Justia Rhode Island Supreme Court Opinion Summaries

Articles Posted in Contracts
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The underlying action in this case concerned real property located in the City of Warwick that Defendant, Felix Carlone, dedicated to the City in 1979. Plaintiffs, Warwick Sewer Authority (WSA) and the City, brought a complaint for a declaratory judgment concerning the City's ownership of the property. The superior court granted summary judgment in favor of Plaintiffs. Defendant appealed, contending that he dedicated the property on the condition that it be used as open space, that he maintained a reversionary interest in it, and that, therefore, genuine issues of material facts should have precluded the hearing justice from granting summary judgment. The Supreme Court affirmed, holding (1) because no ambiguity existed on the face of the writings in this case, the parol evidence that Defendant presented rightly was not entertained by the hearing justice to vary the writings' terms; and (2) the property restrictions filed by Defendant with the City did not operate to restrict WSA from rezoning the dedicated land from open space to residential. View "Warwick Sewer Auth. v. Carlone" on Justia Law

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Plaintiff Thomas DePetrillo filed suit against Belo Holdings, Inc. and Citadel Broadcasting Company, challenging the validity of Citadel's right of first refusal to purchase a broadcasting tower and surrounding real estate owned by Belo. The superior court granted Defendants' motions for summary judgment, concluding that Plaintiff, as a stranger to the original lease agreement between Belo and Citadel, had no standing to challenge Citadel's right of first refusal or the effectiveness of its exercise. The Supreme Court affirmed, holding (1) Plaintiff lacked authority to challenge the validity of the right of first refusal; and (2) Citadel's right of first refusal was enforceable as a matter of law. View "DePetrillo v. Belo Holdings, Inc." on Justia Law

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This negligence and breach of contract action arose out of Plaintiff's fall in one of Defendant's stores. Plaintiff Maureen Habershaw appealed from the superior court's grant of a motion for summary judgment in favor of Defendant, Michaels Stores. At issue on appeal was whether an allegation that a floor was shiny, standing alone, could withstand a challenge to a claim that a plaintiff was injured as a result of a dangerous condition. The Supreme Court affirmed, holding that the superior court did not err when it granted Defendant's motion for summary judgment because there was no issue of material fact about whether a dangerous condition existed at the time of Plaintiff's fall. To the contrary, the Court held, there was a complete absence of any evidence upon which Defendant's negligence could be established. View "Habershaw v. Michaels Stores, Inc." on Justia Law

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This insurance-coverage dispute arose after a driver of a leased vehicle struck and seriously injured a pedestrian. The vehicle, a BMW, was owned by BMW Financial Services. The pedestrian and her family sued the driver and BMW Financial for damages. Citizens Insurance Company provided a personal automobile policy listing the driver as an insured and BMW Financial as an additional insured lessor. A separate business auto insurance policy was issued by Empire Fire and Marine Insurance Companies to BMW Financial. The case settled, with Citizens and Empire paying their policy limits. Citizens reimbursed Empire for a portion of the costs Empire expended in legal expenses defending BMW Financial in the civil action but refused to provide Empire with any further reimbursement. Empire subsequently filed a complaint for declaratory judgment seeking a determination that Citizens was liable for reimbursement of all attorneys' fees it incurred. The superior court granted Empire's motion for summary judgment. Citizens appealed, arguing that Empire was entitled only to a pro-rata apportionment of defense costs. The Supreme Court affirmed, holding that it would be improper to resort to a pro-rata apportionment of liability. View "Empire Fire & Marine Ins. Cos. v. Citizens Ins. Co. of Am./Hanover Ins." on Justia Law

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This appeal concerned the 2003 fire that occurred at the Station nightclub, wherein one hundred people died. The nightclub was co-owned by Plaintiffs, Michael and Jeffrey Derderian. A grand jury returned separate criminal indictments against Plaintiffs on charges of involuntary manslaughter. Prior to the fire, Essex Insurance Company had issued an insurance policy to Michael. Plaintiffs demanded, pursuant to R.I. Gen. Laws 12-28-5 and the policy, that Essex afford them a defense against the criminal prosecutions. When Essex refused, Plaintiffs filed a complaint against Essex, seeking a declaratory judgment that the grand jury indictments against them constituted a suit as defined in the Essex policy and that, accordingly, Essex had a duty to provide them with a defense in the related criminal proceedings. The superior court granted summary judgment in favor of Essex. The Supreme Court affirmed, holding that the language of the policy clearly showed that the parties' intention when entering into the contract was that Essex would provide Plaintiffs with a defense only in civil proceedings in which bodily injury or property damage were alleged, and therefore, Essex had no duty to defend Plaintiffs in their criminal prosecutions. View "Derderian v. Essex Ins. Co." on Justia Law

