, on the brief, was Edward F. Spinella, for the appellant (named defendant).

      J. Michael Sconyers, with whom, on the brief, was Keith E. Krusz, for the appellee (defendant Alexander H. McPhee, Sr.).
   Glass, J.

The sole issue in this will construction case is whether the testatrix, Elsie Junod, intended a provision in her will concerning the offer of certain property for sale to be a mere precatory suggestion or, rather, a mandatory directive. The trial court, having found the will to be ambiguous, determined that the testatrix intended the provision to be mandatory. Although we conclude that the intent of the testatrix was unambiguously expressed in her will, we too conclude that she intended the provision to be mandatory and now affirm the judgment of the trial court.

The following facts are undisputed. The testatrix executed her will on November 9,1977, naming her niece, the named defendant, Marie E. Peters, as the residuary legatee. The testatrix died approximately nine years later, on March 10,1986. The only disputed provision in her will is the second'of four paragraphs, the sole provision pertaining to the son of the testatrix’s cousin, the defendant, Alexander H. McPhee, Sr. The paragraph provides: “SECOND: I wish my home on Twin Lakes Road, Salisbury, Connecticut, together with its contents and all the land connected with same, to be offered for sale to my cousin [sic] Alexander Hector McPhee, Sr. of 89 The Waterway, Piándome Heights, Manhasset, L.I., New York 11030.1 am willing to let him purchase it for the sum of Ten thousand ($10,000) Dollars. Only after his refusal in writing to do so is it to be placed on the market for sale.”*

On October 27,1986, in accordance with the second paragraph of the will, McPhee tendered the stated $10,000 purchase price for the Twin Lakes Road property (Twin Lakes) to the executor of the will, the plaintiff, Canaan National Bank (executor). Confronted with conflicting claims regarding the construction of the will, the executor commenced the underlying action seeking a judicial determination of whether the second paragraph of the will should be construed as a mandatory directive to offer Twin Lakes for sale to McPhee, and if so, at what price. Peters filed an answer to the executor’s complaint admitting that Twin Lakes should be offered for sale to McPhee, but claiming that it should be offered to him at the price of $47,000, its appraised fair market value. McPhee counterclaimed for an order directing the executor to convey Twin Lakes to him at the price of $10,000 stated in the will.

Reading the will in its entirety, the trial court found: “While certain language in this will may appear to be precatory at first glance, it is actually mandatory language when viewed in the context of the paragraph in which it appears. The testatrix specifically directs that the property be offered for sale to . . . McPhee. To underscore the imperative nature of this order of the testatrix, she further directs that such property not be offered for outside sale until McPhee has refused in writing to purchase the property at the price specified in the will. Therefore, the language at issue is best categorized as mandatory even though a portion of the testatrix’s command is phrased in language that is ordinarily precatory.” The court accordingly rendered judgment that McPhee was entitled to purchase Twin Lakes for the price of $10,000 stated in the will, and that Twin Lakes was not to be offered for sale on the open market until McPhee refused in writing to purchase it for that price.

Peters appealed from the judgment to the Appellate Court, and we transferred the appeal to this court pursuant to Practice Book § 4023. Peters now challenges the court’s legal conclusion that the intent of the testatrix, derived solely from the four corners of the will, was that Twin Lakes be offered for sale to McPhee for the price of $10,000. Both Peters and McPhee agree that the intent of the testatrix is unambiguously expressed in the language of the will, although each claims that the language used by the testatrix supports his or her respective position.

Peters claims that the words used by the testatrix in the second paragraph of the will are precatory, that is, “words whose ordinary significance imports entreaty, recommendation, or expectation rather than any mandatory direction . . . .” 80 Am. Jur. 2d, Wills § 1168. Particularly, she points to the words “wish” and “willing” used in the first and second sentences of the second paragraph as indicative of the testatrix’s intent to recommend or suggest that the property be sold to McPhee for $10,000, but to leave the ultimate decision as to the disposition of the property within the executor’s prudent discretion. Peters buttresses her claim by comparing the words “wish” and “willing” to the imperative words “order” and “direct” used by the testatrix in the first and third paragraphs of the will, respectively. She also claims that construing the second paragraph as a precatory recommendation would be consistent with the general testamentary scheme of the testatrix, that being that Peters would receive the bulk of the estate, less debts, funeral expenses, and a single charitable gift, and McPhee would receive nothing if he did not desire to purchase Twin Lakes. We disagree.

“ ‘ “The construction of a will presents a question of law to be determined in light of facts which are found by the trial court or are undisputed or indisputable.” . . . ’ ” (Citations ommitted.) Connecticut National Bank & Trust Co. v. Chadwick, 217 Conn. 260, 266, 585 A.2d 1189 (1991). Since the issue before us concerns the court’s legal conclusion regarding the intent of the testatrix as expressed solely in the language of her will, we must decide that issue by determining, de novo, whether that language supports the court’s conclusion. See id., 266-67; Wyman v. Roesner, 439 A.2d 516, 523 n.6 (D.C. App. 1981).

Our primary objective in construing the second paragraph of the testatrix’s will is to ascertain and effectuate her intent. Dei Cas v. Mayfield, 199 Conn. 569, 572, 508 A.2d 435 (1986); Hartford National Bank & Trust Co. v. Thrall, 184 Conn. 497, 502, 440 A.2d 200 (1981); Kimberly v. New Haven Bank N.B.A., 144 Conn. 107, 113, 127 A.2d 817 (1956). In searching for that intent, we look first to the precise wording employed by the testatrix in her will; Hartford National Bank & Trust Co. v. Thrall, supra; Hartford National Bank & Trust Co. v. Birge, 159 Conn. 35, 42-43, 266 A.2d 373 (1970); see First National Bank of Atlanta v. United States, 634 F.2d 212, 214 (5th Cir. 1981); for the meaning of the words as used by the testatrix is the equivalent of her legal intention—the intention that the law recognizes as dispositive. Wisely v. United States, 893 F.2d 660, 665 (4th Cir. 1990). “The question is not what [s]he meant to say, but what is meant by what [s]he did say.” Connecticut Junior Republic v. Sharon Hospital, 188 Conn. 1, 20, 448 A.2d 190 (1982); see Hartford National Bank & Trust Co. v. Thrall, supra; Warren v. First New Haven National Bank, 150 Conn. 120,123,186 A.2d 794 (1962); see also Hunter v. United States, 597 F. Sup. 1293,1295 (W.D. Pa. 1984).

The meaning of the words used by the testatrix in the second paragraph of her will is not to be deduced by extracting and examining the words in artificial isolation. Lockwood v. Killian, 179 Conn. 62, 70, 425 A.2d 909 (1979); Colonial Bank & Trust Co. v. Stevens, 164 Conn. 31, 36-37, 316 A.2d 768 (1972); see Adams v. United States, 401 F. Sup. 1142,1151 (D. Kan. 1975); Read v. Legg, 493 A.2d 1013, 1016 (D.C. App. 1985); First National Bank of Florida v. Moffett, 479 So. 2d 312, 313 (Fla. App. 1985). The words must be interpreted in light of their context within the second paragraph, and with reference to the will in its entirety. Dei Cas v. Mayfield, supra; Hartford National Bank & Trust Co. v. Thrall, supra; see Estate of Bruning v. C.I.R., 888 F.2d 657, 659 (10th Cir. 1989); Estate of McMillan v. C.I.R., 670 F.2d 788, 791 (8th Cir. 1982). “ ‘ “Not only must all parts of the will be considered, but each and all its provisions should, so far as possible, be harmonized and given effect.” ’ ” Hartford National Bank & Trust Co. v. Thrall, supra, 506; see Independence Bank Waukesha (N. A.) v. United States, 761 F.2d 442, 444 (7th Cir. 1985); Greene v. United States, 447 F. Sup. 885, 897 (N.D. Ill. 1978); Connecticut General Life Ins. Co. v. Peterson, 442 F. Sup. 533, 537 (W.D. Mo. 1978); Estate of Sweet, 519 A.2d 1260, 1264 (Me. 1987). “A court may not stray beyond the four corners of the will where the terms of the will are clear and unambiguous.” In re Estate of Tashjian, 375 Pa. Super. 221, 229-30 n.3, 544 A.2d 67 (1988); see Connecticut Junior Republic v. Sharon Hospital, supra, 9.

