SOUTH COUNTY POST & BEAM, INC. v. Brian T. MCMAHON et al.
Nos. 2014-24-Appeal, 2014-25-Appeal.
Supreme Court of Rhode Island.
June 5, 2015
116 A.3d 204
Chief Justice SUTTELL
“[T]he [c]ourt accepts the correctional officer[s‘] testimony as the most plausible story. They‘ve presented testimony that makes the most sense to this [c]ourt and is the most likely to be true in light of all the facts that have occurred, some of which are uncontested, but the most meaningful ones are the ones that have to do with the handcuffs. And I make a finding that [defendant] was handcuffed in the front on that particular day, and I decline to accept [defendant‘s] version of the story because I don‘t believe that his answers and his responses to the [c]ourt‘s questions were as candid as the other officers.”
Thus, the record reveals that the hearing justice thoroughly assessed the testimonial and documentary evidence presented at the hearing, and he issued a bench decision explaining why he was reasonably satisfied that the defendant had failed to keep the peace and remain in good behavior. See Raso, 80 A.3d at 44. As this Court has often stated, “we will not ‘second-guess supportable credibility assessments of a hearing justice in a probation-revocation hearing * * *‘” Id. (quoting Ford, 56 A.3d at 469). After observing the witnesses’ words, demeanors, and actions during the hearing—firsthand from his position at the bench—the hearing justice in this case found that the officers presented a more credible version of the events that unfolded on June 19, 2012. We see no reason to question his findings in this regard. Accordingly, we are convinced that the hearing justice acted neither arbitrarily nor capriciously, and we affirm his adjudication of probation violation.
IV
Conclusion
For the reasons set forth in this opinion, we affirm the judgment of the Superior Court. The record of this case shall be returned to the Superior Court.
Justice INDEGLIA did not participate.
Kelly M. Fracassa, Esq., Westerly, for Defendants.
Present: SUTTELL, C.J., GOLDBERG, FLAHERTY, and ROBINSON, JJ.
OPINION
Chief Justice SUTTELL, for the Court.
This case stems from the all-to-common scenario of an escalated billing dispute be
This case came before the Supreme Court pursuant to an order directing the parties to appear and show cause why the issues raised in this appeal should not be summarily decided. After considering the parties’ written and oral submissions and reviewing the record, we conclude that cause has not been shown and that this case may be decided without further briefing or argument. For the reasons set forth in this opinion, we affirm the Superior Court‘s judgment, but vacate and remand the order.
I
Facts and Travel
In 2010, defendants bought approximately eleven acres of forested property on Block Island with the intention of building a house. They hired an architect who helped them select S. Heinz Construction & Design, Inc. (Heinz Construction) as the general contractor. During the process of designing the 2,500-square-foot house, defendant Brian McMahon testified that he and his wife decided to also build a barn as an “overflow room” for their three young-adult sons. At Heinz Construction‘s recommendation, defendants agreed that plaintiff, a company that specialized in timber frame design, fabrication, and installation, would be engaged to build the roof for the house, as well as to design and build the timber frame of the barn. In July 2010, Heinz Construction and plaintiff signed work orders describing the scope of the work that plaintiff was to perform on the house and barn. Over the next three months, Heinz Construction and plaintiff executed five change orders relating to the scope of the work for the barn. During this time, plaintiff also performed work outside the scope of the initial work order for the roof of the house—viz., the construction of a tower and deck on the roof of the house—but this additional work was not memorialized in a change order. Throughout its work on the house and barn, plaintiff addressed all of its invoices and statements to Heinz Construction. Heinz Construction sent two payments to plaintiff, and, at Heinz Construction‘s request, defendants sent one payment directly to plaintiff. Between October and December 2010, plaintiff, defendant Brian McMahon, and Heinz Construction exchanged several emails regarding the outstanding balances claimed by plaintiff.
