Justia Rhode Island Supreme Court Opinion Summaries

A general contractor hired a subcontractor to perform electrical work on a marina expansion project in Bristol, Rhode Island. The subcontract specified that time was critical and required timely written notice of delays, as well as an indemnification clause. After the parties negotiated an expanded scope of work and the general contractor paid a deposit, the subcontractor failed to meet the estimated completion schedule and did not provide required delay notices. As a result, the town threatened to terminate the general contract. The general contractor then terminated the subcontract and hired a replacement. The contractor sued the subcontractor and its CEO in Providence County Superior Court, alleging breach of contract, negligent misrepresentation, fraud, and conversion, and sought damages and attorney’s fees.The defendants answered and asserted affirmative defenses. After repeated failures to comply with discovery orders and to retain new counsel following their attorney’s withdrawal, the Superior Court issued conditional orders of default, giving the defendants multiple opportunities to comply. When they did not, the court entered a default judgment for the contractor, including damages, costs, prejudgment interest, and attorney’s fees. The CEO appeared at some hearings but not others, raising concerns about notice and service, which were addressed by the trial justice, who instructed him to file a Rule 60 motion to vacate the default if he wished to contest notice. No such motion was filed. Both sides subsequently filed motions with the Rhode Island Supreme Court relating to remand and post-judgment relief.The Supreme Court of Rhode Island reviewed whether the trial justice abused discretion in entering the default judgment. It held that the defendants’ failure to file a Rule 60 motion or properly raise notice issues in the lower court precluded appellate review of those issues. The Court found no abuse of discretion in the entry of default and affirmed the Superior Court’s judgment. The imposition of a cash bond as a condition for remand did not violate due process. View "Reagan Marine Construction, LLC v. Costa" on Justia Law

A carpenter who managed his own construction business was involved in a multi-vehicle accident in September 2013, while driving a car owned by another individual. The accident, caused by another driver, resulted in significant injuries and financial losses for the plaintiff, who claimed over $75,000 in medical expenses and more than $250,000 in lost income. The plaintiff had a business insurance policy with Main Street America Assurance Company (MSAA) during the relevant period. The driver and owner of the vehicle that struck the plaintiff were insured by GEICO General Insurance Company.Previously, the plaintiff sued the at-fault driver and owner (the Mathieus) in Kent County Superior Court and later settled that case. In the present suit, the plaintiff brought claims against both GEICO and MSAA for breach of contract, breach of the implied covenant of good faith and fair dealing, and statutory bad faith refusal to settle. Both defendants moved to sever the bad faith and implied covenant claims and to stay discovery on those claims, which the Superior Court granted. The court also denied the plaintiff’s motion to compel additional document production from GEICO, pending resolution of summary judgment motions. Ultimately, the Superior Court granted summary judgment for both defendants.On appeal, the Supreme Court of Rhode Island affirmed the Superior Court’s judgments. The Court held that MSAA’s business insurance policy expressly excluded coverage for injuries arising from automobile use, so the plaintiff’s contract and related claims failed as a matter of law. As to GEICO, the Court found that Rhode Island law prohibits direct actions against an insurer under these circumstances, and the plaintiff had no contractual or third-party rights under the GEICO policy. The Court also concluded that the issues related to severance and discovery were moot given the disposition of the contract claims. View "Menge v. GEICO General Insurance Company" on Justia Law