While the words “wish” and “willing” in the first and second sentences of the second paragraph of the testatrix’s will are “primarily precatory in [their] significance”; Burley v. Maguire, 127 Conn. 242, 245,16 A.2d 358 (1940); “[t]hese words have no invariable construction.” Cumming v. Pendleton, 112 Conn. 569, 574, 153 A. 175 (1931). A particular provision in a will may be mandatory although couched in language which is not imperative in form; id., 573; “and if, from the whole instrument, it can be seen that it expresses the definite will of the [testatrix], it is to be given that effect . . . .” Burley v. Maguire, supra; see Davis v. Davis, 471 A.2d 1008,1009-10 (D.C. App. 1984); First United Methodist Church v. Allen, 557 S.W.2d 175, 177 (Tex. Civ. App. 1977); accord Matter of Estate of Nelson, 274 N.W.2d 584, 588 (S.D. 1978). In other words, “[i]f the intent of the [testatrix] be apparent, effect will be given to it, though [s]he may have used inappropriate terms to attain [her] object.” Doe v. Watson, 49 U.S. (8 How.) 263, 272, 12 L. Ed. 1072 (1850).

Moreover, precatory words frequently have been construed as mandatory when addressed to an executor, rather than to a devisee, or to one who is both an executor and a devisee if the language addresses the person as a devisee. Davis v. Davis, supra, 1009; In re Estate of Fresia, 390 So. 2d 176,178 (Fla. App. 1980); In re Moody, 155 Me. 325, 329, 154 A.2d 165 (1959); accord Goetz v. Bank of Martinsburg, 140 W. Va. 422, 438, 84 S.E.2d 759 (1954). “It has also been held that where [precatory] language is expressive of a desire or recommendation as to the direct disposition of the estate as distinguished from the use which the [testatrix] desires the legatee or devisee to make of it, it operates as a bequest or devise and is obligatory.” Cumming v. Pendleton, supra, 575; see Matter of the Estate of Martin, 32 App. Div. 2d 849, 850, 300 N.Y.S.2d 751 (1969); Corbett Estate, 430 Pa. 54, 57-58, 241 A.2d 524 (1968); accord Sturdevant v. SAE Warehouse, Inc., 270 N.W.2d 794, 800 (N.D. 1978); cf. Anders v. Anderson, 246 N.C. 53, 57, 97 S.E.2d 415 (1957); Matter of Estate of Nelson, supra, 587; Saunders v. Callaway, 42 Wash. App. 29, 33, 708 P.2d 652 (1985). The reasoning behind this general rule has been stated: “[A]s the testator has the right to make such disposition as he wishes of his own property, the expression of that wish is equivalent to a command . . . .” Cumming v. Pendleton, supra.

In this case, the precatory words “wish” and “willing” are addressed to the executor, and concern the direct disposition of Twin Lakes rather than the use to be made of the property. We are mindful, however, that because each testatrix manifests her intent in unique testamentary language, cases assigning significance to such factors are instructive, but not necessarily controlling. See Hartford National Bank & Trust Co. v. Thrall, supra, 507-508; Hartford National Bank & Trust Co. v. Harvey, 143 Conn. 233, 243, 121 A.2d 276 (1956); Wyman v. Roesner, supra, 520. In addition to the implications of such factors, an examination of the precatory language in its context within the second paragraph of the will unambiguously reveals that the testatrix intended that Twin Lakes be offered for sale to McPhee for the stated price of $10,000.

The import of the precatory words used by the testatrix in the first and second sentences of the second paragraph is clarified by the third sentence of the paragraph, with which the first two sentences must be read in conjunction, as arranged by the testatrix. In the third sentence, the testatrix commands in mandatory terms: “Only after his refusal in writing to do so is it to be placed on the market for sale.” No discretion is left to the executor in carrying out this directive. Moreover, had the testatrix intended merely to suggest that Twin Lakes be offered for sale to McPhee, it certainly would have been unnecessary for her to add the third sentence, which meticulously safeguards the right of first refusal granted to McPhee in the first two sentences by requiring his written refusal to be given before the property is otherwise sold.

Finally, the will is devoid of any indication that the testatrix intended Twin Lakes to be offered for sale to McPhee for a price equivalent to its fair market value. There is only the stated price of $10,000 in the second sentence of the second paragraph. If the testatrix had intended that Twin Lakes be sold to McPhee for its fair market value in order to enlarge her residuary estate for the benefit of Peters, it would have been a simple matter for her to have expressed that intention in her will. Accord Rosa v. Palmer, 177 Conn. 10,16, 411 A.2d 12 (1979). Instead, she left the $10,000 price term intact and made no evident effort to modify it to reflect the fluctuating fair market value of Twin Lakes, or for that matter, its contents, over the passage of some nine years from the date she had executed her will to the date of her death.

We therefore conclude that, notwithstanding the precatory language used in the first and second sentences of the second paragraph of the testatrix’s will, the imperative directive in the third sentence of the paragraph evinces her true intent that the entire paragraph be mandatory. In accordance with the manifest intent of the testatrix, the entire paragraph must be given mandatory effect.

The judgment is affirmed.

In this opinion the other justices concurred.

       The will provides in its entirety:
      “I, Elsie E. Junod of the Town of Salisbury, County of Litchfield and State of Connecticut, being of lawful age and of sound mind and memory and judgment, do hereby make, publish and declare this to be my Last Will and Testament, hereby revoking all previous Wills and Codicils by me made.
      FIRST: I order my executor, hereinafter named, to pay all my just debts and funeral expenses as soon as it is convenient, after my decease. I also order that my name and the date of my death be added to the names on the headstone on the grave of my father and mother in the Evergreens Cemetery in Brooklyn, N.Y. where I too am to be interred.
      SECOND: I wish my home on Twin Lakes Road, Salisbury, Connecticut, together with its contents and all the land connected with same, to be offered for sale to my cousin [sic] Alexander Hector McPhee, Sr. of 89 The Waterway, Piándome Heights, Manhasset, L.I., New York 11030.1 am willing to let him purchase it for the sum of Ten thousand ($10,000) Dollars. Only after his refusal in writing to do so is it to be placed on the market for sale.
      THIRD: I direct that the proceeds of the above property and other real and personal property wheresoever situate and whatsoever it shall be or to which I may be entitled at the time of my death be distributed as follows:
      A. To The Little Guild of Saint Francis in West Cornwall, Connecticut, I leave the sum of One Thousand ($1,000) Dollars.
      B. The remainder of my estate I leave to my niece Marie E. Peters of 439 Langley Avenue, West Hempstead, N.Y. 11552.
      FOURTH: I appoint the Canaan National Bank, Main Street Canaan, Connecticut to be executor of this my Last Will and Testament and direct that no bond or other security be required in order to secure the faithful performance of its duties as such.”

       The executor is not a party to this appeal.

       The executor also sought a determination of whether, if McPhee chose not to purchase the Twin Lakes property, it must await McPhee’s written refusal before selling the property on the open market, and in addition, what value should be placed upon the property for purposes of succession tax allocation.

       Because the court initially found that it “cannot say as a matter of law that there is no ambiguity” in the second paragraph of the will, the court admitted the testimony of Peters regarding the circumstances attendant to the execution of the will. As an alternate ground for its decision, the court determined that the testimony offered was insufficient to establish the testatrix’s donative intent that Peters be the primary beneficiary of the will. Neither party claims to have been harmed by the court’s admission of extrinsic evidence, and, therefore, we need not consider the propriety of its admission, or whether the evidence favors the position of either party. Moreover, since both parties agree that the court’s legal conclusion regarding the intent of the testatrix as expressed in the will is the subject of this appeal, we decline to address Peters’ claim that the court’s alleged imposition of the burden of proof upon her in arriving at its alternate factual conclusion constitutes plain error under Practice Book § 4185.

       See footnote 1, supra.


source: Caselaw Access Project

author: Peters, C. J. Shea, J.,

license: Public Domain

text:
    Hanover Insurance Company v. Fireman's Fund Insurance Company et al.
    (14083)
    Peters, C. J., Shea, Callahan, Covello and Borden, Js.

      Argued October 31, 1990
    decision released February 5, 1991

      Theodore J. Tucci, for the appellant (plaintiff).

      JohnB. Farley, for the appellee (named defendant).
   Peters, C. J.

This appeal concerns the right of an insurer who has paid a fire loss to its insured to recover one half of its payment from a second insurer on a theory either of subrogation or of contribution. The plaintiff, Hanover Insurance Company (Hanover), filed suit against the named defendant, Fireman’s Fund Insurance Company (Fireman’s), and the Thomas Minogue Agency (Minogue), seeking reimbursement for moneys it had paid on a fire loss suffered by its insured, Anthony’s Auto Body, Inc. (Anthony’s). The complaint alleged that Fireman’s had bound insurance coverage on Anthony’s prior to the date of the fire loss, and that this insurance coverage obligated Fireman’s to reimburse Hanover for part of the loss. Fireman’s denied coverage and raised a special defense that Hanover’s suit was time barred under General Statutes §§ 38-97 and 38-98. The trial court rendered judgment, after trial, in favor of Fireman’s. Pursuant to Practice Book § 4023, we transferred Hanover’s appeal to this court and now affirm the judgment of the trial court.

