David F. Miller v. Metropolitan Property and Casualty Insurance Co. , 2015 R.I. LEXIS 38 ( 2015 )

Supreme Court
No. 2013-60-Appeal.
No. 2013-61-Appeal.
No. 2013-62-Appeal.
(PC 06-3336)
David F. Miller et al. :
v. :
Metropolitan Property and Casualty :
Insurance Co. et al.
NOTICE: This opinion is subject to formal revision before publication in
the Rhode Island Reporter. Readers are requested to notify the Opinion
Analyst, Supreme Court of Rhode Island, 250 Benefit Street, Providence,
Rhode Island 02903, at Tel. 222-3258 of any typographical or other
formal errors in order that corrections may be made before the opinion is
published.
Supreme Court
No. 2013-60-Appeal.
No. 2013-61-Appeal.
No. 2013-62-Appeal.
(PC 06-3336)
David F. Miller et al. :
v. :
Metropolitan Property and Casualty :
Insurance Co. et al.
Present: Suttell, C.J., Flaherty, Robinson, and Indeglia, JJ.
OPINION
Justice Flaherty, for the Court. This opinion addresses three appeals that have arisen
from a labyrinth of litigation brought by the plaintiffs, David F. Miller and Miller’s Auto Body,
Inc. (MAB), against the defendants, Amica Mutual Insurance Company, Amica Property and
Casualty Insurance Company (collectively Amica), Metropolitan Property and Casualty
Insurance Company (Metropolitan), and Allstate Insurance Company, Inc. (Allstate). 1 All three
appeals were argued before the Supreme Court on December 3, 2014. After hearing the
arguments and examining the memoranda filed by the parties, we are of the opinion that a release
that Miller executed before he initiated suit bars all his claims against the defendants. As a
1
The three appeals concern only one plaintiff, Miller, in his personal capacity, and two
defendants, Amica and Metropolitan. Miller’s Auto Body, Inc. was dismissed as a plaintiff by
order dated April 27, 2010. Allstate Insurance Company was granted summary judgment on all
of plaintiff’s claims, in orders effective April 27, 2010, and September 7, 2010. Although
plaintiff included Allstate in his notices of appeal, no argument has been made specific to
Allstate, and Allstate never filed a brief with this Court.
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result, and for the reasons set forth in this opinion, we affirm in part, and reverse in part, the
judgment of the Superior Court.
I
Travel
The plaintiffs, Miller and MAB, alleged in their complaint that they were subjected to an
improper, nefarious, and malicious investigation into suspected insurance fraud that the
defendants believed was taking place at plaintiffs’ Cumberland auto-body shop. Miller alleged
that he was suspected of perpetrating insurance fraud by using “improper estimate and repair
methods,” eventually precipitating an investigation by the Rhode Island State Police (State
Police). On January 16, 2002, Miller was arrested at his place of business; he was subsequently
charged in Sixth Division District Court with four counts of insurance fraud, two counts of
obtaining money under false pretenses, and two counts of attempting to obtain money under false
pretenses. After the District Court complaint was dismissed for lack of a prosecution, the Rhode
Island Attorney General (Attorney General) renewed the charges by means of a criminal
information in Providence County Superior Court. Eventually, the criminal information was
dismissed by the Attorney General pursuant to Rule 48(a) of the Superior Court Rules of
Criminal Procedure. 2 However, the dismissal, dated March 28, 2005, was not without cost; it
was accompanied by, and conditioned on, an agreement between Miller and the Attorney
General. The agreement required that Miller relinquish or transfer his auto-body license, pay
restitution to the insurance carriers, and execute a general liability release in favor of the
Attorney General, the State Police, and, particular to our analysis, Amica, Metropolitan, and
2
Rule 48(a) of the Superior Court Rules of Criminal Procedure states, “[t]he attorney for the
State may file a dismissal of an indictment, information, or complaint and the prosecution shall
thereupon terminate. Such a dismissal may not be filed during the trial without the consent of
the defendant.”
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Allstate. By its terms, the document specified that Miller released those parties “from any and
all manner of actions, causes of action, debts, dues, claims and demands, both in law and equity
arising from the facts alleged in [the Attorney General’s prosecution of Miller] which said David
F. Miller ever had, now has, or in the future may have.” 3 Fifteen months after the execution of
the release, plaintiffs filed a complaint against those same three insurance companies in Superior
Court.
