Justia Maine Supreme Court Opinion Summaries

Articles Posted in Contracts
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A Bank and Re/Max Realty One signed a listing agreement granting Re/Max the exclusive right to sell a certain property. A buyer signed a purchase-and-sale agreement with the Bank and paid $86,900 in earnest money, which Re/Max held in escrow. The buyer later defaulted under the terms of the agreement. Re/Max subsequently procured a second buyer to purchase the property. After participating in mediation, the Bank and the first buyer agreed the divide the earnest money between themselves, with $49,500 going to the Bank and $37,400 to the buyer. Re/Max sent a $37,400 check to the buyer and a check for $24,750 to the Bank, retaining the remaining $24,750. The Bank sued Re/Max for breach of the listing agreement stemming from Re/Max’s retention of $24,750 of the earnest money. The superior court granted summary judgment to the Bank. The Supreme Court vacated the judgment of the superior court, holding that Re/Max was entitled to summary judgment on the Bank’s breach of contract claim because the unambiguous language of the listing agreement obligated the Bank to divide any forfeited earnest money with Re/Max, including money the Bank received pursuant to its mediated agreement with the first buyer. View "Bank of New York Mellon, N.A. v. Re/Max Realty One" on Justia Law

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Plaintiff and Defendant each held a one-third interest in property as tenants in common. Plaintiff and Defendant, assisted by counsel, had discussions via email regarding the possible sale of Plaintiff’s interest. The emails stated that Defendant “offered” to acquire Plaintiff’s interest and that Plaintiff “accept[ed]” the offer. Plaintiff subsequently filed a complaint against Defendant seeking, among other things, specific performance of the contract for the sale of his interest in the property to Defendant. The superior court granted partial summary judgment on the specific performance claim, concluding there had been no valid contract formation because the emails between Plaintiff and Defendant did not contain all the material terms necessary to form a contract for the sale of land. The Supreme Court vacated and remanded, holding (1) an email can constitute a writing pursuant to the statute of frauds and the Maine Uniform Electronic Transactions Act; and (2) unresolved issues of material fact existed as to whether a contract for the sale of land was formed in this case. View "McClare v. Rocha" on Justia Law

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Shellie and Robert Symonds executed a lease agreement granting AT&T Mobility the right to use a portion of their property to build a wireless communication tower. The town planning board approved AT&T's application seeking approval for the project. William Horton and others appealed, and the town zoning board of appeals (ZBA) upheld the planning board's approval of AT&T's application. Horton appealed, arguing that the lease agreement created a new lot that did not meet the minimum space and setback requirements of the town's zoning ordinances. The Supreme Court affirmed, holding that the lease did not create a new lot and that the setback requirements of the relevant zoning ordinance were satisfied. View "Horton v. Town of Casco" on Justia Law

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John Hardy leased part of land to Littlebrook Airport Development Co. (LADC). John Hardy died, leaving his wife Jean as the sole surviving owner of the leased property. In 2005, Jean sold the leased property to and assigned her interest in the lease to Littlebrook Ventures (LV), which executed a mortgage in Hardy's favor. Pursuant to the mortgage LV agreed not to modify the lease without Hardy's prior consent. LADC then assigned its interest in the lease to Windmill USA. Windmill and LV purported to amend the lease in accordance with a previously executed declaration amendment. LV later conveyed the property back to Hardy by a deed in lieu of foreclosure. Hardy purchased the property at a foreclosure sale and conveyed it to Sweet Peas, LLC. Littlebrook Airport Condominium Association then brought this action seeking a declaratory judgment clarifying the rights of the parties pursuant to the lease. At issue was the effectiveness of the unrecorded amendment to the lease that violated the recorded mortgage covenant. The superior court concluded that the lease amendment was effective. The matter came before the Supreme Court on report. The Court discharged the report, concluding that acceptance of the report would improperly place the Court in the role of an advisory board. View "Littlebrook Airpark Condo. Ass'n v. Sweet Peas, LLC " on Justia Law

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Padraic Conroy and Heather Wicks owned real property as tenants in common. In 2010, Wicks filed a complaint seeking an equitable partition and sale of the house, with profits to be split equally between her and Conroy. Following a jury-waived trial, the trial court granted Wicks's petition and ordered the sale of the house. The court ordered the profits to be split equally between the parties subject to a credit due to Wicks for Conroy's rent-free occupancy of the downstairs apartment. The Supreme Court affirmed, holding that the superior court did not err in (1) finding there was no contract in which the parties agreed Conroy would live in the house rent-free; (2) crediting Wicks for one-half of the fair rental value of the downstairs apartment during the period Conroy lived there; and (3) denying Conroy the opportunity to buy out Wicks's interest in the property. View "Wicks v. Conroy" on Justia Law

