2024-0344-Appeal.
R.I.Jul 7, 2026Background
- Reagan Marine Construction sued Victor Costa and Costa Companies for breach-related claims after a marina subcontract allegedly went unpaid and was terminated following delay disputes. 1
- The Superior Court compelled discovery, stayed discovery to allow new counsel, and later gave defendants more time to comply and retain counsel. 2
- After defendants failed to comply with discovery orders and failed to retain counsel, Reagan obtained a conditional order of default. 3
- At hearings, Costa raised for the first time a notice objection, and the trial justice told him to seek relief by filing a Rule 60 motion. 4
- Defendants never filed a Rule 60 motion, and the court later entered default judgment for Reagan in the amount of $716,001.83. 5
- The defendants appealed, challenging service of the default-related motions and the cash-bond condition imposed on remand. 6
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the notice/service objection preserved for appeal? 7 | Reagan says defendants never filed a Rule 60 motion, so the issue was waived. | Costa says service was defective because papers were not sent to the registered agent. | Not preserved; defendants had to raise notice by Rule 60 motion first. 8 |
| Did the Superior Court abuse discretion in entering default judgment? 9 | Reagan says defendants repeatedly ignored discovery orders and lacked counsel. | Costa says default was improper because notice of the motions was defective. | No abuse of discretion; defendants disobeyed multiple orders and got ample opportunity to comply. 10 |
| Did the cash-bond condition on remand violate due process? 11 | Reagan says Rule 2 authorized the bond to protect its judgment during remand. | Costa says due process required an unconditional remand to file Rule 60. | No due-process violation; the bond condition was authorized. 12 |
Key Cases Cited
- Ferris v. Progressive Casualty Insurance Company, 263 A.3d 1247 (R.I. 2021) (default rulings reviewed for abuse of discretion or legal error 13)
- Reyes v. Providence Place Group, L.L.C., 853 A.2d 1242 (R.I. 2004) (default rulings reviewed for abuse of discretion or legal error 14)
- Clark v. Dubuc, 486 A.2d 603 (R.I. 1985) (motion to vacate default is committed to trial justice's discretion 15)
- Marchionte v. Jaramillo, 182 A.3d 1146 (R.I. 2018) (appellant bears burden to show abuse of discretion or legal error 16)
- Patel v. Patel, 252 A.3d 1221 (R.I. 2021) (raise-or-waive rule bars unpreserved appellate issues 17)
- State v. Parrillo, 228 A.3d 613 (R.I. 2020) (specific objection required to preserve an issue 18)
- State v. Pona, 66 A.3d 454 (R.I. 2013) (specific objection preserves error for review 19)
- State v. Ricker, 252 A.3d 721 (R.I. 2021) (new appellate theories not raised below are waived 20)
- E.H. Turf Supply Co., Inc. v. Tavares, 337 A.3d 1019 (R.I. 2025) (pro se litigants remain bound by procedural rules 21)
- Oliveira v. Levesque, 294 A.3d 994 (R.I. 2023) (pro se litigants are not exempt from court rules 22)
- Providence Gas Company v. Biltmore Hotel Operating Co., 376 A.2d 334 (R.I. 1977) (default is proper when the court gives every opportunity before using it 23)