The plaintiffs’ complaint alleged eight counts: tortious interference with contractual
relations (count 1); tortious interference with prospective contractual relations (count 2);
malicious prosecution (count 3); abuse of process (count 4); 4 continued tortious interference with
contractual relations (count 5); continued tortious interference with prospective contractual
3
The release provided in full:
“KNOW ALL MEN, THAT I, DAVID F. MILLER for valuable
consideration to be paid by David F. Miller hereby release and forever quit-claim
unto the Rhode Island Attorney General’s Office, Metropolitan Insurance
Company; Amica Insurance Company; Allstate Insurance Company and the
Rhode Island State Police, and any and all other persons and firms, their heirs,
executors and administrators, from any and all manner of actions, causes of
action, debts, dues, claims and demands, both in law and equity arising from the
facts alleged in that certain Rhode Island Superior Court criminal case #P2-02-
3211A which said David F. Miller ever had, now has, or in the future may have.
Payor hereby makes no admission of liability but makes this settlement in an
attempt to avoid litigation.
“IN WITNESS WHEREOF, we have hereunto set our hands and seals this 29th
day of March 2005.”
4
The tort of abuse of process requires that a plaintiff prove two elements: “(1) the defendant
instituted proceedings or process against the plaintiff and (2) the defendant used these
proceedings for an ulterior or wrongful purpose that the proceedings were not designed to
accomplish.” Butera v. Boucher, 798 A.2d 340, 353 (R.I. 2002) (citing Nagy v. McBurney, 120
R.I. 925, 934, 392 A.2d 365, 370 (1978)). The type of process required is a judicial action; an
investigation is not sufficient to satisfy the requirement of “proceedings or process.” Id. at 353-
54. “Abuse of process, as distinguished from malicious prosecution, ‘arises when a legal
proceeding, although set in motion in proper form, becomes perverted to accomplish an ulterior
or a wrongful purpose for which it was not designed.’” Id. at 353 (quoting Clyne v. Doyle, 740
A.2d 781, 783 (R.I. 1999)).
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relations (count 6); violation of the Rhode Island Deceptive Trade Practices Act (mistakenly
labeled count 6), and a separately pled action for punitive damages (mislabeled count 7). 5 In
answers dated July 28, 2006, and July 31, 2006, Metropolitan and Amica, respectively, raised the
general release signed by Miller as an affirmative defense to all counts of the complaint.
II
Facts
In July 2001, plaintiffs were placed under an umbrella of suspicion by the State Police,
who were examining plaintiffs’ insurance claims practices. The State Police had received
complaints from several insurance companies, alleging that Miller and MAB were “in the
practice of enhancing damage to vehicles as well as billing for damage not sustained to vehicles
brought to [MAB] for repair.” To enhance its investigation, the State Police devised an
undercover “sting” that made use of vehicles that were furnished by defendants Amica and
Metropolitan. The two carriers also provided ersatz, or pretext, policies of insurance for those
vehicles.
Miller was certainly no newcomer to the auto-body business; his affidavit provided that
he had spent over twenty-five years performing auto-body maintenance and repairs, during
which time he was an officer in the Auto Body Association of Rhode Island and had served as
chairman of the Rhode Island Auto Body Licensing Board. Miller also swore by affidavit that he
owned and operated MAB, a Rhode Island corporation with its principal place of business in
Cumberland, and was its sole shareholder. It is undisputed that, while the State Police
investigation was ongoing, MAB was operating even though its charter had been revoked by the
5
The seventh count in plaintiffs’ second amended complaint, alleging violations of the Rhode
Island Deceptive Trade Practices Act, G.L. 1956 § 6-13.1-2, was mistakenly labeled as a second
“Count VI,” and the subsequent eighth count for punitive damages was labeled incorrectly as
“Count VII.” For convenience’s sake, the counts will be referred to by name.
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Secretary of State. 6 Miller later testified at trial that he was not aware that the charter had lapsed,
and when he became aware of the problem, he was unable to renew the charter because the
corporation was in arrears for taxes to the state. As of the time of trial in 2012, the charter of
MAB had in fact never been renewed. It is also undisputed that Miller continued to operate the
business in the same manner as he had prior to the charter revocation. In particular, Miller swore
that he “continued to operate the business, repair vehicles, contract with customers * * * and
conduct all other operations that [he] had done prior to the issuance of the revocation.”
