296 A.3d 97
R.I.2023Background
- Armando “Mandy” Damiani held an investment account (~$1.5M). He executed transfer-to-Janney paperwork in early 2016 but did not name a TOD beneficiary on the new Janney account.
- Janney advisor Richard Ranone prepared TOD forms; Ranone admitted having Mandy sign a blank TOD and later backdating and notarizing forms via Kristen Verdeaux (a Janney assistant/notary) who was not present at signing.
- Mandy was hospitalized and severely ill in February 2016; experts disagreed about his cognitive capacity that day. Ranone and defendant Steven Damiani exchanged multiple calls in the weeks before Mandy’s death.
- Verdeaux invoked the Fifth Amendment at deposition and again at trial; plaintiff’s counsel argued jurors could draw an adverse inference from her silence.
- A jury found conversion, conspiracy, and awarded damages; the trial justice later entered declaratory judgment that the TODs were invalid and the disputed funds belonged to Mandy’s estate. Janney and Ranone settled with a release that (per plaintiff) excluded Damiani. Damiani appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Allowing Verdeaux to testify and invoke the Fifth before the jury (Rule 403 / adverse inference) | Verdeaux’s testimony and invocation were relevant and admissible; jurors may draw adverse inference in civil case; probative value outweighed prejudice. | Allowing her to testify knowing she would assert the Fifth unfairly prejudiced Damiani by implying criminality; testimony was cumulative and Rule 403 exclusion was warranted; verdict (and declaratory judgment) tainted. | Majority: Verdeaux’s testimony was marginally relevant and unduly prejudicial because her Fifth invocation encouraged adverse inferences; vacated the jury verdict as to Damiani and remanded for further proceedings. |
| Whether a civil coconspirator is an agent/single tortfeasor such that a release of co-defendants bars Damiani (§ 10-6-2 / release) | The release with Janney and Ranone did not intend to release Damiani, who was found jointly and severally liable. | If Damiani is a civil coconspirator/agent of Ranone, the parties are a single tortfeasor and the release should cover him. | Court declined to decide on the release/single-tortfeasor issue on appeal (remand could change facts); affirmed trial-judge declaratory ruling but did not extend release to Damiani. |
Key Cases Cited
- Cappuccilli v. Carcieri, 174 A.3d 722 (R.I. 2017) (admissibility of evidence rests within trial justice’s discretion)
- State v. Patel, 949 A.2d 401 (R.I. 2008) (Rule 403 exclusion is narrow—reserved for marginal relevance and overwhelming unfair prejudice)
- State v. Gaspar, 982 A.2d 140 (R.I. 2009) (only unfairly prejudicial evidence—i.e., evidence likely to induce decision on improper basis—may be excluded under Rule 403)
- LiButti v. United States, 107 F.3d 110 (2d Cir. 1997) (silence can be persuasive; civil juries may draw adverse inferences when witnesses invoke the Fifth)
- United States ex rel. Bilokumsky v. Tod, 263 U.S. 149 (1923) (classic authority permitting adverse inference from silence in civil contexts)