The trial court’s memorandum of decision reveals the following facts. Hanover had issued a fire insurance policy covering Anthony’s for the period from March 28,1982, to March 28,1983. On January 7,1983, Hanover notified Anthony’s of the cancellation of this policy effective February 7, 1983. Later that month, Anthony’s contacted a licensed insurance agent affiliated with Minogue in an effort to obtain replacement insurance. Through Minogue, Anthony’s was able to obtain an oral binder from Fireman’s, which Minogue confirmed with a written memorandum dated January 31, 1983. On February 2, 1983, however, the agent who had given the oral binder for Fireman’s discovered that a binder on coverage for auto body shops required an inspection. Unsuccessful in reaching the Minogue agent by telephone, the Fireman’s agent mailed him a written memo with this information on the same day.

A fire occurred at Anthony’s on February 3, 1983, that caused damage in the amount of $232,122, which Hanover paid in full. Although Hanover was aware of Fireman’s oral binder by August 3, 1983, it made no formal demand for payment until July 3, 1984, more than one year after the fire loss.

The trial court ruled against Hanover’s claim for subrogation on the ground that the oral binder between Fireman’s and Anthony’s included a one year suit provision pursuant to General Statutes §§ 38-98 and 38-100. Because Hanover had not brought suit within twelve months following Anthony’s loss, the court held that Hanover’s suit was barred. The court further held that Fireman’s had neither waived, nor was estopped from asserting, the one year suit provision as a defense to Hanover’s suit.

The trial court also ruled against Hanover on its alternate claim for contribution. The court concluded that Hanover had not been legally obligated to pay the entire fire loss at Anthony’s and was barred from seeking contribution for its actions as a “volunteer.” It also concluded that Hanover had failed to establish an equitable basis for its claim for contribution.

Hanover’s appeal does not challenge the underlying facts found by the trial court but asserts its right to recovery, as a matter of law, without regard to the one year suit provision in § 38-98 under a theory either of subrogation or of contribution. We are unpersuaded that Hanover’s claims are sustained by the record.

I

As Anthony’s subrogee, Hanover had no greater rights against Fireman’s than Anthony’s possessed and was equally subject to any defenses that Fireman’s might have asserted against Anthony’s. See Brown v. Employer’s Reinsurance Corporation, 206 Conn. 668, 673, 539 A.2d 138 (1988); Arton v. Liberty Mutual Ins. Co., 163 Conn. 127, 139-40, 302 A.2d 284 (1972). Hanover does not dispute these basic subrogation principles but contends, nonetheless, that its subrogation claim is not time barred.

The trial court concluded that the oral binder that Fireman’s had issued to Anthony’s included the one year suit provision that is part of the standard form of fire insurance policy in this state. Section 38-98 requires such a standard policy to provide that “[n]o suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity . . . unless commenced within twelve months next after inception of the loss.” Further, § 38-100 includes the terms of the standard fire insurance policy in “[bjinders or other contracts for temporary insurance.” It is undisputed that Hanover did not bring suit within one year of the fire at Anthony’s.

Despite the clarity of this statutory language, Hanover maintains that the trial court should not have held it bound by the statutory one year suit provision. It claims that the controlling statutes do not govern this case because Fireman’s (1) failed, in pleading its statutory defense, explicitly to refer to § 38-100, (2) failed, in the circumstances of this case, to prove the applicability of the statutory provision, or (3) was estopped from invoking the statutory provision. We are unpersuaded.

A

Fireman’s special defense alleged that Hanover could not recover because it had “failed to file suit within twelve months after inception of the loss in violation of Connecticut General Statute Section 38-97 and Section 38-98.” Hanover correctly observes that the special defense should also have mentioned § 38-100 in order to be in full compliance with Practice Book § 109A.

In accordance with the general objectives of our rules of pleading; see Board of Education v. Commission on Human Rights & Opportunities, 177 Conn. 75, 77, 411 A.2d 40 (1979); the practice book section is designed to assure sufficient notice to the plaintiff of the statutory defense upon which a defendant intends to rely. Its provisions are therefore directory rather than mandatory. Rowe v. Godou, 209 Conn. 273, 275, 550 A.2d 1073 (1988). In the absence of any showing that either Hanover or the trial court was misled by the failure to cite § 38-100 in addition to §§ 38-97 and 38-98, we conclude that the issue raised by Fireman’s special defense was properly before the court.

B

Hanover claims that Fireman’s denial of the existence of any insurance policy or a valid binder disabled Fireman’s from proving and prevailing on its statutory defense. This claim comes to us in a number of versions: (1) that Fireman’s could not pursue such inconsistent pleadings; (2) that Fireman’s was improperly relieved of its burden of proof by the trial court’s mischaracterization of the statutory limitation of suit clause as a statute of limitation; (3) that Fireman’s did not meet its burden of proof for inclusion of the statutory limitation in its oral binder; and (4) that Fireman’s denial was a repudiation of its contractual obligation that excused Hanover from further compliance with conditions incorporated into the binder. We conclude to the contrary.

Hanover’s claim with regard to inconsistency in Fireman’s pleadings does not warrant extended discussion. Unlike the facts presented by Montanaro Bros. Builders, Inc. v. Snow, 190 Conn. 481, 489, 460 A.2d 1297 (1983), the record in this case discloses nothing to suggest that Hanover was in any way injured by Fireman’s inconsistent defenses. Absent such a showing of prejudice, there is no general prohibition of inconsistent pleadings. See Practice Book §§ 94,137; Dreier v. Upjohn Co., 196 Conn. 242, 245, 492 A.2d 164 (1985). The case of DeVita v. Esposito, 13 Conn. App. 101,107, 535 A.2d 364 (1987), cert. denied, 207 Conn. 807, 540 A.2d 375 (1988), on which Hanover relies, does not compel a contrary result because, in this case, it was entirely consistent for the trial court to render a judgment declaring the oral binder issued to Anthony’s to be effective while at the same time construing the binder to include the terms mandated by statutory requirements for a standard fire insurance binder.

The record equally fails to establish that Hanover was prejudiced by the trial court’s inadvertent mischaracterization of the statutory one year suit provision as a statute of limitation. Hanover is correct that Monteiro v. American Home Assurance Co., 177 Conn. 281, 283, 416 A.2d 1189 (1979), holds that the provision is not a statute of limitation. The trial court’s memorandum of decision as a whole makes it plain that the court’s linguistic lapse was immaterial. The court expressly determined that the one year suit provision was included as a statutorily mandated term in the oral binder. This determination would have been unnecessary if the court had understood the provision to operate as a statute of limitation, rather than a contractual condition of the oral binder.

In making its determination about the effect of the governing statutes, the court correctly held that Fireman’s had proven its defense. Although Fireman’s was required to prove the terms and conditions of its oral binder, we are unpersuaded, in light of § 38-100, which expressly regulates the content of oral binders, that Fireman’s was obligated to introduce evidence of the terms of a written policy of insurance that it never issued.

Finally, Hanover contends that Fireman’s denial of the existence of a binder was a breach of contract that excused its subsequent noncompliance with the one year suit provision. The single authority upon which Hanover relies; Batter Building Materials Co. v. Kirschner, 142 Conn. 1,110 A.2d 464 (1954); however, supports the contrary proposition.

In Batter Building Materials Co., the issue was whether a repudiation or total breach of a contract containing an arbitration clause excused the nonbreaching party from compliance with that clause. We held that, even in the case of a total breach, “ ‘[t]he contract is not put out of existence, though all further performance of the obligations undertaken by each party in favour of the other may cease. It survives for the purpose of measuring the claims arising out of the breach, and the arbitration clause survives for determining the mode of their settlement. The purposes of the contract have failed, but the arbitration clause is not one of the purposes of the contract.’ ” Id., 10, quoting Heyman v. Darwins, Ltd., 1942 A.C. 356, 374.

Like the arbitration clause at issue in Batter Building Materials Co., the one year suit provision at issue here was not one of the purposes of the oral binder. Even after a repudiation of the oral binder, the provision continued to govern the time, and mode, of resolving disputes arising thereunder. Thus, Fireman’s denial of liability did not excuse Hanover from compliance with the provision requiring suit within one year of the date of loss.