On January 16, 2002, after the State Police had completed its investigation, Miller was
arrested and charged. Ultimately, in March 2005, the Attorney General filed a Rule 48(a)
dismissal of the criminal charges against Miller, stating in its filing that its decision was “due to
evidentiary and proof issues.” As previously noted, the Attorney General’s dismissal of the
pending criminal charges was not without qualification; it was contingent upon Miller’s
compliance with the three conditions mentioned above. Those conditions were: (1) Miller’s
payment of restitution to the insurance companies; 7 (2) Miller’s agreement to relinquish or
transfer the Department of Business Regulation (DBR) auto-body license; 8 and (3) Miller’s
execution of a general liability release. Miller agreed to those three conditions while he was
represented by experienced and well-respected counsel—who, according to legal bills produced
at trial, in fact drafted the release—and Miller complied with each condition. However, Miller
6
MAB’s corporate charter was revoked on September 20, 1999, for a failure to file the annual
report required of all corporations under Rhode Island law.
7
The attorney who was Miller’s counsel at that time, swore in an affidavit that he understood
that the restitution required was a payment of approximately $2,000 each to Amica and
Metropolitan. The amount was intended to reimburse the insurers for costs incurred during the
police investigation.
8
The DBR permitted Miller to transfer the auto-body repair license to his son’s auto-body shop,
D. Miller’s Auto Body, Inc., which was separately incorporated.
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alleged in his complaint that he was coerced into agreeing to the dismissal and signing the
release, later testifying that he “felt that [he] had no choice.”
There can be no doubt that Miller had been through a wearying process. By the time the
criminal charges were dismissed in 2005, he had been the subject of the state’s prosecution
efforts for over three years. In July 2006, Miller instituted this suit to recover damages for what
he characterized as the victimization that he had encountered throughout the police investigation
and the ensuing criminal prosecution. In his complaint, Miller said he believed that the entire
investigation was a “crusade” motivated by the carriers’ personal animus towards him, an animus
fueled by his tireless and effective advocacy for legislative enactments that affected insurance
companies’ operations and profits. This, he claimed, had placed a target on his back. Miller
further alleged that his arrest was “[b]ased upon the false information, false allegations and
deceitful conduct and practices of Defendants.” During the pendency of his criminal charges,
Miller alleged that he had “suffer[ed] catastrophic financial losses” and had endured “severe
financial and emotional distress.” Miller contended that defendants’ acts and the Attorney
General’s dismissal conditions that required him to surrender the license of MAB were simply an
“attempt to put [him] out of business.”
Pretrial Proceedings
In March 2010, Amica, Metropolitan, and Allstate moved for partial summary judgment,
under the provisions of Rule 56 of the Superior Court Rules of Civil Procedure. The defendants’
motions asked for judgment on all counts of the complaint brought on behalf of MAB, and on
two of Miller’s individual claims, those for abuse of process and deceptive trade practices. 9
9
Rule 56(b) of the Superior Court Rules of Civil Procedure provides, “[a] party against whom a
claim, counterclaim, or cross-claim is asserted or a declaratory judgment is sought may, at any
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Because the hearing justice determined that MAB was operating without a valid charter, he ruled
that MAB had no corporate capacity to maintain the suit. The hearing justice therefore granted
summary judgment for the three defendants on all of MAB’s claims, leaving Miller, personally,
as the sole plaintiff. 10 The hearing justice then granted summary judgment for all defendants on
Miller’s deceptive trade practices count. Lastly, on the abuse-of-process claim, only Allstate’s
motion for summary judgment was granted; the hearing justice denied identical motions filed by
Metropolitan and Amica.
Several months later, defendants again moved for partial summary judgment, this time on
all counts that alleged tortious interference with contractual relationships (counts 1, 2, 5, and 6)
and the malicious prosecution claim (count 3). These motions were heard on July 20, 2010,
before a second justice. Of note, at this hearing, counsel for one defendant, Amica, reiterated
“[i]t is [our] position * * * that the release is valid and binding.” On September 7, 2010, in a
written decision, the hearing justice granted the motions, but on other grounds. This quieted all
claims against Allstate, leaving only Miller’s individual claim for abuse of process against
Amica and Metropolitan. In dismissing the claim for malicious prosecution, the hearing justice
reasoned that, because the criminal charges against Miller were dismissed by means of a
compromise, Miller would be unable to establish one of the elements of that tort—a favorable
termination of the prosecution for the accused. With regard to the claims of tortious interference,
the hearing justice determined that, because MAB was a defunct corporation, any contracts it
time, move with or without supporting affidavits for summary judgment in the party’s favor as to
all or any part thereof.”
10
The summary judgment entered against MAB was not appealed.
