86 A.3d 354
R.I.2014Background
- Moorland Farm Condominium in Newport comprises 33 units across 10 buildings with Phase I containing larger B Units and smaller A Units; Phases II and III contain only A Units.
- The association's management committee levied four special assessments (2006–2008) to repair decks, allocating higher shares to Phase I B Units and some Phase I A Units than to Phase II/III units.
- Plaintiffs, owners or trustees of Phase II/III units, challenged the assessments as illegal, contending decks and entry courts are not common elements or limited common elements.
- The Superior Court judge held the decks were part of individual units and declared the four assessments illegal, ordering reassessment to the benefited Phase I unit owners.
- The association appealed, arguing indispensable parties were missing and trial error occurred in evaluating whether decks were common elements, plus issues about expert affidavit and Rule 60(b) relief.
- The Rhode Island Supreme Court vacated the Superior Court judgment, holding the absence of Phase I unit owners as indispensable parties rendered the declaratory judgment void and remanded to dismiss without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Were Phase I deck owners indispensable parties to the declaratory action? | Plaintiffs contend Phase I owners would bear reallocated costs and must be joined. | Association argues only the association is necessary since relief affects the association's allocations. | Indispensable parties were missing; judgment void. |
| Are Moorland Farm decks common elements or part of individual units? | Deck repairs should be charged to the unit owners, not as common expenses. | Decks were common elements eligible for common expenses. | Issue rendered moot by void judgment; merits not reached. |
| Did the trial court err in sanctioning the association under Rule 11 for Rule 60(b) proceedings? | Sanctions were proper for improper delay; rule 11 violation supported. | Rule 60(b) relief had a factual and legal basis; sanctions improper. | Sanction vacated; Rule 11 sanction improper. |
Key Cases Cited
- Abbatematteo v. State, 694 A.2d 738 (R.I. 1997) (mandatory joinder in declaratory actions; absent interests can invalidate relief)
- In re City of Warwick, 197 A.2d 287 (R.I. 1964) (join all affected municipal board members; absence defeats binding effect)
- Thompson v. Town Council of Westerly, 487 A.2d 499 (R.I. 1985) (declaratory judgments should terminate controversy; nonparties can affect relief)
- Sullivan v. Chafee, 703 A.2d 748 (R.I. 1997) (failure to join entire council fatal to declaratory action)
- Cooter & Gell v. Hartmarx Corp., 496 U.S. 383 (U.S. Supreme Court 1990) (Rule 11 sanctions considered collateral to merits; improper filing can be sanctioned separately)
- Epstein v. Villa Dorado Condominium Association, Inc., 316 S.W.3d 457 (Mo. Ct. App. 2010) (absence of non-elevator-access owners can undermine declaratory relief)
- Abbatematteo v. State, 694 A.2d 738 (R.I. 1997) (see above)
