Harbor Houses Condominium Ass'n v. IDC Clambakes, Inc.
2013 U.S. App. LEXIS 16876
1st Cir.2013Background
- Nearly twenty years of litigation between condo associations and IDC development entities over ownership and use of Goat Island property.
- IDC Properties built the Newport Regatta Club on the Reserved Area during disputed ownership, with Clambakes operating it.
- Rhode Island Supreme Court later held title to the Reserved Area rested in unit owners in common, not IDC (America II).
- After America II, Associations moved to eject IDC Properties; Clambakes filed bankruptcy to stay litigation and later plan confirmed.
- Issue presented: whether Clambakes trespassed or the Associations implicitly consented to Regatta Club operations while land title was unresolved; court also considered potential implied payment for use.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Clambakes trespass or was there implied consent? | Associations contended no implied consent; Clambakes trespassed. | Clambakes operated with implied consent from Associations while title remained unresolved. | Implied consent found; trespass defense sustained for use and occupancy, with remand on payment question. |
| Did Associations' conduct constitute manifest consent and support reasonable reliance? | Consents were not shown; long dispute over ownership negates implied consent. | Multiple actions and inactions, including contracts with Regatta Club and lack of eviction attempts, show consent and reliance. | Bankruptcy court’s finding of apparent consent and reasonable reliance upheld; findings deemed plausible and supported by record. |
| Does implied consent give rise to an implied obligation to pay for use and occupancy? | Implied consent should not excuse free use; implied obligation to pay may exist. | Affirmative costs could arise; arguments not fully developed at trial but may be warranted. | Remanded to determine whether implied consent also imposes an obligation to pay fair value for use and occupancy. |
Key Cases Cited
- Bennett v. Napolitano, 746 A.2d 138 (R.I. 2000) (trespass element definitions; consent defenses)
- Griggs-Ryan v. Smith, 904 F.2d 112 (1st Cir. 1990) (apparent consent as a function of conduct and context)
- Morales Feliciano v. Rullan, 303 F.3d 1 (1st Cir. 2002) (binding stipulations; effect on trial and appeal)
- In re LaRoche, 969 F.2d 1299 (1st Cir. 1992) (independent appellate review of bankruptcy orders)
- In re G.S.F. Corp., 938 F.2d 1467 (1st Cir. 1991) (standards for reviewing mixed questions of law and fact)
- In re The Bible Speaks, 869 F.2d 628 (1st Cir. 1989) (clearly erroneous standard and deference to fact-finder)