Roadepot, LLC v. Home Depot, U.S.A., Inc.

163 A.3d 513, 2017 WL 2709435, 2017 R.I. LEXIS 94
CourtSupreme Court of Rhode Island
DecidedJune 23, 2017
Docket15-347, 348, 349
StatusPublished
Cited by7 cases

This text of 163 A.3d 513 (Roadepot, LLC v. Home Depot, U.S.A., 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
Roadepot, LLC v. Home Depot, U.S.A., Inc., 163 A.3d 513, 2017 WL 2709435, 2017 R.I. LEXIS 94 (R.I. 2017).

Opinion

OPINION

Chief Justice Suttell,

for the Court.

The construction of a sewer line by the Town, of Coventry (Coventry) has generated litigation almost as prodigiously as it has carried effluent to the West Warwick sewer treatment plant. In the consolidated appeals now before.this Court: (1) Roade-pot, LLC and Keyserton, LLC (collectively, Roadepot) appeal from a partial summary judgment in favor of Home Depot, U.S.A., Inc. (Home Depot) obligating Roa-depot to pay certain disputed sewer assessment charges; (2) Roadepot appeals from a judgment, following a bench trial on Home Depot’s counterclaim, requiring Roadepot to reimburse Home Depot for sewer assessment charges paid by the latter from 2005 through 2014; and (3) Home Depot cross-appeals from the trial justice’s decision limiting its request for prejudgment interest and denying its claim for late fees on the sewer assessment charges. For the reasons set forth in this opinion, we affirm the judgments in part and vacate in part, and we remand this case to the Superior Court to conduct further proceedings consistent herewith.

I

Facts and Procedural History

This is a commercial property dispute between a landlord (Roadepot) and a tenant (Home Depot). On July 23, 2004, Com *516 merce Park Associates 3, LLC (Commerce Park) entered into a ground lease agreement with Home Depot (the lease), leasing a portion of the Centre of New England (the property), located in the Town of Coventry, to Home Depot. Nicholas E. Cambio executed the lease for Commerce Park. A year later, in August 2005, Commerce Park sold the property to Roadepot, subject to the lease, thereby rendering Roade-pot as Home Depot’s landlord.

Article V of the lease governs taxes. Section 5.1(a) specifies that the tenant is responsible for paying “all [rjeal [ejstate [tjaxes, on the [pjremises” and defines “[rjeal [ejstate [tjaxes” as “all real estate taxes and assessments for betterments and improvements that are levied or assessed by any lawful authority on the [pjremises.” Section 5.1(b) states in pertinent part:

“Real [ejstate [tjaxes shall not include the following:
* *
“(v) any fees or other sums paid to a governmental authority in consideration of obtaining any of the [ajpprovals or utility service, specifically, excluding, impact, loophole and proffer fees. Landlord shall be responsible for paying, without contribution from [tjenant, all taxes and impositions described in clauses (i)-(v).”

Section 13.2 of Article XIII of the lease provides, in relevant part:

“Remedies Upon Landlord’s Default. Landlord shall only be deemed to be in default under the terms of this [ljease in the event [ljandlord shall violate, neglect, or fail to observe, keep or perform any covenant or agreement required to be performed and observed by [ljand-lord hereunder and any such default shall continue for a period of thirty (30) days after written notice to [ljandlord [if such default is by its nature not reasonably susceptible of being cured within such thirty (30) day period, such thirty (30) day period shall be extended as necessary to provide [ljandlord the opportunity to cure the default, provided [ljandlord within said period commences and thereafter diligently proceeds to cure such default without interruption until such cure is completed].”

In 2005, Coventry sent Commerce Park a sewer assessment bill to pay for the Fast Track Assessment. 1 On September 15, 2005, Commerce Park forwarded the invoice from Coventry to Roadepot and requested Roadepot “make payments directly to * * * Coventry.” On October 11, 2005, Commerce Park forwarded the Coventry invoice to Home Depot along with a letter, explaining that the Fast Track Assessment was being challenged. Home Depot then began making payments for the Fast Track Assessment annually.

On September 17, 2009, Home Depot sent Roadepot a fax, seeking payment for the Fast Track Assessment. The fax was sent by Janet Murray, the senior property tax accountant at Home Depot, and included an attached copy of a 2009 Fast Track Assessment bill. The fax expressed:

“Attached is a copy of the 2009 [sjewer [ajssessment [bjill in which the first installment is due by 09/30/09 according to my conversation with * * * Coventry. Based on my understanding of the lease, this bill is the landlord’s responsibility.”

On October 20, 2009, Roadepot sent Home Depot a letter concerning the Fast Track Assessment charges, which Roade-pot described as a “municipal sewer as *517 sessment on the Coventry property.” The letter explained that Home Depot was “required to pay all sewer assessment and annual fees levied by * * * Coventry” under the lease. The letter also explained that “[failure to pay the September 2009 first quarter installment constitutes default on the part of Home Depot.” Roade-pot’s letter concluded that, if Home Depot did not cure the default within thirty days, Roadepot reserved the right to take action under § 13.1 of the lease. 2 On November 16, 2009, Home Depot wrote a responsive letter to Roadepot, asserting that Roade-pot is responsible for paying the sewer assessment bill issued by Coventry. Home Depot, however, continued to pay Coventry for the Fast Track Assessment through 2014.

On April 1, 2010, Roadepot filed a lawsuit against Home Depot seeking a declaratory judgment that Home Depot was responsible under the lease to pay the Fast Track Assessment. Thereafter, Home Depot filed a counterclaim, seeking a declaratory judgment that Roadepot was responsible for payment of the Fast Track Assessment as well as a counterclaim for breach of contract to recover the amounts Home Depot had already paid Coventry for the Fast Track Assessment. On November 21, 2013, Home-Depot filed a motion for summary judgment. Roade-pot objected to Home Depot’s motion for summary judgment; and, on December 30, 2013, filed a cross-motion for summary judgment, to which Home Depot objected.

On January 27, 2014, the Superior Court heard the parties’ motions and determined that there was “a genuine issue of material fact[.]” The hearing justice explained that she was “not satisfied that either party [had] addressed the issue [in] Article 5, [s]ection 5.1(b) of the lease” and reasoned that “[t]he record reflects that neither party ha[d] addressed the meaning of the loophole and proffer fees which are contained in that section.” On February 3, 2014, the Superior Court issued an order denying the motions.

On December 12, 2014, Home Depot filed a renewed motion for summary judgment. Roadepot objected and filed a cross-motion for summary judgment in January 2015. On January 26, 2015, a hearing was held on the motions before a second Superior Court justice. 3

At the hearing, the trial justice explained:

“So I think [the contract drafters] were saying that any impact, loophole, or proffer fees, even though that termi *518

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Bluebook (online)
163 A.3d 513, 2017 WL 2709435, 2017 R.I. LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roadepot-llc-v-home-depot-usa-inc-ri-2017.