C

Hanover further maintains that Fireman’s is estopped, by virtue of its oral binder, or because of its conduct, from insisting upon Hanover’s compliance with the one year suit provision mandated by §§ 38-98 and 38-100. This claim relies, on the one hand, on legal inferences to be drawn from the issuance of the binder and, on the other hand, on inaction or on statements by Fireman’s personnel. We agree with the trial court that the record in this case does not establish estoppel.

Hanover’s argument on legal inferences is derived from a number of out-of-state cases involving written insurance policies that failed to include a statutory limitation of suit clause. In such circumstances, some courts have held that the issuance of a nonconforming policy may estop the insurer from invoking the statutory protection that it might otherwise have enjoyed. See, e.g., Peters v. St. Paul Fire & Marine Ins. Co., 213 F. Sup. 441, 442 (S.D.N.Y. 1963) (dictum); Aarons Fifth Ave., Inc. v. Ins. Co. of North America, 52 App. Div. 2d 855, 383 N.Y.S.2d 45 (1976); Becker-Fineman Camps, Inc. v. Public Service Mutual Ins. Co., 52 App. Div. 2d 656, 382 N.Y.S.2d 122 (1976); Conte v. Yorkshire Ins. Co., 5 Misc. 2d 670, 671-72, 163 N.Y.S.2d 28 (1957). We decline Hanover’s invitation to adopt these rulings in the context of this case. Principles of estoppel arising out of arguably misleading written insurance policies do not inform a controversy involving a temporary oral binder of insurance whose terms are dictated by §§ 38-100 and 38-98. This case is far more analogous to Kahn v. Lumbermens Mutual Casualty Co., 293 F. Sup. 985, 988 (E.D.N.Y. 1968), in which an oral binder was held to include the one year limitation of suit provision that is part of New York’s standard fire insurance policy. Hanover does not claim that the terms of the oral binder in any way misled it into believing that any suit it might have brought would not have been subject to the Connecticut one year suit requirement.

Hanover maintains, in the alternative, that even if the one year suit provision were a term of the oral binder, Fireman’s, by its conduct, had either waived, or was estopped from raising, the provision. The trial court found that shortly after the fire at Anthony’s, Hanover contacted Fireman's, which then denied the existence of a binder. Six months later, on August 3, 1983, Hanover’s insurance adjuster notified Fireman’s, by certified letter, that Hanover was seeking contribution for payment of the fire loss at Anthony’s. Fireman’s never responded to that letter. Hanover took no further action until July, 1984, seventeen months after the loss, when it sent another letter to Fireman’s demanding payment. Fireman’s claims supervisor, responding by letter on August 28, 1984, requested additional information regarding Hanover’s claim, and thereafter in another letter, dated November 12,1984, denied the claim. The trial court held that this evidence failed to support Hanover’s waiver or estoppel claims. We agree.

Our review of the trial court’s determination is guided by the principle that, because waiver and estoppel are questions of fact; New York Annual Conference v. Fisher, 182 Conn. 272, 300, 438 A.2d 62 (1980); we will not disturb the trial court’s findings unless they are clearly erroneous. Pandolphe’s Auto Parts, Inc. v. Manchester, 181 Conn. 217, 221-22, 435 A.2d 24 (1980). In undertaking this review, we can conveniently distinguish between events that transpired within one year of the fire loss and those that transpired thereafter.

The only possible basis for estoppel within the one year period are Fireman’s initial denial of the existence of an oral binder and its subsequent failure to respond to Hanover’s August, 1983 letter demanding payment. We agree with the trial court in its rejection of this claim. It is well settled that silence will not operate as estoppel absent a duty to speak. Eis v. Meyer, 213 Conn. 29, 34, 566 A.2d 422 (1989); S.H.V.C., Inc. v. Roy, 188 Conn. 503, 511-12, 450 A.2d 351 (1982); State v. American News Co., 152 Conn. 101, 113, 203 A.2d 296 (1964); Flaxman v. Capitol City Press, Inc., 121 Conn. 423, 430,185 A. 417 (1936). Hanover was aware of the one year suit provision in § 38-98, yet failed to exercise due diligence in ascertaining whether Fireman’s planned to rely on the terms of the provision. Under these circumstances, Fireman’s was under no duty to inform Hanover whether it intended to enforce the provision. To borrow the words of one court: “[T]he record is persuasive that this is a case not of the defendants’ lulling the plaintiff into a sense of false security but of the latter’s sleeping on his rights.” Proc v. Home Ins. Co., 17 N.Y.2d 239, 246, 217 N.E.2d 136, 270 N.Y.S.2d 412 (1966).

The trial court also refused to find estoppel or waiver on the basis of representations by Fireman’s in August and November, 1984, that postdated the expiration of the one year suit limitation. The court relied on Hawley Enterprises, Inc. v. Reliance Ins. Co., 621 F. Sup. 190, 192 (D. Conn. 1985), for the proposition that acts occurring after the period for suit had run could not constitute a basis for either waiver or estoppel. We agree.

The essential elements of estoppel are that “ ‘ "the party against whom estoppel is claimed must do or say something calculated or intended to induce another party to believe that certain facts exist and to act on that belief; and the other party must change its position in reliance on those facts, thereby incurring some injury. . . .” ’ ” (Citations omitted.) O’Sullivan v. Bergenty, 214 Conn. 641, 648, 573 A.2d 729 (1990). Hanover’s change of position in this case, its failure to initiate suit within one year of the fire loss, cannot logically be linked to events occurring after the one year period had run.

We are equally unpersuaded that post one year anniversary communications between the parties support Hanover’s claim of waiver. Waiver is the " ‘intentional relinquishment of a known right.’ ” Olean v. Treglia, 190 Conn. 756, 772, 463 A.2d 242 (1983); Multiplastics, Inc. v. Arch Industries, Inc., 166 Conn. 280, 286, 348 A.2d 618 (1974). In the absence of allegation or proof that anyone ever affirmatively stated, on behalf of Fireman’s, that it would not invoke the one year suit provision, Hanover has not stated a case for a finding of express waiver. Its argument for an implied waiver rests on the failure of Fireman’s to advert to the one year provision when it denied Hanover’s demand for payment in 1984. This court, while recognizing the analytic distinction between express waiver and estoppel, has held that “implied waivers and estoppels by conduct are so similar that they are nearly indistinguishable.” S.H.V.C., Inc. v. Roy, supra, 510; Novella v. Hartford Accident & Indemnity Co., 163 Conn. 552, 564, 316 A.2d 394 (1972). In light of this equivalence, Hanover’s implied waiver claim is as unavailable as was its estoppel claim.

II

Hanover next maintains that even if the one year suit provision in § 38-98 precludes its suit in subrogation, it can recover from Fireman’s on a theory of contribution. The trial court, however, rejected Hanover’s claim for contribution on two substantive grounds. Relying on the fact that both the Hanover policy and the Fireman’s binder covering the fire loss at Anthony’s contained pro rata liability clauses, the court first concluded that each insurer was contractually liable to Anthony’s for only one half of Anthony’s loss. In these circumstances, the trial court concluded that Hanover was not entitled to contribution because in paying the entire claim when it was liable for only one half thereof, Hanover had acted as a “volunteer.” The court also invoked a second basis for rejecting Hanover’s claim when it cited Kaplan v. Merberg Wrecking Corporation, 152 Conn. 405, 412, 207 A.2d 732 (1965), for the proposition that “contribution involves a claim for reimbursement of a share of a payment necessarily made by the claimant which equitably should have been paid in part by others.” (Emphasis added.) The trial court then concluded that there were “no compelling reasons from the evidence adduced at trial to find contribution in this case.” We affirm the trial court’s resolution of Hanover’s contribution claim on the second ground.

The right of action for contribution, which is equitable in origin, arises when, as between multiple parties jointly bound to pay a sum of money, one party is compelled to pay the entire sum. That party may then assert a right of contribution against the others for their proportionate share of the common obligation. Kaplan v. Merberg Wrecking Corporation, supra, 412; Fidelity & Casualty Ins. Co. v. Sears, Roebuck & Co., 124 Conn. 227, 231-32, 199 A. 93 (1938); Azzolina v. Sons of Italy, 119 Conn. 681, 692, 179 A. 201 (1935); Waters v. Waters, 110 Conn. 342, 345, 148 A. 326 (1930); Bulkeley v. House, 62 Conn. 459, 467, 26 A. 352 (1893).