In May 2011, plaintiff initiated a civil action against defendants, seeking damages for breach of contract (count 1), book account (count 2), and unjust enrichment (count 3). The defendants counterclaimed
Kenneth Bouvier testified that plaintiff became involved in the construction of the roof tower and deck on the house—work beyond the scope of the executed work orders—through conversations with Heinz. Bouvier also testified that a change order was not created for the roof tower work because, “based on a good relationship with [Heinz], and the fact that these were areas that we were going to support him on, we just went forward, basically, on a time-and-material basis.” In October 2010, plaintiff delivered an invoice to Heinz Construction that detailed the work plaintiff performed to advance the construction of the roof tower and deck.
Bouvier further testified that, after receiving two payments for plaintiff‘s work from Heinz Construction, he was told by Heinz that he “would be getting paid directly from [defendants]” Bouvier recalled receiving only one payment directly from defendants. Bouvier testified that he had received compliments from McMahon on plaintiff‘s work, and that he did not recall receiving any criticism about plaintiff‘s work prior to the billing dispute. Bouvier also testified that plaintiff had future work with Heinz Construction scheduled and that some projects were in the proposal stage.
Dennis Scott Heinz, Heinz Construction‘s principal, testified that he had sought defendants’ review of the work orders and change orders throughout the construction project by forwarding the documents which he had received from Bouvier by email to McMahon and then securing McMahon‘s approval by email. In the agreed statement of facts, the parties stated that plaintiff had received only two payments from Heinz Construction for the work it had performed on defendants’ property: $20,000 paid on July 29, 2010, and $24,012.50 paid on August 28, 2010. Heinz testified that he was not aware of any other payments from Heinz Construction to plaintiff for the work which plaintiff performed on defendants’ house and barn. Heinz also testified that he had asked McMahon to pay plaintiff directly one time because “the scope of work changed, and they added the barn, and I was financing a lot of it myself, so I couldn‘t afford to pay everything out of my pocket.” Heinz recalled that defendants had timely paid many invoices that he had submitted to them on behalf of Heinz Construction. Heinz also testified that Heinz Construction did not make any profit from the work plaintiff performed on defendants’ property because he had not added any markups to plaintiff‘s work before billing defendants, so that it made no difference to Heinz Construction whether defendants paid plaintiff directly or whether defendants paid Heinz Construction, which then paid plaintiff.
Brian McMahon testified that Heinz‘s request in September 2010 that defendants make a $60,100 payment directly to plaintiff was the only time that Heinz had made this request, as well as the only time that McMahon had paid plaintiff directly. McMahon also testified that he had thought that Heinz Construction would be responsible for all of plaintiff‘s charges from that point forward. McMahon further testified that he had made payments directly to other subcontractors when Heinz had requested that of him, that he had not paid any of the other subcontractors in full for the entire scope of their work, and that none of the other subcontractors had approached him for payment on the final invoices prior to the termination of his business relationship with Heinz Construction.
McMahon also testified that, a few weeks after the $60,100 payment, Bouvier communicated by email that he was “completing the accounting for your project and [would] forward details to [you] by the end of the week.” McMahon replied: “[a]s to accounting didn‘t we agree pricing [sic] already for the project both the barn and the house[.] What would the accounting be?” McMahon testified that he subsequently received the “accounting” from plaintiff—which reflected over $30,000 as the balance owed—was “shocked,” and had spoken with Heinz about it. McMahon also acknowledged that, after this email exchange, he had sent Bouvier an email that stated: “Saw how you did the tower—looks great and clever bracket as well! [Heinz] just sent me some barn pics—looks really great. Thanks for the craftsmanship.” McMahon also testified that he received a direct request from Bouvier for final payment on November 22, 2010, and that this request had prompted an “e-mail conversation” in which McMahon asked Bouvier specific billing questions.
The trial justice rendered her decision from the bench the day after the trial concluded. She found that each of the four witnesses were, “to a large extent,” credible. She specifically adopted each of the paragraphs in the agreed statement of facts as a finding of fact. With respect to plaintiff‘s claim for breach of contract, the trial justice entered judgment for defendants because she found that the evidence did not support the existence of a contract between the parties—either express or implied-in-fact. With respect to plaintiff‘s claim for unjust enrichment, the trial justice found that plaintiff had established that it conferred a benefit on defendants valued at $41,549.45, that defendants had appreciated the benefit of plaintiff‘s work, and that it would be unjust for defendants to “retain the benefit without paying the value thereof.” Accordingly, the trial justice entered judgment for plaintiff and awarded $41,549.45 plus costs. Final judgment entered on October 15, 2013, and defendants timely appealed.
