Technology Investors v. Town of Westerly

• Decision Date: 04 March 1997
• Docket Number: No. 95-149-A,95-149-A
• Citation: 689 A.2d 1060
• Parties: TECHNOLOGY INVESTORS v. TOWN OF WESTERLY et al. ppeal.
• Court: Rhode Island Supreme Court

Page 1060

689 A.2d 1060

TECHNOLOGY INVESTORS v. TOWN OF WESTERLY et al.

No. 95-149-Appeal.

Supreme Court of Rhode Island.

March 4, 1997.

Thomas J. Liguori, Jr., Westerly, for Plaintiff.

John C. Levanti, Westerly, for Defendant.

OPINION

WEISBERGER, Chief Justice.

This case comes before us on appeal by the defendants, the town of Westerly et al (the town), from a judgment entered in the Superior Court in favor of the plaintiff, Technology Investors, following a nonjury trial. ¹ We reverse. The facts insofar as pertinent to this appeal are as follows.

The plaintiff is a general partnership composed of four individuals. These four individuals are also the sole shareholders of Connector Technology Corporation, a Rhode Island entity. In 1983 the corporation acquired the assets of an engineering firm located in Central Falls that was then in receivership. Thereafter, plaintiff, primarily through its partner and lawyer Robert E. Liguori (Liguori) began preparations to move the corporation to another location. At trial, Liguori testified that he was told that the town would consider granting a property-tax abatement to plaintiff if plaintiff would move the corporation to Westerly. On June 19, 1986, plaintiff entered into an agreement to purchase a parcel of land in Westerly. One of the conditions of the sale was receipt by the plaintiff of a property-tax abatement on the parcel from the town. On July 29, 1986, Liguori made a formal application for a tax abatement of 50 percent to be reduced to 0 percent over a five-year period. The application stated that the sales agreement for the Westerly parcel was contingent upon the town's grant of the abatement.

The plaintiff's abatement application was considered at a meeting of the Westerly Town Council on October 6, 1986. Liguori testified that he was assured at the meeting that the tax abatement would be granted. Liguori testified that he closed on the property on October 29, 1986, in reliance on the town council's assurances. The town council passed an ordinance granting the abatement to plaintiff on November 10, 1986. ²

The Westerly tax assessor subsequently refused to abate the property taxes on the subject parcel, in part on the ground that G.L.1956 § 44-3-9 does not permit municipalities to grant tax abatements to Rhode Island businesses that relocate intrastate. The plaintiff subsequently brought suit in Superior Court to enforce the abatement. The town argued that it could not be bound to abate plaintiff's property taxes on the ground that the purported abatement was granted illegally. After a hearing on the merits, a justice of the Superior Court rendered judgment in favor of plaintiff. This appeal ensued.

In support of this appeal, the town contends that the trial justice erred in ruling that it is estopped from claiming that its grant of the tax abatement was illegal and the town further contends that plaintiff's reliance on its representations was not reasonable. We agree.

On review, we follow the well-settled principle that the findings of fact of a trial justice, sitting without a jury, will be given great weight and will not be disturbed absent a showing that the trial justice overlooked or misconceived material evidence or was otherwise clearly wrong. Rego Displays, Inc. v. Fournier, 119 R.I. 469, 472-73, 379 A.2d...