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entered into not related to the corporate “winding up” process were invalid and Miller could not
personally enforce them in a suit for tortious interference. 11
Miller did not accept defeat easily; in November 2011, he requested that the hearing
justice reconsider his earlier summary judgment rulings in favor of defendants in light of “newly
discovered evidence.” 12 The purportedly new evidence pertained exclusively to the claims of
tortious interference; it included deposition testimony from Louis DeQuattro, Executive Counsel
at the DBR, regarding the status of MAB’s auto-body repair license after its corporate charter
was revoked. In addition, Miller provided a DBR-issued document, designated as an “Order to
Show Cause,” which had been sent to MAB in January 2002. Miller alleged that this document
established that the DBR was aware of the revocation of MAB’s corporate charter. Miller also
produced a document printed from the website of the Office of the Secretary of State, dated
January 30, 2002, which indicated that the mailed notice of MAB’s corporate charter revocation
had been returned undeliverable. Finally, Miller relied on a renewed auto-body repair license
issued to MAB in 2004, after its charter had been revoked. The hearing justice agreed to re-
11
The hearing justice cited G.L. 1956 § 7-1.2-1325, which states, in pertinent part, “any
corporation whose articles of incorporation are revoked by the secretary of state * * * continues
for five (5) years after the date of the * * * revocation for the purpose of enabling it to settle and
close its affairs * * * but not for the purpose of continuing the business for which it was
organized.”
12
The Superior Court Rules of Civil Procedure do not provide for a motion to reconsider.
However, because parties routinely file them, the trial courts often treat these motions as motions
to vacate under Rule 60(b) of the Superior Court Rules of Civil Procedure. The text of
Rule 60(b) provides, in pertinent part:
“Mistake; Inadvertence; Excusable Neglect; Newly Discovered Evidence;
Fraud, etc. On motion and upon such terms as are just, the court may relieve a
party or a party’s legal representative from a final judgment, order, or proceeding
for the following reasons: * * * (2) newly discovered evidence which by due
diligence could not have been discovered in time to move for a new trial under
Rule 59(b) * * * .”
In this case, the trial justice treated Miller’s motion as a motion to vacate an earlier grant of
summary judgment based upon an expanded record.
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examine his grant of summary judgment in light of this new evidence. Notwithstanding the
expanded record, the hearing justice affirmed his grant of summary judgment and denied
Miller’s motion to reconsider.
The Trial
In May 2012, a jury trial commenced in the Superior Court on the sole remaining count,
Miller’s claim of abuse of process against Amica and Metropolitan. The plaintiff’s case
stretched over several days and included testimony from plaintiff, State Police detectives, an
attorney involved in Miller’s criminal defense, and former adjusters with the insurance
companies. In the course of the trial, the Rule 48(a) dismissal agreement and the release that
Miller had signed were admitted as full exhibits. At the close of plaintiff’s case, defendants
moved for judgment as a matter of law in accordance with Rule 50 of the Superior Court Rules
of Civil Procedure. 13 The trial justice denied the motion and the trial continued. The defendants
briefly called one witness, a representative from the DBR, rested, and again moved for judgment
as a matter of law. Again, the trial justice denied the motions.
Before being excused to deliberate, the jury was instructed on the law that it needed to
consider to decide the abuse-of-process claim and to determine whether to apply the general
release. On the matter of the release, the jurors were instructed that defendants had the burden to
show that the release signed by Miller was valid. The instruction noted that “releases may be
void if the execution of the release was affected by duress.” The trial justice offered a definition
of duress, saying, “[y]ou may consider duress to be a threat of an action that incites fear, some
grievous wrong, including such a thing as an unlawful imprisonment.”
13
Rule 50(a)(1) of the Superior Court Rules of Civil Procedure provides in part, “[i]f during a
trial by jury a party has been fully heard on an issue and there is no legally sufficient evidentiary
basis for a reasonable jury to find for that party on that issue, the court may determine the issue
against that party * * * .”
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Several days later, the jury returned verdicts in favor of plaintiff against both defendants,
specifically noting that it had found that defendants had not met their burden to show that
plaintiff “released [the defendants] from liability for any cause of action arising out of the
criminal prosecution of the Plaintiff.” On May 31, 2012, judgments were entered against
Metropolitan in the amount of $1,758,950.65 and against Amica in the amount of $1,508,950.65,
both figures including prejudgment interest.
After the return of the verdicts, defendants renewed their motions for judgment as a
matter of law and, in the alternative, moved for a new trial pursuant to Rule 59 of the Superior
Court Rules of Civil Procedure. 14 On August 20, 2012, after hearing the parties on the motions,
the trial justice entered orders that denied Metropolitan’s motions, but granted those of Amica.
