Justia Rhode Island Supreme Court Opinion Summaries

Articles Posted in Contracts
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This case stemmed from a number of disputes that arose after the defendant corporation, Nuzzo Campion Stone Enterprises, Inc. (NCS), was purchased by its present owner. Plaintiff James Nuzzo alleged that he was owed $133,816 in unpaid commissions on orders that had been placed prior to his termination but not actually paid for by customers of NCS until after his termination. NCS filed a counterclaim for breach of contract, alleging that Plaintiff failed to indemnify NCS for certain amounts covered by the terms of an Asset Purchase Agreement signed by the parties. The trial justice concluded that Plaintiff was not entitled to the disputed commissions and that NCS was due nearly $17,000 for both “work in progress” and warranty work pursuant to the Agreement. The Supreme Court affirmed, holding (1) the trial justice did not err in determining that Plaintiff was not entitled to commissions for orders that had been placed, but not actually paid for, prior to Plaintiff’s termination; and (2) the trial justice did not make “fundamental mistakes regarding the contract and damages” relating to the counterclaim. View "Nuzzo v. Nuzzo Campion Stone Enters., Inc." on Justia Law

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At dispute in this decade-old case was the various rice dishes offered for sale in the food court at the Providence Place Mall. These consolidated appeals represented the second and third times that the Supreme Court was asked to entertain fragmented issues. Cathay Cathay, Inc., Japan Cafe of Providence Place, Inc., Surf & Turf Grille, Inc., and Gourmet India all entered into lease agreements to operate restaurants in the food court. Each lease agreement set forth restrictions on the foods each restaurant could serve. Cathay Cathay and Surf & Turf (collectively Plaintiffs) brought this action against Rouse Providence, LLC, Gourmet India, and Japan Cafe seeking to enjoin the two restaurants from selling the foods to which they had alleged exclusive rights. Plaintiffs also requested that the court order Rouse to enforce its lease agreements with Cathay Cathay and Surf & Turf against Gourmet India and Japan Cafe, alleging that the restaurants violated their lease agreements by selling prohibited foods. After protracted litigation, a second trial justice entered partial final judgment in favor of Rouse. The Supreme Court vacated the partial final judgment, holding that the trial justice abused her discretion in determining that there was a previous adjudication on the merits of Plaintiffs’ contractual claims against Rouse. Remanded. View "Cathay Cathay, Inc. v. Vindalu, LLC" on Justia Law

Posted in: Contracts
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After Strine Printing Company terminated Richard Bisbano’s employment, Bisbano filed an eight count complaint against Strine Printing and its president, alleging, inter alia, wrongful termination. During the pendency of that lawsuit, the parties disagreed about the exact amount of commissions that Strine owed Bisbano. The federal district court granted Defendants’ motion for summary judgment on all counts. Bisbano subsequently filed another lawsuit against Strine Printing and Menasha Packaging Company, LLC in superior court, alleging unpaid commissions. The trial justice ruled in favor of Defendants, concluding that the three-year statute of limitations contained in Rhode Island’s Payment of Wages Act barred the claim and that res judicata barred Bisbano’s contract claims. The Supreme Court affirmed, holding (1) this action was barred by the statute of limitations contained in the Payment of Wages Act; and (2) because the statute of limitations issue is dispositive, the Court shall not address the issue of res judicata. View "Bisbano v. Strine Printing Co., Inc." on Justia Law

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After a jury-waived trial, the trial justice entered judgment in favor of Defendant on Plaintiff’s breach of contract claim. The justice also entered judgment in favor of Defendant on his counterclaim for conversion. Plaintiff appealed the adverse rulings and also appealed the denial of her post-trial motion for relief from the superior court judgment, which motion invoked Rule 60(b) of the Superior Court Rules of Civil Procedure. The Supreme Court affirmed the judgment of the superior court, holding that the trial justice did not err in (1) determining that there was no contract; (2) finding in Defendant’s favor on his conversion counterclaim; and (3) dismissing Plaintiff’s Rule 60(b) motion. View "Turdo v. Main" on Justia Law

Posted in: Contracts
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Defendant, an attorney, represented Plaintiff in post-final judgment divorce proceedings. Defendant later withdrew as counsel with the family court’s approval. Three years later, Plaintiff filed a complaint against Defendant, alleging legal malpractice, negligence, fraud, and breach of fiduciary duty. The superior court entered summary judgment in favor of Defendant on each of Plaintiff’s claims. The Supreme Court affirmed, holding (1) Plaintiff’s legal malpractice and fraud claims were barred by the statute of limitations, and the trial justice did not err in concluding that the discovery rule did not toll the statute of limitations; (2) Plaintiff’s malpractice claims necessarily failed because she did not retain an expert witness to testify in support of her case; and (3) Plaintiff’s remaining claims on appeal were wholly without merit. View "Behroozi v. Kirshenbaum" on Justia Law

