Justia Maine Supreme Court Opinion Summaries

Articles Posted in Contracts
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Jon and Winifred Prime brought suit against Dawn Harlor stemming from a dispute over the Primes’ right to use a dock according to an easement Harlor had granted the the Primes. At all relevant times, Harlor was insured by Amica Mutual Insurance Company under a homeowner’s insurance policy providing that Amica would defend Harlor against claims that may result in covered damages. Amica denied Harlor’s request that Amica provide a defense in the underlying suit based on its conclusion that the suit could not result in covered damages. After Harlor settled the suit with the Primes, Harlor brought suit against Amica alleging that Amica breached the policy by failing to defend her in the underlying lawsuit. The superior court granted summary judgment for Amica, concluding that any damages that might have resulted from the underlying suit would not be covered by Harlor’s policies and, therefore, did not give rise to a duty to defend. The Supreme Court vacated the summary judgment and remanded for the entry of summary judgment in favor of Harlor, holding that Amica breached its duty to defend. Remanded for further proceedings regarding Amica’s duty to indemnify Harlor for any or all of the amount that she paid to settle the underlying action. View "Harlor v. Amica Mutual Insurance Co." on Justia Law

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NDC Communications, LLC and Kenneth Carle III engaged in a complex set of agreements in the context of the development of a piece of land. When the parties’ working relationship broke down, NDC filed a complaint asserting that it was owed funds from Carle, and Carle counterclaimed seeking contract remedies and other relief. The trial court ultimately entered judgment enforcing a mechanic’s lien against Carle in the amount of $336,681.24. Carle appealed, arguing, inter alia, that the trial court failed to provide him a credit due of approximately $25,000, rendering the judgment against him inaccurate. The Supreme Judicial Court affirmed, holding (1) Carle’s due process rights were not violated by the post-trial procedures employed by the court; and (2) there was sufficient evidence in the record to support the court’s judgment, including its determination of damages. View "NDC Communications, LLC v. Carle" on Justia Law

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In 2012, GNP Parent, LLC entered into a sales agreement to purchase compressed natural gas from Xpress Natural Gas, LLC as fuel for the Great Northern Paper Mill. Cate Street Capital, Inc., the corporate owner of GNP, guaranteed the amounts payable by GNP up to $1,500,000. GNP failed to make the required payments for natural gas, and an arbitrator found Cate Street liable to Xpress for $1,500,000 on the guarantee. Xpress applied to the superior court to confirm the arbitration award. Cate Street and GNP moved to vacate the award in part, arguing that the arbitrator exceeded his authority in awarding Xpress $1,500,000 in damages on the guarantee of payments. The superior court entered a judgment confirming the award and denying the motion to vacate the award. The Supreme Judicial Court affirmed, holding that the arbitrator did not exceed his authority in this case because his interpretation was rationally derived from the sales agreement. View "Xpress Natural Gas, LLC v. Cate St. Capital, Inc." on Justia Law

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Camden National Bank filed a complaint for foreclosure against Ilene Weintraub. Weintraub brought several counterclaims against the bank, including violations of the Maine Consumer Credit Code, breach of contract, and a claim for intentional infliction of emotional distress, alleging that she suffered injuries as a direct and proximate result of the abuse conduct of the Bank’s collections department and an accusation of criminal conduct. The Bank filed a special motion to dismiss requesting dismissal of several claims based on Maine’s anti-SLAPP statute, but failing to request dismissal of the breach of contract claim. The superior court concluded that the anti-SLAPP statute prohibits selective dismissal of claims and that Weintraub met her burden of demonstrating a prima facie case of actual injury and causation. The Supreme Judicial Court affirmed, holding that the trial court (1) erred in holding that the anti-SLAPP statute did not allow for selective dismissal of some, but not all, of Weintraub’s counterclaims, but the error was harmless; and (2) did not err in concluding that Weintraub met her burden of showing prima facie evidence of causation. View "Camden Nat’l Bank v. Weintraub" on Justia Law

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After Sloan’s Cove, LLC executed a power of sale foreclosure on Armand Vachon’s property, Vachon and Oceanic Inn, Inc. (collectively, Oceanic) filed suit claiming that Sloan’s Cove improperly conducted the sale. The trial court (1) dismissed Oceanic’s claims for breach of fiduciary duty and negligent infliction of emotional distress, and (2) granted summary judgment against Oceanic on its claims for breach of contract and accounting and in favor of Sloan’s Cove on its counterclaim seeking a declaration that its foreclosure by sale of the Oceanic Inn property was legal and effective. The Supreme Judicial Court affirmed as amended, holding that the trial court did not err in its judgment, but that the judgment must be amended to correct a clerical error. View "Oceanic Inn, Inc. v. Sloan's Cove, LLC" on Justia Law