II
Judgment Awarding Damages for Unjust Enrichment
A
Standard of Review
When a trial justice presides over a nonjury trial,
Additionally, “[i]t is well settled that [t]his Court will not disturb the findings of a trial justice sitting without a jury unless such findings are clearly erroneous or unless the trial justice misconceived or overlooked material evidence * * *.” JPL Livery Services, Inc., 88 A.3d at 1141 (quoting Reagan v. City of Newport, 43 A.3d 33, 37 (R.I. 2012)). “On review, ‘[w]e accord great weight to a trial justice‘s determinations of credibility, which, inherently, are the functions of the trial court and not the functions of the appellate court.‘” Id. at 1142 (quoting Cullen v. Tarini, 15 A.3d 968, 976 (R.I. 2011)). When “the record indicates that competent evidence supports the trial justice‘s findings, we shall not substitute our view of the evidence for his [or hers] even though a contrary conclusion could have been reached.” Id. (quoting Reagan, 43 A.3d at 37). “We will, however, review questions of law de novo.” Id.
B
Discussion
Unjust enrichment is “[t]he retention of a benefit conferred by another, who offered no compensation, in circumstances where compensation is reasonably expected.” Black‘s Law Dictionary 1771 (10th ed. 2014). “Instances of unjust enrichment typically arise * * * when a benefit is conferred deliberately but without a contract * * *.” Id. “The resulting claim of unjust enrichment seeks to recover the defendant‘s gains.” Id. It is well settled in our state that, “[t]o recover for unjust enrichment, a claimant must prove: (1) that he or she conferred a benefit upon the party from whom relief is sought; (2) that
Quantum meruit is a slightly different, but closely related, cause of action that warrants some discussion and consideration in this case. A Latin term for “as much as he has deserved,” quantum meruit is defined as “[a] claim or right of action for the reasonable value of services rendered.” Process Engineers & Constructors, Inc. v. DiGregorio, Inc., 93 A.3d 1047, 1052 (R.I. 2014) (quoting Black‘s Law Dictionary 1361, 1362 (9th ed. 2009)). “Such an action permits recovery of damages ‘in an amount considered reasonable to compensate a person who has rendered services in a quasi-contractual relationship.‘” Id. (quoting Black‘s Law Dictionary at 1361-62). We have recently stated that a plaintiff may recover in an action in quantum meruit if the plaintiff can show that a defendant “derived some benefit from the services and would be unjustly enriched without making compensation therefor.” Id. (quoting National Chain Co. v. Campbell, 487 A.2d 132, 135 (R.I. 1985)). While the term “unjustly enriched” is included “as a requirement for recovery under a quantum meruit theory,” we have described the nuanced distinction between unjust enrichment and quantum meruit as follows: “While unjust enrichment focuses on the propriety of a payee or beneficiary retaining funds or a benefit, quantum meruit‘s primary focus is on the value of services rendered.” Id. at 1052 (quoting Parnoff v. Yuille, 139 Conn.App. 147, 57 A.3d 349, 355 n. 7 (2012)). “Quantum meruit generally applies ‘in a situation in which the plaintiff has provided services to the defendant for which the defendant has refused to pay.‘” Id. at 1053 (quoting Parnoff, 57 A.3d at 355 n. 7).
