SMS Financial XXV, LLC v. CorsettiAnnotate this Case
The Supreme Court affirmed the judgment of the superior court denying the motion brought by Plaintiff, SMS Financial XXV, LLC, for summary judgment and granting the cross-motion for summary judgment brought by Defendants, David Corsetti and 385 South Main Street, LLC, on Plaintiff’s suit alleging that Defendants breached the terms of a promissory note.
In the cross-motion for summary judgment, Defendants asserted that Plaintiff was unable to enforce or collect upon the note because the note had been lost. The hearing justice granted Defendants’ cross-motion for summary judgment. The Supreme Court affirmed, holding (1) under the plain language of R.I. Gen. Laws 6A-3-309(a) Plaintiff was not entitled to enforce the note because the note was in the possession of the original holder of the note when it was lost, not Plaintiff, to whom the original holder assigned its interest; and (2) pursuant to the statute, Plaintiff was not entitled to enforce the note’s provision mandating that Defendants issue a replacement note.