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Plaintiff, a construction company, perfected a mechanic’s lien on Defendants’ property and filed a five-count complaint alleging that Defendants breached a contract with Plaintiff to renovate their house by failing to make any payments. The superior court granted summary judgment for Plaintiff on its breach of contract, Prompt Payment Act, and mechanic’s lien claims. Defendants filed a motion to alter or amend judgment pursuant to Me. R. Civ. P. 59, arguing that there existed a genuine issue of material fact as to the time and manner of payment. The court denied the motion and later dismissed the remaining counts of Plaintiff’s complaint. Defendants appealed, arguing that Plaintiff could not succeed on any of its claims because the parties’ oral contract was unenforceable pursuant to the Home Construction Contracts Act. The Supreme Judicial Court affirmed, holding that Defendants failed to preserve this issue for appellate review. View "Warren Constr. Group, LLC v. Reis" on Justia Law

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In 2009, John Flynn joined the law firm of Daniel G. Lilley Law Office, P.A. (LLO). In 2011, Flynn left LLO to open his own practice. LLO and Daniel Lilley subsequently filed a complaint against Flynn seeking a judicial declaration that any contingency fees earned in cases that Flynn brought to LLO were the property of LLO to be distributed at Lilley’s sole discretion and seeking the return of such fees that Flynn had already received. Flynn counterclaimed. In 2012, the superior court denied LLO’s motion to consolidate this case with the closely-related cases at issue in Tucker v. Lilley. After a jury trial, the superior court entered judgment awarding Flynn unpaid salary from his tenure at LLO and apportioned attorney fees between the parties in cases that Flynn brought to LLO from his former law firm. The Supreme Court vacated the judgment, holding that the superior court abused its discretion in declining to consolidate this case with the cases at issue in Tucker v. Lilley, as this case was an integral member of the set of cases that “must be resolved in one consolidated action before a single fact-finder.” Remanded with instructions to grant LLO’s motion to consolidate. View "Daniel G. Lilley Law Office, P.A. v. Flynn" on Justia Law

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Plaintiffs owned most of Mouse Island in the Town of Southport in common with Defendants. Plaintiffs filed a complaint for equitable partition. Defendants counterclaimed. The superior court entered summary judgment in favor of Defendants on Plaintiffs’ complaint for equitable partition. After a trial, the court awarded Defendants damages for nonpayment of commonly-shared expenses. The Supreme Court affirmed, holding (1) the rights of first refusal in the parties’ deeds violated the rule against perpetuities and were therefore void as a matter of law; (2) the rights of first refusal in the parties’ separate contractual agreements with one another were valid vis-à-vis each other and constituted an effective waiver of these parties’ rights to equitable partition; and (3) the superior court did not err in apportioning expenses. View "Pew v. Sayler" on Justia Law

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Libby O’Brien Kingsley & Champion, LLC (LOKC) filed a complaint for breach of contract against Sharon Blanchard and simultaneously filed a motion for approval of attachment and trustee process against Blanchard’s property. Blanchard objected to LOKC’s motion but did include a supporting affidavit or other supporting documentation. The district court determined that Blanchard had waived her objection to the motion and considered the merits of the attachment motion without a hearing. The court then ordered attachment and trustee process against Blanchard’s real and personal property. The Supreme Judicial Court affirmed, holding that the district court’s findings in support of attachment and trustee process were supported by competent evidence in the motion record. View "Kingsley v. Blanchard" on Justia Law

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After credit card fraud was discovered on vacations that Beth Rogers, a travel agent, had booked, Plaintiffs, two families, each filed a complaint against Mark Travel Corporation alleging breach of contract, economic duress, and violations of the Maine Unfair Trade Practices Act. The business and consumer docket granted summary judgment for Mark Travel. The Supreme Judicial Court affirmed, holding that the trial court did not err in determining that Plaintiffs’ claims against Mark Travel failed as a matter of law because Rogers was not an agent of Mark Travel, and Mark Travel did not authorize Rogers to act on its behalf, ratify Rogers’s fraudulent conduct, or hold Rogers out as its agent. View "Remmes v. Mark Travel Corp." on Justia Law

Posted in: Contracts