The case centers on an owner of a waterfront condominium in Newport, Rhode Island, who hired a real estate agency and its agent to find a suitable tenant for his property. The agency presented a candidate, Cynthia Dziurgot, who passed credit and criminal background checks, and the owner entered into a lease with her. After several months, Dziurgot stopped paying rent and refused to vacate the property at the end of the lease, leading to an extended eviction process during the COVID-19 eviction moratorium. The owner later discovered that an internet search would have revealed a history of misconduct and legal issues involving the tenant.The plaintiff filed suit in Newport County Superior Court, alleging breach of contract and negligence by the agency and its agent for allegedly failing to adequately vet the tenant. The plaintiff intended to call a real estate expert to testify that a reasonable real estate professional would have conducted an internet search of the prospective tenant. However, after failing to produce the expert for deposition as agreed in a consent order, the court precluded the plaintiff from offering any expert testimony. The defendants then moved for summary judgment, arguing that without expert testimony, the plaintiff could not establish the applicable standard of care for real estate professionals. The Superior Court granted summary judgment for the defendants, finding that the standard of care was not within common knowledge and required expert testimony.On appeal, the Supreme Court of Rhode Island reviewed the grant of summary judgment de novo. The Court held that establishing the standard of care for real estate professionals regarding background searches is not within the common knowledge of laypersons and requires expert testimony. Because the plaintiff was precluded from offering such testimony, summary judgment for the defendants was affirmed. View "Hurd v. H & H Real Estate, LLC" on Justia Law

A dispute arose following a failed real estate transaction involving the sale of a hotel property in Warwick, Rhode Island. The property was to be sold by Shiva, LLC, of which Jay Patel was the registered agent, to LandingPartners LLC under a Purchase and Sale and Discounted Pay-Off Agreement. Centreville Bank held a mortgage on the property, which was in default. When Shiva, Airport Hospitality (another entity linked to Patel), and Patel failed to respond to an earlier lawsuit brought by LandingPartners, the Superior Court entered a default judgment against them, ordering specific performance of their obligations under the agreement and appointing a commissioner to facilitate the closing. Afterward, LandingPartners and Centreville Bank reached a consent order with new terms for the sale and discharged the mortgage, and the case was dismissed with prejudice.Shortly after the dismissal of the first case, Patel filed a new lawsuit in the Washington County Superior Court against LandingPartners, Centreville, and a related entity, 1850 Post Road Owner LLC. He alleged violations of the agreement, fraud, misrepresentation, unjust enrichment, and breach of the implied covenant of good faith and fair dealing. The defendants moved to dismiss, arguing the claims were barred by res judicata because they arose from the same transaction addressed in the prior litigation. The Superior Court agreed, finding that the parties or their privies were the same, the issues arose from the same transaction, and there was a final judgment in the first action.The Supreme Court of Rhode Island affirmed the Superior Court’s judgment. The Court held that res judicata barred Patel’s claims, as all issues now raised were or could have been raised in the initial suit, and the new claims concerned the same transaction. The dismissal of Patel’s complaint with prejudice was therefore upheld. View "Jay Patel v. LandingPartners LLC et al." on Justia Law

The dispute centers on foreclosure proceedings involving a residential property in West Warwick, Rhode Island. The plaintiffs purchased the property in 2006, executing a mortgage and promissory note with Long Beach Mortgage Company. After defaulting on the mortgage payment due July 1, 2022, Select Portfolio Servicing (SPS), the mortgage servicer, sent a notice of default and right to cure by certified mail in August 2022. The mortgage had previously been assigned to Deutsche Bank National Trust Company. Following further notices, including a notice of acceleration, the property was sold at foreclosure in April 2023. Plaintiffs then filed suit, alleging wrongful foreclosure based on purported defects in the required notices, specifically arguing that the notices failed to strictly comply with paragraph 22 of the mortgage contract, which governs the notice requirements prior to foreclosure.In Kent County Superior Court, the defendants moved for summary judgment, arguing that the notices strictly complied with the contractual requirements and properly informed plaintiffs of their rights, including the right to cure and reinstate. Plaintiffs objected, asserting that the notice of default contained inaccuracies regarding the cure date and that the notice of acceleration used language that was insufficiently unequivocal with respect to their right to reinstate. The hearing justice found no genuine issues of material fact and granted summary judgment in favor of defendants, concluding that the notices satisfied the requirements of the mortgage. Judgment was entered in February 2025.The Supreme Court of Rhode Island reviewed the case de novo. It held that the notice of default strictly complied with paragraph 22 of the mortgage, adequately informed plaintiffs of the required cure date, and unequivocally stated the right to reinstate after acceleration. The Court further determined that the notice of acceleration was not required to reiterate the right to reinstate in the same manner. The Court affirmed the judgment of the Superior Court. View "Diaz v. Select Portfolio Servicing" on Justia Law

