PLDO Attorneys Win First Circuit Court Appeal in Bankruptcy Case
Millions of dollars to be returned to PLDO client that had been held in escrow for eight years.
First Circuit Denies En Banc Rehearing. The case ends part of decades-long litigation.
The U.S. Court of Appeals for the First Circuit denied the request for an en banc rehearing in Goat Island South Condominium Ass’n v. IDC Clambakes, Inc. on April 25, 2017, leaving in place a major victory for Pannone Lopes Devereaux & O’Gara LLC (PLDO) attorneys and their client, IDC Clambakes (“Clambakes” or “Client”) in an appeal, which affirmed a U.S. Bankruptcy Court ruling denying creditor claims in a Chapter 11 proceeding and results in millions of dollars being returned to their client. On Monday, June 26, 2017, the case was remanded to the bankruptcy court for final disposition.
The original March 24, 2017 ruling by the First Circuit reversed a 2014 decision by the U.S. District Court for the District of Rhode Island, which had ruled that Clambakes owed a group of condominium associations (“Associations”) “$2.6 million for its use and occupancy of land where it opened the Regatta Club from 1998 and 2005.” In affirming the bankruptcy court ruling of Judge Melvin S. Hoffman, the Appeals Court found that the Associations had no implied-in-fact contract with Clambakes for the use of a banquet facility (the Regatta Club) on Goat Island in Newport, Rhode Island and therefore the Associations were not entitled to payments for use of the land.
The bankruptcy appeal and decision in favor of Clambakes is the latest in decades-long litigation over a piece of property, called the “Reserved Area” and the banquet venue on Goat Island. The banquet facility was constructed by Thomas Roos, owner of IDC, Inc., IDC Properties and Clambakes. Mr. Roos’ IDC Properties entity built the Regatta Club in 1998, investing millions of dollars, and Clambakes operated the venue.
In their decision, the Appeals Court sided with Judge Hoffman, who in 2014 ruled that the Associations failed to prove they were entitled to an equitable award, affirmed the bankruptcy court’s conclusion that there was no implied-in-fact contract between Clambakes and the Associations and that “there was no abuse of discretion in the bankruptcy court’s decision to award no restitutionary relief” concluding that the Associations were not entitled to compensation for the use of the Regatta Club during the claim period, from 1998 and 2005.
PLDO attorneys William P. Devereaux, Matthew C. Reeber and Joel K. Goloskie appealed the District Court decision. Attorneys Devereaux, Reeber and William E. O’Gara initially won the matter at a trial conducted in August 2008.
About Pannone Lopes Devereaux & O’Gara LLC
Pannone Lopes Devereaux & O’Gara (“PLDO”) attorneys are highly skilled with a proven track record of achievement representing clients with respect to complex matters in a wide range of disciplines and industries. The founders of PLDO were formerly partners in an international law firm and are trained in multiple disciplines. The primary areas of practice for the firm include business law, special masterships, government relations and legislative strategies, civil litigation, real estate development, commercial lending, municipal law, nonprofit law, health care, white collar defense, estate planning, probate administration and trust litigation. The core values of respect, integrity, quality service and responsiveness are stressed each day at PLDO and the firm is committed to supporting the community in a meaningful way. The firm is headquartered at 1301 Atwood Avenue in Johnston, RI with offices in Massachusetts and Florida. For more information, visit https://www.pldolaw.com.