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Sophie Danforth entered into a purchase and sales agreement (PSA) with Timothy and Rebecca More, pursuant to which Danforth agreed to sell, and the Mores agreed to purchase, certain real estate. The PSA provided that $30,000 would be paid as a deposit at the time the PSA was executed. The Mores failed to appear at the scheduled closing. Thereafter, Danforth filed an amended complaint alleging breach of contract, requesting that she be allowed to retain the Mores’ deposit, and seeking declaratory relief, asking the court to construe the terms of the PSA and to order the escrow agent to disburse the deposit to Danforth. The hearing justice granted summary judgment in favor of Danforth, concluding that Danforth was entitled to retain the deposit. The court further denied Danforth’s motion for attorney’s fees but awarded prejudgment interest. The Supreme Court affirmed, holding that there was no error in the grant of summary judgment in favor of Danforth, the award of prejudgment interest to Danforth, and the denial of attorneys’ fees. View "Danforth v. More" on Justia Law

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Defendants hired various construction companies to assist in the construction of a house and barn on their property. Plaintiff was one of the subcontractors that worked on the project. Plaintiff brought this action against Defendants for breach of contract, book account, and unjust enrichment seeking payment for the work it had completed but for which it had not been paid. The superior court justice entered judgment for Plaintiff on its claim of unjust enrichment but entered judgment for Defendants on the remainder of Plaintiff’s claims. The trial justice also entered an order awarding costs to Plaintiff. The Supreme Court affirmed the superior court’s judgment but vacated and remanded the order, holding (1) the trial justice correctly found the three elements that a Rhode Island plaintiff must prove to recover on a claim of unjust enrichment; and (2) the trial justice erred in awarding Plaintiff’s “Application for Taxation of Costs” because the order explicitly included the fee generated by expert testimony. View "South County Post & Beam, Inc. v. McMahon" on Justia Law

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In 2005, Plaintiffs purchased property from Seller, and Seller conveyed the property to Plaintiffs by deed. After the sale was finalized but before Plaintiffs were able to move into the property, Plaintiffs experienced significant flooding in the driveway, garage, and basement. The flooding and water-penetration issues persisted over the next several years. In 2010, Plaintiffs experienced extensive flooding of their property. Plaintiffs brought this action against Seller and entities involved in the sale (collectively, Defendants), alleging breach of contract, negligence, and fraud. The superior court granted Defendants’ motions for summary judgment. The Supreme Court affirmed in part and vacated in part, holding (1) the superior court correctly granted summary judgment on Plaintiffs’ contract and negligence claims; but (2) the merger and disclaimer clause contained in the purchase and sales agreement was not drawn with sufficient specificity to bar Plaintiffs’ claim for fraud. Remanded. View "McNulty v. Chip" on Justia Law

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In 2011, the Town of Middletown issued an invitation for bids on a drainage improvement project. Two contractors submitted bids, including HK&S Construction Holding Corp., which provided the lowest bid. Woodard & Curran, Inc. recommended against awarding HK&S the project and in favor of negotiating a contract with the second bidder. The town counsel concluded that HK&S’s bid was non-responsive and awarded the contract to the second bidder. Plaintiff filed a complaint against the Town and Woodard & Curran alleging, among other claims, that the Town violated state and local law when it denied the contract award for the project. The superior court granted summary judgment for Defendants. The Supreme Court affirmed, holding (1) there was no error in disposing of HK&S’s claims against the Town in summary judgment where HK&S failed to submit a responsive bid; and (2) HK&S’s claim of negligence against Woodard & Curran also failed. View "HK&S Constr. Holding Corp. v. Dible" on Justia Law

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Atwood Health Properties, LLC contracted with Calson Construction Company to construct a medical office building. Calson engaged Gem Plumbing & Heating Co., Inc. (GEM) as a subcontractor to design and install a heating, ventilation, and air conditioning (HVAC) system. Five years after the project was completed, Atwood sold the building to Atwood Medical Properties, LLC (AMP). When AMP experienced compressor failures in the HVAC system, AMP filed suit against Atwood. Atwood paid for a new HVAC system and initiated arbitration proceedings against Calson to recover its costs. Calson, in turn, initiated an arbitration proceeding against GEM for indemnification under the parties’ contract. The two arbitration proceedings were consolidated. The arbitrator concluded that Calson should pay Atwood $358,223 and that GEM should pay Calson that same amount. The superior court confirmed the arbitration award. GEM appealed. The Supreme Court affirmed, holding that the trial justice properly confirmed the arbitration award. View "Atwood Health Props., LLC v. Calson Constr. Co." on Justia Law