Justia Rhode Island Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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The Supreme Court affirmed the judgment of the superior court granting summary judgment in favor of Defendant and dismissing Plaintiffs' claim for breach of the implied warranty of habitability, holding that Plaintiffs' claim for breach of the implied warranty of habitability was time barred.Plaintiffs purchased a home from Defendant and received a warranty deed. Plaintiffs later brought this action alleging seven counts. The hearing justice granted summary judgment in favor of Defendant on all counts, determining that Plaintiffs' tort claims were barred by the statute of repose and that this Court's holding in Nichols v. R.R. Beaufort & Associates, Inc., 727 A.2d 174 (R.I. 1999), barred Plaintiffs' claim based on the implied warranty of habitability. The Supreme Court affirmed, holding (1) Nichols applies to original homeowners, and therefore, homeowners have a period of ten years following substantial completion of improvement to real property to discover a latent defect; and (2) Plaintiffs' claim for breach of the implied warranty of habitability in this case was time barred. View "Mondoux v. Vanghel" on Justia Law

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The Supreme Court affirmed the judgment of the superior court granting summary judgment in favor of purchasers of a marina, holding that Plaintiff's claims were barred by the doctrine of res judicata.An earlier partition action was commenced to settle an intrafamily properly dispute among descendants of Eleanor Mott. In that action, a special master, who was appointed to manage the businesses of the various properties subject to partition, terminated Plaintiff's lease to one of those properties, a marina, because a bona fide purchaser had agreed to purchase the various properties during the course of the partition proceeding, in which Plaintiff had participated. Plaintiff then initiated this action to challenge the special master's authority to terminate Plaintiff's lease. The superior court granted summary judgment to the purchasers of the marina, finding that Plaintiff's claims were barred by res judicata. The Supreme Court affirmed, holding that the hearing justice did not err by granting summary judgment for Defendants on res judicata grounds. View "BI Boat Basin Associates, LLC v. Sky Blue Pink, LLC" on Justia Law

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The Supreme Court affirmed the judgment of the superior court in favor of Plaintiff, Bank of America, in this consolidated appeal, holding that the hearing justice did not err.Defendants were the sole principles of an LLC. The LLC executed a promissory note to Plaintiff secured by a first-position mortgage on the property. On the same day, Defendants executed a guaranty of the loan agreement. When the LLC failed to pay the note, Plaintiff filed complaints in Connecticut Superior Court and in Rhode Island Superior Court seeking to foreclose on the property and arguing that Defendants were jointly and severally liable for the indebtedness due under their guaranty. In both actions, final judgment was entered in favor of Plaintiff. The Supreme Court affirmed, holding that the hearing justice did not err when he (1) granted Plaintiff's motion for partial summary judgment as to Defendants' liability on the guaranty; (2) found that Defendants were bound by the Connecticut Superior Court's deficiency calculation; and (3) denied Defendant's motion to amend his answer without holding a hearing. View "Bank of America, N.A. v. Fay" on Justia Law

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The Supreme Court affirmed the order of the superior court granting summary judgment in favor of Gonsalves-Pastore Realty, LLC and dismissing Mauro Poletti's negligence complaint, holding that summary judgment was properly granted.Poletti entered into an agreement with Linda Glynn, a licensed real estate agent, to assist him in the purchase of real estate for investment purposes. Later, Glynn granted two mortgages on property purchased in furtherance of Poletti's investment plan and used the resulting funds in contravention of that plan. In his complaint, Plaintiff alleged that Gonsalves-Pastore, as Glynn's employer or principal, breached its fiduciary duty to Poletti to oversee Glynn such that Glynn was acting in the best interests of Poletti and that no loss would ever occur to Poletti. The hearing justice granted summary judgment for Gonsalves-Pastore. The Supreme Court affirmed, holding that the hearing justice did not err in (1) determining that no genuine issue of material fact remained as to whether or not a fiduciary relationship existed between Poletti and Gonsalves-Pastore; and (2) concluding that no genuine issue of material fact existed as to whether or not Defendant was liable for Glynn's alleged acts of malfeasance. View "Poletti v. Glynn" on Justia Law

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The Supreme Court affirmed the judgment of the superior court in favor of Defendant, Pinto's Auto & truck Repair, LLC, in this action alleging that Defendant's repairs to Plaintiff's 2004 Freightliner Columbia were faulty, holding that the hearing justice properly granted summary judgment in Defendant's favor.The hearing justice granted summary judgment for Defendant because Plaintiff did not produce the required expert testimony to demonstrate that there was a genuine issue of material fact in dispute regarding Defendant's allegedly negligent failure to observe industry standard, negligent service and installation, and failure to deliver a properly serviced truck. The Supreme Court affirmed, holding that summary judgment was proper where Plaintiff produced no admissible evidence that Defendant negligently repaired the Freightliner, breached any contract it had with Plaintiff by failing to deliver a properly serviced truck, or alternatively, was unjustly enriched by accepting Plaintiff's money without completing proper repairs. View "Vicente v. Pinto's Auto & Truck Repair, LLC" on Justia Law

