Justia Maine Supreme Court Opinion Summaries

While away for a competition in a school-supported event, students caused damage to a motel where they were lodging. The motel's property insurer paid to repair the damage then exercised its right of subrogation pursuant to its insurance contract with the motel to seek to recover compensation for those responsible for the loss. The insurer filed a complaint against the school district, alleging it was liable for breach of contract based on its failure to protect and safeguard the property from damage during the period of occupancy and to refrain from activities that would damage the property. The superior court granted the school district's motion for summary judgment. The Supreme Court affirmed, holding that because the school district did not undertake to be responsible to pay damages in a subrogation action, the insurer's action against the school board was barred. View "Middlesex Mutual Assurance Co. v. Me. Sch. Admin. Dist." on Justia Law

Appellants Samantha Young and Rebekah Alley were injured while riding in a vehicle driven by Joshua Weeks. Appellants appealed from a judgment entered in the superior court in which the court held Weeks liable but permitted North East Insurance Company to rescind its automobile insurance policy on the vehicle Weeks was driving. Specifically, Young and Alley challenged the court's entry of summary judgment in favor of North East on its complaint seeking a declaratory judgment that it had no duty to defend or indemnify the driver because Weeks' mother had made material, fraudulent misrepresentations in applying for the automobile insurance. The Court of Appeals vacated the judgment, holding that genuine issues of material fact existed regarding whether Weeks' mother made a material, fraudulent misrepresentation to North East in obtaining the insurance policy. Remanded. View "North East Ins. Co. v. Young" on Justia Law

Deutsche Bank National Trust Company, as trustee in trust for the registered holders of Ameriquest Mortgage Securities, Inc., appealed from a summary judgment entered in the district court in favor of Donald and Kim Pelletier on the bank's complaint for foreclosure. The district court concluded that Deutsche Bank had failed to dispute facts asserted by the Pelletiers demonstrating that they had asserted a right of rescission. On appeal, the Supreme Court affirmed the grant of summary judgment, but because the district court's order reached only the point of determining that the Pelletiers were entitled to rescission, the Court remanded for further proceedings to effectuate the rescission. View "Deutsche Bank Nat'l Trust Co. v. Pelletier" on Justia Law

Eric and Martha Hankins executed a promissory note and mortgage on their residence in favor of the lender, Option One Mortgage Corporation, which later assigned the mortgage and note to Deutsche Bank. A loan modification agreement changed the lender to Liquidiation Properties. When the Hankinses stopped making payments on the note, Liquidation filed a complaint for foreclosure against the Hankinses. Deutsche Bank then assigned the mortgage to Liquidiation, which, in turn, assigned the mortgage and note to Kondaur Capital Corporation. Liquidation then moved to substitute Kondaur as the named plaintiff. The Hankinses did not challenge the motion to substitute, and the district court granted the motion. The district court then entered summary judgment in favor of Kondaur. Martha Hankins appealed. The Supreme Court vacated the judgment of the district court, holding (1) the district court did not err in substituting Kondaur as the named plaintiff because the substitution did not alter the underlying allegations of the foreclosure action or tend to produce a manifest injustice; and (2) entry of summary judgment was error because the record did not establish the essential elements of a foreclosure action without dispute as to genuine issues of material fact. Remanded. View "Kondaur Capital Corp. v. Hankins" on Justia Law

Sisters of Charity Health System, Inc. (SOCHS) sued its former employees, Douglas Farrago, MD, Raymond Stone, DO and Carolyn Kase, DO, to enforce restrictive covenants contained in contractual agreements between the doctors and SOCHS. The Superior Court entered a judgment in favor of SOCHS and ordered each doctor to pay liquidated damages pursuant to clauses in their contracts. On appeal, the doctors contended that the restrictive covenants and liquidated damages clauses were unenforceable. The Supreme Court's focus on appeal was whether the covenants reasonably sought to protect a legitimate business of SOCHS. The Court concluded that the covenants did protect legitimate business interests, and the contracts contained enforceable liquidated damages provisions. The Court affirmed the decision of the Superior Court in favor of SOCHS.

Petitioners Dana and Robin Murphy appealed a judgment entered in favor of Respondent HSBC Mortgage Services, Inc. (HSBC), which allowed HSBC to foreclose on and sell the Murphyâs house. The Murphys contended that the court erred by granting HSBC summary judgment when there were numerous errors that primarily concerned HSBCâs evidence of its ownership of the note and mortgage to their house. In particular, the Murphys challenged the trustworthiness of multiple affidavits filed by HSBC in support of its motion. Upon review, the Supreme Court found that the affidavits submitted by HSBC were âinherently untrustworthyâ and the business records attached to them were not admissible at trial. The Court held that the trial court erred by granting a summary judgment in this case, and remanded the case for further proceedings.