ROBERT P. VERRI, QUA CO-TRUSTEE OF THE ROSE IZZI TRUST-1994, AND PATRICIA VERRECCHIA MOREAU, QUA CO-TRUSTEE OF THE VALENZIO IZZI TRUST-1994, Plaintiffs,
RBC CAPITAL MARKETS, LLC. a/k/a RBC WEALTH MANAGEMENT, formerly known as and/or alias RBC Dain Rauscher Inc. and/or as the successor to Tucker Anthony Day and/or Tucker Anthony-also doing business as Freedom Trust Company, alias John Doe Corporations 1 through 10, as the case may be, Defendants.
County Superior Court
Plaintiff:Edward J. Mulligan, Esq.
Defendant: Rebecca M. Murphy, Esq.
litigation focuses on one of two reciprocal trusts. Defendant
RBC Capital Markets, LLC (RBC or Defendant) moves to stay the
litigation and compel arbitration. Plaintiffs Robert Verri
(Verri) and Patricia Verrecchia Moreau (Moreau) (together,
Plaintiffs) object to this motion.
September 12, 1994, Valenzio Izzi (Valenzio) and Rose Izzi
(Rose), husband and wife, created two reciprocal, revocable
trusts. Valenzio was the initial trustee of the Valenzio Izzi
Trust (Valenzio Trust), which was administered for his
benefit during his lifetime. Likewise, Rose was the initial
trustee of the Rose Izzi Trust (Rose Trust), and the trust
was administered for her benefit during her lifetime. The
settlors also created trust accounts with Tucker Anthony
under the guidance of financial planner Joseph A.
Kumiega (Kumiega). Valenzio died on December 14,
1998, and, pursuant to the terms of his trust, Rose and Paul
V. Verrecchia (Verrecchia) became the successor co-trustees
of the Valenzio Trust and Rose became its income beneficiary.
Rose died on July 16, 2012, and Moreau joined Verrechia as
co-Trustee of the Valenzio Trust. At that time, Moreau and
Kumiega became co-trustees of the Rose Trust.
merger and acquisition, Tucker Anthony became part of RBC.
Per RBC's practices, clients must sign a series of Client
Account Information forms. Rose alone signed two such forms
on behalf of the Valenzio Trust, one on August 22, 2008, and
another on June 30, 2009. Moreau and Verrecchia subsequently
executed another Client Account Information form on behalf of
the Valenzio Trust on December 7, 2012.
upon examining the financial history of the Valenzio Trust,
believe that Rose was "without authority and in
violation of her duties as Co-Trustee of her husband's
estate [sic] had wrongfully, mistakenly, and/or negligently
taken monies from the principal of her husband's
Trust." Compl. ¶ 26. Plaintiffs further claim,
inter alia, that RBC "wrongfully and in
violation of its fiduciary and contractual duties allowed
Rose Izzi, permitted, turned a blind eye, and/or acceded to
Rose Izzi taking and misappropriating monies out of the
Valenzio Trust." Id. ¶ 37.
turn, claims that these allegations must be first submitted
to arbitration, as required by the arbitration provisions
from the Client Account Agreement incorporated by reference
into the Client Account Information forms.
is a desirable method of dispute resolution that long has
been favored by the courts." Soprano v. American
Hardware Mut. Ins. Co., 491 A.2d 1008, 1011 (R.I. 1985).
"Nevertheless, '[n]o one is under a duty to
arbitrate unless with clear language he [or she] has agreed
to do so.'" School Comm. of Town of N. Kingstown
v. Crouch, 808 A.2d 1074, 1078 (R.I. 2002) (quoting