In the circumstances of this case, we are unpersuaded that the trial court was required to conclude that Hanover had established an equitable basis for a right to contribution. It is not clear, given the pro rata liability clauses in Hanover’s policy and Fireman’s oral binder, that Hanover could legally have been compelled to pay the fire loss in its entirety, classically a prerequisite to an action for contribution. Waters v. Waters, supra. Although the doctrine that denies a “volunteer” a right to contribution has been criticized, we have not had the occasion to confront this issue directly and we need not decide it in this case. To the contrary, the trial court found that Fireman’s had reasonably denied the existence of a binder. The facts in this case that shed light on the equities between the parties support the trial court’s denial of relief to Hanover.

As an equitable matter, the court might have assigned some weight to Hanover’s failure to avail itself of its contribution claim in a timely fashion. Although Hanover argues that its contribution claim did not rest “on the policy,” and was therefore governed, not by § 38-98, but rather by General Statutes § 52-581, the statute of limitations for oral contracts, the contrary conclusion is equally possible. By its terms, § 38-98 applies to claims brought in “any court of law or equity.” (Emphasis added.) Arguably, then, the section may apply to an equitable contribution claim such as Hanover’s. Without deciding that question, however, we note that the policy of swift settlement of claims promoted by the one year suit provision in § 38-98 would be undermined if insurers who failed to bring a timely subrogation claim could simply bypass the one year suit requirement, as Hanover seeks to do, by also alleging an independent contribution claim subject only to a three year statute of limitation. Consequently, the fact that the trial court might have assigned some, perhaps even considerable, weight to Hanover’s untimely assertion of its contribution claim would have been entirely appropriate.

Further, as an additional equitable consideration, the court might have taken notice of the relationship between the two insurance policies at issue in this case. The record demonstrates that the insured sought coverage from Fireman’s to replace, rather than to supplement, the fire insurance for which it had received a notice of cancellation from Hanover, effective February 7,1983. It was therefore entirely fortuitous and unanticipated that, because the oral binder was issued on January 31, 1983, both the old and the new insurance were in effect on February 3, 1983, the date of the fire at Anthony’s. But for this fortuitous overlap, Hanover would have remained liable for the entire fire loss at Anthony’s. In these circumstances, the trial court could reasonably have concluded that Hanover’s payment was not one “which equitably should have been paid in part” by Fireman’s. Kaplan v. Merberg Wrecking Corporation, supra, 412.

The judgment is affirmed.

In this opinion, Callahan, Covello and Borden, Js., concurred.

Shea, J.,

dissenting. I agree with Part I of the majority opinion, rejecting Hanover’s subrogation claim for failure to bring suit within one year after the loss in accordance with the standard policy provision implicitly contained in Fireman’s binder agreement by virtue of General Statutes 38-98.* I disagree, however, with the grounds upon which the majority in Part II relies to affirm the denial of Hanover’s claim of contribution, which the trial court considered despite the failure to plead it.

The majority eschews reliance upon the only ground specifically articulated in the memorandum of decision for denying the contribution claim: “The plaintiff acted as a volunteer when it made full payments to [Anthony’s], the insured.” Because I disagree with the grounds advanced by the majority to support the judgment, I must express my agreement with the more recent cases and commentators that have rejected the application of the volunteer doctrine in a situation like this one in which the insurer seeking contribution has no basis for contesting its own coverage of the entire loss except that the pro rata clause in its policy may obligate it to pay only a portion thereof if a dispute over duplicate coverage by another insurer is ultimately resolved by a finding of such coverage, as in this case. Adherence to the volunteer doctrine in such circumstances would encourage insurance companies to withhold payments until disputes involving other insurance were resolved in court. It would often compel the insured to bring suit for breach of contract against both insurers when one of them would have paid the entire loss but for concern over preserving its claim for contribution. As one commentator has indicated, the application of the volunteer doctrine in the pro rata clause context stems from “[a] failure to perceive clearly that contribution is based on unjust enrichment.” G. Palmer, Law of Restitution (1978) § 1.5 (d).

The majority appears to construe the supplemental memorandum of decision responding to the motion for articulation of the reasons for denying contribution as basing that determination on alternative grounds independent of the volunteer doctrine, which the trial court relied on expressly. The inclusion in the memorandum of a quotation defining contribution as involving “a claim for reimbursement of a share of a payment necessarily made by the claimant which equitably should have been [made] by others”; (emphasis added) Kaplan v. Merberg Wrecking Corporation, 152 Conn. 405, 412, 207 A.2d 732 (1965); indicates explicitly that the court relied on the volunteer doctrine, but sheds no light upon whether any other equitable considerations entered into the decision. Similarly, the general statement that “[t]he [trial] court finds no compelling reasons from the evidence adduced at trial to find contribution in this case” hardly suggests that any of the alternative grounds relied on by the majority as possible bases for the decision were ever considered by the trial court.

The majority declares that “[t]he facts in this case that shed light on the equities between the parties support the trial court’s denial of relief to Hanover” and proceeds to speculate that the court “might have assigned some weight” to two factors: (1) the failure to bring suit within one year after the loss as required by the standard policy clause incorporated into the binder agreement by § 38-98; and (2) the “entirely fortuitous and unanticipated” circumstance that both the old and the new insurance coverage were in effect at the time of the loss. The majority does not indicate that either or both of these possible grounds for the decision would have necessitated as a matter of law the denial of contribution, but only that the trial court was not “required to conclude that Hanover had established an equitable basis for a right to contribution.”

Before addressing the merits of the two grounds advanced by the majority, I must object to the speculation in which it has indulged by assuming that the trial court ever considered either of them as a basis for the decision or weighed them against an otherwise viable contribution claim. The vague allusions to equity in the memorandum of decision may readily be viewed as relating to the validity of the contribution claim simply on the basis of the volunteer doctrine, which has generally been regarded as an equitable principle. Appellate review of a trial court decision should not be conducted in the same manner as when a jury verdict is challenged for lack of evidence, necessitating a search of the record for any conceivable basis to support the jury finding. Practice Book § 4059, by requiring in nonjury trials that the court “state its decision on the issues in the case,” including “its conclusion as to each claim of law raised by the parties,” contemplates that appellate review will be conducted on the basis of the grounds actually relied upon by the trial court. Only when a ground not considered by the court would determine the outcome of an appeal as a matter of law should an appellate court rest its judgment thereon, a circumstance the majority does not claim to exist in this case. Instead of speculating that the court in this case might have relied upon matters not specified in the memorandum, we should exercise our authority pursuant to Practice Book § 4061 to order a further articulation by the trial court of the grounds it relied upon apart from the volunteer doctrine.

With respect to the merits of the first proposition advanced by the majority, that § 38-98, the one year limitation established as a term of the insurance binder, “arguably” may apply to Hanover’s equitable contribution claim just as it applies to its subrogation claim, I must express my disagreement. The majority overlooks the classic distinction between an action on the contract, such as subrogation, which § 38-98 unquestionably governs, and an action for contribution, which is based on the equitable principle of unjust enrichment. The statute does not purport to apply to anything but the terms of the insurance contract. Equitable claims of contribution or indemnification, which do not arise until payment to the insured has been made, should not be governed by a provision limiting the period for suit to one year from the date of the loss. Even if § 38-98 were to be given some force by analogy in determining the time reasonably to be allowed for seeking contribution, it would be necessary to weigh all of the factors involved, including Fireman’s dilatory tactics in failing to respond promptly to Hanover’s inquiry about the binder, before deciding whether the delay here was unreasonable. We should not speculate that the trial court found laches when there is no mention of that subject in the memorandum of decision.

As for the “additional equitable consideration” that the trial court “might have taken notice of,” that the overlap in coverages was fortuitous, I see no basis for viewing it as a justification for denying Hanover’s claim. Fireman’s was entitled to charge a premium from the date of the oral binder and was no less bound than Hanover to pay the loss when it occurred on February 3,1983, as the trial court determined. In any event, there is nothing in the memorandum of decision to indicate that the trial court ever considered this second ground speculatively attributed to it by the majority or weighed it against the equities involved in Hanover’s contribution claim. This court cannot perform functions that are plainly those of the trial court.

Accordingly, I dissent.

       Because Hanover withdrew its claims against Minogue prior to the trial court’s rendering of its decision in this case, Minogue is not a party to this appeal.

