Marr Scaffolding Co., Inc. v. Fairground Forms, Inc.

682 A.2d 455, 1996 R.I. LEXIS 220, 1996 WL 496801
CourtSupreme Court of Rhode Island
DecidedAugust 30, 1996
Docket94-438-M.P.
StatusPublished
Cited by73 cases

This text of 682 A.2d 455 (Marr Scaffolding Co., Inc. v. Fairground Forms, Inc.) 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
Marr Scaffolding Co., Inc. v. Fairground Forms, Inc., 682 A.2d 455, 1996 R.I. LEXIS 220, 1996 WL 496801 (R.I. 1996).

Opinion

OPINION

FLANDERS, Justice.

Soothsaying ten years ago about what this court would do when squarely faced with the question now presented by this case, Federal District (now Circuit) Judge Bruce M. Selya predicted that we would adopt the so-called intent rule in deciding whether a general release purporting on its face to run in favor of “all other persons, firms or corporations” (hereinafter referred to as “omnibus language”) is effective to release an unnamed third party against whom the releasor still seeks to prosecute claims. MeInnis v. Harley-Davidson Motor Co., 625 F.Supp. 943, 958 (D.R.I.1986). We now fulfill Judge Sel-ya’s prophecy by ruling that such a release will not bar claims against an unnamed third party who invokes its omnibus language when the participants in the original settlement did not, as a factual matter, intend to release this party from liability.

Facts

The plaintiff, Marr Scaffolding (Marr), was in the business of renting construction materials and equipment, including aluminum foundation forms, to construction contractors and builders. In August 1990, Marr rented some aluminum forms to defendant Cement Heads, Inc. (Cement Heads) for its use in pouring a foundation at a job site in Providence, Rhode Island. Unfortunately, some of this construction gear “disappeared” from the Providence site. With Marr’s approval, Cement Heads then transferred the remaining leased materiel to another construction site in Westerly, Rhode Island, where defendant Fairground Forms, Inc. (Fairground) was working as a subcontractor on a public-works project. Professional Building Concepts, Inc. (Professional Building) was the general contractor on this Westerly project, which was bonded by Commercial Union Insurance Company (Commercial Union) and Hartford Insurance Company (Hartford Insurance). Cement Heads and Fairgrounds (which also rented other equipment from Marr for use at the Westerly site) swapped or borrowed Marr’s leased materiel on several occasions without Marr’s knowledge, and much of this equipment also “disappeared”.

In due course, Marr sued Cement Heads, Fairground, Professional Building, and Commercial Union. Because the bonding companies were only liable for that portion of Marr’s claims relating to its equipment rentals to Fairground at the Westerly site, Marr decided to settle this aspect of its lawsuit. Accordingly, its corporate attorney entered into negotiations with the attorney for Professional Building and the bonding entities. As a result, these settling parties caused $5,000 to be paid to Marr in exchange for Marr’s signing a release (a complete copy of which is attached hereto as an appendix), which stated in pertinent part:

“Marr * * * (hereinafter referred to as ‘Releasors’) for and in consideration of Five Thousand ($5000.00) Dollar [sic ] * * * has remised, released and forever discharged and do for itself and its successors and assigns hereby remise, release and forever discharge Professional Building * * * and Commercial Union * * * and * * * Hartford Insurance * * * and their officers, employees, agents and attorneys, and any and all other persons, firms and corporations * * * (hereinafter referred to as ‘Releasee’), of and from any and all debts, demands, actions, causes of action, * * * controversies, * * * claims, rights, liabilities, suits * * * now existing, or which may result from the existing state of things, which Releasors now have or ever had against the Releasee from the beginning of the world to the day of the date of these presents * * (Emphases added.)

The release also provided:

“In particular and without limitation of the foregoing Releasee is specifically released *457 from any and all claims for fair market value and fair rental of scaffolding, or any other claim made in the civil action entitled Marr Scaffolding Co., Inc. v. Fairground Forms, Inc., etal, * * * C.A. No. 91—4449, or any claims that Marr * * * may have now or in the future of any nature whatsoever.”

Cement Heads eventually moved for partial summary judgment, asserting that as a matter of law the omnibus language in the release discharged its liability to Marr. Marr opposed the motion, arguing that the document applied only to the named releas-ees (Professional Building, Commercial Union, and Hartford Insurance) and thus did not inure to Cement Heads’s benefit. To support its theory, Marr submitted affidavits from the attorneys for Marr and the contractor/bonding entities who negotiated and drafted this release, stating that they neither bargained for nor intended to discharge any liability that Cement Heads may have to Marr. Because the motion justice determined that the release was unambiguous, he refused to allow the settling parties’ purported subjective intentions about the scope of the release to vary the stated terms of the instrument. Accordingly, he granted Cement Heads’s summary-judgment motion and entered a judgment against Marr. Marr sought redress here via a petition for a writ of certiorari. We granted the writ and proceed to dispose of the issue presented.

Standard of Review

We review a Superior Court justice’s decision to grant a summary-judgment motion on a de novo basis, applying the same criteria as the court below. See 6 James W. Moore, Moore’s Federal Practice § 56.27(1), at 56-852 (2d ed. 1993); see also St. Hilaire v. City of Laconia, 71 F.3d 20, 24 (1st Cir. 1995) (construing Fed.R.Civ.P. 56, which is “the same as” the Rhode Island rule, see Super. R. Civ. P. 56, Reporter’s Notes), cert. denied, — U.S. -, 116 S.Ct. 2548, 135 L.Ed.2d 1068 (1996). As we have delineated what these criteria are in many cases, e.g., DiQuinzio v. Pandera Lease Co., 641 A.2d 50, 53-54 (R.I.1994), we emphasize here only the most salient of them, namely, that summary judgment is appropriate when the record, viewed in the light most favorable to the party opposing the motion, shows that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. Id. at 54.

Analysis

In Pardey v. Boulevard Billiard Club, 518 A.2d 1349, 1355 (R.I.1986), we stated that “[t]he element of stability necessary to support the settlement of controversies requires that we give significant deference to the terms of a general release until we have been furnished with an adequate reason to do otherwise.” “This adequate reason,” we said,

“must be based upon factual evidence concerning the intention of the parties (and for this purpose a relaxation of the parol-evidence rule may well be required), as well as the nature of the consideration paid, and the existence of material mistake, fraud, misrepresentation, or overreaching.” (Emphasis added.) Id.

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Bluebook (online)
682 A.2d 455, 1996 R.I. LEXIS 220, 1996 WL 496801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marr-scaffolding-co-inc-v-fairground-forms-inc-ri-1996.