Justia Maine Supreme Court Opinion Summaries

The Maine Department of Health and Human Services conducted a competitive bidding process in 2023 to award contracts for medical nonemergency transportation services for MaineCare and Children’s Health Insurance Program recipients. Penquis C.A.P., Inc., previously the incumbent provider for two regions, submitted bids for four regions but lost to ModivCare Solutions, LLC, which received the highest scores and was awarded contracts for all eight transit regions. Penquis CAP challenged the awards for four regions, asserting irregularities in the evaluation process and seeking access to additional DHHS records through Freedom of Access Act requests.Penquis CAP first pursued administrative appeals before a Department of Administrative and Financial Services (DAFS) appeal committee, which held a hearing and ultimately validated the contract awards to ModivCare. Penquis CAP then sought judicial review in the Superior Court (Penobscot County), which was transferred to the Business and Consumer Docket. After briefing and oral argument, the Business and Consumer Docket affirmed the appeal committee’s decision, finding no legal or procedural error in the bidding and award process. Penquis CAP subsequently appealed to the Maine Supreme Judicial Court, which stayed the contract awards pending appeal.The Maine Supreme Judicial Court reviewed the administrative record for errors of law, unsupported factual findings, or abuse of discretion. The Court held that Penquis CAP was not entitled under statute or the Administrative Procedure Act to delay the hearing until all FOAA requests were fulfilled, nor to obtain evidence beyond what it already possessed. The Court found no clear and convincing evidence justifying invalidation of the contract awards, and affirmed the judgment, lifting the stay on the awards. View "Penquis C.A.P., Inc. v. Department of Administrative and Financial Services" on Justia Law

A condominium resident entered into an agreement with the developer, the unit owners’ association, and other unit owners after concerns were raised about infrastructure and proposed changes to the condominium plan. The agreement required the developer to complete infrastructure work, pay a sum to the association, and convey a vacant lot to the association in exchange for the unit owners withdrawing their opposition to a planning board application. The agreement included a provision requiring planning board approval of the developer’s application by March 1, 2023, as a condition for the parties’ obligations. The planning board, however, did not approve the application until March 28, 2023. After learning that the lot was to be sold to a third party, the resident sued for specific performance of the agreement.The Superior Court (York County) granted the developer’s motion to dismiss, ruling that the failure to obtain planning board approval by the specified date was an unmet condition precedent, discharging all parties from their obligations under the agreement. The court also dismissed the resident’s claims for quantum meruit, unjust enrichment, and declaratory relief on independent grounds.On appeal, the Maine Supreme Judicial Court reviewed whether the timing requirement for planning board approval was necessarily a material condition precedent as a matter of law. The Court held that, in actions seeking equitable relief such as specific performance, whether time is of the essence is a factual question dependent on the intent of the parties and the circumstances. The Court concluded that the materiality of the March 1 deadline could not be determined solely from the pleadings, and that the complaint alleged facts which, if proven, could entitle the resident to relief. The Court vacated the dismissal of the breach of contract claim and remanded for further proceedings. View "Constance L. Beane v. Village on Great Brook, LLC" on Justia Law

Neils Point, LLC owns a farm property in Harpswell, Maine, which it leased to Joseph and Laura Grady for agricultural use. The Gradys resided on the property and operated the farm under successive lease agreements, culminating in a 2017 extension titled “Commercial Agricultural Lease Agreement.” This lease specified that it was not a residential rental, set rent as a percentage of the farm’s net proceeds, and required arbitration for disputes. Neils Point alleged that the Gradys breached the lease by miscalculating rent, failing to pay on time, and not using the land as productive cropland.After Neils Point initiated arbitration in 2024, the Gradys responded by admitting the dispute was subject to arbitration and made their own arbitration demand under the lease. The arbitration hearing was held in July 2025, with both parties participating fully and without objection to either the process or the arbitrability of the dispute. The arbitrator found in favor of Neils Point, concluding that the Gradys breached the lease by improperly deducting expenses, failing to pay rent, and not maintaining the farm’s productivity. Damages were awarded, and the Gradys were ordered to vacate the property.The Cumberland County Superior Court confirmed the arbitration award and denied the Gradys’ subsequent motion to vacate, in which they argued for the first time that the arbitration provision was void because the lease was residential and the arbitrator exceeded his authority. The Maine Supreme Judicial Court affirmed the judgment, holding that the Gradys’ participation in arbitration without objection waived their right to challenge the validity of the arbitration clause or the arbitrator’s authority. The Court further held that the arbitrator’s construction of the lease was rational, and thus confirmation of the award was proper. View "Neils Point, LLC v. Grady" on Justia Law

