Gross v. Glazier

495 A.2d 672, 1985 R.I. LEXIS 556
CourtSupreme Court of Rhode Island
DecidedJuly 9, 1985
Docket83-241-Appeal
StatusPublished
Cited by29 cases

This text of 495 A.2d 672 (Gross v. Glazier) 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
Gross v. Glazier, 495 A.2d 672, 1985 R.I. LEXIS 556 (R.I. 1985).

Opinion

OPINION

MURRAY, Justice.

This is an appeal by the three defendant siblings jointly and by one of the defendants, Helen G. Glazier, in her individual capacity from the trial justice’s judgment for the plaintiff, Herman Gross. We affirm the judgment of the Superior Court, and, therefore, the appeal of the three defendants is denied and dismissed.

This is a family dispute involving the four children of Rose and Frank Gross. Herman Gross, plaintiff, is the oldest son. Herman and Irving Gross’s principal business is Fairhope Fabrics in Fall River, Massachusetts. The two sisters, Helen Glazier and Beatrice Newman, live out of town and have generally left all family business matters up to the two brothers, Herman and Irving Gross. New.ell Realty Co. (Newell) was formed in 1945 for the purpose of taking title to land upon which the father, Frank, had previously operated a junk business. Newell issued 100 shares of common stock: 20 shares to each of the children and 20 shares to Frank, the father. On October 8, 1945, Frank transferred his 20 shares to Herman, his oldest son. From 1945 to the present, the stock ownership, according to Newell’s records, has been 40 shares in Herman’s name, and 20 shares in the name of each defendant. In the early [673]*6731950s, Herman purchased land personally. In 1960, he stated to Irving that he was willing to convey this land to Newell in return for 5 shares of stock from each of his three siblings. Irving originally accepted the offer but then changed his mind. When the sisters convinced Irving to acquiesce, Irving’s attorney arranged for a deed of the properties to Newell. Next, Herman took over the control of the company although no change of ownership was made on the books. In 1969 Newell entered into an arrangement with American Toy Company for the construction and leasing of a building.

The plaintiff contends that, in 1979, Irving challenged Herman’s status as a majority stockholder: “For the first time, the other siblings informed Herman that the fifteen shares that they owed him in accordance with the 1960 transaction were to be satisfied out of the original twenty shares transferred to Herman by his father in 1945.” The siblings maintained that those shares had been given to Herman in an oral trust for their father and, upon his death, to the siblings. In satisfaction of their obligation to transfer fifteen shares (five each), they stated that they had released their trust claims to those shares. Herman immediately sued his three siblings on July 28, 1980, to compel each of them to convey five shares to him.

At trial, Herman testified as related above. Irving testified that the 1945 transaction was a trust and an attorney corroborated that version of the story. The sisters sided with Irving. The defendants invoked the statute of limitation's and attacked Herman’s credibility by introducing evidence that Herman had informed both a court and an accountant that the books of Newell reflected a stock distribution of forty shares to Herman (as opposed to fifty-five) and twenty each to the three siblings (as opposed to fifteen each).

The trial justice accepted Herman’s testimony as the most reliable. He held that defendants had not met their burden of proving an oral trust by clear and convincing evidence, and he concluded that, as regards the statute-of-limitations defense, defendants were estopped from asserting this defense because, by their conduct, they had led Herman to believe that they acquiesced in his belief that he had majority control and ownership of the corporation. As stated above, plaintiff sued immediately upon the challenge of his majority control.

The critical and decisive issue in this controversy concerns the trial justice’s ruling that the three defendants were es-topped from invoking as a defense Herman’s failure to initiate this litigation until almost twenty years had elapsed between defendants’ respective promises to give Herman five shares of their twenty-share portions of Newell stock and the commencement of this suit in July 1980. Initially, we once again emphasize that a trial justice in a jury-waived ease has the exclusive task of drawing inferences from the evidence presented and that the factual findings of such a justice will be accepted by this court as long as the inferences are reasonable and logical and flow from the established facts. Rhode Island Turnpike & Bridge Authority v. Bethlehem Steel Corp., — R.I. —, —, 446 A.2d 752, 756 (1982). Credibility unquestionably played an important part in the proceedings before the trial justice, and we see no reason whatsoever for disturbing his factual findings.

