213 A.3d 410
R.I.2019Background
- Heneault (plaintiff/assignee) paid $18,600 to Lantini/1200 Hartford LLC for a commercial lease starting November 14, 2013: $9,300 security deposit and $9,300 first month’s rent. A receipt stated deposits were refundable if occupancy not provided by Nov. 14.
- Town of Johnston posted a condemnation notice that prevented plaintiff from occupying the premises; plaintiff retrieved equipment and demanded return of payments.
- Defendants returned $9,300 (first month’s rent) via the broker but retained the $9,300 security deposit, claiming aggravation and asserting plaintiff defaulted; plaintiff sued for conversion and breach of contract.
- On the eve of trial defendants moved to dismiss under the economic loss doctrine; the trial justice denied the motion as untimely and the issue was not reasserted during trial.
- The jury found conversion and awarded $9,300 (punitive damages were found but unquantified); no jury verdict found breach of contract for plaintiff.
- Posttrial, the trial justice denied defendants’ new-trial motion, held the economic loss doctrine inapplicable or waived, and awarded plaintiff $24,075 in attorney’s fees under R.I. Gen. Laws § 9-1-45; the Supreme Court affirmed in part and vacated the fee award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the economic loss doctrine barred plaintiff’s conversion claim | Heneault argued tort recovery was proper because conversion occurred when defendants retained the security deposit | Lantini argued commercial dispute should be governed by contract law; economic loss doctrine bars tort recovery for purely economic losses | Court: Defendants waived the economic-loss argument by raising it untimely; doctrine not considered on appeal |
| Whether § 9-1-45 authorized awarding attorney’s fees to plaintiff | Heneault sought fees under § 9-1-45 as prevailing party arising from breach-of-contract litigation | Lantini argued fees limited to actions arising from a breach of contract and jury made no finding of breach for plaintiff | Court: § 9-1-45 did not apply because plaintiff’s breach claim was not tried/decided; fee award vacated |
Key Cases Cited
- Letizio v. Ritacco, 204 A.3d 597 (R.I. 2019) (standard of review for motions for new trial and trial-justice role as super juror)
- Kemp v. PJC of Rhode Island, Inc., 184 A.3d 712 (R.I. 2018) (deference to trial justice when assessing verdict evidence)
- Berman v. Sitrin, 101 A.3d 1251 (R.I. 2014) (de novo review for pure legal questions on new-trial motions)
- Tyre v. Swain, 946 A.2d 1189 (R.I. 2008) (new issues cannot be raised for first time in a motion for a new trial)
- Adams v. Santander Bank, N.A., 183 A.3d 544 (R.I. 2018) (raise-or-waive rule on appellate review)
- Miller v. Wells Fargo Bank, N.A., 160 A.3d 975 (R.I. 2017) (preservation of issues for appeal)
- Arnold v. Arnold, 187 A.3d 299 (R.I. 2018) (American rule on attorney’s fees; statutory/contractual exceptions required)
- In re Estate of Brown, 206 A.3d 127 (R.I. 2019) (de novo review of legal basis for attorney’s-fee awards)
- Blue Cross & Blue Shield of Rhode Island v. Najarian, 911 A.2d 706 (R.I. 2006) (standards for awarding attorney’s fees and appellate review)
- Women’s Development Corp. v. City of Central Falls, 764 A.2d 151 (R.I. 2001) (§ 9-1-45 applies to civil actions arising from breach of contract)
- Glassie v. Doucette, 159 A.3d 88 (R.I. 2017) (§ 9-1-45 inapplicable where underlying action is not a breach-of-contract case)
