Shine v. MoreauAnnotate this Case
The issue in these consolidated cases was the passing of the Financial Stability Act and the appointment of a Receiver for the City of Central Falls. The Supreme Court already held that the Act is constitutional, and the issues now before the Court on appeal dealt with the superior court’s holdings that (1) the Central Falls Receiver was entitled to reimbursement of his attorney’s fees; (2) the Central Falls Mayor was not entitled to indemnification from the Receiver for costs and expenses arising out of the instant cases; and (3) denied advance attorney’s fees filed by Attorney Lawrence Goldberg. The Supreme Court reversed the superior court’s judgment in all respects, holding (1) in granting the Receiver reimbursement of its attorneys’ fees, the hearing justice misapplied R.I. Gen. Stat. 45-9-11; (2) the hearing justice erred in concluding that the Mayor was not acting in his official capacity when he challenged the constitutionality of the Act and when he defended himself in the action filed by the Receiver and therefore was not entitled to indemnification for his legal costs; and (3) because Attorney Goldberg was properly retained by the City Council for Central Falls to represent it in the suit regarding the constitutionality of the Act, the attorney was entitled to remuneration.