IDC Clambakes, Inc. v. Dennis J. Carney, in his capacity as Trustee of the Goat Island Realty Trust

CourtSupreme Court of Rhode Island
DecidedMarch 19, 2021
Docket18-340
StatusPublished

This text of IDC Clambakes, Inc. v. Dennis J. Carney, in his capacity as Trustee of the Goat Island Realty Trust (IDC Clambakes, Inc. v. Dennis J. Carney, in his capacity as Trustee of the Goat Island Realty Trust) 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.

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IDC Clambakes, Inc. v. Dennis J. Carney, in his capacity as Trustee of the Goat Island Realty Trust, (R.I. 2021).

Opinion

March 19, 2021

Supreme Court

No. 2018-340-Appeal. (NC 05-177)

IDC Clambakes, Inc. :

v. :

Dennis J. Carney, in his capacity as : Trustee of the Goat Island Realty Trust, et al.

NOTICE: This opinion is subject to formal revision before publication in the Rhode Island Reporter. Readers are requested to notify the Opinion Analyst, Supreme Court of Rhode Island, 250 Benefit Street, Providence, Rhode Island 02903, at Telephone (401) 222-3258 or Email opinionanalyst@courts.ri.gov, of any typographical or other formal errors in order that corrections may be made before the opinion is published. Supreme Court

Dennis J. Carney, in his capacity as : Trustee of the Goat Island Realty Trust, et al.

Present: Suttell, C.J., Goldberg, Flaherty, and Robinson, JJ.

OPINION

Justice Robinson, for the Court. The plaintiff, IDC Clambakes, Inc.

(Clambakes), appeals from an October 29, 2018 final judgment of the Newport

County Superior Court following a grant of a motion for summary judgment filed

by the defendants—viz., the individual unit owners of the Goat Island South

Condominium (GIS Condominium) 1 and the Goat Island South Condominium

Association, Inc. (GISCA). On appeal, the plaintiff contends that the hearing justice

erred in his September 26, 2018 written decision, wherein he held that the

1 Given the fact that the list of names of the individual unit owners is lengthy and is already a part of the record in this case, we will not recite it here.

-1- defendants’ motion for summary judgment should be granted on the basis of: (1) the

hearing justice’s conclusion that Clambakes had “failed to demonstrate that it would

be unjust for the Defendants to receive any benefit or that it conferred a benefit upon

the Defendants;” and (2) his conclusion that Clambakes’ quasi-contract claims were

barred by the doctrine of res judicata. This case came before the Supreme Court

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 a close review of the

record and careful consideration of the parties’ arguments (both written and oral),

we are satisfied that cause has not been shown and that this appeal may be decided

at this time.

For the reasons set forth in this opinion, we affirm the judgment of the

Superior Court.

I

Facts and Travel

The conflict which forms the basis of the dispute between the parties in this

case is not new to this Court. The seemingly eternal saga surrounding these

condominiums and their common elements—including the event space at issue in

this case—has come before this Court on numerous occasions. See, e.g., IDC

Properties, Inc. v. Goat Island South Condominium Association, Inc., 128 A.3d 383

(R.I. 2015); America Condominium Association, Inc. v. IDC, Inc., 844 A.2d 117

-2- (R.I. 2004) (hereinafter referred to as America I), aff’d on reh’g by America

Condominium Association, Inc. v. IDC, Inc., 870 A.2d 434 (R.I. 2005) (hereinafter

referred to as America II). Because the facts have been presented in painstaking

detail in our previous opinions, we will recount only those facts that are absolutely

necessary to the resolution of this case. In so doing, we rely primarily on the decision

of the hearing justice, our previous opinions, and other documents in the record.

On January 13, 1988, Globe Manufacturing Co. (Globe) recorded a

declaration of condominium, which created the GIS Condominium that is at issue in

this case. According to the trial justice’s decision in the instant case, Thomas Roos

is the president, vice president, director, and sole shareholder of Globe’s successor

declarants—Island Development Corporation, Inc. (IDC) and IDC Properties, Inc.

(Properties).2 He is likewise the president and sole shareholder of Clambakes. The

GIS Condominium included three undeveloped parcels. It is the unit entitled “the

North Development Unit,” sometimes referred to in this litigation as “the Reserved

Area,” which forms the basis of this dispute. The Reserved Area is a waterfront

parcel of land with an unobstructed view of Narragansett Bay.

2 According to defendants’ memorandum of law in support of their motion for summary judgment, Thomas Roos is also the owner of an entity entitled IDC, Inc. There is some confusion or lack of symmetry between and among certain statements in the record in this case, the previous opinions of this Court, and the trial justice’s decision in this case with respect to the roles of Island Development Corporation, Inc. and IDC, Inc. However, that does not in any way affect the substantive outcome of this case.

-3- In March of 1988, Globe and GISCA amended and restated the original

condominium declaration (the master declaration). The master declaration reserved

certain of Globe’s development rights which had been provided for in the original

declaration, including the right to convert the Reserved Area to a master unit and to

construct improvements on it or to withdraw it completely from the GIS

Condominium. The master declaration provided that those rights expired on

December 31, 1994.

“After passage of the 1988 master declaration, Globe’s interests were

transferred to [Island Development Corporation, Inc.], and [ultimately] thereafter to

[Properties], through a series of sales and assignments.” America I, 844 A.2d at 122.

During this time, Globe (or its successor declarants) was attempting to amend the

master declaration to extend the deadline by which it was required to exercise its

rights to develop the Reserved Area. The proposed amendments were ultimately

passed by the master executive board of the GIS Condominium, and they purported

to extend the development rights of Properties until December 31, 1999. Several

unit owners objected to the validity of the amendments.

Despite that fact, Properties constructed an event facility on the Reserved

Area, which bore the name the “Newport Regatta Club” (the Regatta Club).

Clambakes was incorporated to operate the Regatta Club. From December of 1998

until April 8, 2005, Properties leased the Reserved Area, including the Regatta Club,

-4- to Clambakes. According to defendants’ memorandum of law in support of their

motion for summary judgment in the instant case, IDC, Inc. was the entity with

which clients wishing to host events at the Regatta Club actually contracted; IDC,

Inc. would then hire Clambakes to run the events. According to Clambakes, it

“worked to market the venue through advertising, attending bridal shows, and

conducting individualized marketing and sales;” and, through its efforts, it had

increased its profits “exponentially” from the early years of running the Regatta

Club. Clambakes also contends that it spent significant amounts of money on

maintenance and improvements, licenses and permits, related legal expenses, and

developing and building the reputation of the Regatta Club as a “premier event

venue * * *.”

In 1999, a state court action was filed against IDC, Properties, and Mr. Roos

by the three condominium associations that GISCA oversees—America

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