       General Statutes § 38-97 provides: “The form of policy of fire insurance set forth in section 38-98 shall be known and designated as ‘The Standard Fire Insurance Policy of the State of Connecticut.’ The standard form of policy shall be plainly printed, and no portion thereof shall be in type smaller than the type used in printing such form on file in the office of the commissioner. The provisions of this section shall not limit insurance companies to the use of any particular size of paper or manner of folding the paper upon which their policies maybe issued, and each agent who makes, issues or delivers a policy of fire insurance other than the standard form of fire insurance policy shall forfeit for each offense not more than two hundred dollars; but such policy shall be binding upon the company issuing the same to the same extent and on the same conditions as if it had been in the standard form.”
      General Statutes § 38-98 provides in relevant part: “The standard form of fire insurance policy of the state of Connecticut . . . shall be as follows
      “Suit. No suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, and unless commenced within twelve months next after inception of the loss.”

       General .Statutes § 38-100 provides in relevant part: “Binders or other contracts for temporary insurance may be made, orally or in writing . . . and shall be deemed to include all the terms of [the] standard fire insurance policy . . . .” (Emphasis added.)

       The court also ruled against Hanover’s claim that Fireman’s actions constituted a violation of the Connecticut Unfair Insurance Practices Act. Although Hanover, in its preliminary statement of issues, raised a claim of error with respect to this ruling, it has not briefed that claim on appeal and we therefore deem it to have been abandoned. See Pepe v. New Britain, 203 Conn. 281,282 n.l, 524 A.2d 629 (1987); Blancato v. Feldspar Corporation, 203 Conn. 34, 36 n.3, 522 A.2d 1235 (1987).

       Practice Book § 109A provides in relevant part: “When any claim made in a complaint, cross complaint, special defense, or other pleading is grounded on a statute, the statute shall be specifically identified by its number.”

       Hanover does not allege, nor is there any evidence to support the allegation, that Fireman’s and Anthony’s had orally agreed to insurance coverage terms that expressly excluded a one year suit provision.

       We recognize that in certain cases, the conduct claimed to give rise to estoppel may be so clear and unequivocal as to support an inference that a party intentionally relinquished its known right to rely on the one year suit provision. The conduct of Fireman’s in this case cannot support such an inference.

       This case does not require us to decide the effectiveness of an express waiver of the one year suit provision after the time period has run.

       The status of Hanover’s alleged contribution claim before the trial court is somewhat murky. Hanover’s revised complaint, while it clearly asserts a subrogation claim, does not explicitly assert a distinct claim for contribution. Nonetheless, in two trial court memoranda of decision, on the parties’ cross motions for summary judgment, and on Hanover’s request for an articulation, the merits of Hanover’s contribution claim were addressed even though the trial court might well have refused to consider this issue. On this state of the record, we will briefly consider whether the trial court correctly rejected Hanover’s contribution claim.

       The pro rata liability clause in the oral binder is part of the standard fire insurance form. General Statutes § 38-98. The clause provides: “This Company shall not be liable for a greater proportion of any loss than the amount hereby insured shall bear to the whole insurance covering the property against the peril involved, whether collectible or not.”

      A number of courts have either criticized or refused to apply the “volunteer” doctrine on the ground that it rewards recalcitrant insurers and inhibits the swift settlement of claims. See, e.g., St. Paul Fire & Marine Ins. Co. v. Allstate Ins. Co., 25 Ariz. App. 309, 311-12, 543 P.2d 147 (1976); Smith v. Travelers Indemnity Co., 32 Cal. App. 3d 1010,1018-19,108 Cal. Rptr. 643 (1973); Michigan Millers Mutual Ins. Co. v. United States Fidelity & Guaranty Corporation, 306 Pa. Super. 88, 91-93, 452 A.2d 16 (1982); see also 8A J. Appleman & J. Appleman, Insurance Law and Practice (Rev. 1988) § 4921, p. 538; 2 G. Richards, Insurance (6th Ed. 1990) § 12:3, pp. 336-37. The volunteer doctrine allegedly fails to recognize that insurers are often called upon to pay claims at times when they have bona fide questions regarding their liability, and the liability of other insurers. As one treatise states, “[wjhen an insurance company pays a claim that is covered by another policy, it does so not as a volunteer, but because, by virtue of its lack of knowledge of or about another policy or the recalcitrance of the other insurer, it feels compelled to treat the claims as its own responsibility.” A. Windt, Insurance Claims and Disputes (2d Ed. 1988) § 10.13.
      Fireman’s counters that, regardless of the vices of the volunteer doctrine, no contribution claim can be maintained in this case because the pro rata clauses negate the joint, or common obligation, element of any contribution claim. 2 G. Richards, supra, p. 336. The authorities are divided on this issue. See, e.g., Government Employees Ins. Co. v. Travelers Ins. Co., 63 App. Div. 2d 957, 958, 405 N.Y.S.2d 492 (1978); Employers Casualty Co. v. Transport Ins. Co., 444 S.W.2d 606, 607-609 (Tex. 1969); 2 G. Richards, supra; G. Couch, Insurance 2d (Rev. Ed. 1983) § 62:158; 8A J. Appleman & J. Appleman, supra; A. Windt, supra, § 10.01.

       See text of General Statutes § 38-98 at footnote 2, supra.

       General Statutes § 52-581 provides in relevant part: “(a) No action founded upon any express contract or agreement which is not reduced to writing, or of which some note or memorandum is not made in writing and signed by the party to be charged therewith or his agent, shall be brought but within three years after the right of action accrues.”
      Assuming the applicability of § 52-581, Hanover’s claim for contribution did not accrue, and the statute of limitation therefore did not begin to run, until Hanover made final payment to Anthony’s. Waters v. Waters, 110 Conn. 342, 346, 148 A. 326 (1930).

       At trial, Minogue’s agent testified that, in seeking coverage for Anthony’s from Fireman’s, he had never intended to create duplicate coverage.

       We note that the failure of Hanover’s contribution claim in this case would not have been fatal to its quest for reimbursement had it brought its subrogation claim in a timely fashion. See, e.g., Employers Casualty Co. v. Transport Ins. Co., 444 S.W.2d 606, 610 (Tex. 1969) (subrogation claim available as remedy even if contribution claim unavailable).

       See footnote 2 of the majority opinion.

       See footnote 11 of the majority opinion; see also A. Windt, Insurance Claims and Disputes (2d Ed. 1988) § 10.16; G. Palmer, Law of Restitution (1978) § 1.5 (d).

       “A failure to perceive clearly that contribution is based on unjust enrichment leads, on occasion, to undesirable decisions. An example is provided by cases in which policies of two insurers cover the same loss, with each policy containing a pro rata clause. The effect of such a clause is that the liability of each insurer is limited to his portion of the total coverage. If one insurer pays more than his share, some courts have denied contribution, even though the payment was made in such circumstances that in other contexts restitution would be granted because of the benefit conferred on the other insurer. Thus, in one case the entire loss was paid by an insurer who was unware of the fact that the insured carried other insurance. In general terms, one person has paid the obligation of another in the mistaken belief that he is paying his own obligation. The right to restitution is clear and in other settings is nearly always recognized. But in the case in question, contribution was refused; such relief is available, the court said, only when the payor discharges a ‘common burden, obligation or liability.’ ” G. Palmer, Law of Restitution (1978) § 1.5 (d).


author: Callahan, J.

text:
    Nickel Mine Brook Associates v. Joseph E. Sakal, P.C.
    (14105)
    Peters, C. J., Shea, Callahan, Glass, Covello, Hull and Borden, Js.
    Argued December 4, 1990
    decision released February 5, 1991

      Thomas J. Weihing, with whom were John T. Bochanis and Joseph E. Sakai, for the appellant (defendant).

      Richard F. Connors, for the appellee (plaintiff).
   Callahan, J.

The sole issue presented by this appeal is whether an attorney who represents a client in obtaining a zoning change and in other matters relating to certain real property is entitled to file a mechanic’s lien under General Statutes § 49-33. We conclude that attorneys performing such services are not included among those entitled to file mechanic’s liens.

The facts are not in dispute. The defendant, Joseph E. Sakai, P.C., is a law firm that performed legal services related to a 100 acre parcel of land in Seymour owned by the plaintiff, Nickel Mine Brook Associates, a general partnership. These services, which were provided between February, 1986, and January, 1990, involved zoning, land planning and related matters.* The defendant’s bill for the services rendered was $62,195. The defendant timely filed a mechanic’s lien against the plaintiff’s parcel of land to secure payment for the services that had been provided. The plaintiff filed an application to discharge or reduce the lien pursuant to General Statutes § 49-35a. The trial court granted the application, concluding that § 49-33 was not intended to protect claims by attorneys. The defendant appealed to the Appellate Court, and we transferred the matter to this court pursuant to Practice Book § 4023. We now affirm the judgment of the trial court.

