Rein v. ESS Group, Inc.

by
The Supreme Court affirmed in part and reversed in part the order of the superior court granting a motion to dismiss brought by Defendants in this case alleging that Defendants, including ESS Group, Inc., violated the Rhode Island Whistleblowers’ Protection Act, R.I. Gen. Laws chapter 50 of title 28 (WPA), and the Rhode Island Business Corporation Act (BCA), R.I. Gen. Laws chapter 7-1.2.The hearing justice determined that Plaintiff’s complaint failed to state a claim upon which relief could be granted and dismissed the action. Specifically, the hearing justice found (1) Defendants’ conduct did not violate the BCA because Rhode Island has no authority to regulate the internal affairs of a foreign corporation, such as ESS, and the provisions that Defendants allegedly violated did not apply because the provisions use the term “corporation,” not “foreign corporation”; and (2) Plaintiff failed to assert a WPA claim premised on Defendants’ alleged BCA violations because ESS was not subject to the BCA. The Supreme Court held (1) Plaintiff was not entitled to relief under the BCA count; but (2) Plaintiff’s complaint sufficiently pled a WPA claim. View "Rein v. ESS Group, Inc." on Justia Law