The dispute centers on allegations of breach of contract and related claims involving a credit card account that the defendant allegedly opened with a national bank. The bank claimed that the defendant opened the account, used it for purchases and cash advances, and then defaulted by failing to make the required payments, leaving a substantial unpaid balance. The defendant denied the material allegations in her answer to the complaint.After the initial pleadings, the bank moved for summary judgment in the Kent County Superior Court, asserting that there were no material facts in dispute and it was entitled to judgment as a matter of law. Importantly, the bank’s motion was not initially accompanied by any supporting affidavits or exhibits. The defendant filed an affidavit in opposition, pointing out the lack of any supporting affidavit from the bank. On the day of the hearing, the bank submitted an affidavit by emailing it to the hearing justice’s clerk, rather than filing and serving it in accordance with procedural rules. Despite the defendant’s objections to this late submission and improper service, the Superior Court granted summary judgment in favor of the bank, relying on the belated affidavit. Final judgment was entered, and the defendant appealed.The Supreme Court of Rhode Island reviewed the Superior Court’s grant of summary judgment de novo. The Supreme Court found that the bank’s failure to timely file and serve the affidavit, as required by Rule 6(c) of the Superior Court Rules of Civil Procedure, prejudiced the defendant’s ability to respond. The Supreme Court held that the hearing justice erred in relying on the untimely affidavit and in not postponing the hearing. The judgment of the Superior Court was vacated, and the case was remanded for further proceedings consistent with the Supreme Court’s opinion. View "American Express National Bank v. Perretta" on Justia Law

A dispute arose regarding the sale of property located at 301 Harris Avenue in Providence, Rhode Island. The plaintiff, 1100 North Main LLC, sought to purchase property from the Providence Firefighters Realty Corp. (the Firefighters), contingent on the Firefighters acquiring replacement property. The Firefighters entered into negotiations with the defendant, Shoreby Hill Properties, Inc., to purchase the Harris Avenue property. After several communications, the Firefighters signed a draft purchase and sales agreement for the property, but the defendant refused to execute it and reportedly accepted another offer. The plaintiff then filed a complaint seeking declaratory, equitable, or monetary relief based on the alleged contract, and recorded two notices of lis pendens against the Harris Avenue property.In the Providence County Superior Court, the defendant moved to dismiss the complaint, quash the lis pendens, and sought sanctions. The plaintiff argued that the attorneys’ communications constituted assent and that a purported assignment from the Firefighters gave the plaintiff standing. Before the Superior Court justice issued a decision, the plaintiff attempted to amend its complaint to add factual allegations and clarify standing. The trial justice dismissed the complaint and quashed the lis pendens, finding that the allegations failed to satisfy the statute of frauds and did not establish standing. The motion to amend was denied as futile, as no enforceable contract was found.On appeal, the Supreme Court of Rhode Island reviewed whether a binding contract existed under the statute of frauds and whether denial of the motion to amend was proper. The Supreme Court held that the unsigned purchase and sales agreement did not satisfy the statute of frauds and no binding contract existed. The Court affirmed the Superior Court’s dismissal of the complaint, quashing of the lis pendens, and denial of the motion to amend. View "1100 North Main LLC v. Shoreby Hill Properties, Inc." on Justia Law

