Epic Enterprises LLC v. The Bard Group, LLC
186 A.3d 587
| R.I. | 2018Background
- Condominium at 10 Brown & Howard Wharf (13 units) created by declaration in 2014; defendant owns 9 units (70.8% voting share), plaintiffs own 4 units (29.2%).
- Original declaration expressly prohibited commercial kitchens and on‑site food service (no restaurant use).
- In December 2016 defendant unilaterally recorded a “second amendment” deleting that prohibition and expressly permitting restaurant use in certain units it owns.
- Defendant applied for city victualing and liquor licenses for the proposed restaurant.
- Plaintiffs sued in Superior Court seeking a declaration that the second amendment was invalid because § 34‑36.1‑2.17(d) requires unanimous owner consent to change uses restricted by a declaration.
- Superior Court granted plaintiffs summary judgment; defendant appealed and the Supreme Court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an amendment that removes a prior prohibition on a use (restaurant) is a "change the uses to which any unit is restricted" under § 34‑36.1‑2.17(d) | The amendment changed a previously restricted use to permitted use, so unanimous consent of all unit owners was required | The amendment did not restrict or materially change use/occupancy rights and thus did not trigger the unanimous‑consent requirement; declaration also allowed uses permitted by local zoning | Held that deleting the prohibition constituted a change in the uses to which units are restricted; unanimous consent required and was not obtained, so the amendment is invalid |
Key Cases Cited
- Pimentel v. Deutsche Bank Nat’l Trust Co., 174 A.3d 740 (R.I. 2017) (standard of review for summary judgment)
- Newstone Dev., LLC v. East Pacific, LLC, 140 A.3d 100 (R.I. 2016) (summary judgment standard reaffirmed)
- Progressive Cas. Ins. Co. v. Dias, 151 A.3d 308 (R.I. 2017) (statutory‑interpretation issues appropriate for summary judgment)
- State v. Hazard, 68 A.3d 479 (R.I. 2013) (statutory interpretation reviewed de novo)
- Webster v. Perrotta, 774 A.2d 68 (R.I. 2001) (legislative intent governs statutory construction)
- Alessi v. Bowen Ct. Condominium, 44 A.3d 736 (R.I. 2012) (clear statutory language is given its plain meaning)
- Waterman v. Caprio, 983 A.2d 841 (R.I. 2009) (principle that unambiguous statutes are applied literally)
