Shawmut Bank of Rhode Island v. Costello

643 A.2d 194, 1994 R.I. LEXIS 185, 1994 WL 261413
CourtSupreme Court of Rhode Island
DecidedJune 15, 1994
Docket93-217-Appeal
StatusPublished
Cited by7 cases

This text of 643 A.2d 194 (Shawmut Bank of Rhode Island v. Costello) 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
Shawmut Bank of Rhode Island v. Costello, 643 A.2d 194, 1994 R.I. LEXIS 185, 1994 WL 261413 (R.I. 1994).

Opinion

OPINION

MURRAY, Justice.

This matter came before this court on the appeal of the defendant, Rickey L. Costello (Costello), from a Superior Court order denying his motion to vacate or quash an ex parte writ of attachment. The writ of attachment was granted according to G.L.1956 (1985 Reenactment) § 10-5-5 to attach the personal property of Costello.

The facts that are pertinent to this action are as follows. On January 16,1992, plaintiff Shawmut Bank of Rhode Island (Shawmut), foreclosed its mortgage with Costello on a residence located at 216-218 Sterling Avenue in Providence. At the time of the foreclosure proceedings Costello had defaulted on two promissory notes held by Shawmut and two notes held by Shawmut Mortgage Company. GTT Corporation (GTT), an affiliate of Shaw-mut, was the highest bidder for the property at the foreclosure sale. Subsequently GTT obtained a writ of eviction to eject Costello from the premises. On July 17, 1992, Constable Ronald J. Russo (Russo) and a Providence police officer arrived at the Sterling Avenue address to evict Costello.

Russo testified that upon entering Costello’s third-floor apartment, he immediately noticed large quantities of gold coins, jewelry, and other so-called collectibles. Because Russo was concerned that some of the property might be contraband, he asked the police officer to contact another officer with more authority and the ability to determine whether the items were in fact contraband. Although a number of high-ranking Providence police officers arrived at the scene, they were unable to determine whether the items were contraband. After speaking with a representative from the Attorney General’s office, Russo proceeded with the eviction process. Russo also testified that Costello arrived during the eviction process and attempted to “pocket [some] gold coins.” Costello was subsequently ejected from the premises.

In order to safeguard the property and because it was a „ Friday, Russo obtained police surveillance of the premises for the weekend. Russo explained that he acquired police protection because once he had entered the apartment, he became personally responsible for its contents. Mercedes Lopez (Lopez), who shared the apartment with Costello and was his “business associate,” arrived while Russo was segregating the articles. She asked whether she could remove property from the premises. Because Lopez was unable to produce evidence of ownership, she was not allowed to remove any property.

On July 21, 1992, the Superior Court granted, ex parte, Shawmut’s application for a writ of attachment in the amount of $293,-515.16 relative to the assets in the apartment. *196 Russo testified that on July 24, 1992, he served Costello with the writ of attachment. Russo asserted that it took three to four days to remove the property from the premises because “90% of what we removed from the premises was in trash bags, on the floor, laying on the floor, piles, mounds, mixed in with dog feces, urine, [and] garbage.” Russo stated that forty boxes of coins, jewelry, and wire, in addition to numerous other collectibles, were removed from the premises and stored at two secured locations in Pawtucket.

Russo also testified that he employed three appraisers to put a value on the property that had been removed from the apartment. He asserted that the face value of the coins was determined to be between $48,000 and $50,000. The other collectibles were not appraised.

On November 27, 1992, some four months after the writ of attachment had been issued, Costello filed a motion to vacate it. At the hearing the motion justice inquired whether Costello had standing to challenge the writ. In response Costello testified that he owned about $900’s worth of the property seized, which he described as an “infinitesimal amount.” 1 Costello testified that he owned miscellaneous “steel pennies, Buffalo nickels, Liberty nickels, Indian Head Pennies, and [some] foreign coins.” Costello asserted that the remainder of the property seized belonged to Lopez.

The motion justice ruled that Costello’s interest in the property seized was “insignificant” and determined that he did not have standing to challenge the writ of attachment. However, in anticipation of an appeal by Costello, the motion justice rendered his opinion regarding Costello’s challenge to the issuance of the writ of attachment. The motion justice noted that Costello had attended a hearing in District Court in which GTT had obtained process to evict him. Additionally the motion justice noted that Costello had avoided service of process since April 1992. He also observed that Russo’s discovery of the personal property put him in “jeopardy” and that Russo needed to act quickly to protect the property.

The motion justice stated that he issued the writ of attachment to preserve the property and to prevent its removal from the jurisdiction. Aware of a number of problems that Shawmut encountered with regard to Costello, he summarized the possible value of the attached property, noted the fact that Shawmut had foreclosed on four properties that Costello owned, and concluded that a large deficiency could result in the amount Costello owed Shawmut. Additionally the motion justice stated that Costello was given notice of the writ of attachment on July 24 but failed to challenge it until late November. He concluded that the writ of attachment was appropriately issued and found no “constitutional impairment.” Subsequent to this finding he also granted Russo’s application for compensation.

Costello avers that the trial justice erred by (1) denying his motions to vacate the writ of attachment and (2) granting Russo’s application for compensation. Specifically, Costello contends that he has standing to challenge the writ of attachment and that § 10-5-5 is unconstitutional under the Fourteenth Amendment to the United States Constitution and under article 1, section 2, of the Constitution of the State of Rhode Island. Additionally Costello avers that the issuance of the writ was unconstitutional under both the Federal and State Constitutions. Furthermore Costello alleges that if § 10-5-5 is constitutional, the issuance of the writ violated the terms of the statute. Costello raises other arguments that we need not address because of our disposition of the aforementioned contentions.

We now discuss the threshold issue of standing. “[T]he proper inquiry in resolving an issue of standing is whether the party seeking judicial review has suffered an ‘injury in fact,’ either economic or otherwise, as a result of the statute or action in dispute.” (Emphasis added.) In re Joseph, 420 A.2d 85, 88 (R.I.1980); see also Burns v. Sundlun, *197 617 A.2d 114 (R.I.1992); Rhode Island Ophthalmological Society v. Cannon, 113 R.I. 16, 317 A.2d 124 (1974) (adopting the first prong of the test in Association of Data Processing Service Organizations, Inc. v. Camp, 397 U.S. 150, 90 S.Ct. 827, 25 L.Ed.2d 184 (1970)).

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Bluebook (online)
643 A.2d 194, 1994 R.I. LEXIS 185, 1994 WL 261413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shawmut-bank-of-rhode-island-v-costello-ri-1994.