The trial justice reasoned that there was insufficient evidence that Amica had instituted process
against Miller. Miller filed a timely notice of appeal of this order and all prior judgments granted
in favor of Amica. 15 On August 31, 2012, Metropolitan appealed from the order of the Superior
Court, which denied its motions for judgment as a matter of law and for a new trial. 16 In
response, Miller filed a second notice of appeal, seeking review of the pretrial summary-
judgment grants for Metropolitan. 17
14
Rule 59(a) of the Superior Court Rules of Civil Procedure provides in part that, “[a] new trial
may be granted to all or any of the parties and on all or part of the issues for error of law
occurring at the trial or for any of the reasons for which new trials have heretofore been granted
in the courts of this state.”
15
This appeal is docket No. 2013-60-A and it includes the post-trial Rule 50 judgment and the
summary judgments granted in favor of Amica.
16
Metropolitan’s appeal is docket No. 2013-61-A. Metropolitan’s appeal of the Rule 50 and
Rule 59 decisions also included other alleged errors, but we need not address them to dispose of
this case.
17
Miller’s second appeal is docket No. 2013-62-A. For a thorough discussion of how this
appeal was indeed timely, see Miller v. Metropolitan Property and Casualty Insurance Co., 88
A.3d 1157, 1160-63 (R.I. 2014), for its dissection of Article I, Rule 4(a) of the Supreme Court
Rules of Appellate Procedure.
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III
Standard of Review
This Court will review both a trial justice’s decision to grant summary judgment and a
trial justice’s grant of judgment as a matter of law de novo. Emond Plumbing & Heating, Inc. v.
BankNewport, 105 A.3d 85, 89 (R.I. 2014); McGarry v. Pielech, 47 A.3d 271, 279 (R.I. 2012).
Summary judgment is appropriate when the hearing justice, after considering the “pleadings,
depositions, answers to interrogatories, and admissions on file, together with the affidavits, if
any,” finds “no genuine issue as to any material fact and that the moving party is entitled to
judgment as [a] matter of law.” Emond, 105 A.3d at 89 (quoting Sola v. Leighton, 45 A.3d 502,
506 (R.I. 2012)). “Judgment as a matter of law is appropriate ‘if, after viewing the evidence in
the light most favorable to the nonmoving party, [the trial justice] determines that the nonmoving
party has not presented legally sufficient evidence to allow the trier of fact to arrive at a verdict
in his favor.’” McGarry, 47 A.3d at 280 (quoting Gianquitti v. Atwood Medical Associates,
Ltd., 973 A.2d 580, 590 (R.I. 2009)).
However, in reviewing the trial justice’s legal determinations, this Court has a
“prerogative to affirm a determination of a trial justice ‘on grounds different from those
enunciated in his or her decision[,]’” as well as a prerogative to overturn such a determination on
different grounds. John Marandola Plumbing & Heating Co. v. Delta Mechanical, Inc., 769 A.2d
1272, 1275 (R.I. 2001) (quoting Ogden v. Rath, 755 A.2d 795, 798 (R.I. 2000)).
IV
Discussion
On appeal, plaintiff occupies three distinct positions: as appellant on the pretrial
judgments, as appellant on the post-trial Rule 50 judgment granted to Amica, and as appellee on
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Metropolitan’s appeal of the denial of its post-trial Rule 50 motion. The plaintiff argued his
various positions vigorously and adroitly in his multiple briefs; however, we conclude that we
need not decide the many allegations of error that are claimed in order to resolve this appeal.
This is so because it is our opinion that, as a matter of law, even with the evidence viewed in the
light most favorable to him, plaintiff was unable to present sufficient evidence that the release
that he executed in favor of defendants was signed under duress, which is necessary to defeat an
instrument that otherwise meets our criteria for validity. 18 Accordingly, albeit on different
grounds than those relied upon by the trial justice, we affirm the pretrial grants of summary
judgment for defendants, affirm the Rule 50 judgment for Amica, and reverse the denial of
Metropolitan’s Rule 50 motion, thereby granting Metropolitan a judgment as a matter of law.
We do so because the release plaintiff signed specifically barred any claims that might arise out
of the criminal investigation of plaintiff.
