Rhode Island Resource Recovery Corp. v. Albert G. Brien & Assoc.
| Decision Date | 13 May 2011 |
| Docket Number | C.A. 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. SAVEUR, JAMES J. BELLIVEAU, CHRISTOPHER J. MONTALBANO, MACERA/TOWER FAMILY LIMITED PARTNERSHIP, ANTHONY MACERA, INC., GERALD MACERA, MAUREEN B. MACERA, JOHN A. TZITZOURIS AND LYNN M. TZITZOURIS, HARRY BACCARIE AND MARY BACCARIE, BAC-MAC REALTY, SILVESTRI LEASING COMPANY, ANTHONY SIVESTRI, JR., DANYO IZZO, COASTAL ATLANTIC LLC, WILLIAM WILBUR, COASTAL CORP., KEVIN J. WILBUR, GERALD LEMBICZ |
| Court | Rhode Island Superior Court |
DECISION
The instant matter arises from Plaintiff Rhode Island Resource Recovery Corporation's (RIRRC) 68-count, 520-paragraph Complaint against 23 named Defendants. Presently before this Court are: (1) Defendants Maureen Macera, John Tzitzouris and Lynn Tzitzouris' (collectively, Macera/Tzitzourises) Super. R. Civ. P. 12(e) Motion for More Definite Statement (2) Defendants William Wilbur and Kevin J. Wilbur's (collectively, Wilburs) Super. R. Civ. P. 12(b)(6) Motion to Dismiss, or in the alternative, Super. R. Civ. P. 12(e) Motion for More Definite Statement; and (3) Defendants Pilgrim Title Insurance Company (Pilgrim), Jeffrey A. St Sauveur, James J. Belliveau and Christopher J. Montalbano's (collectively, Pilgrim Title) Super. R. Civ. P. 12(b)(6) Motion to Dismiss.
RIRRC formerly known as Rhode Island Solid Waste Management Corporation (RISWMC), is a quasi-public corporation established by legislative enactment in 1974 to own and operate the Central Landfill in Johnston, Rhode Island (Central Landfill). See Complaint ¶ 1. In 2008-2009, the Rhode Island Bureau of Audit (Bureau) conducted an investigation of RIRRC. Id. ¶ 103-04. On September 22, 2009, the Bureau issued an audit report (Audit Report) highlighting numerous violations, breaches, and wrongful acts that allegedly occurred at RIRRC during the relevant period. Id. The instant matter is the result of the Bureau's review of RIRRC's purchase of properties adjacent to or around the Central Landfill during the years 2000 through 2005. Specifically, RIRRC alleges—based on the Audit Report—that the named Defendants, as parties to the transactions set forth below, conspired or acted in concert with former RIRRC employees and commissioners to cause RIRRC to purchase the properties at inflated prices and/or with major environmental issues.
On November 10, 2000, RIRRC purchased by warranty deed approximately 36.7 acres— consisting of Plat 29 Lot 32, Plat 31 Lot 10, and Plat 44 Lot 159—in Johnston, Rhode Island (Macera/Tower Property) from Macera/Tower Family Limited Partnership and Anthony Macera, Inc. for $6, 000, 000. Id. ¶¶ 29-30. Pilgrim acted as the title insurance company in this transaction; Albert G. Brien and Associates and Albert G. Brien (collectively, Brien) were allegedly the sellers' real estate broker. Id. ¶¶ 31-32.
At the time of purchase, the tax-assessed value of the Macera/Tower Property was $1, 404, 000 for Plat 31 Lot 10 (33.5 acres out of the 36.7 acres purchased by RIRRC). Id. ¶ 34. Prior to the sale, Plat 31 Lot 10 of the Macera/Tower Property was used as the Macera Dump, which had been subject to a number of citations by the Rhode Island Department of Environmental Management (RIDEM). Id. ¶ 36. On August 19, 1999, GZA GeoEnvironmental Inc. (GZA) performed a Limited Phase II Environmental Site Assessment at the Macera Dump and observed waste materials and elevated levels of contaminants in groundwater at concentrations in excess of RIDEM's reporting criteria. Id. GZA estimated that it would cost approximately $6, 750, 000 to remove the on-site waste or approximately $600, 000 to cap it. Id. ¶ 37.
On April 29, 2002, RIRRC purchased by warranty deed approximately 67.9 acres— consisting of Plat 43 Lot 253—in Johnston, Rhode Island (Macera/Tzitzouris Property) from the Macera/Tzitzourises1[] for $2, 050, 000. Id. ¶¶ 40-41. Pilgrim served as both the title insurance company and settlement agent for the sale and Brien was the sellers' broker. Id. ¶ 42-43.
In 2001, the tax-assessed value of the Macera/Tzitzouris Property was $212, 400. Id. ¶ 45. Shortly before the sale, the property was assessed at $1, 649, 500. Id. In February 2002, the Macera/Tzitzouris Property was appraised by William E. Coyle Jr. and Associates, William E. Coyle Jr. and William E. Coyle III (collectively, Coyle) at a value of $2, 135, 000. Id. ¶ 46. RIRRC alleges that Coyle's appraisal, having been inappropriately based on inflated purchase price comparisons, violated G.L. 1956 § 5-20.7-19 by failing to conform to professional appraisal standards. Id.
