731 Airport Associates, LP v. H & M Realty Associates, LLC

799 A.2d 279, 2002 R.I. LEXIS 165, 2002 WL 1332979
CourtSupreme Court of Rhode Island
DecidedJune 18, 2002
Docket2001-83-Appeal
StatusPublished
Cited by41 cases

This text of 799 A.2d 279 (731 Airport Associates, LP v. H & M Realty Associates, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
731 Airport Associates, LP v. H & M Realty Associates, LLC, 799 A.2d 279, 2002 R.I. LEXIS 165, 2002 WL 1332979 (R.I. 2002).

Opinion

OPINION

PER CURIAM.

This case came before the Supreme Court for oral argument on May 8, 2002, pursuant to an order directing all parties to appear and show cause why the issues raised by this appeal should not be summarily decided. After hearing the arguments of counsel and considering the memoranda of the parties, we conclude that cause has not been shown. Accordingly, we shall decide the appeal at this time.

Facts and Travel

The plaintiff, 731 Airport Associates, LP, and 747 Airport Associates, LP, through their general partner, Jason’s Realty Corp. (collectively referred to as plaintiff or buyer), filed an action against the defendant, H & M Realty Associates, LLC by and through its Member, Donald N. Leef (defendant or seller), asserting a claim for specific performance and breach of contract arising from an aborted sale of property owned by seller and located on Airport Road and Roseland Avenue (property) in the City of Warwick. This dispute arose from negotiations between the parties that commenced in March 2000 and terminated several months later by the sale of the property to a third party. In May 2000, buyer submitted an offer to purchase the property for $1,060,000 and defendant, through Donald N. Leef, submitted a counteroffer of $1,100,000, both of which were rejected. The trial justice found that further negotiations between the parties resulted in an oral agreement to sell the property. However, this agreement was not confirmed by a writing sufficient to bind the parties. The defendant’s counsel, Nadeau & Simmons (Nadeau), through attorney James L. Truslow (Trus-low), undertook the preparation of a complex purchase and sale agreement that underwent several amendments, culminating in two duplicate originals of a “final agreement” in October 2000. Although characterized as final, buyer has conceded further changes were necessary. The agreement was forwarded to buyer by Truslow and included instructions for buyer to sign and return the documents at plaintiffs earliest convenience. However, the cover letter did not contain reservation language declaring that the agreement was subject to approval by seller, a limitation that had been included in the previous drafts. At some point between October 6 and October 10, 2000, buyer submitted a check to Nadeau in the amount of $5,000 that was accepted by seller, but was neither deposited nor cashed. On October 13, *282 2000, buyer appeared at Nadeau’s offices ready and willing to close the transaction, but seller refused to sign any of the' transactional documents claiming that he was not bound to perform and, in the event that a better offer was made, he intended to accept the higher offer. Negotiations continued between buyer and seller through October, although the deposit check in the amount of $5,000 was returned to buyer on October 20, 2000. ' The seller entered into a purchase and sale agreement with the Rhode Island Airport Corporation for the sale price of $1,100,000 on November 29, 2000.

On November 8, 2000, buyer commenced this action for specific performance and recorded a notice of lis pendens in the land evidence records of the City of Warwick. The seller filed a motion to quash the lis pendens and asserted a counterclaim for slander of title. At the conclusion of the plaintiffs case in a nonjury trial, the trial justice granted seller’s motion to dismiss pursuant to Rule 52 of the Superior Court Rules of Civil Procedure. The judgment and order quashing the Us pendens was entered in the Superior Court on January 18, 2001. The buyer appealed and declared in the notice of appeal that a copy of the transcript would be ordered. However, an amended notice of appeal indicating that the transcript would not be ordered subsequently was filed.

On appeal, buyer assigns as error the findings of the trial justice that no binding contract existed between the parties and that Truslow lacked apparent authority to contract on behalf of seller. The seller maintains that the trial justice did not err and further argues that buyer’s failure to comply with the Supreme Court Rules of Appellate Procedure by failing to provide the trial transcript is fatal to buyer’s appeal.

Failure to Order Transcript

The seller argues that plaintiffs failure to order the trial transcript precludes a meaningful review of the testimony upon which the trial justice based her decision. The plaintiff maintains that it was not required to provide a transcript because this appeal is limited to questions of law. The plaintiff has indicated in its filings with this Court that buyer “is not challenging the trial court’s discretionary factual findings.” Rather, this appeal is limited to “the trial court’s application of the pertinent law to those facts.” The defendant suggests that in the absence of a transcript it is impossible for this Court to determine whether the trial justice overlooked or misconceived the evidence or whether she applied the correct rule of law to the facts as she found them.

The deliberate decision to prosecute an appeal without providing the Court with a transcript of the proceedings in the trial court is risky business. Unless the appeal is limited to a challenge to rulings of law that appear sufficiently on the record and the party accepts the findings of the trial justice as correct, the appeal must fail. DePetrillo v. Coffey, 118 R.I. 519, 521 n. 1, 376 A.2d 317, 318 n. 1 (1977) (citing Sormanti v. Deacutis, 77 R.I. 507, 511, 77 A.2d 919, 922 (1951)). In this case, the trial justice found that no enforceable contract existed between the parties and that Truslow did not have apparent authority to bind the seller to a transaction with plaintiff. She also found that the parties specifically waived executing a letter of intent that included the terms of the sale. Although several draft agreements containing the essential terms of the sale were prepared, the trial justice concluded that seller intended only to be bound by an executed purchase and sales agreement and never agreed to the transaction in writing. On appeal, buyer challenges *283 these conclusions and alleges the trial justice misapplied the law to the facts as she found them. The bench decision in this case is detailed and lengthy and encompasses twenty-five transcript pages. In light of plaintiffs representation that it accepts the findings of fact by the trial justice, we are satisfied that the appeal may go forward.

Apparent Authority

The buyer argues that Truslow possessed the apparent authority to bind the seller to a contract that buyer claims existed between the parties. Apparent authority to contract on behalf of a principal “arises from the principal’s manifestation of such authority to the [third party].” Menard & Co. Masonry Building Contractors v. Marshall Building Systems, Inc., 539 A.2d 523, 526 (R.I.1988). Such apparent authority can come from “indicia of authority given by the principal to the agent” and does not have to be direct communication to the third person. Id.

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Cite This Page — Counsel Stack

Bluebook (online)
799 A.2d 279, 2002 R.I. LEXIS 165, 2002 WL 1332979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/731-airport-associates-lp-v-h-m-realty-associates-llc-ri-2002.