Moreau v. Flanders

15 A.3d 565 (2011)

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Moreau v. Flanders

Rhode Island Supreme Court
15 A.3d 565 (2011)

DD

Facts

The Rhode Island legislature enacted the Financial Stability Act (the act). The act permitted the director of the Department of Revenue (the director) to appoint a receiver for a fiscally imperiled municipality. A receiver was authorized to exercise powers relating to a municipality’s fiscal stability. But the act required a receiver to exercise powers with due regard for the needs of the citizens of a municipality. Although the act did not limit a receivership to a specified durational term, the act provided for the termination of a receivership when a municipality’s fiscal health improved. The city of Central Falls (the city) was experiencing financial distress. Pursuant to the act, the director appointed Robert Flanders (defendant) as receiver for the city. Charles Moreau (plaintiff), the mayor of the city, brought suit, contending that the act was unconstitutional. The trial court found that the act was constitutional. Moreau appealed.

Rule of Law

Issue

Holding and Reasoning (Flaherty, J.)

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