Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—CtAppCt: Business Owner’s Harm Too Indirect to Confer Standing, (Nov 15, 2012)

By Jody Coultas, J.D.

A commercial property lessor lacked standing to assert a Connecticut Unfair Trade Practices Act (UTPA) claim against a board member of a condominium association that managed the leased properties, according to a Connecticut appellate court (John T. O’Reilly v. Nicolino Valletta, November 11, 2012, Sheldon, J.).

After leasing a commercial condominium for the purpose of operating a restaurant and renovating the premises through his limited liability company, the lessor posted advertisements for a new restaurant. The board member allegedly interfered with the lessor’s efforts to advertise its business on the leased premises and even personally removed the signs.

The lessor lacked standing to assert the UTPA claim, according to the court. The lessor leased the condominium through his limited liability company. A limited liability company is a distinct legal entity separate from its members. The lessor’s UTPA claims were based on unfair and deceptive business acts that caused financial damage to the limited liability company, rather than to the lessor. The loss of business for the restaurant and cost for new signs resulted in losses for the company and not to the lessor personally. The lessor’s indirect harm caused by the alleged violations of the contractual rights and interest under the lease were insufficient to have standing.

The case is No. AC 34054.

John T. O’Reilly (pro se). Daniel J. Krisch (Halloran & Sage LLP) for Nicolino Valletta.

Cases: StateUnfairTradePractices ConnecticutNews