A. The Release Meets the Requirements for Enforcement
We agree with defendants that the general liability release that plaintiff executed at the
conclusion of the criminal proceedings was an appropriate basis for granting judgment for them
on all plaintiff’s claims. From the start, the release was a part of the litigation and defendants’
18
Although we do not address the issues plaintiff raised with respect to the trial justice’s rulings
on the Rule 50 motions, we pause to express our belief that his rulings have been, to some
degree, unfairly characterized. It is apparent that the trial justice, on one occasion, articulated the
standard for a Rule 50 motion incorrectly, but within the same page of the transcript, and at
various other points, he set forth the correct standard. Thus, it appears to us that this was a mere
misstatement or slip of the tongue in the course of disposing of a long and complex case. It is
also true that when the trial justice orally reviewed the evidence, he suggested the weight he
would give to certain pieces of evidence. Weighing the evidence is not an appropriate analysis
when deciding a Rule 50 motion. However, we note that the trial justice was at the same time
considering a motion for a new trial under Rule 59, and in this regard weighing the evidence is
appropriate. We believe that the trial justice may have simply been commenting on the weight
of certain evidence as it would have pertained to his Rule 59 decision, and he could have
properly made his Rule 50 determination without incorporating his appraisal of the evidence.
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arguments. Miller attached a copy of the Rule 48(a) dismissal agreement, which noted his
“[e]xecution of a general liability release,” to his original and subsequent amended complaints.
The defendants attached a copy of the release itself and raised it as an affirmative defense in their
answers. At trial, the release and the Rule 48(a) dismissal agreement were admitted into
evidence as full exhibits, and plaintiff acknowledged the release’s authenticity and that his
signature was affixed to the document. Because the release was all-encompassing, all claims that
Miller had, both personally and as the self-described “sole shareholder” of MAB, should have
been disposed of in favor of defendants.
The law concerning releases has been addressed by this Court: “[t]he validity of a release
must be determined in light of three factors: (1) the existence of consideration for the release, (2)
the experience of the person executing the release, and (3) the question of whether the person
executing the release was represented by counsel.” Guglielmi v. Rhode Island Hospital Trust
Financial Corp., 573 A.2d 687, 689 (R.I. 1990). “Finding satisfactory answers to these
questions, the court will find a release to be valid and binding unless it has been procured
through fraud, misrepresentation, overreaching, or a material mistake on the part of either party.”
Id. (citing Bonniecrest Development Co. v. Carroll, 478 A.2d 555, 559 (R.I. 1984)).
It is fair to say that we have significant jurisprudence on releases. See Takian v.
Rafaelian, 53 A.3d 964, 974 (R.I. 2012); Young v. Warwick Rollermagic Skating Center, Inc.,
973 A.2d 553, 559-61 (R.I. 2009); McClanaghan v. Costa, 655 A.2d 695, 695 (R.I. 1995)
(mem.); Guglielmi, 573 A.2d at 689; see also DeSenne v. Jamestown Boat Yard, Inc., 781 F.
Supp. 866, 869-70 (D.R.I. 1991) (acknowledging Guglielmi sets forth the Rhode Island law on
releases). In these cases, we have held consistently that a release shall be considered to be valid
if the person entering into the release received consideration, had knowledge of the consequences
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of executing the document, and was represented by counsel in the process. See, e.g., Guglielmi,
573 A.2d at 689. In Miller’s case, an affirmative answer can be given as to all three.
Miller received a dismissal of his pending criminal charges, certainly something of value,
in return for his agreement to certain conditions: the relinquishment or transfer of his auto-body
license, his payment of restitution, and importantly, his execution of the release in question. In
return, the Attorney General agreed to forgo its prosecution, which could have resulted in
plaintiff being subjected to incarceration and criminal fines. See G.L. 1956 § 11-41-5 (penalties
for larceny, under which the insurance fraud charges against Miller fall).
Consideration is simply, “[s]omething (such as an act, a forbearance, or a return promise)
bargained for and received by a promisor from a promisee; that which motivates a person to do
something.” Black’s Law Dictionary 370 (10th ed. 2014). The release that Miller signed
provided specifically that he “ma[de] this settlement in an attempt to avoid litigation.” It is clear
to us that Miller received consideration for signing the release, because doing so allowed him to
avoid the potential for jail time and further monetary losses. Irrespective of whether plaintiff
ultimately would or would not have been found guilty, his opportunity to avoid any further
criminal proceedings and the expenses he would have incurred stand as sufficient consideration
for his promise to release defendants.
