Flori v. Bolster, C.A. No.: PC/03-6151 (RI 4/18/2006)
| Decision Date | 18 April 2006 |
| Docket Number | C.A. No.: PC/03-6151 |
| Parties | DANA ELLEN FLORI v. DAVISON BOLSTER |
| Court | Rhode Island Supreme Court |
"When the love fades, what becomes of the money?"1 If this case stands for any proposition, it is that mixing love and money without marriage is fraught with peril. This unmarried couple's fourteen year relationship disintegrated in the throes of accusations and acrimony as they attempted to decipher their respective interests in property acquired during their relationship.
Before this Court is the Plaintiff Dana Ellen Flori's ("Flori" or "plaintiff") petition for partition of certain real property located in Warren, Rhode Island. The Defendant Davison Bolster ("Bolster" or "defendant") claims that he is the sole owner of the property and that the deed naming the parties as joint tenants was a result of the parties' mutual mistake. Therefore, the defendant requests reformation of the deed and that the plaintiff's petition for partition be denied. This Court's jurisdiction is pursuant to G.L. 1956 § 8-2-13.
This Court makes the following findings of fact. The parties to this action met in 1985 and began a long lasting intimate relationship four years later in 1989. (Sept. 23, 2004, Hearing Transcript at 4-5.) Throughout the couple's relationship, the plaintiff maintained steady employment as an administrative assistant to a bank executive. The defendant's work history is more eclectic as he divided his time between working as a free-lance artist, carpenter, and volunteer in the community of Warren in a variety of capacities.2 (Tr. 9/23/04 at 3, 64.)
In 1994, Flori purchased a "fixer upper" home in Pomfret, Connecticut. Id. at 6, 13. The acquisition of the property was financed by a rehabilitation loan taken out by the plaintiff. Id. at 9. Pursuant to the terms of the loan, construction at the property had to be supervised by a licensed general contractor and completed within six months of the loan's commencement. Id. at 10. As a result, Bolster obtained a general contractor's license and worked full-time on the rehabilitation project—with the help of subcontractors, friends, and family—in order to have it completed by the deadline. Id. Although the defendant never asked for compensation for his work, Flori paid for his meals, wrote multiple checks to him for his labor, and paid some of his bills during the months he was working on the home. (Tr. 9/23/04 at 12-13; Nov. 18, 2004, Hearing Transcript at 122-26; Pl.'s Ex. 29, Ex. 30.)
Five years later, in 1999, the couple became involved in another real estate transaction when the defendant signed a Purchase and Sales Agreement to buy the property located at 53 State Street in Warren, Rhode Island (the "Property"), for the total purchase price of $83,500. (Def.'s Ex. C.) Because Bolster knew that his income and credit history would not qualify him for a loan, he asked the plaintiff to co-sign the loan application.3 (Tr. 9/23/04 at 18.) Concerned with the repercussions of incurring such an obligation, the plaintiff called her brother—an attorney practicing real estate and commercial law in the U.S. Virgin Islands—for advice. (Sept 14, 2004, Hearing Transcript at 1-2, 4.) Initially, although he believed the purchase would be a "great investment" because of the Property's proximity to the water, he advised the plaintiff against making such a commitment because he was worried about the long-term stability of the couple's relationship. Id. at 5, 7. Eventually, when she decided to move forward with the transaction, he recommended that she acquire the Property in a joint tenancy so that she could seek a partition if her relationship with Bolster deteriorated. Id. at 7-8.
Prior to proceeding with the purchase, Flori reached agreement with Bolster regarding a number of conditions to her participation in the acquisition of the Property. (Tr. 7/23/04 at 5.) More specifically, the parties agreed that the mortgage, insurance, and taxes would be timely paid each month, the second unit in the house would be rented in order to cover expenses, and the mortgage would be refinanced if they were not ultimately married. (Tr. 7/23/04 at 5, 46; Tr. 9/23/04 at 17.) At the time, Flori and Bolster were engaged, and although Flori expected that they would eventually be married, the defendant did not believe marriage was a realistic possibility. (July 23, 2004, Hearing Transcript at 2; Tr. 9/23/04 at 16, 65.)
On August 13, 1999, the plaintiff signed an application for a loan of $75,150 to purchase the Property. (Pl.'s Ex. 6.) Under the heading, "Property Information and Purpose of Loan", the application indicated that the title to the Property would be held in "Joint Tenancy."4 Id. About three weeks later, on September 1, 1999, the defendant added his signature to the loan application at the closing.5 (Id.; Aug. 20, 2004, Hearing Transcript at 11.) Ultimately, Columbus Credit Union approved the loan and, with the assistance of $7,500 in gift money from Bolster's parents, the couple purchased the Property. (Gift Letter, Pl.'s Ex. 6.)
