Justia Maine Supreme Court Opinion Summaries
Articles Posted in Real Estate & Property Law
Lytle v. Lind
Three neighbors who own properties in a Wells subdivision hold easement rights over a ten-foot-wide right-of-way that crosses the property of another couple, the Linds, to access the Webhannet River. One neighbor’s deed includes the easement, while another’s does not, but the trial court determined both benefit from an implied easement and Maine's “paper streets” statutes. In 2023, the Linds installed a split-rail fence along the center of the right-of-way and constructed a driveway partly within it. The neighbors, who use the easement to carry items such as kayaks to the river, claimed that the fence and parked vehicles unreasonably interfered with their easement rights.The neighbors filed suit in the York County Superior Court, seeking declaratory and injunctive relief. The court required joinder of another abutting property owner, then considered cross-motions for summary judgment. It concluded that while the Linds’ parking vehicles in the right-of-way did materially impair pedestrian access and thus interfered with the easement, the split-rail fence did not, as the neighbors could still access the river. The court denied the neighbors’ request for summary judgment and granted the Linds’ in part, resulting in a final judgment after dismissal of another claim.On appeal, the Maine Supreme Judicial Court reviewed the summary judgment ruling de novo. The court held that the fence, by splitting the right-of-way and reducing practical access to half its width, unreasonably interfered with the neighbors’ easement rights as a matter of law, even if some access remained. It distinguished prior precedent involving minor obstructions and reaffirmed that easement holders are entitled to use the full described width for the easement’s purposes. The Supreme Judicial Court vacated the summary judgment and remanded for further proceedings on injunctive relief. View "Lytle v. Lind" on Justia Law
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Real Estate & Property Law
Oak Hill Condominiums v. Marchetti
A condominium unit was owned by Diane Marchetti, who did not reside in the unit but allowed her daughter, Caroline Thibeault, and Thibeault’s son to occupy it. The condominium’s association initiated a foreclosure action against Marchetti alleging she was in default for failing to pay assessments, fines, and fees—some of which related to Thibeault’s alleged commercial use of the unit. Thibeault’s son has a disability, and both Thibeault and Marchetti asserted that the association had failed to provide reasonable accommodation under federal and state disability laws.After the foreclosure action commenced in the Sagadahoc County Superior Court, Marchetti filed an answer and raised several defenses, including alleged violations of the Americans with Disabilities Act and the Maine Human Rights Act. Thibeault, who was not a party to the action, then moved to intervene, claiming both a direct interest in the property and statutory civil rights at stake. She sought intervention as of right or, alternatively, permissive intervention, arguing her interests were not adequately represented and that her defenses raised common questions of law and fact with the main action. The Superior Court denied her motion to intervene on both grounds, finding her interest insufficient and noting that her mother’s defenses already encompassed her concerns.The Maine Supreme Judicial Court reviewed the order denying intervention. The court held that Thibeault did not satisfy the criteria for intervention as of right under Maine Rule of Civil Procedure 24(a)(2) because she lacked a direct, legally protectable interest in the foreclosure action, her ability to protect her interests would not be impaired by denial, and her interests were adequately represented by Marchetti. The court also found no abuse of discretion in denying permissive intervention under Rule 24(b) because Thibeault’s participation would be duplicative and cause undue delay. The order denying intervention was affirmed. View "Oak Hill Condominiums v. Marchetti" on Justia Law
Shark Tank Strategies, LLC v. Town of Scarborough
Two applicants submitted materials to operate medical cannabis cultivation facilities in a Maine town in August 2024. Their initial applications did not include necessary documentation showing that their facilities would be located in a “Registered Cannabis Property,” which was required by the town’s licensing ordinance. Town staff reviewed the applications and placed them on the council agenda for a “first reading,” a step not required by ordinance but adopted by custom. On September 4, 2024, before the first reading of the applications, the Town Council amended the zoning ordinance to add a 1,000-foot setback requirement between cannabis facilities and residential properties—a standard the applicants’ locations could not meet. After the amendment, staff told the council the applications were “complete,” and the first reading occurred. The public hearing and further review were scheduled, and the required property registration was later filed. The council ultimately denied the applications for failing to meet the new setback requirement.The applicants sought judicial review in the Cumberland County Superior Court under Maine Rule of Civil Procedure 80B. The Superior Court affirmed the Town Council’s decision, concluding that the applications were not “pending” at the time of the ordinance amendment and thus were subject to the new setback requirement.On further appeal, the Maine Supreme Judicial Court reviewed whether the applications were “pending” within the meaning of 1 M.R.S. § 302 at the time the ordinance was amended. The court held that an application is not “pending” until the reviewing authority has conducted a substantive review of whether it meets the approval criteria. Because the Town Council had not begun substantive review before the zoning amendment was enacted, the applications were not pending and were properly denied under the amended ordinance. The judgment was affirmed. View "Shark Tank Strategies, LLC v. Town of Scarborough" on Justia Law
