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Rhode Island Department of Transportation v. Providence & Worcester Railroad Co.
Citation:
674 A.2d 1239 (R.I. 1996)Facts
In 1985, Providence & Worcester Railroad owned a 6.97-acre waterfront parcel in East Providence with railroad tracks on it. On December 12, 1985, P&W entered into a purchase and sale agreement with Promet Corporation for $100,000. As required by Rhode Island law, the agreement was subject to a 30-day option for the state to purchase the property. P&W notified the state of the offer, and on January 7, 1986, the state accepted the offer in writing, noting that certain provisions in the original agreement regarding track removal would be “inappropriate” for the state’s purchase. P&W proceeded with the sale to Promet anyway, closing the deal earlier than scheduled and without notifying the state of the change. When the state representative arrived to tender payment at the originally scheduled time, the property had already been conveyed to Promet. The state filed suit, and the Superior Court ultimately declared the deed to Promet null and void, ordering the property transferred to the state, but requiring the state to pay interest on the purchase price.
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