“Although we note the distinction between unjust enrichment and quantum meruit, both doctrines are quasi-contractual theories.” Process Engineers & Constructors, Inc., 93 A.3d at 1053. “[A]ctions brought upon theories of unjust enrichment and quasi-contract are essentially the same.” Multi-State Restoration, Inc. v. DWS Properties, LLC, 61 A.3d 414, 418 (R.I. 2013) (quoting Bouchard v. Price, 694 A.2d 670, 673 (R.I. 1997)). The elements that a plaintiff must prove to prevail on a claim for unjust enrichment are identical to—and indeed were derived from—the elements required to recover in quasi-contract. See Fondedile, S.A. v. C.E. Maguire, Inc., 610 A.2d 87, 97 (R.I. 1992); R & B Electric Co. v. Amco Construction Co., 471 A.2d 1351, 1355-56 (R.I. 1984); Bailey v. West, 105 R.I. 61, 67, 249 A.2d 414, 417 (1969). Therefore, to recover on a claim for quantum meruit, a plaintiff must prove the same three elements as in a claim for unjust enrichment. See Dellagrotta, 873 A.2d at 113. While plaintiff in this case styled its cause of action as one for unjust enrichment, we undertake this brief discussion of the distinction between quantum meruit and unjust enrichment to point out that plaintiff is actually seeking to recover the value of the services rendered for which defendants have thus far declined to pay, i.e., to recover in quantum meruit. See Process Engineers & Constructors, Inc., 93 A.3d at 1052. The issue here is whether defendants would be unjustly enriched if they did not have to compensate plaintiff for the value of the services rendered, and not whether it would actually be proper for defendants to retain the benefit of plaintiff‘s work on their new house and barn.
We can easily dispense with defendants’ argument that the trial justice did not make any factual findings that demonstrated defendants’ enrichment from plaintiff‘s work was unjust. The trial justice rendered a comprehensive decision from the bench, in which she specifically acknowledged the requirements set out in
We have previously acknowledged that “[s]imply conferring a benefit upon a landowner by a subcontractor is not sufficient to establish a claim for unjust enrichment.” Emond Plumbing & Heating, Inc., 105 A.3d at 90 (quoting R & B Electric Co., 471 A.2d at 1356). “[T]he third prong of the analysis is the most important.” Id. “[T]he court must look at the equities of each case and decide whether it would be unjust for a party to retain the benefit conferred upon it without paying the value of such benefit.” R & B Electric Co., 471 A.2d at 1356. “Determining what constitutes a just or unjust result requires a trial justice to examine the facts of the particular case and balance the equities.” Emond Plumbing & Heating, Inc., 105 A.3d at 90 (quoting Dellagrotta, 873 A.2d at 115).
In the case under review, there are facts that weigh on both sides of the equity balance. The existence of a contract between plaintiff and Heinz Construction is a factor that weighs against plaintiff recovering the value of its work from defendants. It appears to this Court that the only reason plaintiff has not attempted to collect the outstanding balance for its work on defendants’ property under its contract with Heinz Construction is the undisputed fact that plaintiff wants to maintain a good business relationship with Heinz Construction.2 On the other side of
The defendants also argue that the trial justice erred as a matter of law when she ruled that plaintiff did not have to prove that it lacked an adequate remedy at law before finding that defendants were unjustly enriched. The defendants assert that plaintiff‘s adequate remedy at law was a cause of action against Heinz Construction, with whom it had established express contracts for its work—a remedy that plaintiff has not made any attempt to pursue. The defendants also remind us that the parties agree that Heinz Construction remains an active, going concern; there is no evidence that Heinz Construction has either gone out of business or lacks the resources to pay its subcontractors. The plaintiff counterargues that the trial justice was correct to reject this argument because Rhode Island recognizes unjust enrichment as a distinct cause of action for which money damages may be awarded to eliminate an unjust imbalance created by the conferral of a benefit to one party without compensation to the conferring party.