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When Plaintiffs' efforts to act as general contractors on a new home foundered because of faulty work performed by a framing subcontractor, they made a claim on the homeowner's insurance policy issued to them by Defendant, Peerless Insurance Company. After Defendant denied the claim, citing two exclusions in the policy, Plaintiffs filed a declaratory-judgment action against the carrier. A hearing justice determined that the terms of the policy were ambiguous. Consequently, the hearing justice construed the policy against the insurer and entered judgment for the plaintiffs. The Supreme Court affirmed, holding (1) the trial justice did not err when she determined that the policy was ambiguous; and (2) Plaintiffs were entitled to coverage for the repairs that were necessary to bring their home into compliance with the applicable building code. View "Koziol v. Peerless Ins. Co." on Justia Law

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Plaintiff, an irrevocable trust, filed a complaint against Defendant, a university graduate student, alleging that he breached his lease agreement by painting over expensive historical wallpaper inside Plaintiff's nineteenth century building and by failing to pay the last month's rent. The superior court trial justice found that Defendant breached the lease by painting portions of the premises but ruled that Plaintiff had failed to prove that the trust had incurred damages that exceeded the amount of unpaid rent. The trial justice then awarded Plaintiff $1,600, plus interest, representing one month of unpaid rent. The Supreme Court vacated the judgment with respect to that portion of the trial justice's decision declining to award damages for the repair of Plaintiff's property and for her failure to award attorney's fees, holding (1) the trial justice erred when she determined damages because she applied the wrong standard; and (2) the clear language of the lease agreement provided contractual authorization for the award of attorneys' fees, and the trial justice abused her discretion in failing to do so. View "Sophie F. Bronowiski Mulligan Irrevocable Trust v. Bridges" on Justia Law

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In two civil actions, Plaintiffs in the underlying action alleged that Cheaters, Inc. and Cheaters Holding Corporation negligently and/or recklessly served alcoholic beverages to William Powers, who afterwards drove a vehicle off the premises and collided with other vehicles, resulting in one death and injuries to others. Before the accident, United National Insurance Corporation had issued an insurance policy to Cheaters and the Holding Corporation. Based on the policy's on-premises endorsement and liquor liability exclusion, United National disclaimed any responsibility for the defense and/or indemnification of the Holding Corporation. Plaintiff corporations then filed a complaint seeking a declaratory judgment as to their rights under the terms of the policy. The superior court hearing justice granted United National's motion for summary judgment on the grounds that the on-premises endorsement, which limited coverage to on-premises losses only, applied. The Supreme Court affirmed, holding that coverage was barred by the on-premises endorsement. View "Cheaters, Inc. v. United Nat'l Ins. Co." on Justia Law

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Plaintiff, a professional limousine driver, was injured when he was struck by a car while unloading luggage from a limousine at an airport. Plaintiff reached settlements with his employer's insurance company and the driver whose car struck him but remained less-than-fully compensated for his injuries. Plaintiff subsequently filed an underinsured-motorist claim with his Insurer under the terms of his personal automobile policy. Insurer denied the claim, citing two exclusions from the policy's provisions for uninsured-motorist coverage. Plaintiff filed suit, and the superior court ruled that the exclusions were void on grounds of public policy. The Supreme Court vacated the judgment of the superior court, holding that Insurer's denial of coverage was both lawful and not inconsistent with public policy. Remanded. View "Henderson v. Nationwide Ins. Co." on Justia Law

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Plaintiff and Defendant executed an agreement in which Plaintiff agreed to purchase from Defendant an unimproved parcel of real property. The agreement included a due diligence clause, which provided Plaintiff with a ninety-day due-diligence period in which perform inspections and inquiries. After the due-diligence period had expired and the parties had not closed on the property, Plaintiff filed a complaint seeking specific performance of its agreement with Defendant as well as damages. Defendant counterclaimed, seeking declaratory relief that the agreement be declared null and void and asserting a claim for breach of contract. The trial justice granted Defendant's motion for summary judgment on Plaintiff's complaint and Defendant's counterclaim, finding it had been Plaintiff's burden to contact Defendant to close and that Plaintiff had failed to do so without any explanation for its lack of diligence. The Supreme Court affirmed, holding that the trial justice did not err in its judgment where Plaintiff presented no evidence either explaining its silence or supporting its contention that it was, after the due-diligence period, ready, willing, and able to perform under the contract. View "Empire Acquisition Group, LLC v. Atlantic Mortgage Co." on Justia Law