Section 49-33 (a) provides that “[i]f any person has a claim for more than ten dollars for materials furnished or services rendered in the construction, raising, removal or repairs of any building or any of its appurtenances or in the improvement of any lot or in the site development or subdivision of any plot of land . . . the building ... or the lot or . . . the plot of land, is subject to the payment of the claim.” (Emphasis added.) The dispositive issue in this case is whether the legislature intended to include attorneys performing services for clients in connection with the rezoning of land and related real estate matters among the persons entitled to file mechanic’s liens when it expanded the scope of § 49-33 in 1974 by adding the phrase “or in the improvement of any lot or in the site development or subdivision of any plot of land.” See Public Acts 1974, No. 74-310.

The defendant contends that the legal services it performed for the plaintiff constitute services rendered in the improvement, the site development, and the subdivision of the property, as these terms are used in § 49-33 (a). It claims that because the statute does not exclude attorneys from the class of persons entitled to file mechanic’s liens, the services it provided fall within the purview of the statute when it is interpreted liberally. The plaintiff asserts that the trial court properly ruled that the defendant could not file a mechanic’s lien because the 1974 amendment was not intended to expand the scope of § 49-33 (a) to include persons whose services do not enhance the property in some physical manner or lay the groundwork for the physical enhancement of the property. We agree that the 1974 amendment to § 49-33 does not extend the benefits of the mechanic’s lien statute to the defendant, but our interpretation of the amended statute does not require us to address whether the services rendered must always be connected to some physical enhancement of the property in order to fall within the scope of § 49-33 (a).

The starting point in any case involving a question of statutory construction must be the language used by the legislature. King v. Board of Education, 203 Conn. 324,332, 524 A.2d 1131 (1987); Verdona. Transamerica Ins. Co., 187 Conn. 363, 366,446 A.2d 3 (1982). “ ‘Where the words of a statute fail to indicate clearly whether the provision applies in certain circumstances, it must be construed by this court . . . .’ Board of Trustees v. Freedom of Information Commission, 181 Conn. 544, 550, 436 A.2d 266 (1980). Under our rules of statutory construction, this court is to be guided by the language, purpose and legislative history of the statute in question.” Zichichi v. Middlesex Memorial Hospital, 204 Conn. 399, 405, 528 A.2d 805 (1987).

The guidelines for interpreting mechanic’s lien legislation are well established. Although the mechanic’s lien statute creates a statutory right in derogation of the common law; Camputaro v. Stuart Hardwood Corporation, 180 Conn. 545, 550, 429 A.2d 796 (1980); Gruss v. Miskinis, 130 Conn. 367, 370, 34 A.2d 600 (1943); its provisions should be liberally construed in order to implement its remedial purpose of furnishing security for one who provides services or materials. H & S Torrington Associates v. Lutz Engineering Co., 185 Conn. 549, 553, 441 A.2d 171 (1981); Henry F. Raab Connecticut, Inc. v. J. W. Fisher Co., 183 Conn. 108,115, 438 A.2d 834 (1981). Our interpretation, however, may not depart from reasonable compliance with the specific terms of the statute under the guise of a liberal construction. Camputaro v. Stuart Hardwood Corporation, supra, 551; Stone v. Rosenfield, 141 Conn. 188,191,104 A.2d 545 (1954). Finally, “the provisions of our statute differ sufficiently from the mechanic’s lien legislation of other states so that precedents elsewhere are of limited utility in the interpretation of our act.” Camputaro v. Stuart Hardwood Corporation, supra; New Haven Orphan Asylum v. Haqqerty Co., 108 Conn. 232, 236, 142 A. 847 (1928).

This court has previously examined the effect of the 1974 amendment to § 49-33 (a). In Camputaro v. Stuart Hardwood Corporation, supra, we considered whether a contractor’s work in road building and site preparation was lienable under § 49-33 prior to the 1974 amendment. We concluded that the contractor was not entitled to file a mechanic’s lien because “cases construing the language of [§ 49-33 prior to the 1974 amendment] have required, as a condition of lienability, that the work done be incorporated in or utilized in the building (or the appurtenance) to be constructed, raised, removed or repaired.” Id., 552. We concluded that one of the purposes of the 1974 amendment was to eliminate this requirement that the work be incorporated or utilized in a building or appurtenance. Id., 553-54. Finally, we noted that “[although the legislative history of the amended § 49-33 is, as is often true, somewhat murky, it is consistent with an intention to expand the coverage of the mechanic’s lien.” Id., 554.

As a threshold matter, we note that the language of the 1974 amendment appears to have extended the coverage of § 49-33 to two distinct types of services: (1) services rendered in the improvement of any lot; and (2) services rendered in the site development or subdivision of any plot of land. Although the defendant claims that the services it provided fall within both of these categories, it relies upon this apparent distinction in arguing that we must interpret these categories separately in determining what types of services fall within the purview of § 49-33 (a). Our review of the legislative history leads us to conclude otherwise.

The original version of Senate Bill No. 275, which became Public Acts 1974, No. 74-310, extended the scope of § 49-33 (a) only to services rendered “in the site development or subdivision of any plot of land.” The language referring to “the improvement of any lot” was adopted as House Amendment A. Conn. House Journal, May 1, 1974, pp. 1086-87; 17 H.R. Proc., Pt. 10,1974 Sess., pp. 4970-73. The legislative history indicates that the purpose of this amendment to Senate Bill No. 275 was not to create a distinct category of services for which one could file a mechanic’s lien, but rather to avoid potential problems for title searchers by restricting the ability of one who provides services for only a single lot to file a mechanic’s lien against an entire subdivision.17 H.R. Proc., Pt. 10,1974 Sess., pp. 4970-71. We conclude that the phrase “improvement of any lot” was intended to include the same types of services embraced by the phrase “site development or subdivision of any plot of land.” The only distinction intended by the legislature was between services benefiting particular lots and those benefiting the subdivision as a whole.

In determining what types of services the legislature intended to include when it used the terms “improvement,” “site development” and “subdivision,” “ ‘[t]he title of legislation when it is acted upon by the legislature is significant and often a valuable aid to construction . . . .’ (Citations omitted.) Miller v. Board of Education, 166 Conn. 189,194, 348 A.2d 584 (1974).” Zichichi v. Middlesex Memorial Hospital, supra. The title of Senate Bill No. 275 was “An Act Concerning Mechanic’s Liens on Land Being Improved or Subdivided.” (Emphasis added.) A “mechanic” is normally envisioned as a skilled worker who brings about a result by the use of tools, machines or equipment. See Random House Dictionary of the English Language (Unabridged Ed.). Moreover, there is a distinct difference between legal services and the types of services that we previously have indicated fall within the scope of § 49-33 (a). See, e.g., Camputaro v. Stuart Hardwood Corporation, supra, 553-54 (suggesting in dicta that road construction and grading of a building site are within the scope of § 49-33 after the 1974 amendment); Stone v. Rosenfield, supra, 192 (installation of permanent fixtures); Marchetti v. Sleeper, 100 Conn. 339, 342-43,123 A. 845 (1924) (preparation of architectural plans actually used in the construction of a building); Batch v. Chaffee, 73 Conn. 318, 320-21, 47 A. 327 (1900) (construction of a well). Although this distinction is not conclusive in this case, it provides some evidence of the types of services for which one may file a mechanic’s lien.

Further, the legislative history provides no support for the defendant’s claim that the legal services it provided were intended to be included within the phrase “site development or subdivision” of the property. There is no reference in the legislative history to attorneys, nor is there any evidence that the legislature intended to expand the scope of the mechanic’s lien statute to include any type of legal services. Although the legislative history does not define clearly the scope of the 1974 amendment, references therein to surveyors and engineers who draft subdivision plans provide some evidence of the types of services that might be embraced by the amendment. 17 H.R. Proc., Pt. 10, 1974 Sess., pp. 4970-71, 4977-79. These references comport more with what one could accept as an expanded definition of a “mechanic.” Given the distinct difference between the nature of services provided by lawyers, on the one hand, and surveyors and engineers on the other, we conclude that the 1974 amendment was not intended to allow the filing of mechanic’s liens by attorneys providing assistance in zoning and other matters related to real estate.

The defendant also claims that its services resulted in an “improvement” of the land because the change in zoning enhanced the value of the land. It contends that within the context of § 49-33, “improvement” means anything that increases the value of the land. Once again, however, neither the language of the 1974 amendment nor its legislative history indicates that the legislature intended to create such an open-ended test for which services are lienable under § 49-33 (a). We also note that, to the best of our knowledge, no state has allowed an attorney to file a mechanic’s lien for legal services. We therefore decline to adopt so broad an interpretation of our mechanic’s lien statute.

