Justia Rhode Island Supreme Court Opinion Summaries

The dispute at the center of this case arose from a business relationship that "rapidly turned sour." Plaintiffs Charles and Marguerite Takian and Defendants Ralph and Lucia Rafaelian together purchased property in South Kingstown that included a motel, restaurant and trailer park. The couples formed a business to manage the property and Plaintiffs agreed to run the businesses. In 2002, the relationship between the parties deteriorated when Defendants alleged Plaintiffs were mismanaging the businesses. Defendants decided to sell their interest to Plaintiffs' son Randolph. As part of the sale, Defendants signed a release absolving Plaintiffs from "any and all claims arising out of the ownership of the property and operation of the business." After the sale, Defendants continued to feel "unsettled" about how the business had been operated. They investigated further and alleged to have discovered facts that suggested far more serious misdeeds in management. Plaintiffs filed an action for declaratory relief, in which they sought a ruling that the release that had been executed by Defendants contemporaneous with the sale barred any further claims. Defendants counterclaimed, both on behalf of themselves and derivatively on behalf of the corporation, alleging embezzlement, misrepresentation, misappropriation, and loss of corporate opportunity. A justice of the Superior Court granted summary judgment in favor of Plaintiffs, after he found that the release was both valid and effective against both defendants and the corporation. Defendants appealed. Upon review, the Supreme Court affirmed in part, and reversed in part. The Court found triable issues of fact that were inappropriate for resolution by summary judgment. The case was remanded for further proceedings with respect to those remaining issues. View "Takian v. Rafaelian" on Justia Law

The issue before the Supreme Court was a dispute over the existence of an alleged prescriptive easement that was necessary for large commercial vehicles to get to the loading dock of a commercial building. The plaintiffs, Butterfly Realty and Dairyland, Inc., appealed the judgment entered against them on their claims for a prescriptive easement on the property of the defendant, James Romanella & Sons, Inc. (JR & Sons). Butterfly Realty purchased a parcel of land from Albert Romanella, who, at the time, was president and 50 percent shareholder of JR & Sons. On that same date, Albert Romanella also assigned to Butterfly Realty his lease for an adjacent lot. Dairyland, Inc. was the owner of another adjacent parcel. Access to the loading dock at the rear of Butterfly’s building was impossible without crossing onto JR & Sons' property to some degree because the commercial building was built so close to the common property line between the lots in question. Therefore, JR & Sons granted an express easement to Butterfly to provide access to the loading dock of Butterfly’s commercial building. After a delivery truck struck a building on JR & Sons' property, JR & Sons surveyed the area in May 2010 to determine the precise location of the express easement. Then, in an effort to encourage Butterfly to "come to some kind of agreement for * * * using all of [its] property all the time, JR & Sons installed “concrete pylons" along the southwestern borders of the express easement making it nearly impossible for trucks to continue to pull directly up to the loading dock as had been done previously. The trial justice denied Butterfly's claim for a prescriptive easement and denied both Butterfly and JR& Sons' requests for injunctive relief. Upon review, the Supreme Court found that the trial justice misapplied the law with regard to Butterfly's use of the easement as "sufficiently hostile," and this misapplication sufficiently tainted the balance of the trial justice's decision. The Supreme Court vacated the superior court's judgment and remanded the case for further proceedings. View "Butterfly Realty et al. v. James Romanella & Sons, Inc." on Justia Law

Plaintiff Daniela Turacova and Ronald DeThomas (DeThomas) formed a limited liability company known as TAMA. After DeThomas passed away, a dispute arose regarding the buyout of his interest in TAMA. Because Plaintiff and Defendant, the Estate of DeThomas, were unable to agree upon the purchase price for DeThomas's fifty percent interest in TAMA, the superior court determined the fair market value of the property and construed several provisions of the TAMA operating agreement to fix the total amount that Plaintiff owed to the Estate. The superior court entered judgment in favor of Defendant in the amount of $658,573, including prejudgment interest. The Supreme Court affirmed, holding that the trial court did not err in (1) disregarding the language of the parties' settlement agreement indicating that Plaintiff would have thirty days from the date of the property was valued in which to pay Defendant, as the settlement agreement did not supersede the provision in the operating agreement concerning the time for payment; and (2) awarding prejudgment interest. View "Turacova v. DeThomas" on Justia Law

The Town of Little Compton filed a complaint against the town firefighters union, contending that the union, or its representative, had engaged in the unauthorized practice of law when the union allowed its nonlawyer business agent to represent it at a labor arbitration hearing. The Unauthorized Practice of Law Committee concluded that the union representative's action constituted a technical violation of the statute governing the unauthorized practice of law. Mindful that this type of lay representation of unions in labor arbitrations is a common practice, the Committee petitioned the Supreme Court on how to proceed. The Supreme Court held that, although the conduct involved in this case may have been the practice of law pursuant to the statute, because of the long-standing involvement of nonlawyer union employees at public grievance arbitrations, the Court would not limit this involvement at this time. View "In re Town of Little Compton" on Justia Law