Tracy Gregoire v. Baird Properties, LLC
138 A.3d 182
| R.I. | 2016Background
- Plaintiffs Tracy Gregoire and Mark Traynor leased the second-floor unit at 29 Spring Street from Due North starting November 2011; Due North lived on first floor. Due North purchased the property from Baird Properties in 2011, but Baird Properties reacquired title by foreclosure (deed recorded Dec. 5, 2012).
- On Dec. 9, 2012, plaintiffs received conflicting notices about whom to pay rent; plaintiffs did not pay November rent after seeking legal advice. Plaintiffs allege Baird threatened to shut off utilities unless they signed a new lease, paid back rent, and paid a new security deposit.
- On Dec. 10, 2012, building inspector and fire department posted the property as uninhabitable after inspectors observed removed boiler parts, exposed and pulled wiring, missing panel covers and smoke detectors; electricity was shut off pending repairs; tenants were required to vacate.
- Plaintiffs sued Baird Properties and Michael Baird under the Rhode Island Residential Landlord and Tenant Act (RLTA), alleging willful diminution of essential services (§ 34-18-44), malicious destruction, and negligence. Case was tried de novo in Superior Court.
- Trial justice found plaintiffs credible, held Baird acted to create uninhabitable conditions and violated § 34-18-44, found landlord-tenant relationship existed between plaintiffs and Baird Properties (foreclosure purchaser takes title subject to tenant rights), and awarded statutory remedies: three months’ rent, return of security deposit, and attorney’s fees ($22,750).
- Defendants appealed, challenging findings on tenancy, causation/tampering, plaintiffs’ intent to vacate, and the reasonableness of attorney’s fees. The Supreme Court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of landlord-tenant relationship after foreclosure | Plaintiffs argued Baird Properties took title subject to existing lease, so they remained tenants | Baird argued payments to Southbridge and agency for bank assignment of rents negated a landlord-tenant relationship with Baird Properties | Held: Foreclosure purchaser takes title subject to tenant rights; landlord-tenant relationship existed with Baird Properties |
| Whether Baird threatened and willfully diminished services (§ 34-18-44) | Plaintiffs testified Baird threatened to shut off water/electric if they did not sign lease/pay; inspectors found tampering and unsafe conditions | Defendants argued prior neglect by Due North caused deficiencies and denied Baird’s culpability | Held: Trial justice credited plaintiffs; evidence supported finding Baird threatened tenants and caused the interruptions |
| Causation for physical tampering/damage to utilities | Plaintiffs pointed to testimony that basement and panels were intact before Dec. 10 and saw Baird in basement; inspectors observed recent tampering | Defendants claimed visible defects resulted from prior neglect and Baird was acting to safeguard property | Held: Credibility findings supported inference that Baird intentionally created uninhabitable conditions; findings not clearly erroneous |
| Reasonableness of attorney’s fees award ($22,750) | Plaintiffs submitted detailed billing affidavit (113.75 hours at $200/hr) and a lawyer’s affidavit supporting reasonableness | Defendants argued fee excessive relative to recovery and pointed to lack of detailed challenge or counter-affidavit | Held: Trial justice’s fee determination afforded deference; record contained adequate support and defendants waived a more developed challenge; award upheld |
Key Cases Cited
- South County Post & Beam, Inc. v. McMahon, 116 A.3d 204 (R.I. 2015) (deference to trial justice credibility findings in bench trials)
- JPL Livery Services, Inc. v. Rhode Island Department of Administration, 88 A.3d 1134 (R.I. 2014) (trial justice need not provide exhaustive factual analysis; appellate review limited)
- D’Ellena v. Town of East Greenwich, 21 A.3d 389 (R.I. 2011) (credibility determinations by trial justice given substantial deference)
- B.S. International Limited v. JMAM, LLC, 13 A.3d 1057 (R.I. 2011) (bench-trial credibility and findings reviewed with deference)
- Karousos v. Pardee, 992 A.2d 263 (R.I. 2010) (deference to trial justice on reasonableness of attorney’s fees)
- Bucci v. Hurd Buick Pontiac GMC Truck, LLC, 85 A.3d 1160 (R.I. 2014) (issues not meaningfully briefed are treated as waived)
- Solas v. Emergency Hiring Council of Rhode Island, 774 A.2d 820 (R.I. 2001) (apply law in effect at time appeal is considered)