“It is well established that ‘[r]ecovery for unjust enrichment is predicated upon the equitable principle that one shall not be permitted to enrich himself at the expense of another by receiving property or benefits without making compensation for them.‘” Emond Plumbing & Heating, Inc., 105 A.3d at 90 (quoting Narragansett Electric Co. v. Carbone, 898 A.2d 87, 99 (R.I. 2006)); see also Multi-State Restoration, Inc., 61 A.3d at 418 (acknowledging plaintiffs’ claims for quasi-contract and unjust enrichment as “equitable claims“); United Lending Corp. v. City of Providence, 827 A.2d 626, 632 (R.I. 2003) (“[I]t is true that claims for unjust enrichment sound in equity“). This Court has also held, however, that unjust enrichment “can stand alone as a cause of action in its own right.” Dellagrotta, 873 A.2d at 113. Accordingly, as unjust enrichment and quantum meruit are treated as standalone causes of action, the presence or absence of an adequate remedy at law is simply one of the factors considered in the third element‘s balancing of the equities and is not determinative of whether plaintiff can or will prevail as a matter of law.3
“In the absence of privity between the parties, a party is permitted to seek equity through this quasi-contractual theory of unjust enrichment. This is a stand-alone cause of action which seeks money damages, and not equitable relief in the form of an injunction. It is the request for some form of equitable relief that warrants consideration of whether there‘s an adequate remedy at law, not simply whether the cause of action itself seeking money damages is founded upon equitable principles.”
We agree with the trial justice. That a civil action for unjust enrichment is predicated upon an equitable principle does not convert this standalone cause of action into one for which only equitable remedies may apply. The plaintiff sought, and was awarded, a legal remedy permissible under Rhode Island law, i.e., monetary compensation for the value of the services it had rendered to defendants. The three elements for unjust enrichment and quantum meruit are well settled in our jurisprudence and do not include a requirement that the proponent of the claim prove that it lacks an adequate remedy at law.
Finally, defendants urge us to consider the potential public policy ramifications of affirming the trial justice‘s decision, arguing that “permitting the subcontractor to recover against the homeowner under this circumstance would render every property owner a de facto party to subcontracts executed by the general—the general and sub could substitute the homeowner as the obligor at their whim, at any time, without notice.” We are mindful of these policy concerns, but we emphasize that proving a claim for restitution sounding in either quantum meruit or unjust enrichment involves a fact-specific balancing process in order to determine whether it would be unjust for the benefit recipient to retain either the benefit or the value of the benefit without making compensation therefor. See Emond Plumbing & Heating, Inc., 105 A.3d at 90; R & B Electric Co., 471 A.2d at 1356. Here, most of the facts were undisputed at trial, defendants had already paid plaintiff directly one time, and there was much direct communication between plaintiff and defendants regarding the billing statements and defendants’ questions about these statements. As we stated above, the trial justice was not incorrect as a matter of law in her analysis and conclusion that the third element of plaintiff‘s claim was met. The judgment in favor of plaintiff in the amount of $41,549.45 is, therefore, affirmed.
III
Taxable Costs
On defendants’ appeal from the order awarding costs to plaintiff, they argue that the trial justice erred as a matter of law when she ruled that Brungraber‘s fee could be taxed as a cost of the cause of action. The defendants contend that the expert‘s fee was precluded as a recoverable cost by
A
Standard of Review
“This Court reviews questions of statutory construction and interpreta
B
Discussion
In this case, the trial justice found that the fee generated by Brungraber‘s expert testimony was not “problematic,” commenting that his testimony “was certainly helpful to the Court and necessary in this particular case,” but that the issue was whether the fee “should be taxed as costs.” After hearing arguments from both attorneys regarding which statute took precedence over the other, the trial justice granted plaintiff‘s application in its entirety, commenting that, “given that the matter is being appealed, * * * why don‘t you tack this on to your issues * * *. [P]erhaps the Supreme Court can tell us how to interpret the differences between those two statutes.”
Section
In the case before us, there is no doubt that the trial justice granted the plaintiff‘s application for costs for the full $2,535.80 requested, and that the order awarding costs explicitly included $1,365.20 for Brungraber‘s fee. Pursuant to
IV
Conclusion
For the reasons stated herein, we affirm the judgment of the Superior Court on the plaintiff‘s claim for unjust enrichment, but we vacate and remand the order of the Superior Court granting the plaintiff‘s application for costs in its entirety. The record shall be returned to the Superior Court.
Justice INDEGLIA did not participate.
