Adler Brothers Const., Inc. v. Colvin, pc/o3-1745 (r.I.super. 10-17-2007)

CourtSuperior Court of Rhode Island
DecidedOctober 17, 2007
DocketNo. PC/O3-1745
StatusPublished

This text of Adler Brothers Const., Inc. v. Colvin, pc/o3-1745 (r.I.super. 10-17-2007) (Adler Brothers Const., Inc. v. Colvin, pc/o3-1745 (r.I.super. 10-17-2007)) is published on Counsel Stack Legal Research, covering Superior 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
Adler Brothers Const., Inc. v. Colvin, pc/o3-1745 (r.I.super. 10-17-2007), (R.I. Ct. App. 2007).

Opinion

DECISION
This case involves a dispute over who should pay for a roadway that was partially constructed on a previously undeveloped parcel of property in Scituate, Rhode Island, and otherwise known as Tax Assessor's Plat No. 48-1, Lot 118 (the property). The Plaintiff, Adler Brothers Construction, Inc. (Adler), filed a breach of contract action against real estate developer David M. Devany (Devany) and his wife Lois A. Devany. In the same complaint, Adler filed an unjust enrichment claim against Earl H. Colvin (Earl) and his wife Lillian G. Colvin (the Colvins). A five-day non-jury trial was conducted in the Superior Court, and the Court will now issue its Decision. Jurisdiction is pursuant to G.L. 1956 § 8-2-14.

I
Facts and Travel
On March 11, 1998, the Colvins entered into a listing agreement for the property with real estate agent Joseph Parenti, who was acting on behalf of the brokerage firm J.W. Riker. On the same day, Devany's corporation, Dalo Associates, Inc. (Dalo), signed a purchase and sales agreement (P S) for the property in the amount of $105,000. Thereafter, on March 17, 1998, Devany signed an Indemnification Agreement in his capacity as President of Dalo, whereby Dalo *Page 2 would hold harmless and indemnify the Colvins for any claims which may arise as a result of proposed surveying, testing and/or excavation work on the property. On March 19, 1998, the Colvins ratified the P S.

The P S contained certain conditions, one of which was that the sale was subject to the approval of an eight or nine lot subdivision of the property.1 Dalo was required to exercise due diligence, and the closing was scheduled to occur within thirty days of obtaining subdivision approval.

On January 19, 1999, the Scituate Planning Commission (the Commission) voted to approve a proposed subdivision master plan for the property. Final approval was subject to certain conditions, one of which required Devany to obtain an easement to clear brush from property owned by an objecting neighbor, Cecile Davidowicz (Davidowicz). Lengthy negotiations between Devany and Davidowicz ensued.

On March 8, 1999, Adler gave Devany a quote for $196,967 to clear land and perform roadwork on the property. It later reduced the price to $169,835 on March 31, 1999. Adler was aware that Devany did not own the property, but that he had signed a P S on behalf of Bethel Corporation (Bethel). Thereafter, on April 17, 1999, Devany entered into another Indemnification Agreement with the Colvins, this time on behalf of Bethel. However, Bethel was not incorporated until April 21, 1999. In the Indemnification Agreement, the Colvins agreed to allow Bethel "to go upon said property and perform certain road building and associated land development work."2 *Page 3

Sometime in May, 1999, the Colvins entered into a second P S with Devany, this time in his capacity as President of Bethel. The sale still was subject to the acquisition of subdivision approval, with the closing still to be scheduled within thirty days of receiving final approval. The purchase price had been increased to $137,000 and the parties expressly incorporated the April 17, 1999 Indemnification Agreement into the P S.

On April 28, 1999, Adler commenced construction on the property, and continued through June 11, 1999.3 Adler removed and buried trees and boulders, and began laying a roadway of approximately nineteen-hundred-feet in length. When Devany encountered difficulties in obtaining an easement from Davidowicz, he told Adler to discontinue the construction project before completion. On December 31, 1999, Adler submitted an invoice to Devany in the amount of $75,000. To date, Adler has not been paid for the any of the work that it performed for Bethel.

On February 5, 2000, the Colvins informed Devany, through Parenti, that they wanted to close the sale pursuant to a previous, unwritten November 15, 1999 deadline. Thereafter, the Colvins put pressure on Devany to close the deal. On February 29, 2000, Parenti wrote in his notes that:

"I explained to Earl [Colvin] that the closing date was open ended and that upon drafting of the second agreement I urged Earl to put a specific date but that Earl said that he had nothing to lose with the roadwork to be done, a gain to him, and that he wanted to keep the closing as per the first agreement. . . ." Exhibit 36 Parenti's notes, dated February 29, 2000.

On May 3, 2000, the Colvins and Bethel entered into yet another P S, this time in the amount of $170,000. The P S did not specify a closing date. On June 19, 2000 the parties amended the *Page 4 P S to include a closing date of July 21, 2000, with time being of the essence. On July 5, 2000, the Colvins agreed to extend the closing date to September 30, 2000, again with time being of the essence.

On August 1, 2000, Adler sent another $75,000 invoice to Devany. Meanwhile, according to Devany, he was still attempting to resolve the easement issue with neighbor Davidowicz. Towards the end of September, Devany indicated that he and Davidowicz had reached an agreement, and that he needed a few extra days to firm up financing. However, the Colvins refused to extend the September 30, 2000 deadline. On October 1, 2000, Devany executed a release on behalf of Bethel Corporation. Meanwhile, the Rhode Island Secretary of State had issued a notice of revocation of its corporate status to Bethel for failure to file an annual report. On November 30, 2000, the Rhode Island Secretary of State mailed a Certificate of Revocation to Bethel for failure to file an annual report.

On October 6, 2000, Adler filed a notice of intention to file a mechanic's lien. Meanwhile, Parenti attempted to solicit third-party bids for the property on behalf of the Colvins. The Colvins rejected several offers for the parcel: one from Meehan Builders, Inc., in the amount of $288,000; another from Harrow, LLC, for $295,000; another from Robert F. Tasca, Jr. (Tasca), for $250,000. The Colvins also rejected an offer from Adler to purchase the property for $255,000, with the agreement that it would be willing to waive all of its claims for compensation for the construction work that it already had performed on the lot.

On October 23, 2000, the Colvins entered into a P S with Annese Construction Co., Inc. (Annese) in the amount of $300,000. Annese also intended to subdivide and develop the property. Thereafter, Tasca offered Annese $290,000 to construct a home on one of the property's parcels. The Colvins never sold the property to Annese, however, because it was *Page 5 unable to obtain necessary permits. Consequently, on March 19, 2001, the Colvins, Parenti, and Annese executed a release.

On April 2, 2001, the Colvins entered into a P S with Tasca in the amount of $315,000. On April 25, 2001, the Colvins transferred the warranty deed to Tasca. Thereafter, Tasca constructed a single-family residence on the property that utilizes all but seventy feet of the roadway that Adler sub-graded. Tasca later obtained approval to subdivide the property into two lots.

On April 8, 2003, Adler filed the instant action against the Colvins and Devany.4

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Bluebook (online)
Adler Brothers Const., Inc. v. Colvin, pc/o3-1745 (r.I.super. 10-17-2007), Counsel Stack Legal Research, https://law.counselstack.com/opinion/adler-brothers-const-inc-v-colvin-pco3-1745-risuper-10-17-2007-risuperct-2007.