Second, Miller was no novice; to the contrary, he was a man of knowledge and
experience who knew the ramifications of what he was signing. As evidenced by his sworn
affidavits, he was, in addition to being a savvy business owner for twenty-five years, an officer
of a trade association and a lobbyist who frequently advocated for the interests of Rhode Island’s
auto-body trade at the General Assembly. This experience is precisely the knowledge our law
requires; one does not need to be an attorney to be of sufficient experience to enter knowingly
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into a release. See Town of Newton v. Rumery, 480 U.S. 386, 394 (1987) (upholding a similar
release-dismissal agreement where releasor, Rumery, was “a sophisticated businessman”). It is
readily apparent to us that Miller understood the law of insurance claims, was aware of the
financial implications that a criminal prosecution might have for him personally and
professionally, and signed the release knowingly and willingly.
Lastly, and importantly, Miller had the assistance of very competent and seasoned
criminal defense counsel throughout the process. Indeed, it was one of Miller’s attorneys who
drafted the release. We have considered advice by an attorney as a strong indicator that a release
was entered into voluntarily and in the best interests of the party executing the document.
Guglielmi, 573 A.2d at 690 (finding persuasive that releasors “were represented by an attorney
throughout the negotiations”). Miller testified that, although he felt that he had no alternative but
to release the insurers, no one forced him to do so and his attorney never counseled against his
signing the release. 19 In our opinion, the evidence showed that plaintiff weighed his options,
consulted with counsel, and ultimately signed a release in return for the dismissal of pending
criminal charges. See Rumery, 480 U.S. at 394 (noting the importance of the fact that Rumery
“was represented by an experienced criminal lawyer”).
19
On cross-examination by Amica’s counsel:
“Q: In any event, you’ve told us that you felt that you had no choice but to sign it?
“[Miller]: That’s correct.
“Q: And you did sign it?
“[Miller]: Yes, I did.
“Q: Nobody had a gun to your head?
“[Miller]: No.
“Q: Your attorney didn’t tell you not to sign it; did he?
“[Miller]: No.”
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B. Miller’s Release of Defendants Was Not Procured Under Duress
A release that satisfies the above three criteria shall be considered to be valid unless “it
has been procured through fraud, misrepresentation, overreaching, or a material mistake on the
part of either party.” Guglielmi, 573 A.2d at 689 (citing Bonniecrest Development Co., 478
A.2d at 559). Although this standard does not explicitly employ the word duress, we recognize
that releases are contracts and it is clear that contracts entered into under duress are voidable by
the party claiming to be the victim of such conduct. See McGee v. Stone, 522 A.2d 211, 214
(R.I. 1987) (“[d]uress does not render a contract void, merely voidable, but the victim may ratify
the agreement by failing to object”). In his brief, plaintiff highlights several cases which, he
maintains, strengthen his argument for duress: Smith v. Markensohn, 29 R.I. 55, 56-57, 69 A.
311, 311 (1908); White v. International Text-Book Co., 136 N.W. 121, 128 (Iowa 1912); and
Gowin v. Heider, 386 P.2d 1, 7 (Or. 1963). However, in all those cases, the plaintiffs were either
imprisoned or held under arrest because they had failed to pay a debt. Markensohn, 29 R.I. at
56, 69 A. at 311; White, 136 N.W. at 122; Gowin, 386 P.2d at 7. In our opinion, these cases are
inapposite. The cases cited stand for the proposition that, because a plaintiff is either imprisoned
or under arrest, paying the disputed debt does not waive the right to later pursue a challenge of
the debt. “If a person arrested while protesting that he is not indebted to the person causing his
arrest pays the money demanded simply to procure his freedom, he is not thereafter debarred
from maintaining an action for malicious prosecution.” Markensohn, 29 R.I. at 57, 69 A. at 311
(citing Morton v. Young, 55 Me. 24, 27-28 (1867)). Miller was not simply paying a debt, which
he wished to continue to dispute, in return for his freedom. Miller did not sign the release in
order to free himself from arrest or imprisonment; the release was meant to quiet all further
disputes in return for Miller’s relief from criminal prosecution.
