Notarantonio v. Notarantonio

941 A.2d 138, 2008 R.I. LEXIS 27, 2008 WL 190580
CourtSupreme Court of Rhode Island
DecidedJanuary 18, 2008
Docket2006-121-Appeal
StatusPublished
Cited by56 cases

This text of 941 A.2d 138 (Notarantonio v. Notarantonio) 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
Notarantonio v. Notarantonio, 941 A.2d 138, 2008 R.I. LEXIS 27, 2008 WL 190580 (R.I. 2008).

Opinion

OPINION

Justice SUTTELL,

for the Court.

The plaintiffs, Carolyn M. DelFarno and Beverly Forte, 1 appeal from a January 5, 2006 judgment in favor of the defendants, James A. Notarantonio, Susan Antonio, and Lisa Notarantonio 2 in this dispute over gifts of stock in a family business and real estate. After a nonjury trial, the trial justice entered a judgment in favor of the defendants concerning all claims against them, with the exception of a judgment for the plaintiffs rescinding the transfer of seventeen shares of stock in JGF Realty, Inc. and awarding them the sum of $4,539 for distributions attributable to those shares. The defendant, James A. Notar-antonio, has filed a cross-appeal challenging the rescission and monetary award. For the reasons .set forth in this opinion, we affirm the judgment of the Superior Court in all respects.

I

Facts and Procedural History

The trial justice quoted Shakespeare to characterize the family dispute that engendered this lawsuit: “How sharper than a serpent’s tooth it is to have a thankless child.” 3 Regrettably, it is apparent that this once close-knit family has become irreparably fractured in a way that judicial opinions are not likely to repair.

A. Background

Mary Notarantonio and her husband, Fred, lived in North Providence, Rhode Island. They had three children, a son, James, and two daughters, Carolyn and Beverly. 4 Adjacent to the family home was an automobile dealership, Notaranto-nio Brothers Ford, a dealership which Fred owned with his two brothers, Joe and Guy. Each brother owned one-third of the stock in the corporation that operated the dealership, Notarantonio Brothers, Inc. (Notarantonio Brothers). The brothers also owned a separate corporation, JGF Realty, Inc. (JGF), which owned the land on which the Ford dealership was located. Notarantonio Brothers Ford leased from JGF the land upon which the dealership operated.

*141 In or about 1957, Mary, Fred, and James acquired as joint tenants a summer home in Jamestown, Rhode Island. Later, in 1962 and 1964, Fred and Mary, as joint tenants, received conveyance of two unimproved beachfront parcels in Jamestown. Additionally, the couple owned a vacation home in Pompano Beach, Florida, and a rental property in North Providence, Rhode Island.

The trial justice concluded that, with respect to financial matters, Fred and Mary clearly favored James over their daughters. Not only did they place James’s name on the deed as a joint tenant in their Jamestown summer residence, but also they bought James an unimproved lot upon which to build a home when he was married. Fred and Mary also gave James $100,000 to start a business. In 1968, Fred gave James eight of his thirty-three and one-third shares of Notarantonio Brothers stock; James later became an officer and director of the corporation. In addition, Fred’s estate plan left all his assets to Mary; but it indicated that if she should predecease him, then the stock in the family businesses and real estate would pass to James.

After Fred’s death in 1982, Mary continued to be very generous to James, and they enjoyed a close relationship. They lived together for much of the time in North Providence and spent time together in both Jamestown and Pompano Beach. Mary also executed a will and a pour-over trust, which left all her stock and real property to James.

In 1985, Notarantonio Brothers ceased operating the Ford dealership, and JGF subleased the land to Rizzo Ford. Also around this time, Mary sold a parcel of land adjacent to the Ford dealership to JGF through an installment agreement. Mary received a check each month from this sale. It was also during this time period that James was indicted, convicted, and incarcerated for having made false statements in connection with programs involving federal money. In addition, he was indebted to the Internal Revenue Service, which had placed a lien on his assets. Mary eventually paid the IRS approximately $100,000 to release the lien.

During the late 1980s and early 1990s, Notarantonio Brothers began to declare dividends for its shareholders. Mary, who owned only twenty-five and one-third shares of Notarantonio Brothers stock, received both her share and James’s share of the dividends, part of which she spent for James’s benefit. The trial justice characterized the foregoing as a scheme to hide James’s assets from the IRS.

It is at this point that plaintiffs’ and defendants’ versions of events began to differ considerably.

B. Plaintiffs’ Testimony

The plaintiffs’ version of the events is as follows. After Fred’s death in 1982, Mary contended that James began to badger her about transferring title to the Jamestown properties to him. After his release from prison in 1988, he became increasingly insistent and forceful until she finally and angrily relented when she was in a “weakened and sickly condition.” Thus, in 1994, she transferred the Jamestown summer home and one of the unimproved lots to James. She did retain, however, the second lot, which she later sold for $48,000.

In September 1994, Mary underwent open-heart surgery. She testified that when she returned home after her surgery Richard Foley, the bookkeeper for Notar-antonio Brothers and JGF, paid her an unexpected visit. Mr. Foley placed papers in front of Mary for her signature and began to speak to her about the businesses. James then came into Mary’s home and interrupted the conversation. *142 According to Mary, James told her “[t]he business is not a business.” James’s statement about the companies confused Mary because she believed that the company was always a business. James told Mary “[w]ell things had to be put together” to ease her confusion about the state of the businesses. Mr. Foley assured Mary that she would “still get [her] money” if she signed the documents, which, she testified, she believed meant she would still get her monthly dividend check from Notarantonio Brothers, Inc. Mary said she signed the documents that Mr. Foley had given her without reading them and without anyone reading the documents to her. Mr. Foley did not leave Mary a copy of the documents she had signed.

Later, Mary and James’s relationship began to deteriorate. Mary discovered that James had started to look for property in the Florida Keys. Mary testified she was hurt that James did not tell her about his plans to buy property in Florida. In addition, one time when Mary went to the Jamestown vacation home to visit James, James left for the beach and did not offer Mary any food or drink. The lack of food and drink made Mary lightheaded and she required hospitalization. Mary also contended that James continually told her “everything belonged to him.”

Mary further testified that one day James used an epithet in reference to his late father. James’s statement upset Mary greatly, so she called her daughter, Carolyn. Carolyn came to Mary’s house immediately to comfort her. Mary told Carolyn that James had been telling her repeatedly that everything Fred had left when he died belonged to James.

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Bluebook (online)
941 A.2d 138, 2008 R.I. LEXIS 27, 2008 WL 190580, Counsel Stack Legal Research, https://law.counselstack.com/opinion/notarantonio-v-notarantonio-ri-2008.