National Refrigeration, Inc. v. Capital Properties, Inc.
88 A.3d 1150
| R.I. | 2014Background
- National Refrigeration, Inc. (plaintiff) was a subcontractor on a Providence condominium project owned by Capital Properties and leased to Capitol Cove.
- Plaintiff recorded a mechanics’ lien and filed a complaint to enforce it under Rhode Island’s lien statute, chapter 28 of title 34.
- Owner and lessee deposited a bond ($400,000) with the court to discharge the lien and dismiss the action as to them.
- Liberty Mutual Insurance Co. served as the bond’s surety; builder remained on the bond.
- Plaintiff amended the complaint to name Capital Properties, Capitol Cove, Providence Builders, and Liberty as defendants.
- The trial court granted summary judgment in favor of Capital Properties and Capitol Cove, and entered final judgment under Rule 54(b); plaintiff appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether owner/lessee may remain defendants after bond deposition | Include owner/lessee as defendants per § 34-28-17(b)(2). | Bond discharges lien and dismisses as to owner/lessee; they are no longer liable. | Owner/lessee not retained as defendants after bond; bond discharges lien. |
| Whether plaintiff may recover against owner/lessee/surety despite unresolved builder issues | All liable under lien statute; full relief against owner/lessee/surety is proper. | Lien is against property; only the builder/surety issues remain; no full setoff against owner/lessee. | Setoff and unresolved builder issues bar full recovery against owner/lessee; judgment affirmed for owners. |
| Whether the trial court properly granted summary judgment and Rule 54(b) relief | Plaintiff complied with lien procedures and should prevail. | Lien parties and bond structure require dismissal of the lien as to owner/lessee. | Summary judgment for owner/lessee proper; Rule 54(b) finality confirmed. |
Key Cases Cited
- Tilcon Gammino, Inc. v. Commercial Associates, 570 A.2d 1102 (R.I. 1990) (mechanics’ lien equitable in rem nature)
- Gem Plumbing & Heating Co. v. Rossi, 867 A.2d 796 (R.I. 2005) (liberal remedy for lien contributors)
- Keystone Elevator Co. v. Johnson & Wales University, 850 A.2d 912 (R.I. 2004) (bond as security; lien not encumbering after bond)
- McKinnon v. Rhode Island Hospital Trust National Bank, 713 A.2d 245 (R.I. 1998) (summary judgment standard; interlocutory appeal limits)
- Great American E & S Insurance Co. v. End Zone Pub & Grill of Narragansett, Inc., 45 A.3d 571 (R.I. 2012) (standard for reviewing summary judgments)