The defendants, in seeking a dismissal of plaintiff’s suits on the grounds of the bar of the statute of limitations and/or laches, rely on Wolf v. S.H. Wintman Co., 92 R.I. 470, 473, 169 A.2d 903, 905 (1961), and Caianiello v. Shatkin, 78 R.I. 471, 476-77, 82 A.2d 826, 829 (1951), where the principle of equitable estoppel was recognized in actions at law to prevent the imposition of the bar of the statute of limitations “where the particular facts warrant” the principle’s application. It was also emphasized in these cases that the application required more than evidence of mere inaction or silence by a person who has no obligation to speak or act in the particular situation. [674]*674There must be a showing of an express representation or other affirmative conduct which amounts to a representation that' could reasonably deceive another and induce a reliance that would work to the disadvantage of the individual relying upon the representation.

The defendants, in arguing for a dismissal of plaintiffs suit on the ground of its untimeliness, stress that silence, in the absence of a duty to speak, will not justify the invocation of an estoppel. We have no quarrel with this proposition. Loiselle v. City of East Providence, 116 R.I. 585, 359 A.2d 345 (1976); Schiavulli v. School Committee of North Providence, 114 R.I. 443, 334 A.2d 416 (1975). However, as will be seen, there is ample evidence of affirmative representations that, if countenanced by this court, would work to the disadvantage of plaintiff.

Here, the trial justice believed plaintiff and rejected defendants’ view of what transpired within the Gross family circle since 1960. In his bench decision the trial justice described plaintiff as an individual who was “good” to his brothers and sisters as well as being the “driving force” that resulted in bringing to fruition a corporate entity whose success can redound to the benefit of all the litigants. To demonstrate this drive, we shall detail some of the events alluded to earlier in this opinion.

As noted earlier, in the midforties the litigants’ father conveyed to Newell a seven-plus-acre parcel of real estate that was situated in East Providence on Newport Avenue and upon which the father had conducted a junk business. At the same time, the father also conveyed to the realty corporation four lots. The four lots were located on a narrow portion of Anama Street. This street separated the four smaller lots from the seven-acre parcel.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Doe v. Portsmouth Abbey School
D. Rhode Island, 2024
Henry v. Sheffield
856 F. Supp. 2d 345 (D. Rhode Island, 2012)
Smithfield Estates v. Heirs of Hathaway
Superior Court of Rhode Island, 2011
Iadevaia v. Town of Scituate Zoning Board
Superior Court of Rhode Island, 2011
Island Restoration v. New Shoreham Zbr
Superior Court of Rhode Island, 2008
National Refrigeration v. Trav. Indmty.
Superior Court of Rhode Island, 2007
State v. Yashar
Superior Court of Rhode Island, 2007
McAdam v. Grzelczyk
911 A.2d 255 (Supreme Court of Rhode Island, 2006)
Gaumond v. Trinity Repertory Co.
909 A.2d 512 (Supreme Court of Rhode Island, 2006)
Newport Realty, Inc. v. Lynch
878 A.2d 1021 (Supreme Court of Rhode Island, 2005)
McBurney v. Roszkowski
875 A.2d 428 (Supreme Court of Rhode Island, 2005)
McEntee v. Davis
861 A.2d 459 (Supreme Court of Rhode Island, 2004)
Union Station Associates v. Rossi
862 A.2d 185 (Supreme Court of Rhode Island, 2004)
Santurri v. DiPietro
818 A.2d 657 (Supreme Court of Rhode Island, 2003)
MacEra v. Cerra
789 A.2d 890 (Supreme Court of Rhode Island, 2002)
Wilkinson v. State Crime Laboratory Commission
788 A.2d 1129 (Supreme Court of Rhode Island, 2002)
Reitsma v. Pascoag Reservoir & Dam, LLC
774 A.2d 826 (Supreme Court of Rhode Island, 2001)
Cabral v. DuPont
764 A.2d 114 (Supreme Court of Rhode Island, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
495 A.2d 672, 1985 R.I. LEXIS 556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gross-v-glazier-ri-1985.