KAROUSOS v. Pardee

992 A.2d 263, 2010 R.I. LEXIS 47, 2010 WL 1636970
CourtSupreme Court of Rhode Island
DecidedApril 23, 2010
Docket2008-174-Appeal, 2008-188-Appeal
StatusPublished
Cited by6 cases

This text of 992 A.2d 263 (KAROUSOS v. Pardee) 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
KAROUSOS v. Pardee, 992 A.2d 263, 2010 R.I. LEXIS 47, 2010 WL 1636970 (R.I. 2010).

Opinions

OPINION

Justice FLAHERTY,

for the Court.

A Superior Court judgment arising from the filing of an abuse-of-process claim and the affirmative defense provided by the anti-SLAPP (strategic litigation against public participation) statute, G.L. 1956 chapter 33 of title 9, has precipitated appeals both from the plaintiffs and the defendants. The Superior Court granted summary judgment in favor of Jonathan Pardee and the remaining defendants1 (defendants or Pardee)2 holding that they were immune from civil liability on an abuse-of-process action brought against [265]*265them because their actions were not subjectively baseless and, therefore, they were cloaked with immunity by the anti-SLAPP statute. In accordance with the statute, the Superior Court awarded Pardee what it deemed to be reasonable attorneys’ fees and costs. George and Anna Karousos (collectively Karousos) appeal from the entry of summary judgment and the award of costs and attorneys’ fees to Pardee.3 Pardee cross-appeals the amount of the attorneys’ fees awarded to his counsel. We carefully have reviewed the record and considered the arguments raised by the parties. After doing so, we affirm the judgment of the Superior Court.

I

Facts and Travel

Bellevue Avenue in Newport traverses a genteel section of that city. It is the address of the so-called “mansions” that served as summer homes for those who were this country’s financial elite during the gilded age. Bellevue Avenue has become one of the city’s showpieces, and is a major tourist attraction. The central dispute in this case is about how a building, known as Fairlawn, at 518 Bellevue Avenue, may be used. In the 1950s, 1960s, and 1970s, Fairlawn was used as a preparatory school and, for part of that time, as Vernon Court Junior College. In 1972, Fairlawn’s school use ceased and the building was used exclusively as a residence. The zoning ordinance of the City of Newport permits the use of the building for residential purposes, but considers its use for educational purposes to be nonconforming.

In 1991, Karousos leased the property, with an option to purchase, with the expectation that he could use the building as a culinary school. Karousos based his expectation on a 1989 letter from Newport Zoning Enforcement Officer Guy Weston (Weston) to Fairlawn’s then owners, George and Rosalyn Rosner. In that correspondence, Weston indicated that the use of Fairlawn as a school had not been abandoned, even though it had not been used as such since 1972. In Weston’s opinion, because the school use was never abandoned, the use of the property as a school remained a legal nonconforming use.

As soon as they leased Fairlawn, Karou-sos began making substantial improvements to the property, and at one point approached Salve Regina University about a possible affiliation with the school. In 1993, Karousos also began to advertise his intention to open an International Institute for Culinary Arts at Fairlawn. However, the City of Newport objected to the use of Fairlawn as a culinary school, and it initiated a zoning enforcement action against Karousos. In September 1994, Weston sent Karousos a letter, in which he detailed the actions that were necessary before the City of Newport would approve of the use of Fairlawn as a culinary school, including affiliating with Salve Regina.4 After Karousos complied, Weston further corresponded with Karousos, informing him that the City of Newport now approved of the use of Fairlawn as a culinary school; the enforcement action was dismissed, as well. Subsequently, Karousos exercised his option to purchase Fairlawn.

[266]*266In December 1994, Jonathan Pardee purchased a lot at the corner of Bellevue Avenue and Marine Avenue, adjacent to Fairlawn. In early 1996, Roger King, a former owner of Fairlawn, informed Par-dee that Karousos intended to operate a culinary school there. In March 1996, Pardee, through his attorney Alexander Walsh, inquired of Weston about whether Fairlawn’s use as a culinary school was a permissible use under the city’s zoning ordinance. In correspondence dated March 19, 1996, Weston wrote that such a use was permitted, and he reiterated his opinion from his 1989 letter and attached a copy of it. On March 28, 1996, Pardee appealed to the Newport Zoning Board (the board), asking that it determine that the use of Fairlawn as a culinary school was not permissible under the zoning ordinance.

The board held multiple hearings between June 1996 and January 1997. After first ruling that Pardee’s appeal was timely, the board decided that the school use had been abandoned and that Karousos’s use of Fairlawn as a culinary school was an illegal nonconforming use.5 Karousos appealed the board’s decision to the Superior Court. A Superior Court justice reversed the board, ruling that the board had erred when it determined that Pardee’s appeal was timely. The hearing justice concluded that the only appealable action was Weston’s 1989 letter, and that the time to appeal from that letter had long passed.

On December 12, 1996, while the hearings before the board were still ongoing, Karousos filed an abuse-of-process complaint in the Superior Court against Par-dee and eleven other defendants. In his complaint, Karousos alleged that defendants used the March 19, 1996 letter from Weston as a pretext to “appeal” the 1989 and 1994 letters detailing Weston’s opinion that the use of Fairlawn as a school was permissible. The defendants, the complaint alleged, long since had waived any right to object to the use of Fairlawn as a school, and their appeal to the board “constitutes a gross misuse of the administration appellate process” for a “wrongful purpose.” Pardee and four other defendants answered the complaint; they asserted an affirmative defense that their actions in seeking review of the 1996 letter from Weston to Walsh (Walsh was acting on Pardee’s behalf) entitled them to immunity from civil liability, based upon § 9-38-2, the anti-SLAPP statute.

In the spring of 1997, Pardee, along with the same four codefendants, moved for summary judgment, arguing that the anti-SLAPP statute’s grant of immunity applied to them because their seeking review of Weston’s 1996 letter was not objectively baseless. The motion justice denied the motion, ruling that because Pardee’s appeal was deemed untimely by the Superior Court, a question of fact remained about whether Pardee’s appeal was objectively baseless. Pardee petitioned this Court for a writ of certiorari, which we denied.

After we denied certiorari, the parties conducted discovery and the case languished for six more years. Jonathan Par-dee and Alexander Walsh were deposed, and, at least based in part on their deposition testimony, Pardee filed a renewed motion for summary judgment in March 2003.6 He again argued that his appeal to the board entitled him to immunity under [267]*267the anti-SLAPP statute because his actions were neither objectively nor subjectively baseless. In the motion, Pardee’s primary arguments were that (1) his appeal was not objectively baseless because he was successful before the board and (2) his appeal was not subjectively baseless because he pressed the appeal in an effort to prevent Fairlawn’s use as a culinary school, with no ulterior motive. Karousos opposed Pardee’s motion for summary judgment.

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992 A.2d 263, 2010 R.I. LEXIS 47, 2010 WL 1636970, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karousos-v-pardee-ri-2010.