According to RIRRC, although the Macera/Tzitzouris Property was purchased to obtain cover materials for the landfill, GZA discovered that the high silt content of the soil rendered it unsuitable as fill or cover material. Id. ¶ 47. Additionally, RIRRC discovered an unrecorded and undisclosed conservation easement placed on the property prior to the sale by William R. Macera as part of a consent agreement with RIDEM. Id. ¶¶ 48-51.
On March 10, 2003, RIRRC purchased by warranty deed approximately 10.14 acres— consisting of Plat 31 Lots 50 and 56—in Johnston, Rhode Island (Baccarie Property) from Harry and Mary Baccarie (collectively, Baccaries) for $1, 300, 000. Id. ¶¶ 52-53. Pilgrim acted as both the title insurance company and settlement agent for the sale and Brien was the sellers' broker. Id. ¶¶ 54-55.
At the time of purchase, the tax-assessed value of the Baccarie Property was $223, 600. Id. ¶ 56. A December 2002 appraisal (December 2002 Appraisal) for the Baccarie Property, Bac-Mac Realty Property (see infra), and Silvestri Leasing Company Property I (see infra) valued the properties at $3, 000, 000. Id. ¶ 57. RIRRC alleges that Coyle's December 2002 Appraisal, having been inappropriately based on inflated purchase price comparisons, violated § 5-20.7-19 by failing to conform to professional appraisal standards. Id.
Following the sale, the Baccaries were permitted to remain on the Baccarie Property rent-free until December 31, 2003. Id. ¶ 58.
On March 10, 2003, RIRRC purchased by warranty deed approximately 22, 400 square feet of vacant land and a 4000 square foot building—located on Plat 31 Lot 50—in Johnston, Rhode Island (Bac-Mac Realty Property) from Bac-Mac Realty for $400, 000. Id. ¶ 59-60. Pilgrim served as both the title insurance company and settlement agent for the sale and Brien was the sellers' broker. Id. ¶¶ 61-62.
At the time of purchase, the tax-assessed value for the Bac-Mac Realty Property was $112, 500. Id. ¶ 63. The December 2002 Appraisal for the Baccarie Property, Bac-Mac Realty Property, and Silvestri Leasing Company Property I (see infra) valued the properties at $3, 000, 000. Id. ¶ 64. RIRRC alleges that the December 2002 Appraisal, having been inappropriately based on inflated purchase price comparisons, violated § 5-20.7-19 by failing to conform to professional appraisal standards. Id.
On March 10, 2003, RIRRC purchased by warranty deed approximately 1.7 acres of land—consisting of Plat 31 Lots 7 and 54—in Johnston, Rhode Island (Silvestri Leasing Company Property I) from Silvestri Leasing Company and Anthony Silvestri, Jr. for $1, 085, 000. Id. ¶¶ 65-66. Pilgrim acted as both the title insurance company and settlement agent for the sale and Brien was the sellers' broker. Id. ¶¶ 67-68.
At the time of purchase, the tax-assessed value of the Silvestri Leasing Company Property I was $245, 100. Id. ¶ 69. The December 2002 Appraisal for the Baccarie Property, Bac-Mac Realty Property, and Silvestri Leasing Company Property I valued the properties at $3, 000, 000. Id. ¶ 70. RIRRC alleges that the December 2002 Appraisal, having been inappropriately based on inflated purchase price comparisons, violated § 5-20.7-19 by failing to conform to professional appraisal standards. Id.
On September 3, 2003, RIRRC purchased by warranty deed 10.10 acres of land— consisting of Plat 31 Lot 43—in Johnston, Rhode Island (Izzo Property) from Danyo Izzo for $2, 015, 000. Id. ¶¶ 71-72. Pilgrim acted as both the title insurance company and settlement agent for the sale. Id. ¶ 73.
At the time of purchase, the tax-assessed value of the Izzo Property was $390, 000. Id. ¶ 74. William R. Macera held a mortgage on the property which was discharged at the closing. Id. ¶ 75. RIRRC alleges that Coyle's March 2002 appraisal—valuing the property at $1, 500, 000— was inappropriately based on inflated purchase price comparisons, and therefore, violated § 5-20.7-19 by failing to conform to professional appraisal standards. Id. ¶ 76.
On December 17, 2002, a wetlands delineation, performed by GZA, revealed the presence of emergent wetlands on the site. Id. ¶ 77. According to RIRRC, Coyle indicated that the existence of wetlands would lower the property's appraised value by $1, 400, 000. Id.
Additionally, as a result of a December 31, 2002 Notice of Violation issued by RIDEM, on May 12, 2003, Danyo Izzo agreed, by Consent Agreement, to remove all solid waste from the Izzo Property. Id. ¶ 79. Nevertheless, a compliance inspection conducted by RIDEM after the sale, revealed that approximately 580 cubic yards of solid waste still remained on the property to be remedied by RIRRC. Id. ¶ 80.
On July 29, 2004, RIRRC purchased by warranty deed 3.1 acres of land—consisting of Plat 31 Lots 45, 46, and 47—in Johnston, Rhode Island (Coastal...
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