212 A.3d 168
R.I.2019Background
- In 1985 JHRW principals leased land under two buildings to Seaport for 99 years; lease required the lessors to provide one parking space at a location and annual rent to be determined by lessors and promised a condominium deed if the premises were submitted to the Condominium Act.
- Parcel B (which included Seaport’s leased land) was later developed into the Napatree Point Master Condominium divided into Units A, B (Seaport’s land/buildings), and C (a parking lot later subdivided into individual parking-unit condominiums).
- Seaport sued JHRW in 2009 claiming entitlement to nine parking spaces (among other claims); JHRW obtained partial summary judgment in 2014 but Seaport’s implied-easement parking claim remained; the parties later stipulated dismissal of remaining Seaport claims and final judgment entered in May 2016.
- In June 2016 JHRW sued Seaport (this case) for trespass and sought a permanent injunction barring Seaport and its officers/employees from parking in Unit C spaces owned by JHRW; Seaport counterclaimed asserting entitlement to nine commercial parking spaces under zoning/parking agreement and demanded declaratory relief.
- In May 2017 the Superior Court granted JHRW’s partial summary judgment as to count I, permanently enjoined Seaport from parking in JHRW-owned Unit C spaces, dismissed Seaport’s counterclaim, and denied Seaport’s motion to compel arbitration; Seaport appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the dispute must be stayed and referred to arbitration under the condominium Declaration | Arbitration waived by Seaport; dispute does not arise under the Declaration; Seaport elected judicial remedy earlier | Declaration requires binding arbitration of disputes; court should compel arbitration | Court held arbitration waived—defendants did not plead arbitration as affirmative defense and had manifested willingness to litigate; dispute also did not arise under the Declaration |
| Whether res judicata/collateral estoppel preclude Seaport from asserting parking rights (and whether injunction was proper) | Prior litigation adjudicated or could have adjudicated Seaport’s parking claims; Seaport had opportunity to raise condominium-owner rights earlier; therefore precluded and injunction proper | Seaport acquired new rights as a condominium unit owner after the first complaint was filed, so res judicata should not bar the new (condominium ownership–based) claim | Court held res judicata applies: identity of issues exists because the parking entitlement arose from the same transaction series and could have been raised in the earlier suit; injunction affirmed |
Key Cases Cited
- Newman v. Valleywood Associates, Inc., 874 A.2d 1286 (R.I. 2005) (arbitration may be waived by manifesting willingness to litigate)
- CACH, LLC v. Potter, 154 A.3d 939 (R.I. 2017) (arbitration is an affirmative defense that must be pled)
- Goodrow v. Bank of America, N.A., 184 A.3d 1121 (R.I. 2018) (res judicata transactional rule and identity-of-issues test)
- Federated Department Stores, Inc. v. Moitie, 452 U.S. 394 (U.S. 1981) (final judgment precludes claims or defenses that were or could have been raised)
- Cancel v. City of Providence, 187 A.3d 347 (R.I. 2018) (summary-judgment standard on appeal)
