Greensleeves, Inc. v. Smiley

942 A.2d 284, 2007 R.I. LEXIS 127, 2007 WL 4335539
CourtSupreme Court of Rhode Island
DecidedDecember 13, 2007
Docket2006-107-Appeal
StatusPublished
Cited by33 cases

This text of 942 A.2d 284 (Greensleeves, Inc. v. Smiley) 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
Greensleeves, Inc. v. Smiley, 942 A.2d 284, 2007 R.I. LEXIS 127, 2007 WL 4335539 (R.I. 2007).

Opinion

OPINION

Justice ROBINSON for the Court.

The plaintiff, Greensleeves, Inc., appeals to this Court from the entry of judgment in favor of the defendant, Eugene W. Friedrich. 1

This case came before the Court for oral argument on October 1, 2007, 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 record, the briefs submitted by the parties,' and the oral arguments of counsel, we are of the opinion that cause has not been shown and that the case should be decided at this time. For the reasons set forth below, we affirm in part and vacate in part certain rulings of the Superior Court.

Facts and Travel

Since 1988, Philip B. Smiley, Sr., had owned six condominium dock slips at Lee’s Wharf Marina in Newport, Rhode Island. In 1993, after two unsuccessful attempts to sell his dock slips, Mr. Smiley contacted his real estate broker, Joseph W. Accetta, and asked him to undertake further efforts to obtain a buyer for the dock slips. Mr. Accetta contacted Elizabeth Meyer, the sole shareholder and chief executive officer of Greensleeves, Inc. (Greensleeves), who had previously made a bid for the dock slips. Mr. Accetta and Ms. Meyer entered into negotiations regarding the sale of the dock slips, and those negotiations proved successful.

In a letter to Ms. Meyer’s attorney, dated May 24, 1995, Mr. Accetta summarized the negotiated terms whereby Mr. Smiley agreed to sell the dock slips to Greensleeves for $165,000. Mr. Accetta asked Greensleeves’ attorney to draft a formal agreement which would incorporate the terms summarized in the May 24 letter. Subsequently, rather than have a more formal agreement drafted, Ms. Meyer and Mr. Smiley agreed to treat the May 24 letter as the purchase and sale agreement, and the closing was set for June 14, 1995.

Then, after Mr. Smiley and Greensleeves agreed to treat the May 24 letter as the purchase and sale agreement, but before the scheduled June 14 closing date, Mr. Friedrich offered Mr. Smiley $175,000 to purchase the same six dock slips. Mr. *287 Smiley accepted Mr. Friedrich’s offer, and a closing date was set for June 15, 1995.

On June 14, 1995, the original date for the closing with Greensleeves, Mr. Smiley did not close with Greensleeves, and Ms. Meyer was informed that he had entered into a purchase and sale agreement with Mr. Friedrich. The next day, Greensleeves filed suit in the Superior Court for Newport County seeking specific performance of Mr. Smiley’s agreement to sell the dock slips to Greensleeves. Greensleeves also filed a notice of lis pendens in the land evidence records of the City of Newport. Thereafter, Mr. Friedrich, who had intervened in the Superior Court action, 2 moved to dismiss Greensleeves’ complaint. It appears from the record that the hearing justice treated that motion to dismiss as a motion for summary judgment, and on August 11, 1995 he ruled that the May 24 letter did not satisfy the statute of frauds; he therefore granted summary judgment in favor of defendants, reasoning that there was no enforceable contract between Mr. Smiley and Greensleeves. Additionally, the hearing justice granted Mr. Smiley’s separate motion to strike the lis pen-dens. On that same day, Mr. Smiley and Mr. Friedrich went forward with their closing on the six dock slips.

On August 28,1995, Greensleeves filed a notice of appeal, and it also moved in this Court for a stay of the order granting the motion to strike the notice of lis pendens. We granted a stay on September 5, 1995. Subsequently, in a decision issued on June 6, 1997, we held that the May 24, 1995 letter contained all of the necessary elements to constitute a contract for the sale of the dock slips, and we vacated the Superior Court’s grant of summary judgment. Greensleeves, Inc. v. Smiley, 694 A.2d 714, 717 (R.I.1997).

Upon remand to the Superior Court, Greensleeves moved for summary judgment and sought specific performance of its agreement with Mr. Smiley concerning purchase of the dock slips for $165,000. Mr. Smiley and Greensleeves agreed that the May 24 letter constituted the complete agreement between the parties. On February 6, 1998, in view of the agreement of the parties as to the contractual terms, the hearing justice granted specific performance in favor of Greensleeves. The hearing justice also ordered Mr. Friedrich to join in the conveyance of the property to Greensleeves so as to ensure that Greensleeves would obtain clear and marketable title to the six dock slips. Mr. Friedrich appealed to this Court, and on January 15, 1999 this Court issued an unpublished order affirming the ruling of the hearing justice. 3

Greensleeves then sought to set up a closing with respect to the dock slips, and it also sought an accounting of the rental income from the dock slips that Mr. Fried-rich and Mr. Smiley had collected after June 14, 1995 (the date of the originally scheduled closing between Mr. Smiley and Greensleeves). Mr. Smiley and Mr. Fried-rich then prepared and provided to Greensleeves an accounting of income and expenses relating to the six dock slips.

On April 14, 2000, a hearing was held to determine what amount of lost income might be due to Greensleeves. The par *288 ties agreed that the relevant time period was from June 14, 1995 through the 1999 boating season, and they stipulated that the net profits earned by Mr. Smiley and Mr. Friedrich during that time period were $61,258.05. 4 The parties also stipulated as to the amount of interest that Greensleeves had earned due to the fact that it had not had occasion to pay the purchase price to Mr. Smiley.

On May 16, 2000, after ruling that this Court’s decision in Bissonnette v. Hanton City Realty Corp., 529 A.2d 139 (R.I.1987), 5 was the controlling precedent, the hearing justice ruled that Greensleeves would not be entitled to the rental profits earned by Mr. Smiley and Mr. Friedrich. That ruling was predicated on the hearing justice’s belief that the principles set forth in Bissonnette applied to the instant case; on that basis, the hearing justice ruled that the rental profits in question were offset by the interest Greensleeves had earned on the purchase money. In common parlance, the result was a “wash.”

Greensleeves then filed a notice of appeal to this Court with respect to the May 16, 2000 order. In the meantime, a closing on the dock slips was held. Greensleeves paid $165,000 to Mr. Friedrich for the dock slips, Mr. Smiley paid $10,000 to Mr. Friedrich, and the dock slips were conveyed to Greensleeves. With respect to Greensleeves’ appeal, this Court ruled on February 8, 2002 that the case was not properly before it because several claims remained outstanding. Accordingly, this Court remanded the case to Superior Court for the resolution of all remaining claims before any further appeal by the parties would be entertained.

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Bluebook (online)
942 A.2d 284, 2007 R.I. LEXIS 127, 2007 WL 4335539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greensleeves-inc-v-smiley-ri-2007.