Rhode Island Res. Recovery Corp. v. Brien
| Decision Date | 16 July 2012 |
| Docket Number | C.A. No. PB 10-5194 |
| Parties | RHODE ISLAND RESOURCE RECOVERY CORPORATION v. ALBERT G. BRIEN AND ASSOCIATES; ALBERT G. BRIEN; WILLIAM E. COYLE, JR. AND ASSOCIATES; WILLIAM E. COYLE, JR.; WILLIAM E. COYLE III; PILGRIM TITLE INSURANCE COMPANY; JEFFREY A. ST. SAUVEUR; JAMES J. BELLIVEAU; MACERA/TOWER FAMILY LIMITED PARTNERSHIP; ANTHONY MACERA, INC.; GERALD MACERA; MAUREEN B. MACERA; JOHN A. TZITZOURIS AND LYNN M. TZITZOURIS; MARY BACCARIE; BAC-MAC REALTY; SILVESTRI LEASING COMPANY; ANTHONY SILVESTRI, JR.; DANYA IZZO |
| Court | Rhode Island Superior Court |
DECISION
Before the Court is the Motion to Dismiss of Defendants Pilgrim Title Insurance Company (Pilgrim), Jeffrey A. St. Sauveur, and James J. Belliveau (collectively, Pilgrim Defendants), the Motion to Dismiss of Defendants Maureen B. Macera, John A. Tzitzouris, and Lynn M. Tzitzouris (collectively, Macera/Tzitzouris Defendants), the Motion to Dismiss of Defendants William E. Coyle, Jr. and Associates, William E. Coyle, Jr., and William E. Coyle III (collectively, Coyle Defendants), and the Motion to Dismiss, or in the alternative, Motion for Summary Judgment of Defendants Silvestri Leasing Company and Anthony Silvestri, Jr. (collectively, Silvestri Defendants). The Motions to Dismiss are brought pursuant to Super.R. Civ. P. 12(b)(6) for failure to state a claim upon which relief can be granted. The various Defendants request this Court dismiss certain causes of action contained in Plaintiff Rhode Island Resource Recovery Corporation's (RIRRC or Plaintiff) 73-count, 622-paragraph Amended More Definite Statement.
This matter was the subject of a prior written Decision of this Court, filed May 13, 2011. See R.I. Res. Recovery Corp. v. Albert G. Brien and Assocs., No. PB 10-5194, 2011 WL 1936012 (R.I. Super. May 13, 2011). Although many of the same facts were set forth in that Decision, the Amended More Definite Statement modified the original Complaint, and as such, the pertinent facts will be once again summarized by the Court. For the purpose of the Motions to Dismiss presently under consideration, the Court takes the information alleged in the Amended More Definite Statement as true. The facts recited herein are gleaned directly from the Amended More Definite Statement.
Broadly, the Amended More Definite Statement alleges that the Defendants, acting together and in concert with former commissioners and employees of RIRRC, "undertook a systematic course of action to enrich themselves while depriving the taxpayers of the State of Rhode Island of many millions of dollars." Specifically, RIRRC alleges that the Defendants colluded with former RIRRC actors to purchase multiple parcels of real property at vastly inflated prices. Id. RIRRC, formerly known as Rhode Island Solid Waste Management Corporation, is a quasi-publiccorporation established by legislative enactment in 1974 to own and operate the Central Landfill in Johnston, Rhode Island. (Compl. ¶ 1.)
In or around 2008, the Rhode Island Bureau of Audits (Bureau) conducted an investigation of RIRRC. Id. at ¶ 32. On September 22, 2009, the Bureau issued a Summary of Findings (Audit Report), highlighting numerous breaches of fiduciary duty, conflicts of interest, and other wrongful acts in connection with RIRRC's real estate purchases. Id. at ¶¶ 33-34. RIRRC summarizes the Audit Report as stating that:
"(1) the majority of the purchase prices were in excess of market comparable statistics; (2) several properties were encumbered by known issues and some were tainted by relationship or potential conflict-of-interest concerns; (3) there were pervasive potential related-party and conflict-of-interest issues present; (4) RIRRC's real estate files lacked documentation; (5) cost/benefit analyses were apparently not performed regarding eminent domain versus negotiation to acquire properties; (6) RIRRC failed to follow legally prescribed protocol for property acquisitions; and (7) plans for the acquired property's use were often questionable, unclear, or absent." Id. at ¶ 35.
The Defendants in the case at bar are organized into a number of groups, both within Plaintiff's Amended More Definite Statement and in the various Defendants' Motions to Dismiss.1 The Brien Defendants are Albert G. Brien and Associates and Albert G. Brien individually (collectively, Brien). Albert G. Brien is a real estate broker, and Albert G. Brien and Associates is a real estate brokerage firm. (Compl. ¶¶ 2-3.) Plaintiff alleges that Brien had close relationships with A. Austin Ferland, a former RIRRC chairman, as well as a number of the sellers of real estate, including Gerald Macera, Michael Macera, Steven Macera, Robert Cece, and John Cece. Id. at ¶¶ 4-5.
The Coyle Defendants are William E. Coyle, Jr. and Associates, William E. Coyle, Jr., and William E. Coyle III (collectively, Coyle). William E. Coyle, Jr. and Associates is a real estate appraisal firm, and both William E. Coyle, Jr. and William E. Coyle III are licensed real estate appraisers. Id. at ¶¶ 7-9. William E. Coyle III allegedly had a prior relationship with Ferland, serving as his appraiser and testifying on his behalf as an expert witness on a number of occasions. Id. at ¶ 10.