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The Supreme Court vacated the order of the superior court dismissing Plaintiff's complaint against Defendants and declaring that a foreclosure sale of Plaintiff's property was valid, holding that the foreclosure sale was void because the notice of default sent to Plaintiff failed to comply with the terms of the mortgage.In 2007, Plaintiff purchased property and granted a mortgage on the property to secure a loan. In 2014, Plaintiff became delinquent on the mortgage. The mortgagee sent a notice of default and intent to accelerate to Plaintiff. After Plaintiff failed to cure the default, Plaintiff's property was sold at foreclosure sale. Plaintiff filed suit, alleging that the default notice was deficient and thus the foreclosure sale was void. After Defendants' motion for summary judgment was denied, Defendants sought declaratory relief seeking a declaration that the default notice sent to Plaintiff complied with the terms of the mortgage. The trial justice ruled in favor of Defendants. An order then entered dismissing Plaintiff's complaint and declaring the foreclosure sale valid. The Supreme Court vacated the order of the superior court, holding that the default notice failed strictly to comply with the terms of the mortgage, and therefore, Defendants failed to satisfy the condition precedent to a valid foreclosure. View "Woel v. Christiana Trust" on Justia Law

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The Supreme Court answered in this case in what situations a non-attorney who performs one or more of the various services that are associated with a real estate transaction is engaging in the unauthorized practice of law.The Unauthorized Practice of Law Committee transmitted three reports to the Supreme Court concluding that Respondents had engaged in the unauthorized practice of law by engaging in several aspects of residential real estate transactions that constitute the practice of law. The Supreme Court declined to adopt the Committee's recommendations in part and accepted them in part, holding (1) title insurance companies and their agencies do not engage in the unauthorized practice of law when they conduct a residential real estate closing, draft a residency affidavit, and draft a limited durable power of attorney when those activities are carried out in connection with the issuance of title insurance; (2) a title insurance company by conduct the examination of title for marketability only if a licensed attorney conducts the examination; and (3) drafting a deed constitutes the practice of law and that an attorney is required to either draft the deed or review it after its has been prepared. View "In re William E. Paplauskas, Jr." on Justia Law

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The Supreme Court affirmed the judgment of the superior court, holding that an amendment to the City of Providence's zoning ordinance that restricted the number of college students who may live together in single-family homes in certain residential areas in Providence did not violate Plaintiffs' right to equal protection or due process under the Rhode Island Constitution.Plaintiffs, a real estate investment company, and four individuals who were college students and housemates leasing the real estate investment company's property, filed a declaratory judgment action against the City seeking to invalidate the amendment, arguing that the City had violated the Due Process Clause and Equal Protection Clause of the Rhode Island Constitution. The hearing justice entered judgment in favor of the City. The Supreme Court affirmed, holding that the amendment was rationally related to the legitimate state purpose of preserving the residential character of certain neighborhoods and that there was no constitutional violation. View "Federal Hill Capital, LLC v. City of Providence" on Justia Law

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The Supreme Court vacated the judgment of the superior court granting summary judgment in favor of Plaintiffs and declaring that Plaintiffs were entitled to unobstructed access to a beach easement and may cross Defendants' properties to reach that easement, holding that genuine issues of material fact remained, precluding summary judgment.At trial, Plaintiffs asserted that their property enjoyed an unrestricted easement appurtenant to the beach by virtue of the original easement to cross over the beach and that they were entitled access to the beach because they held a right-of-way over all three of defendants' properties based on the doctrines of easement by implication and easement by necessity. The hearing justice granted summary judgment in favor of Plaintiffs. The Supreme Court vacated the judgment, holding that where the hearing justice did not first determine whether an implied easement or easement by necessity existed for Plaintiffs to cross over Defendants' properties, the case must be remanded for further fact-finding. View "McElroy v. Stephens" on Justia Law

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The Supreme Court affirmed the judgment of the superior court for possession of certain property in favor of Plaintiff pursuant to the granting of summary judgment for Plaintiff, holding that when Plaintiff purchased the property at a foreclosure sale, all interests inferior to the foreclosed mortgage were extinguished and that no genuine issue of material fact remained.In 2008, MCH Realty, LLC, the then-owner of the property, entered into a lease agreement with Unetixs Vascular, Inc. to lease the property. In 2013, MCH executed a mortgage deed to DBS Bank Ltd. secured by its interest in the property. DBS later assigned its interest in the mortgage to CFS. In 2016, MCH and Unitexs extended the term of the lease. In 2017, CFS foreclosed on the mortgage and purchased the property at a foreclosure sale. CFS then filed a complaint seeking to evict Unetisx and another tenant (together, Tenants) and MCH from the property. A hearing justice granted the motion, ruling that the mortgage was superior to the Tenants' unrecorded leases and that, therefore, the leases were extinguished upon foreclosure. The Supreme Court affirmed, holding that CFS was entitled to judgment as a matter of law. View "CFS 915, LLC v. Unetixs Vascular, Inc." on Justia Law