Casa DiMario, Inc. v. Richardson

763 A.2d 607, 2000 R.I. LEXIS 239, 2000 WL 1855053
CourtSupreme Court of Rhode Island
DecidedDecember 18, 2000
Docket99-84-Appeal, 99-162-Appeal
StatusPublished
Cited by28 cases

This text of 763 A.2d 607 (Casa DiMario, Inc. v. Richardson) 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
Casa DiMario, Inc. v. Richardson, 763 A.2d 607, 2000 R.I. LEXIS 239, 2000 WL 1855053 (R.I. 2000).

Opinion

OPINION

FLANDERS, Justice.

The legality of a municipal ban on nude barroom dancing returns to our table in this case. Last term, in El Marocco Club, Inc. v. Richardson, 746 A.2d 1228 (R.I. 2000), we grappled with several of the same issues raised by these consolidated appeals. There, we held that the General Assembly had authorized the defendant Town of Johnston (town) to enact the identical anti-nudity ordinances — namely, town ordinances Nos. 965 and 1057 — that are challenged here. Id. at 1231-33. In El Marocco, we ruled that, under applicable state law, the town was within its authority when it enacted ordinances that effectively imposed an anti-nudity condition upon its issuance of Class B liquor licenses. Id. We also held that the ordinances in question did not violate the freedom-of-speech rights of the El Morocco Club, an adult-entertainment establishment in the town that, like the plaintiff, Casa DiMario, Inc., d/b/a “Mario’s Showplace” (Mario’s), regularly featured nude barroom dancing on its premises. Id. at 1238-39.

Moreover, last term the United States Supreme Court also addressed the validity of a municipal anti-nudity ordinance in City of Erie v. Pap’s A.M., 529 U.S. 277, 120 S.Ct. 1382, 146 L.Ed.2d 265 (2000), concluding that a local Pennsylvania ordinance banning public nudity was lawful as applied to an adult-entertainment establishment featuring displays of nudity. Id. at 281, 120 S.Ct. at 1387, 146 L.Ed.2d at 274.

Notwithstanding the El Marocco and City of Erie decisions, Mario’s still presses its appeals. In the first of the two consolidated cases before us (No. 99-84-A.), Mario’s takes issue with various aspects of a Superior Court judgment. The trial court refused to apply the doctrine of equitable estoppel against the town, upheld the town’s authority to enact an anti-nudity ordinance after the General Assembly amended G.L.1956 § 3-7-7.3 in 1997 (see P.L.1997, ch. 9, § 1) (the 1997 amendment), and declined to reach Mario’s other claims, including its allegation that the town had violated its free-speech rights in attempting to enforce ordinance No. 965 against it. And the town asks us to vacate that portion of the Superior Court’s judgment in No. 99-84-A. that invalidated the town’s first anti-nudity ordinance (No. 965). We consolidated these appeals with Mario’s appeal (No. 99-162-A.) from a second Superior Court judgment denying Mario’s request for injunctive relief against the town’s enforcement of a second anti-nudity ordinance (No. 1057) that it enacted after the General Assembly’s 1997 amendment.

Mario’s asserts that neither the El Marocco case nor the City of Erie case has resolved all of the issues raised by its appeals. In particular, it argues that the Superior Court erred when it vacated a consent order signed by the town solicitor in Mario’s first lawsuit against the town. The court did so because it ruled that the *610 solicitor lacked the authority to settle that case and that the town council (council) had declined to ratify the consent order signed by the solicitor. But Mario’s insists that the solicitor possessed — at the very least — apparent authority to settle the lawsuit; that the council indeed ratified the settlement; and that, in any event, the town should be estopped by its conduct from enforcing the town’s anti-nudity ordinances against Mario’s. Mario’s also posits that the General Assembly “grandfathered” its right to present nude-dancing entertainment when it enacted G.L.1956 § 5-72-2(b) as part of its 1997 amendment. See P.L.1997, ch. 9, § 2. We address these issues below, together with Mario’s other arguments, as well as the state’s appeal with respect to the validity of ordinance No. 965.

I

Propriety of Vacating the Consent Order

The trial justice, we hold, properly vacated the consent order because the town’s solicitor never possessed any actual or apparent authority on behalf of the town to compromise the pending claims involving Mario’s on the terms set forth in the consent order. Moreover, the alleged conduct by individual town officials assuring Mario’s that it was or would be “grandfathered” against the town’s anti-nudity ordinances was insufficient as a matter of law to estop the town from vacating the settlement or enforcing the anti-nudity ordinances against Mario’s.

In the course of defending the town against Mario’s first lawsuit challenging the validity of ordinance No. 965, the solicitor signed a consent order that purported to settle the case. There, he agreed that the town would not enforce the anti-nudity provisions of any present or future ordinances against Mario’s. But the council never had authorized the solicitor to settle Mario’s lawsuit on this basis. Indeed, even the council would not have had the power to bind future councils by promising not to enforce yet-to-be-enacted ordinances against Mario’s. See Parent v. Woonsocket Housing Authority, 87 R.I. 444, 447, 143 A.2d 146, 147 (1958). Thus, the solicitor unquestionably lacked the actual authority to settle the case on the terms set forth in the consent order. In addition, however, the solicitor lacked any implied or apparent power to settle such a case on behalf of his or her client unless the client had authorized the attorney to do so or thereafter had ratified the attorney’s settlement. See Parrillo v. Chalk, 681 A.2d 916, 919 (R.I.1996). And unlike the situation in Mansolillo v. Employee Retirement Board of Providence, 668 A.2d 313 (R.I.1995), the municipality in this case did not stipulate that its attorney was authorized to settle the lawsuit in question.

We have repeatedly held that “the authority of a public agent to bind a municipality must be actual * * Warwick Teachers’ Union Local No. 915 v. Warwick School Committee, 624 A.2d 849, 850-51 (R.I.1993). “Consequently, any representations made by such an agent lacking actual authority are not binding on the municipality * * School Committee of Providence v. Board of Regents for Education, 429 A.2d 1297, 1302 (R.I.1981). Moreover, the general rule throughout this country is that, absent actual authority to do so, a municipal attorney may not compromise claims or consent to judgments against the municipality. See generally, 10 Eugene McQuillin, The Law of Municipal Corporations § 29.15 at 308 (3d Ed.1999). Because the town solicitor had no actual or apparent authority to compromise the litigation between Mario’s and the town or to enter into the consent order on behalf of the town, the council was entitled to reject its terms upon receiving notice of the proposed settlement.

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Cite This Page — Counsel Stack

Bluebook (online)
763 A.2d 607, 2000 R.I. LEXIS 239, 2000 WL 1855053, Counsel Stack Legal Research, https://law.counselstack.com/opinion/casa-dimario-inc-v-richardson-ri-2000.