Lawrence C. LaBonte v. New England Development RI, LLC

CourtSupreme Court of Rhode Island
DecidedMarch 17, 2020
Docket16-239
StatusUnpublished

This text of Lawrence C. LaBonte v. New England Development RI, LLC (Lawrence C. LaBonte v. New England Development RI, LLC) 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
Lawrence C. LaBonte v. New England Development RI, LLC, (R.I. 2020).

Opinion

Supreme Court

No. 2016-239-Appeal. (PM 10-4650)

Lawrence C. LaBonte :

v. :

New England Development RI, LLC, : et al.

ORDER

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.

Vincent Coccoli, an interested party in this receivership action (Coccoli), appeals pro se from the

trial justice’s order finding him in willful contempt of a previous Superior Court order in this case.

The trial justice found that Coccoli had acted in contempt of an order appointing Peter J. Furness

(Furness or Receiver) as the receiver of the defendant, New England Development RI, LLC

(NED), when Coccoli “undertook to interfere with the Receiver in the performance of his

obligations” by commencing a civil action against the Receiver and other defendants. After

considering the parties’ written and oral submissions and reviewing the record, we conclude that

cause has not been shown and proceed to decide the appeal at this time. For the reasons set forth

herein, we affirm the order of the Superior Court.

Furness was appointed receiver of NED in August 2010. NED’s sole asset consisted of an

abandoned mill complex, known as the Hope Mill, in Scituate (the Property). Coccoli had been

involved with the Property as well as the litigation surrounding it for many years. Coccoli was a

member of Hope Mill Village Associates, LLC, which had previously owned the Property; but,

-1- after filing for bankruptcy, that entity sold the Property to NED, the current owner; the principal

of NED was the plaintiff, Lawrence LaBonte. In the August 2010 order appointing Furness as the

permanent receiver, the court restrained and enjoined

“the commencement * * * of any action, suit * * * or any other proceeding, in law or in equity * * * against the Property, in any Court, agency, tribunal or elsewhere * * * by any creditor * * * or any other person * * * or the interference with the Permanent Receiver in the discharge of his duties by any of such parties as aforesaid * * * without such parties’ first obtaining approval thereof from this Court * * * until further [o]rder of this Court.”

On June 2, 2011, the Receiver entered into a purchase and sale agreement with an entity

owned by Coccoli and two of his business partners, which included an offer to purchase the

Property for cash and other “non cash” consideration. That sale did not close. On August 20,

2012, the Receiver entered into a second purchase and sale agreement with Coccoli. However,

after several closing date extensions, that sale, as well as a third attempt, also failed to come to

fruition. Thereafter, in late 2013, the Receiver filed a petition to sell the Property to a third party,

to which petition Coccoli filed an “Objection to Proposed Sale of Property and Motion for Hearing

on Proposed Sale[.]”

On August 13, 2015, Coccoli initiated a separate action in Superior Court (the Town of

Scituate action) alleging, inter alia, that the Receiver and others had used Coccoli’s “proprietary”

and “confidential” information to “market the property to other buyers[,]” and that Furness and the

Town of Scituate, among other named defendants, “led [Coccoli] to believe * * * [that] he would

ultimately benefit from” an alleged agreement in which Coccoli agreed to clean and remove certain

conditions and structures from the Property. The Receiver responded with a motion, filed in the

instant case, asking the court to find Coccoli in contempt of the August 2010 receivership order.

Coccoli denied that he had acted in contempt of that order.

-2- On October 4, 2015, Coccoli also filed a first amended complaint in the Town of Scituate

action, removing the Receiver as a defendant.1 The hearing justice issued an order in the Town of

Scituate action on November 6, 2015, stating that “[a]ll claims set forth in [the Town of Scituate

action] as to Peter J. Furness in his capacity as Receiver are hereby DISMISSED without prejudice

to [Coccoli’s] right to file those claims he might wish to assert in the pending receivership matter.”

The court held hearings in the present case regarding the Receiver’s motion to hold Coccoli in

contempt over several days in April 2016.

In a bench decision rendered on April 12, 2016, the trial justice found Coccoli in contempt

of the August 2010 order appointing Furness as the permanent receiver. The trial justice found

that “[w]hile there is no question in the [c]ourt’s mind that Mr. Coccoli had knowledge of the entry

of this order for many years, the evidence before the [c]ourt discloses clearly that he, in fact,

received notice subsequent to the filing of his suit against the Town of Scituate and others.”

Therefore, any acts before Coccoli filed the Town of Scituate action that may otherwise have been

contemptuous could not be considered as such because, the trial justice found, the first time

Coccoli received specific notice of the August 2010 order was “when he was being asked either

forcefully through court process or voluntarily, as turned out to be the fact, to drop the Receiver

as a party to that proceeding.”

The trial justice also acknowledged that Coccoli was “heavily invested personally” in the

Property, but that “in his zeal to accomplish that which he thinks should be accomplished [with

1 The defendants named in Coccoli’s initial complaint in the Town of Scituate action were: “Town of Scituate Town Council and Individually Charles Collins, Jr., John F. Winfield, David B. Campbell, Brenda Frederickson, Kathleen Knight-Bianchi, William Hurry[,] Peter Furness in his capacity as Receiver [and] Town of Scituate Building Official and Individually David E. Provonsil[.]” The first amended complaint removed William Hurry and Peter Furness in his capacity as receiver, and added “Theodore Richard III, Individually and as President of Hope Associates and as a Member of the Hope Sewer District Committee, and Previous President Scituate Town Council” as defendants.

-3- respect to the Property] * * * he ha[d] overstepped the permissive bounds.” The trial justice

pointed out that, after three failed attempts “to end up as the developer” of the Property, Coccoli

again attempted to continue pursuing that goal. The problem, however, was that those efforts

“continued after a purchase and sale agreement was approved by the [c]ourt with a different buyer

with whom he has no relationship.” As such, the trial justice found Coccoli in contempt of the

August 2010 order. The trial justice directed “the Receiver and counsel to prepare a list of costs

and expenses incident only to the contempt proceeding[,]” and he then held three hearings in May

2016 to determine the appropriate sanction to impose for Coccoli’s contempt.

The order memorializing the trial justice’s decision was issued on July 13, 2016, in which

the court found Coccoli in contempt and directed him to pay the Receiver $39,776 plus interest

and reasonable attorneys’ fees. The trial justice further stated in that order, however, that Coccoli

“currently lack[ed] the income or assets to pay” the sanction. Consequently, the order placed a

lien on any recovery Coccoli might be awarded in the Town of Scituate action, restrained and

enjoined him from eliminating his rights as a plaintiff or claimant in the Town of Scituate action,

and restrained and enjoined him from “taking any action which has the purpose or effect of

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