The dispute arose when a company provided estimating services related to property damage at a property in North Providence, Rhode Island. The company claimed it had an agreement with the property owner to perform these services and subsequently invoiced the owner for $3,100. The property owner, however, asserted that there was no signed contract for repairs and that an employee of the company had assured her that there would be no charge unless a formal appraisal was required. Despite this, the owner signed a document labeled as a request for a formal appraisal.A civil action for payment was initiated in the Third Division District Court, which found in favor of the company and entered judgment for $3,100 plus statutory interest. The property owner filed a timely appeal to the Kent County Superior Court. At the Superior Court, a bench trial was held, during which testimony from both parties and a co-owner was heard. The trial justice found that a contract for estimation work had existed, based on the evidence presented, and awarded the company the amount requested. The court noted the repeated attempts by the company to send the invoice and the owner’s refusal to accept it. The Superior Court subsequently dismissed the owner’s appeal from the District Court judgment.When the appeal reached the Supreme Court of Rhode Island, the defendant failed to provide complete transcripts of the trial or to present any substantive legal arguments. The Supreme Court determined that, because of these deficiencies and the lack of meaningful appellate argument, any issues were deemed waived. The Supreme Court affirmed the order of the Superior Court and remanded the case as appropriate. The main holding is that, in the absence of proper appellate procedure and argument, the Superior Court’s decision stands. View "Future Contracting & Estimators, LLC v. Allen" on Justia Law

In 2011, Deutsche Bank filed a breach-of-contract action against Walter M. Potenza and Carmela Natale, alleging default on a promissory note and loan modification agreement. Deutsche Bank obtained a judgment for $1,662,837.12 in 2017. In 2021, the plaintiffs filed an independent action in equity, claiming Deutsche Bank committed fraud on the court by falsely asserting it was the holder of the note, despite knowing the note had not been properly endorsed.The Superior Court granted Deutsche Bank's motion for judgment on the pleadings, finding no credible evidence of fraud and determining that the plaintiffs' failure to obtain the deposition earlier was due to their attorneys' negligence. The plaintiffs appealed this decision.The Rhode Island Supreme Court reviewed the case and affirmed the Superior Court's decision. The Court held that the plaintiffs could not establish all the elements required for relief under Rule 60(b). Specifically, the plaintiffs admitted Deutsche Bank was the holder of the note in their 2011 answer and did not present evidence or seek a continuance during the 2017 summary judgment hearing. The Court concluded that the plaintiffs' failure to challenge the validity of the note or the knowledge of Deutsche Bank's affiant precluded them from obtaining relief. The judgment in favor of Deutsche Bank was affirmed, and the case was remanded to the Superior Court. View "Potenza v. Deutsche Bank National Trust Company" on Justia Law

E.H. Turf Supply Company, Inc. filed a small-claims action against Roger Tavares, alleging that Tavares stopped payment on a check for services performed on his tractor. Tavares denied the allegations and counterclaimed for $2,500, asserting that the services were not rendered. The District Court ruled in favor of E.H. Turf Supply, awarding $1,500 plus costs. Tavares appealed to the Superior Court, arguing procedural errors and bias.The Superior Court held a de novo bench trial. E.H. Turf Supply presented testimony from its president, Erik Hagenstein, who detailed the company's repair process and confirmed that Tavares had approved and paid for the services before stopping payment. Tavares cross-examined Hagenstein and attempted to introduce invoices from other repair shops to show that the repairs were not properly done. The trial justice excluded these invoices as hearsay but allowed Tavares to testify about his experience.The Superior Court found in favor of E.H. Turf Supply, awarding $1,703.71. Tavares appealed to the Rhode Island Supreme Court, arguing that the Superior Court erred in allowing E.H. Turf Supply to present its case first, excluding his evidence, and not considering his status as a self-represented litigant.The Rhode Island Supreme Court reviewed the case and found no merit in Tavares's arguments. The Court held that E.H. Turf Supply, as the plaintiff, was correctly allowed to present its case first. The exclusion of the invoices was proper as they were hearsay, and the trial justice provided Tavares with ample opportunity to present his case. The Court affirmed the judgment of the Superior Court. View "E.H. Turf Supply Co. v. Tavares" on Justia Law