Lombardi v. Goodyear Loan Co.

• Decision Date: 10 November 1988
• Docket Number: No. 87-526-A,87-526-A
• Citation: 549 A.2d 1025
• Parties: Frank J. LOMBARDI, et al. v. GOODYEAR LOAN COMPANY. ppeal.
• Court: Rhode Island Supreme Court

Page 1025

549 A.2d 1025

Frank J. LOMBARDI, et al. v. GOODYEAR LOAN COMPANY.

No. 87-526-Appeal.

Supreme Court of Rhode Island.

Nov. 10, 1988.

Paul J. Bordieri, Providence, Frank A. Lombardi, Law Office of Michael Duggan, PC, North Attleboro, for plaintiff.

William J. Riccitelli, Cranaton, for defendant.

OPINION

SHEA, Justice.

This matter is before the Supreme Court on the defendant's appeal from a judgment for the plaintiffs entered in the Superior Court in an action for declaratory judgment. The Superior Court ruled that the rate of interest on a judgment entered in 1970, that remained unsatisfied, was 6 percent. We affirm.

Frank J. Lombardi, Jean M. Lombardi, and Goodyear Loan Company had been involved in prior litigation which, in 1970, resulted in a judgment for Goodyear for $2,652.94 plus costs and interest at the rate of 6 percent, the statutory rate at that time. Execution on that judgment was issued on June 29, 1970, returnable December 29, 1970. The execution was levied against the Lombardis' real estate in Johnston, Rhode Island, but it was not recorded until December 28, 1981.

In 1986 the Lombardis attempted to satisfy the judgment and execution by tendering to Goodyear the sum of $5,279.35, which represented the judgment, costs, and interest at the rate of 6 percent per annum. Goodyear refused the tender, demanding that the interest be computed at 12 percent per annum. The Lombardis then filed their petition for declaratory judgment against Goodyear, which resulted in this appeal. The Lombardis asked that the court determine the total amount they owed to defendant, including interest. At the time they filed their petition for declaratory judgment, the Lombardis asked for and received permission to deposit in the registry of the court the sum of $9,000 from which the judgment could be satisfied. The Lombardis moved for summary judgment, which motion was granted.

The dispute over the interest rate arises out of the Legislature's amendment of the law covering the interest rate on judgments. That amendment was enacted after the judgment had been entered against the Lombardis but before tender of payment had been made. The amendment was passed in 1981 as Public Laws, 1981 chapter 54. It raised the interest rates specified in G.L. 1956 (1969 Reenactment) §§ 9-21-8, 9-21-10, and G.L. 1956 (1969 Reenactment) § 6-26-1 to 12 percent. Section 3 of chapter 54 specified that the act shall be applied retroactively to all cases pending at the time of its enactment.

Goodyear admits that it had demanded 12 percent interest and asserts that since the 1970 judgment had never been satisfied, the current interest rate of 12 percent should apply retroactively. The Lombardis assert that since the 1970 judgment was not appealed, it was final and not a pending case within the meaning of the amending statute.

On appeal Goodyear asserts that it was improper for the Superior Court to entertain the petition for declaratory judgment in these circumstances. ¹ Goodyear also argues that since the Lombardis assert no legal or property right adverse to it, an action for declaratory judgment is therefore improper. It is Goodyear's position that all issues between the parties were adjudicated with the 1970 judgment. Since the Lombardis' attempts to have the court set the interest rate at 6 percent were denied in 1986 and since no appeal was taken from those rulings, the Lombardis should be precluded from bringing this action. We disagree.

The denials of the Lombardis' motions to fix the interest rate were merely denials of the motions made, nothing more. The issue of what was the correct rate was never decided by the court. Goodyear's allegation that the Lombardis assert no adverse legal or property right is also without merit. When one party offers 6 percent interest and the other party will only accept 12 percent, we have adverse interests arising out of a disagreement over the meaning of a statute. That kind of disagreement is expressly within the provisions of G.L. 1956 (1985 Reenactment) § 9-30-2, which reads in part:

"Power to construe.--Any person interested under a deed, will, written contract or other writings constituting a contract or whose rights, status or other legal relations are affected by a statute, municipal ordinance, contract or franchise, may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of rights, status or other legal relations thereunder."

This case does not involve the merits of the original action. This is a real and present dispute that can be resolved only by the court's interpretation of the statute. The dispute might have been decided through appeal from the original judgment if the issue had arisen within the period for taking an appeal. However, the judgment was entered in April 1970. The interest rate in the pertinent statutes was amended to 12 percent in 1981. Consequently the only means now available to the parties to resolve this dispute is by way of a petition for declaratory judgment.

This court has held that the decision to grant a remedy under the Declaratory Judgments Act is purely discretionary. Employers' Fire Ins. Co. v. Beals, 103 R.I. 623, 628, 240 A.2d 397, 401 (1968). We have also held that "a decision made in the exercise of a discretionary power should not be disturbed unless it clearly appears that such discretion has been improperly exercised or that there has...