The Pilgrim Defendants are Pilgrim Title Insurance Company, Jeffrey A. St. Sauveur, and James J. Belliveau (collectively, Pilgrim). Pilgrim Title Insurance Company is a closing, title, and escrow company owned and managed by St. Sauveur and Belliveau, who are both attorneys. Id. at ¶ 11. Plaintiff alleges that Pilgrim provided real estate and legal services, and as a title insurance and settlement agent, its services included the provision of legal services. See id. at ¶¶ 12-13. John St. Sauveur, the father of Jeffrey A. St. Sauveur, served as both a commissioner of RIRRC and a vice president of Pilgrim Title Insurance Company from at least 2001 to 2005. Id. at ¶¶ 14-16. While this was disclosed to the Rhode Island Ethics Commission, it was allegedly not disclosed to the full RIRRC Board of Commissioners. Id.
The Macera/Tzitzouris Defendants include the Macera/Tower Family Limited Partnership, Gerald Macera, Anthony Macera, Inc., Maureen B. Macera, John A. Tzitzouris, and Lynn M. Tzitzouris (collectively, Macera/Tzitzouris). Anthony Macera, Inc. is a Florida corporation with a principal place of business in Boca Raton, Florida, and Gerald Macera is a citizen of Boca Raton, Florida. Id. at 19-20. Gerald Macera is the general partner of the Macera/Tower Family Limited Partnership, and Plaintiff also alleges that Anthony Macera, Inc. is "an instrumentality or an alter ego of Gerald Macera." Id. at 18, 21. Anthony Macera, Inc.,Gerald Macera, and the Macera/Tower Family Limited Partnership are collectively referred to as the Macera/Tower Defendants.
Maureen B. Macera is a Boca Raton, Florida resident and the widow of William R. Macera, the former mayor of Johnston, Rhode Island. Id. at ¶ 22. Lynn M. Tzitzouris is the sister of the former mayor, and her husband, John A. Tzitzouris, is a professional land surveyor (together, the Tzitzourises). Id. at ¶ 23.
The Baccarie Defendants are Mary Baccarie and Bac-Mac Realty (collectively, Baccarie). Bac-Mac realty is owned and controlled by Mary Baccarie. Id. at ¶ 25. Defendant Danya Izzo is a resident of Johnston, Rhode Island. Id. at ¶ 28.
The Silvestri Defendants are Silvestri Leasing Company and Anthony Silvestri, Jr. (collectively, Silvestri). Anthony Silvestri, Jr. is the general partner and president of Silvestri Leasing Company, a Rhode Island general partnership. Id. at 26-27.
On December 7, 1995, RIRRC purchased a 50.5-acre lot designated as Plat 43, Lot 66 in Johnston, Rhode Island from Michael Macera, Steven Macera, Robert Cece, and John Cece for $2,675,000 (Macera/Cece Property). Id. at ¶ 36. Brien was the real estate broker and seller's agent for the sale. Id. at ¶ 37. A September 1995 appraisal of the Macera/Cece Property conducted by J.W. Riker Appraisal Services estimated an investment value of $2,700,000, based on excavatable materials on the property, and an actual market value of $500,000. Id. at ¶ 38. There were wetlands and hazardous waste on the Macera/Cece Property, and RIRRC was allegedly aware of that fact prior to the purchase. Id. at ¶ 39.
On December 29, 1997, RIRRC purchased a 55.8-acre lot designated as Plat 29, Lot 33 in Johnston, Rhode Island from Simmons Lake Realty for $1,575,000 (Simmons Lake Property). Id. at ¶ 40. Plaintiff alleges there is no evidence of an appraisal in connection with this purchase, but there was evidence of potential groundwater and soil contamination on the Simmons Lake Property prior to its purchase. Id. at ¶¶ 41-42. On February 27, 1998, RIRRC purchased a 18.15-acre lot designated as Plat 31, Lots 9, 35, and 36 in Johnston, Rhode Island from Ronald J. Rossi for $915,000 (Rossi Property). Id. at ¶ 43. During two separate appraisals by Northeast Real Estate in 1997, the Rossi Property was valued at $682,000 and $493,000. Id. at ¶ 44.
On June 3, 1998, RIRRC purchased a 52.48-acre lot designated as Plat 29, Lots 64, 65, and 66 in Johnston, Rhode Island from Alfred Russo and Vincent Russo for $1,900,000 (Russo Property). Id. at ¶ 45. The property had been appraised by Northeast Real Estate for $1,900,000 in April of 1997, but hazardous waste and potential groundwater or soil contamination had also been found on the Russo Property and the Simmons Lake Property prior to their purchase. Id. at ¶¶ 47-49. Brien was the seller's agent for the Simmons Lake Property, the Rossi Property, and the Russo Property. Id. at ¶ 50.
On February 29, 2000, RIRRC purchased an 18.7-acre lot designated as Plat 31, Lot 2 in Johnston, Rhode Island from the Ruth A. Tillinghast Living Trust for $1,125,000 (Tillinghast Property). Id. at ¶ 51. Pilgrim Title Insurance...
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