The Maine Human Rights Commission filed a lawsuit in the Superior Court alleging that a landlord discriminated against his tenant based on sex, asserting claims under both the Maine Human Rights Act and the Fair Housing Act. After litigation began, the tenant requested a judicial settlement conference. The landlord did not attend the conference, but his attorney and daughter attended, allegedly with his authority to settle. After the conference, a record form stated that the parties had agreed to a full and final settlement, but disagreements arose during subsequent exchanges of draft settlement agreements, particularly over provisions related to an acknowledgment of antidiscrimination laws and certain “public-relief terms” such as fair-housing training and property management oversight.The Kennebec County Superior Court reviewed a motion to enforce the settlement agreement. Without holding an evidentiary hearing, the court found that the parties intended to be bound by an agreement reached at the settlement conference, as reflected in the settlement conference record form. The court identified five basic terms as the substance of the agreement, including a payment to the tenant and specific non-monetary provisions. The court ordered the parties to execute an agreement consistent with these terms, except for the acknowledgment provision, which it found was not part of the agreement.On appeal, the Maine Supreme Judicial Court found that the record was insufficient to support the Superior Court’s finding that the parties mutually assented to all material terms of a binding settlement agreement. The Supreme Judicial Court held that, in the absence of an evidentiary hearing or a sufficiently detailed record, the lower court erred in enforcing the settlement. The Supreme Judicial Court vacated the judgment and remanded the case to the Superior Court for an evidentiary hearing to determine whether the parties actually reached a binding agreement and, if so, its precise terms. View "Maine Human Rights Commission v. Larkin" on Justia Law

A married couple entered into a premarital agreement prior to their 2015 wedding. The agreement stated that each party’s property, including business interests owned prior to or acquired during the marriage, would remain separate and nonmarital. It also included a provision anticipating that the husband would purchase a condominium, which would become the marital home and, in the event of divorce, its value would be split equally. During the marriage, the couple resided in the condominium, but it remained owned by the husband’s mother, and the husband never purchased it. The couple separated in 2020, and the husband filed for divorce in 2021. Throughout the marriage, the husband acquired and managed various business interests, while both parties maintained separate finances.The Maine District Court in Portland held several hearings to resolve issues related to spousal support, discovery sanctions, and the interpretation and validity of the premarital agreement. The parties stipulated that the agreement was valid but disputed its scope, particularly regarding business interests and the condominium provision. The District Court found that the wife had waived any claim to the husband’s business interests and any increase in their value, and that the agreement did not require the husband to purchase the condominium. The court also determined it lacked jurisdiction to consider the wife’s breach-of-contract claim regarding the condominium and awarded her a portion of her requested attorney fees.Upon appeal, the Maine Supreme Judicial Court vacated the District Court’s judgment in part. It held that the wife had clearly waived any claim to the husband’s business interests and their increases in value. However, the Supreme Judicial Court determined that the lower court erred in concluding it lacked jurisdiction over the breach-of-contract claim concerning the condominium and in interpreting the agreement as not requiring its purchase. The case was remanded for further proceedings consistent with these holdings. View "Hutchinson v. Gomez" on Justia Law

H.A.T., LLC entered into a bond-for-deed contract with Greenleaf Apartments, LLC to purchase three buildings in Portland for $1 million, with a down payment and monthly installments. H.A.T. took possession but would not receive title until the note was fully paid, and the parties executed additional agreements to address Greenleaf's concerns and clarify remedies for default. Over time, H.A.T. became delinquent in its payments, and Greenleaf lent additional funds to cover repairs after a series of casualty events. Despite proposals to consolidate debts and efforts to sell the property, H.A.T. remained in default. Greenleaf ultimately exercised its right under a memorandum agreement to terminate the contract without notice upon default, retaking possession of the property.H.A.T. then filed suit in the Maine Business and Consumer Docket, alleging various claims, including breach of contract and entitlement to insurance proceeds, while Greenleaf counterclaimed for breach of contract. The court dismissed claims against Greenleaf's counsel and, after a bench trial, ruled in favor of Greenleaf on all claims. The court found that H.A.T. had defaulted on payment obligations, that Greenleaf was justified in terminating the contract, and that H.A.T. was not entitled to insurance proceeds or a setoff. The final judgment awarded Greenleaf costs and attorney fees.On appeal, the Supreme Judicial Court of Maine affirmed the judgment. The Court held that H.A.T. breached the contract by missing payments, Greenleaf had no obligation to provide H.A.T. with insurance proceeds, and H.A.T. was not entitled to notice of a right to cure because the statutory notice provision for foreclosures did not apply to commercial purchasers like H.A.T. The court concluded the statute was intended to protect homeowners, not commercial investors. Judgment was affirmed. View "H.A.T., LLC v. Greenleaf Apartmetns, LLC" on Justia Law

The case centers on a competitive bidding process conducted by the Maine Department of Health and Human Services (DHHS) for a contract to provide medical nonemergency transportation (NET) brokerage services in one of the state’s transit regions. Waldo Community Action Partners (Waldo CAP), the incumbent provider in Region 5 since 2014, submitted a proposal in response to the Request for Proposals (RFP). The RFP required bidders to detail their qualifications and provide three examples of relevant projects. Waldo CAP only completed details for one project, leaving the remaining two project sections blank except for the notation “NA.” After scoring, Waldo CAP did not receive the highest overall score; ModivCare Solutions, LLC, a vendor with extensive experience in other regions, was awarded the contract.Waldo CAP appealed the contract award to the Department of Administrative and Financial Services (DAFS) appeal committee, arguing that the process violated procurement laws and that the decision was arbitrary and capricious. The appeal committee affirmed DHHS’s decision, finding the point deduction for incomplete information justified and not arbitrary. Waldo CAP then sought judicial review in the Maine Superior Court, which also affirmed the committee’s decision.The Supreme Judicial Court of Maine reviewed the case, applying a deferential standard to the agency’s factual findings and statutory interpretations. The Court held that the “best-value bidder” under Maine law is determined strictly by the criteria and requirements set forth in the RFP, and that the agency acted within its discretion in scoring and did not act arbitrarily or capriciously. The Court affirmed the lower court’s judgment, upholding the award to ModivCare and lifting the stay on the contract award. View "Waldo Community Action Partners v. Department of Administrative and Financial Services" on Justia Law