Our conclusion is further supported by a practical construction of the statute. “ '[G]eneral words and phrases may be restricted in meaning to adapt their meaning to the subject-matter in reference to which they are used.’ Barber v. Morgan, 89 Conn. 583, 588, 94 Atl. 984 [1915].” Greenwich Trust Co. v. Tyson, 129 Conn. 211, 222, 27 A.2d 166 (1942). “In construing a statute, common sense must be used and courts must assume that a reasonable and rational result was intended.” Kron v. Thelen, 178 Conn. 189, 192, 423 A.2d 857 (1979). Interpreting the 1974 amendment as having expanded the scope of § 49-33 (a) to include legal services could lead to the filing of mechanic’s liens by a wide range of parties who provide services to land developers, such as insurance agents, real estate agents who are instrumental in the purchase of land and advise as to its potential uses, and financial advisers such as bankers and accountants. Although as a general matter our mechanic’s lien statute must be liberally construed; H & S Torrington Associates v. Lutz Engineering Co., supra, 553; we refuse to adopt an interpretation of § 49-33 (a) that could lead to such a fundamental change in our mechanic’s lien statute absent clear evidence that the legislature intended such a far reaching result.

The judgment is affirmed.

In this opinion the other justices concurred.

       General Statutes (Rev. to 1973) § 49-33, as amended by Public Acts 1974, No. 74-310, provides in pertinent part: “mechanic’s lien, precedence. BIGHTS OF subcontractors, (a) If any person has a claim for more than ten dollars for materials furnished or services rendered in the construction, raising, removal or repairs of any building or any of its appurtenances or in the improvement of any lot or in the site development or subdivision of any plot of land, and the claim is by virtue of an agreement with or by consent of the owner of the land upon which the building is being erected or has been erected or has been moved, or by consent of the owner of the lot being improved or by consent of the owner of the plot of land being improved or subdivided, or of some person having authority from or rightfully acting for the owner in procuring the labor or materials, the building, with the land on which it stands or the lot or in the event that the materials were furnished or services were rendered in the site development or subdivision of any plot of land, then the plot of land, is subject to the payment of the claim.” (Emphasis added.)

       The services provided by the defendant included the following: (1) preparing and presenting zoning applications to the town of Seymour zoning commission in order to change the zoning designation of portions of the land; (2) representing the plaintiff in discussions with the town engineer and the town planner; (3) obtaining and renewing a permit authorizing the plaintiff to operate a quarry on the site; and (4) appearing before inland wetlands and zoning agencies for subdivision of the portion of the land zoned residential. The plaintiff sought the zoning change in conjunction with its unsuccessful effort to sell or lease a portion of the land.

       General Statutes § 49-35a provides in pertinent part: “application for REDUCTION OR DISCHARGE. FORMS. HEARING. ENTRY FEE. (a) Whenever one or more mechanics’ liens are placed upon any real estate pursuant to sections 49-33, 49-34, 49-35 and 49-38, the owner of the real estate . . . may make application ... to the superior court . . . that a hearing or hearings be held to determine whether the lien or liens should be discharged or reduced.”

       Our research has uncovered only one case in which a similar issue has been addressed. In Sooner Federal Savings & Loan Assn. v. Mobley, 645 P.2d 1000, 1003-1004 (Okla. 1981), an attorney who secured the marital home for the husband in a divorce proceeding was unsuccessful in claiming that he was entitled to a mechanic’s lien for his services. This case provides little guidance, however, because it involved a different type of legal service than that in the present case.

       After reviewing the legislative history, we stated that “Public Acts 1974, No. 74-310 expanded the scope of General Statutes § 49-33 to include the terms ‘the improvement of any lot’ and ‘the site development or subdivision of any plot of land.’ It is the first of these additions, ‘the improvement of any lot,’ that is at issue in the present case. In commenting on an amendment to the bill, which was subsequently enacted as Public Acts 1974, No. 74-310, the reporting committee chairman in the House of Representatives stated: ‘We still have an extension of the mechanic’s lien even though we don’t have an extension of the time to file it. You can file it against the property or sub-division whereas heretofore you could only file it against the house that was being worked on, the building.’ And again, in response to the question, ‘Does he contend that it’s the amendment that extends the applicability of the land or is it the bill itself . . .’ the reporting committee chairman, Representative Newman responded: ‘The bill, of course, sir.’ 17 H.R. Proc., Pt. 9, 1974 Sess., pp. 4138, 4140. Compare the comments of the reporting committee chairman in the Senate, Senator Rome, who stated: ‘The bill now as amended would provide that sub-dividers of land, persons who might also be doing site work on the land would have lien rights. The question is, under the existing court adjudications, whether or not that (sic) have or have not those rights. This clearly spells it out. They do . . . .’ 17 S. Proc., Pt. 3,1974 Sess., p. 1338.” Camputaro v. Stuart Hardwood Corporation, 180 Conn. 545, 554-55 n.6, 429 A.2d 796 (1980).

       Representative Hoyte G. Brown, Jr., the sponsor of House Amendment A to Senate Bill No. 275, stated that the amendment “restricts the filing of the mechanic’s lien by a contractor. A contractor, such as a surveyor, can file such a lien against the lot of the subdivision on which he has rendered services or furnished materials. Under the bill as it appears in the files the contractor could file his lien against any or all lots of the subdivision. This power of the contractor could cause problems for people doing title search. A title search could show no lien when in fact a lien does exist against the lot being sold. The amendment allows title searchers to request waivers of any lien from the contractors working on the lot being sold. Under the bill in the file the title searcher must receive waivers from any contractor working on any and all the lots of the subdivision.” 17 H.R. Proc., Pt. 10, 1974 Sess., pp. 4970-71.
      Representative Carl R. Ajello, added that “[s]ome of us were concerned that you could have an entire subdivision land [sic] and placed in default on its mortgage and otherwise interfere with its credit standing by virtue of the default of someone who was taking only a minuscule part in the building of one project within the subdivision. At the same time recognizing that one who renders services in the layout or site improvement work should have the opportunity to lien the entire subdivision.” Id., p. 4971.

       Further support for this conclusion is provided by the title of Senate Bill No. 275, which was, even prior to its amendment by House Amendment A, “An Act Concerning Mechanic’s Liens on Land Being Improved or Subdivided.” (Emphasis added.)

       The record is not clear as to whether the defendant actually sought or obtained approval for the subdivision of the property. For the purposes of our analysis, we can assume that the defendant did indeed provide legal services related to the subdivision of the land.

       See footnote 6, supra, for references to surveyors in the legislative history of the 1974 amendment.
      Representative Thomas M. Kablik asked the following question concerning the effect of the language in Senate Bill No. 275 referring to the “subdivision” of a plot of land: “[A]t what point does this ability to lien commence. For instance, if the developer is in the process of preparing preliminary drawings on the subdivision . . . then he goes and makes his application but for one reason or another it’s either turned down, or let’s say it’s turned down, his work, for instance, that was done from the time of application to the time of turn down . . . for instance, an engineer who had designed the entire thing. Would he then have a lien on the entire parcel even if the subdivision didn’t occur?” (Emphasis added.) 17 H.R. Proc., Pt. 10, 1974 Sess., pp. 4977-78.
      Representative Hoyte G. Brown, Jr., responded: “It’s my opinion, yes. I want to double check that though.” Id., p. 4978. There is no indication in the legislative history that Representative Brown later reached a different conclusion on this issue.
      Although we note that the legislative history of Senate Bill No. 275 appears to indicate that, at least in certain circumstances, surveyors and engineers may file mechanic’s liens, we do not address the nature of these circumstances. See Sisk v. Zukowski, Superior Court, judicial district of Hartford-New Britain at Hartford, Docket No. 346699 (June 29,1988); see generally annot., 87 A.L.R.2d 996.
      The plaintiff argues that General Statutes § 49-33 (a) should be interpreted as including only those services which physically enhance the property or which lay the groundwork for physical enhancement. We decline to address the merits of such an interpretation of § 49-33 because it is not necessary to the resolution of the present case. When the issue becomes ripe for decision in the framework of an actual controversy, we will have ample opportunity to determine the relationship between a physical enhancement test and the legislative history indicating that surveyors and engineers might have been intended to be eligible to file a mechanic’s lien under the statute as amended in 1974.

       Although there is no evidence in the record concerning whether the zoning change actually did increase the value of the land, we will assume that it did for the purposes of our discussion.