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This Court stated the rule on duress many years ago; “[d]uress exists when one by the
unlawful act of another is induced to perform some act under circumstances which deprive him
of the exercise of free will.” Peabody v. Tenney, 18 R.I. 498, 502, 30 A. 456, 457 (1893) (bill
was amended and case decided on Mar. 2, 1894 by Tillinghast, J.) (citing Hackley v. Headley, 8
N.W. 511, 512-13 (Mich. 1881)) (emphasis added). That simply did not happen here. Miller
was faced with a looming prosecution for alleged acts of fraud when he was presented with an
opportunity to have those charges dismissed on the condition, among others, that he release
defendants. Miller maintained that, at the time he was presented with the release, he had
“suffer[ed] catastrophic financial losses” and had endured “severe financial and emotional
distress.” He claimed that he “felt [he] had no other choice [than to sign the release].” While his
predicament was certainly stressful, it was not precipitated by any unlawful act on the part of the
Attorney General, the State Police, or defendants. “Duress is not shown by the fact that one was
subjected to * * * personal embarrassment, a difficult bargaining position or the pressure of
financial circumstances.” Pierce v. Atchison, Topeka and Santa Fe Railway Co., 65 F.3d 562,
569 (7th Cir. 1995) (quoting Herget National Bank v. Theede, 537 N.E.2d 1109, 1111 (Ill. App.
Ct. 1989)). Further, “one cannot successfully claim duress as a defense to a contract when he
had an alternative to signing the agreement.” Id. (citing Graehling v. Village of Lombard, 58
F.3d 295, 298 (7th Cir. 1995)). Despite Miller’s protestations that he felt he was without a viable
alternative, he certainly could have proceeded to trial. Indeed, Miller said that his lawyers told
him that he had a “strong case,” despite the sometimes unpredictable nature of a jury trial. While
his choice may have been difficult, even gut wrenching, such is the nature of bargaining. In
return for what Miller characterized as “walk[ing] out of court without a criminal record,” he
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agreed to release from liability the state agencies and defendants, who had reported conduct to
the authorities that they believed to be illegal.
C. The Release is Effective as to All Three Appeals
On the pretrial motions for summary judgment, the hearing justice was able to consider
all the evidence before him, including the “pleadings, depositions, answers to interrogatories, and
admissions on file, together with the affidavits,” in making his judgment. Emond, 105 A.3d at
89 (quoting Sola, 45 A.3d at 506). Among the pleadings was the general liability release, a
document signed by Miller, an experienced businessperson, benefitting from the advice of
counsel, which relieved him from the threat of criminal prosecution and further litigation. The
plaintiff’s allegations of duress were set forth in his complaint and affidavit. In our opinion,
considering the evidence in the light most favorable to the plaintiff, the hearing justice should
have concluded the release was valid and that the plaintiff had presented insufficient evidence of
legal duress. Therefore, we will enforce the release of liability provided to Metropolitan and
Amica, and thereby affirm the pretrial grants of summary judgment for defendants, though on
reasoning that differs from that of the hearing justice.
Similarly, the release, and the attendant circumstances that demonstrate its validity, was
in evidence at trial. Again, reviewing the facts in the light most favorable to Miller, as we must,
we conclude that the plaintiff failed to produce sufficient evidence such that the jury could have
reasonably concluded that his choice to sign the release was the product of some unlawful act of
duress that should invalidate its effect. Accordingly, although for a different reason than
employed by the trial justice, we affirm the grant of judgment to Amica and we reverse the trial
justice’s decision and grant judgment to Metropolitan.
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V
Conclusion
For the reasons set forth above, we affirm the pretrial grants of summary judgment to
Amica and Metropolitan. With respect to the abuse-of-process claim that went to trial, we affirm
the trial justice’s grant of judgment as a matter of law in favor of Amica, and reverse the trial
justice’s decision and grant judgment as a matter of law for Metropolitan. The papers in the case
may be returned to the Superior Court for proceedings in accordance with this opinion.
Justice Goldberg did not participate.
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RHODE ISLAND SUPREME COURT CLERK’S OFFICE
Clerk’s Office Order/Opinion Cover Sheet
TITLE OF CASE: David F. Miller et al. v. Metropolitan Property and Casualty
Insurance Co. et al.
CASE NO: No. 2013-60-Appeal.
No. 2013-61-Appeal.
No. 2013-62-Appeal.
(PC 06-3336)
COURT: Supreme Court
DATE OPINION FILED: March 20, 2015
JUSTICES: Suttell, C.J., Flaherty, Robinson, and Indeglia, JJ.
WRITTEN BY: Associate Justice Francis X. Flaherty
SOURCE OF APPEAL: Providence County Superior Court
JUDGE FROM LOWER COURT:
Associate Justice William E. Carnes, Jr.
ATTORNEYS ON APPEAL:
For Plaintiffs: Michael A. Kelly, Esq.
For Defendants: Joseph V. Cavanagh, Jr., Esq.
Lauren E. Jones, Esq.