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Deutsche Bank filed a complaint for foreclosure against Wilk, 14 M.R.S. 6321, attaching documents, including a 2005 mortgage ($459,375) from Wilk in favor of the original lender’s nominee, MERS; a 2008 assignment from MERS to IndyMac; and a 2010 assignment by the FDIC, as the receiver for IndyMac, to Deutsche Bank. Trial evidence included a 2011 assignment from OneWest Bank to Deutsche Bank, executed approximately two weeks prior to the FDIC conveyance to OneWest Bank, purporting to grant “all interest” OneWest Bank then held in the mortgage to Deutsche Bank. On cross-examination, Deutsche Bank’s only witness confirmed that the assignment from OneWest Bank to Deutsche Bank was prior in time to the assignment from the FDIC to OneWest Bank. Deutsche Bank did not introduce the 2010 mortgage assignment, which it had attached to the complaint and which purported to transfer the mortgage from the FDIC to Deutsche Bank. The court entered a judgment of foreclosure. The Maine Supreme Court vacated, holding that Deutsche Bank failed to prove that it is the assignee of the mortgage. View "Deutsche Bank Nat'l Trust Co. v. Wilk " on Justia Law

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Plaintiff maintained a homeowners insurance policy with Insurer that excluded from coverage any claims for "injury arising out of the business pursuits" of Plaintiff. In 2011, a third party filed a complaint against Plaintiff, contending that Plaintiff published false and defamatory statements regarding the third party. In response to the complaint, Plaintiff tendered defense of the suit to Insurer, which declined to defend Plaintiff. Plaintiff then filed a complaint seeking a declaratory judgment that Insurer had a duty to defend him in the pending action by the third party. The superior court granted Plaintiff's motion for summary judgment. The Supreme Court vacated the judgment and remanded for entry of a summary judgment in favor of Insurer, holding that Insurer had no duty to defend Plaintiff because the third party suit was based entirely on activity falling within the policy's exclusion for Plaintiff's "business pursuits." View "Hardenbergh v. Patrons Oxford Ins. Co." on Justia Law

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Plaintiff, FIA Card Services, filed a complaint against Defendant to recover damages for Defendant's unpaid credit card account. The district court subsequently entered summary judgment in favor of Plaintiff. The Supreme Court vacated the summary judgment, holding that Plaintiff, as the moving party and party with the burden of proof at trial, failed to establish that there was no dispute of material fact as to each element of the cause of action where the record did not sufficiently establish either the existence of Defendant's credit card account or that Plaintiff was the owner of that account. Remanded. View "FIA Card Servs., N.A. v. Saintonge" on Justia Law

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The Maine Labor Relations Board determined that firefighters for the City of Augusta who retired after the expiration of a collective bargaining agreement between the City and the firefighters union were entitled to retiree health insurance benefits under the expired agreement's terms. The Board based its decision upon its determination that the retirement benefits were part of the static status quo that must be maintained during continuing negotiations. The superior court affirmed. The Supreme Court affirmed, holding that the Board did not err in concluding that the City must continue to pay the retirees retiree health insurance benefits during negotiations in order to maintain the static status quo. View "City of Augusta v. Me. Labor Relations Bd." on Justia Law

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Plaintiffs purchased property from Charles Johnson. During the pendency of the sale of the property, Johnson misrepresented the condition of the property and failed to disclose its prior use as a junkyard. Plaintiffs filed a complaint against Johnson alleging various causes of action and seeking damages for loss of investment, undisclosed physical problems with the property, and emotional distress. While he owned the disputed property, Johnson maintained a homeowners insurance policy with Allstate Insurance Company. Allstate refused to defend or indemnify Johnson on Plaintiffs' complaint. Plaintiffs and Johnson subsequently reached an agreement resolving the underlying complaint, and the superior court entered a judgment against Johnson for $330,000. Plaintiffs then initiated a reach and apply action against Allstate. The trial court granted summary judgment for Johnson, determining that the policy did not cover the damages Plaintiffs suffered. The Supreme Court affirmed, holding that Plaintiffs' damages did not constitute covered "bodily injury" or "property damage" pursuant to the Allstate homeowners insurance policy. View "Langevin v. Allstate Ins. Co." on Justia Law