Opinion ID: 2002316
Heading Depth: 1
Heading Rank: 1

Heading: the finding concerning the amount of arrearage

Text: The defendants argue that the trial justice was in error in finding the amount of the arrearage to be the sum of $5,464. The defendants suggest that the sole basis for finding the arrearage was a stipulation filed in District Court. This claim is without merit. Testimony was presented by Barry Welch, who had served as property manager for both Cedec, Inc. and Caesar Misch Realty. Through him a ledger card was introduced into evidence. This ledger card in conjunction with Welch's oral testimony established the arrearage in the sum of $5,464. In light of this testimony it was unnecessary for the trial justice to take judicial notice of the stipulation for judgment that had been entered in the District Court in that amount. We are of the opinion that the Superior Court could not rely upon the judgment entered by stipulation in the District Court because that judgment had been vacated by defendants' appeal. We held in Stidhams v. McPherson, 106 R.I. 295, 259 A.2d 114 (1969), that even a judgment filed by stipulation in the District Court could be appealed and that the appealing party was entitled to a trial de novo. In support of our holding we cited Dorney v. Ives, 36 R.I. 276, 90 A. 164 (1914), and Lavelle v. Kimball, 18 R.I. 786, 31 A. 166 (1895), and stated that such a longstanding practice should not be altered, particularly since statutory changes in no way impinged on the rationale of the earlier decisions. Therefore, when a judgment entered in the District Court has been appealed by an aggrieved party, the judgment is vacated whether entry of judgment has been by stipulation or by order of the court. Consequently the judgment may not be used as evidence or by judicial notice for the purpose of establishing or defending against a claim. Nevertheless, in the case at bar the error of taking judicial notice of the judgment stipulation was harmless in light of the evidence of arrearage presented before the court. In respect to the liability of Judith E. Turchetta, it should be noted that a report, submitted by Camille's Coffee Shop, Inc. on May 27, 1983 and appended to the affidavit of Alexander J. Turchetta, sets forth that Judith E. Turchetta held the offices of vice-president and treasurer. The testimony of Barry Welch established that Mrs. Turchetta was active in the business and generally worked on the books in the back of the restaurant. This record of her participation was sufficient to support an inference by the trial justice that she was a principal in the conduct of the former corporation and was also personally liable for corporate debts after the corporation ceased to exist. For the reasons stated, the defendants' appeal is denied and dismissed. The judgment of the Superior Court is affirmed. The papers in the case may be remanded to the Superior Court.