The closing took place over two days—August 31, 1999 and September 1, 1999—at the law office of William Dennis in Bristol, Rhode Island.6 (Tr. 8/20/04 at 2.) Prior to that time, all communication regarding the purchase of the Property—from the broker to the lender—that was received by Dennis included both the names of the plaintiff and defendant. Id. at 7. During the closing, a number of documents were signed by Flori and Bolster, and the warranty deed was executed by the seller. Id. at 8, 12. The deed signed by the seller reads:
"KNOW ALL MEN BY THESE PRESENTS, THAT I, SHARYN E. SAUNDERS, of the Town of North Kingston, State of Rhode Island, for consideration paid, grant to DAVISON G. BOLSTER and DANA-ELLEN FLORI of 53 State Street, Warren, Rhode Island as Joint Tenants and not as Tenants in Common . . ." (Def.'s Ex. K.)
Shortly thereafter, the defendant moved into the Property and made it his primary residence. The second unit in the home was rented to a tenant for $550 a month. (Tr. 9/23/04 at 36.) Although Flori considered moving to Warren, renting out part of her Connecticut home, and converting the rest into an art studio for Bolster, she continued to reside in Connecticut following the closing. (Tr. 7/23/04 at 50.) Approximately four months after the purchase, difficulties in the couple's relationship escalated and resulted in their permanent separation. Id. at 51.
Three years passed following the break up when, to the plaintiff's surprise, she learned that the Property was scheduled to be sold at a tax sale. Id. at 15. Although a certified letter was mailed to the plaintiff regarding the delinquent tax payments, Bolster signed for it and failed to notify Flori. Id. Flori remained unaware of the delinquency until she noticed "[her] name in the paper for a tax sale." Id. (Pl.'s Ex. 11.) She later paid $1,626.39 to settle the tax debt. Id. (Pl.'s Ex. 13.) The plaintiff also received five separate notices—between April 30, 2002 and June 24, 2003—from the Columbus Credit Union stating that the loan payments on the Property were late. (Pl.'s Ex. 12) As a result, Flori made multiple payments to the lender in the amounts of $414.74, $921.74, and $414.74. (Tr. 7/23/04 at 19-21; Pl.'s Ex. 13.) She was "furious" upon discovering the late payments because she believed her credit would be ruined and, although the parties were in contact with one another following their break up, Flori stopped communicating with the defendant because of her frustration. (Tr. 7/23/04 at 25.) In total, Bolster was late on the loan payments sixteen times. (Tr. 9/23/04 at 91-92.)
Throughout 2003, the defendant made numerous attempts to contact the plaintiff to "stay in touch," but she never returned his calls. Id. at 30. Eventually, Bolster decided to refinance the Property and learned that he needed the plaintiff to sign documents in order to do so. Id. at 31. Although the defendant called the plaintiff on multiple occasions regarding the refinancing, he was never able to speak with her. Id. On the day of the closing, in October 2003, Bolster made one more futile attempt at contacting the plaintiff when he resorted to calling Flori's mother from the closing attorney's office. Id. at 32. When the plaintiff finally learned of the defendant's situation, she refused to sign the papers necessary to allow the refinancing.
In a letter, dated October 27, 2003, the plaintiff informed the defendant that she wanted $35,000 in compensation for the money she had paid towards the delinquent taxes and late mortgage payments and for the damage he had caused to her credit. (Def.'s Ex. H.) In addition, the letter warned that if Bolster did not pay her $35,000, Flori would "require a much greater share of the equitable value of 53 State Street." Id. Subsequently, on November 21, 2003, the plaintiff filed an action to partition the Property with the Rhode Island Superior Court, seeking "a fair and equitable portion of the equity of the real estate located at 53 State Street, Warren, Rhode Island, based upon her contributions."
The defendant opposed the plaintiff's request for partition claiming that the parties did not intend to create a joint tenancy and, as a result, the plaintiff could not seek a partition from the Court. (Def.'s Prehearing Memo filed May 26, 2004.) Later, on June 25, 2004, Flori amended her petition for partition adding a request that the partition be made by sale pursuant to G.L. 1956 § 34-15-1 et. seq. In opposition, the defendant amended his answer, raised the affirmative defense of the Statute of Frauds, and set forth a counterclaim arguing that the deed referencing the joint tenancy was the result of a mutual mistake and, therefore, should be reformed by the Court. The parties elected to proceed to trial without a jury and this Court heard testimony intermittently from both parties...
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