Katherine Fratello loaned Russell A. Mann $60,000 under a secured promissory note, with Mann agreeing to make monthly payments starting October 15, 2023. Mann provided a cashier’s check for $3,500 on September 29, 2023, claiming it covered the first two payments and other loans. Fratello disputed the validity of the check and considered Mann in default for missing the first two payments. She served Mann with a default notice on November 29, 2023, and filed a complaint on January 5, 2024, alleging Mann’s failure to make the required payments.Mann counterclaimed, asserting that Fratello breached their contract by not cashing the cashier’s check, which he claimed covered the first two payments. He argued that Fratello’s refusal to accept the payment and the subsequent default notice were unlawful. Fratello filed a special motion to dismiss Mann’s counterclaim under Maine’s anti-SLAPP statute, arguing that the counterclaim was based on her protected petitioning activity, namely the default notice and the complaint.The Superior Court (Cumberland County) denied Fratello’s special motion to dismiss, concluding that the default notice was not petitioning activity and that Mann’s counterclaim was not based on Fratello’s filing of the complaint or any other petitioning activity. Fratello appealed the decision.The Maine Supreme Judicial Court reviewed the denial of the anti-SLAPP motion de novo and affirmed the lower court’s decision. The court held that Mann’s counterclaim was based on Fratello’s refusal to accept the cashier’s check, not on her petitioning activity. Therefore, Fratello did not meet her burden to demonstrate that Mann’s counterclaim was based on protected petitioning activity under the anti-SLAPP statute. View "Fratello v. Mann" on Justia Law

Moosehead Mountain Resort, Inc., and OFLC, Inc. (collectively Moosehead) filed a civil action against Carmen Rebozo Foundation, Inc., alleging breach of contract, unjust enrichment, and breach of good faith and fair dealing. The dispute arose from a promissory note for $6,350,000 executed by Moosehead and assigned to the Foundation, which allegedly misrepresented the amount due, impacting Moosehead's efforts to sell a ski resort.The Superior Court (Piscataquis County) denied Moosehead’s motion for summary judgment and the Foundation’s motion for relief under Maine Rule of Civil Procedure 56(f), ordering a judicial settlement conference. The parties reached a settlement, agreeing to dismiss the case with prejudice. However, no docket entries were filed within the court's deadline, leading to the case's dismissal with prejudice. Moosehead then filed a motion for reconsideration and to vacate the settlement agreement, which the court denied. The Foundation's motion to enforce the settlement agreement was granted.The Maine Supreme Judicial Court reviewed the case. It affirmed the denial of Moosehead’s motion for reconsideration, finding no abuse of discretion. However, it vacated the judgment enforcing the settlement agreement, concluding that the court lacked jurisdiction to enforce it after the case was dismissed with prejudice. The court noted that the parties failed to take necessary steps to preserve the court's jurisdiction over the settlement agreement before the dismissal. The case was remanded for an order dismissing the motion to enforce the settlement agreement for want of jurisdiction. View "Moosehead Mountain Resort, Inc. v. Carmen Rebozo Foundation, Inc." on Justia Law

Charles S. Keegan filed a complaint against the Estate of Phyllis C. Bradbury and its representatives, as well as Craig J. and Melissa M. Holmes, alleging that he had a right of first refusal to purchase a property at 1 Lower High Street in Eastport. Keegan based his claim on a purchase and sale agreement for a different property, which he argued included a provision granting him this right. The agreement's Section 26 stated that the buyer "would like the Right of First Refusal on the sale of abutting lot if ever sold."The Superior Court of Washington County dismissed Keegan's complaint for failure to state a claim upon which relief could be granted. The court found that the language in Section 26 was precatory and did not create an enforceable right of first refusal. Keegan's initial appeal was dismissed as interlocutory. Subsequently, the Holmeses filed a motion to dismiss, which the Superior Court granted, relying on the previous dismissal as the law of the case. This resulted in a final judgment against Keegan, who then appealed.The Maine Supreme Judicial Court reviewed the case de novo and affirmed the Superior Court's judgment. The court held that the language in Section 26 of the purchase and sale agreement was clear and did not create an enforceable right of first refusal. The phrase "would like" was deemed precatory, expressing a wish rather than a binding obligation. Consequently, Keegan's complaint failed to state a claim upon which relief could be granted, as there was no enforceable right of first refusal, no breach of contract, and no basis for rescission or equitable relief. View "Keegan v. Estate of Bradfury" on Justia Law