A Primer on CUTPA and CUIPA

Transcription

1 A Primer on CUTPA and CUIPA What You Should Know about Connecticut s Unfair Practices Statutes Bethany L. DiMarzio, Esq. Saxe Doernberger & Vita, PC Cara A. Ceraso, Esq. Pullman & Comley 1

2 Presenter Introductions 2

3 Agenda 1. Introduction to CUTPA and CUIPA 2. What is an unfair practice, anyway? 3. Why plead a CUTPA/CUIPA claim? 4. Who can plead a CUTPA/CUIPA claim? 5. How to plead a CUTPA or CUIPA claim 6. Defending against a CUTPA/CUIPA claim 3

4 CUTPA Connecticut Unfair Trade Practices Act Enacted 1973 Prohibits unfair competition and unfair or deceptive practices in the conduct of any trade or commerce 4

5 CUIPA Connecticut Unfair Insurance Practices Act Enacted 1955 Prohibits unfair and deceptive behavior in the practice of insurance Statute lists sixteen prohibited practices plus blanket prohibition on unfair practices 5

6 What is an unfair practice, anyway? 6

7 The Cigarette Rule Three part test: o Offend public policy? o Immoral, oppressive, unethical, or unscrupulous? o Causes substantial injury to consumers, competitors, or other businessmen? 7

8 The Cigarette Rule Causes substantial injury to consumers, competitors, or other businessmen? o Substantial o Not outweighed by benefits to consumers or competition produced by the practice o Injury the consumers couldn t have avoided 8

9 Why plead a CUTPA/CUIPA claim? 9

10 Why Plead CUTPA/CUIPA? Common law punitive damages = attorney s fees CUTPA/CUIPA punitive damages = true punitive damages 10

11 Punitive Damages Courts vary on how punitive damages are measured Factors: o Further goal of deterrence o Look to defendant s finances to see if punitive damages would have deterrent effect o Factual circumstances, including mitigating evidence 11

12 Why Not Plead CUTPA/CUIPA General business practice is hard to prove 12

13 Who can plead a CUTPA/CUIPA claim? 13

14 Who Can Plead CUTPA Any person who suffers loss as a result of a prohibited practice Person includes natural people, companies, etc Commissioner of Consumer Protection Attorney General 14

15 Who Can Plead CUIPA Connecticut Insurance Commissioner No private cause of action People must plead CUIPA as a violation of CUTPA 15

16 How to plead a CUTPA or CUIPA claim 16

17 Pleading Standards Federal court: plausibility pleading State court: fact pleading 17

18 How to Plead CUTPA/CUIPA See sample complaints Remember to plead CUIPA as a violation of CUTPA Send a copy to the Secretary of State and Attorney General o CUTPA@ct.gov 18

19 CUIPA: Unfair Claims Settlement Special requirement: must plead a general business practice More than one instance of misconduct Can t be multiple bad acts related to a single insurance claim 19

20 CUIPA: Unfair Claims Settlement Courts split as to how general business practice must be pled: 1. Allege facts of one violation plus a statement that this is a regular business practice 2. Allege specific facts of more than one violation CT Supreme Court hasn t addressed this 20

21 CUIPA: Unfair Claims Settlement 1. Allege facts of one violation plus a statement that this is a regular business practice CUTPA and CUIPA are remedial in nature, and should be construed liberally to benefit claimants 21

22 CUIPA: Unfair Claims Settlement 2. Allege specific facts of more than one violation Allegations based on reasonable information and belief are legal conclusions 22

23 CUIPA: Unfair Claims Settlement D. CT: general allegations aren t enough 23

24 CUIPA: Unfair Claims Settlement How to find evidence of a general business practice? o Westlaw o PACER o FOI request o Networking 24

25 Defending against a CUTPA/CUIPA claim 25

26 Defending a CUTPA/CUIPA Claim Statute of limitations: three years Federal court: motion to dismiss State court: motion to strike 26

27 Questions? 27

28 Contact Info Bethany L. DiMarzio Cara A. Ceraso