245 A.3d 1231
R.I.2021Background
- Seaport Studios sued JHRW and others in 2009 over parking-space, quiet-enjoyment, and deed issues; JHRW counterclaimed and filed a third-party complaint naming Seaport officers Randall and Jean Saunders.
- At a May 23, 2016 proceeding the parties signed a stipulation dismissing all claims; final judgment entered May 27, 2016 dismissing Seaport’s claims with prejudice.
- On May 22, 2017 Randall Saunders filed a pro se Rule 60 motion seeking to vacate the judgment; the hearing justice later determined a corporation cannot appear pro se and denied that motion without prejudice.
- On November 27, 2018 Seaport (through counsel) moved under Rule 60(b)(6) (alternatively (b)(5)) to vacate, alleging prior counsel exceeded authority and that the “with prejudice” dismissal was a mistake.
- At a February 4, 2019 hearing the trial justice—who presided over the original proceedings and a related injunction hearing—found Seaport had notice of the judgment’s terms and that its two-and-a-half year delay was unreasonable, and denied the motion as untimely.
- The Rhode Island Supreme Court affirmed, holding the denial was within the trial justice’s discretionary authority and that Seaport’s timeliness excuses were insufficient.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of Seaport's Rule 60(b)(5)/(6) motion | Motion was timely because filed within a year after retaining new counsel and earlier pro se filing by Saunders showed Seaport discovered the issue sooner | 2.5-year delay was unreasonable; Seaport had notice from related proceedings and the history of the dispute | Motion was not filed within a reasonable time; denial affirmed (trial justice acted within discretion) |
| Validity of Saunders' May 2017 pro se motion | Seaport points to earlier pro se filing to support timeliness/earlier discovery | Corporations cannot appear pro se; pro se filing on behalf of Seaport was invalid | Pro se motion by Saunders was invalid; cannot cure timeliness issue |
| Entitlement to relief under Rule 60(b)(6) for counsel’s alleged excess of authority | Seaport asserted prior counsel acted beyond authority and entered stipulation contrary to client instructions, warranting extraordinary relief | The record (stipulation read in court, subsequent related hearings) shows Seaport had notice; the circumstances do not justify extraordinary relief | Court did not grant relief; judge found Seaport’s explanations unpersuasive and denied motion as untimely |
| Standard of review for Rule 60(b) denial | N/A | N/A | Denial reviewed for abuse of discretion; Supreme Court concluded no abuse of discretion |
Key Cases Cited
- JHRW, LLC v. Seaport Studios, Inc., 212 A.3d 168 (R.I. 2019) (related decision setting out underlying facts and parties)
- Allen v. South County Hospital, 945 A.2d 289 (R.I. 2008) (Rule 60(b) relief is discretionary and reviewed for abuse of discretion)
- Keystone Elevator Co. v. Johnson & Wales University, 850 A.2d 912 (R.I. 2004) (same standard for appellate review of Rule 60(b) denials)
- In re Quigley, 21 A.3d 393 (R.I. 2011) (factors for whether a Rule 60(b) motion was filed within a reasonable time)
- Farm Credit Bank of Baltimore v. Ferrera-Goitia, 316 F.3d 62 (1st Cir. 2003) (reasonableness inquiry for Rule 60(b) timing)
- Mobile Homeowners Rights, Inc. v. Mobile Village, Inc., 736 A.2d 98 (R.I. 1999) (corporations may not appear pro se)
