Lourenco DoCouto v. Blue Water Realty, LLC

CourtSupreme Court of Rhode Island
DecidedMarch 11, 2024
Docket23-79
StatusPublished

This text of Lourenco DoCouto v. Blue Water Realty, LLC (Lourenco DoCouto v. Blue Water Realty, 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
Lourenco DoCouto v. Blue Water Realty, LLC, (R.I. 2024).

Opinion

Supreme Court

No. 2023-79-Appeal. (PC 21-1072)

Lourenco DoCouto :

v. :

Blue Water Realty, LLC, 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

Lourenco DoCouto

v.

Blue Water Realty, LLC, et al.

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

OPINION

Justice Robinson, for the Court. The plaintiff, Lourenco DoCouto,1 appeals

from a September 22, 2022 final order of the Superior Court, granting the motion to

dismiss filed by the defendants, Blue Water Realty, LLC (Blue Water) and Louis

Bachetti. The plaintiff contends before this Court that (1) the hearing justice erred

in determining that the doctrine of res judicata applied; (2) the hearing justice erred

in dismissing Mr. DoCouto’s 2020 complaint with prejudice for failure to have

timely served defendants; (3) the District Court did not have subject matter

jurisdiction over Mr. DoCouto’s equitable claims in the eviction proceedings; and

(4) the amount of compensatory damages sought by the plaintiff exceeded the

1 We note that the record contains variations as to the spelling of Mr. DoCouto’s last name. For the sake of consistency, we have opted to utilize the spelling “DoCouto,” which is how his name was spelled in the complaints filed in the Superior Court.

-1- $10,000 statutory maximum for District Court jurisdiction with respect to a case of

this nature.

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 considering the parties’ written and oral submissions and

carefully reviewing the record, we conclude that cause has not been shown and that

this case may be decided without further briefing or argument. For the reasons set

forth in this opinion, we affirm the judgment of the Superior Court.

I

Facts and Travel2

This appeal involves property located at 389 Glenwood Avenue in Pawtucket,

Rhode Island (the Property). In both complaints filed in Superior Court (discussed

infra), plaintiff alleged that he purchased the Property in 2004 and that he later

transferred the Property to a “now revoked Rhode Island entity, Brava Properties,

LLC, in 2008.” According to plaintiff, Blue Water “attempted” to take title to the

Property in 2012 pursuant to a foreclosure sale. The plaintiff alleged that he filed

2 We glean the facts primarily from the allegations in plaintiff’s 2021 complaint and the documents attached to the motion to dismiss, all of which we assume to be true for purposes of our review of a grant of a motion to dismiss under Rule 12(b)(6) of the Superior Court Rules of Civil Procedure. See Nerney v. Town of Smithfield, 269 A.3d 753, 756 (R.I. 2022).

-2- for bankruptcy in 2012 to prevent Blue Water from being able to foreclose on the

Property. The plaintiff further alleged that, in October of 2012, he “entered into an

agreement entitled Residential Lease and Option to Purchase Agreement, which

among other things, gave the Plaintiff the option to purchase the [P]roperty for the

consideration of $136,000.00.” (Internal quotation marks omitted.) The plaintiff

alleged that his attempt to exercise said option was thwarted by defendants and that,

for that reason, he commenced an action in Providence County Superior Court in

2015 to compel the sale of the Property.

The plaintiff alleged that a new option agreement, entitled “Option to

Purchase Agreement,” was signed in 2015. According to the complaint, the new

option agreement contained an agreed-upon sale price of $175,000, with a closing

date scheduled for November 18, 2016. It was plaintiff’s allegation that the closing

was postponed due to the “existence of minimum housing violations on record.”

However, according to plaintiff, the “title issues” were eventually resolved, but

defendants never allowed him to exercise his option regarding purchase of the

Property.

The plaintiff further alleged that, during the period from 2012 to 2019, he and

defendant Louis Bachetti had a “separate agreement,” wherein plaintiff “provided

maintenance and property management services” at the Property as well as at other

-3- properties owned by Mr. Bachetti. The plaintiff alleged that Mr. Bachetti never paid

him for the services he rendered during that time period.

In October of 2019, Mr. Bachetti, “as agent for Blue Water Realty LLC,” filed

a complaint for eviction in the Sixth Division of the District Court because Mr.

DoCouto had remained in possession of the rented premises, which were listed as

“389 Glenwood Avenue 3rd Floor,” subsequent to “the period set forth” in the notice

of termination of tenancy. Thereafter, Mr. DoCouto filed an answer and a

counterclaim, which contained the following counts: (1) “breach of contract as to

exercise of option;” (2) “breach of contract re: maintenance and rent collection;” (3)

“fraudulent inducement;” and (4) “utility bills.”

In the counterclaim, Mr. DoCouto requested that Mr. Bachetti be ordered to

comply with the terms and conditions of the Option to Purchase Agreement and that

the court compel the sale of the Property to him. The counterclaim further contended

that, in the event that Mr. Bachetti was unable or unwilling to sell the Property, Mr.

DoCouto should be allowed to remain on the Property and be compensated for

breach of the Option to Purchase Agreement. Additionally, Mr. DoCouto sought

payment for services allegedly provided by him to Mr. Bachetti, and he sought

permission to occupy the Property until said payment was made or Mr. Bachetti

“complie[d] with said Option to Purchase Agreement.” Mr. DoCouto also

demanded that Mr. Bachetti be required to pay amounts owed to National Grid for

-4- electric utilities. Moreover, Mr. DoCouto sought damages for unlawful and

fraudulent inducement. It was Mr. DoCouto’s assertion that “the jurisdiction and

equitable powers granted to [the District Court] by the Rhode Island Landlord-

Tenant Act allow it to issue equitable and monetary awards in excess of the normal

jurisdiction” amount.

A non-jury trial took place on February 25, 2020; and, on that same day,

judgment entered in favor of Mr. Bachetti for possession and for damages in the

amount of $8,026. Moreover, Mr. DoCouto’s counterclaim was dismissed. On

February 28, 2020, the parties executed a stipulation, in which they agreed that: (1)

the execution on the judgment would be stayed until July 1, 2020; (2) Mr. DoCouto

would make three monthly rental payments of $1,300 (for the months of April, May,

and June of 2020); (3) Mr. DoCouto would execute a release of the lis pendens which

he had recorded on the Property; and (4) Mr. DoCouto would “waive any and all

claims past and present” against Mr. Bachetti. Mr. DoCouto did not appeal the

District Court judgment nor the dismissal of his counterclaim.

In October of 2020, plaintiff filed a complaint in Providence County Superior

Court against defendants (the 2020 complaint). Although plaintiff’s 2020 complaint

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