Thursday, March 20, 2025

Rhode Island Supreme Court, Vermont Mutual Insurance Comp. v. New England Property Services Group, LLC, Docket No. 2023-335


Statute of Frauds

 

Arbitration Process

 

Right to Waive

 

Rhode Island Law

 

 

 

There are some instances where parties are free to contract in ways that effectively waive protective provisions that are contained within a relevant civil statute. For example, under some circumstances, competent parties might be deemed to have waived the protective provisions of the Statute of Frauds if they did so knowingly and voluntarily. Nevertheless, there are some public policies that are so important that statutes relating to those policies should be understood to preclude the right to waive a protective statutory provision. One of those overarching public policies is the need to maintain the integrity of the alternative dispute resolution process as well as the public’s appreciation of that integrity. We are of the same mind as our predecessors on this Court, who expressly noted that they were “cognizant of the need for public confidence and integrity in the arbitration process.” Grabbert, 590 A.2d at 92. This Court has encouraged parties to “contract to use arbitration as an expeditious and informal means of private dispute resolution, thereby avoiding litigation in the courts.” Id. And we are keenly aware that the existence of evident partiality undermines these crucial aspects of arbitration. Id. (“Any impropriety that undermines public confidence in and the integrity of the arbitration process detracts from its legitimacy as an alternative method of private dispute resolution.”).

 

 

 

 

 

(Rhode Island Supreme Court, Vermont Mutual Insurance Comp. v. New England Property Services Group, LLC, March 20, 2025, Docket No. 2023-335-Appeal)