22 A.3d 382
R.I.2011Background
- Kathleen DeLuca, city treasurer and acting director of finance for Cranston, was suspended on October 20, 1997 following Grand Jury indictments.
- On May 1, 1998, Mayor Traficante sent a letter stating the city would place DeLuca’s salary in the surplus during suspension and would reinstate her with back pay and benefits if acquitted or case dismissed.
- Effective November 8, 1999, DeLuca's employment was terminated for a ‘Change in Administration.’
- DeLuca pled nolo contendere on November 20, 2001 to two counts related to filing a false document, and she filed suit in Superior Court on January 8, 2003, alleging breach of contract and civil-service/charter rule violations.
- Defendants moved for summary judgment in October 2008, arguing (i) no contract existed due to lack of consideration and (ii) DeLuca failed to exhaust administrative remedies.
- The Superior Court granted summary judgment on March 6, 2009; the Rhode Island Supreme Court affirmed, holding no enforceable contract due to lack of consideration and no futility in exhausting remedies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the May 1, 1998 letter constitutes a binding contract | DeLuca contends the letter formed a contract with mutual obligations. | City argues no contract due to lack of consideration and essential elements. | No enforceable contract; lack of consideration as a matter of law. |
| Whether exhaustion of administrative remedies was excused by futility | Exhaustion would have been futile; she did not pursue remedies due to anticipated futility. | Exhaustion required; plaintiff offered no admissible evidence of futility. | Futility not established; exhaustion requirement applied. |
Key Cases Cited
- DeAngelis v. DeAngelis, 923 A.2d 1274 (R.I. 2007) (elements of a valid contract; consideration and mutuality)
- Rhode Island Five v. Medical Associates of Bristol County, Inc., 668 A.2d 1250 (R.I. 1996) (contract formation elements)
- Downey v. Carcieri, 996 A.2d 1144 (R.I. 2010) (exhaustion of administrative remedies generally required)
- Richardson v. Rhode Island Department of Education, 947 A.2d 253 (R.I. 2008) (exception to exhaustion when futility shown)
- Papudesu v. Medical Malpractice Joint Underwriting Association of Rhode Island, 18 A.3d 495 (R.I. 2011) (de novo review standard for summary judgment)
- Estate of Giuliano v. Giuliano, 949 A.2d 386 (R.I. 2008) (contract and factual review considerations)