H.A.T., LLC v. Greenleaf Apartmetns, LLC
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
Posted in:
Contracts, Real Estate & Property Law
Drew v. Town of York
New Cingular Wireless PCS, LLC applied to install six antennas on top of a water tower owned by the York Water District. The Town of York Planning Board approved the application. Two nearby property owners opposed the project, claiming it violated the local Wireless Communications Facilities Ordinance, specifically regarding fencing and setbacks from residential structures. They filed an administrative appeal with the Town of York Board of Appeals, which held public hearings. During the process, the Board asked New Cingular Wireless to provide a more accurate site plan showing distances to neighboring residences. After reviewing the updated information, the Board denied the neighbors’ appeal, stating it was satisfied with the information provided.The neighbors then sought judicial review in the York County Superior Court, arguing that the project did not comply with fencing and setback requirements. The Superior Court affirmed the Board’s decision. The neighbors appealed to the Maine Supreme Judicial Court, continuing to dispute whether the project met the ordinance’s requirements.The Maine Supreme Judicial Court concluded that the neighbors did not preserve their argument about fencing requirements, as this issue was not raised before the Board of Appeals and was therefore waived. However, the Court found that the setback issue had been properly preserved for review. The Court determined that the Board’s findings regarding setbacks were insufficient for appellate review, as the Board did not explain from where the setback was measured or whether the project met the ordinance’s requirements. The Court vacated the Superior Court’s judgment and remanded the matter to the Superior Court with instructions to remand it to the Board of Appeals for further factual findings and explanation regarding compliance with setback requirements. View "Drew v. Town of York" on Justia Law
Tappen v. Hill
Several property owners in a coastal Maine subdivision disputed the right to use a strip of beach land known as Sea Wall Beach. The plaintiffs owned lots abutting this beach and, in 2021, acquired a deed for a previously unallocated portion of the beach between certain lots. Historically, the defendants and their guests had used this beach area for recreation. The plaintiffs sought a court declaration of their exclusive rights to the beach and an injunction to stop the defendants’ recreational use.The case was initially filed in the Maine Superior Court and later transferred to the Business and Consumer Docket. After a bench trial, the Business and Consumer Docket found that the defendants held an implied easement by subdivision and sale, allowing recreational use of the disputed beach area. The court also considered competing arguments about the location of the northern boundary of Sea Wall Beach but concluded that neither party provided sufficient evidence to fix the boundary on the ground.On appeal, the Maine Supreme Judicial Court reviewed the interpretation of the deeds de novo and the factual determinations for clear error. The Court affirmed the lower court’s judgment, holding that the implied easement for recreational use was properly established by the subdivision plans and historical usage, consistent with precedent. The Court also affirmed the finding that there was insufficient evidence to locate the northern boundary of Sea Wall Beach on the face of the earth, declining to adopt either party’s proposed boundary. The judgment of the Business and Consumer Docket was affirmed. View "Tappen v. Hill" on Justia Law
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Real Estate & Property Law
Allaf v. Shoreline Holdings Five, LLC
Zakaria Allaf and Stephanie Crosby rented an apartment from Robb Crawford and later from Shoreline Holdings Five, LLC, with the lease requiring a $1,795 security deposit. The tenants experienced a persistent cockroach infestation and, after unsuccessful remediation attempts, agreed with Crawford to terminate the lease early in January 2022. Upon moving out, Allaf and Crosby were assured by Crawford’s agent that the security deposit would be addressed within thirty days, but no response was received. Eventually, Crawford’s attorney informed Crosby that the deposit was being withheld because Crawford did not consider the lease terminated.Allaf and Crosby filed a small claims action in the Maine District Court (Portland), alleging wrongful retention of the security deposit and breach of the implied warranty of habitability. After a trial, the District Court found in their favor, awarding $6,000 in damages (including double damages for the security deposit and damages for breach of habitability), plus attorney fees and costs. Shoreline appealed to the Cumberland County Superior Court, which affirmed the judgment. Shoreline then appealed to the Maine Supreme Judicial Court, challenging the sufficiency of the evidence supporting liability for wrongful retention and arguing that attorney fees should not be awarded in addition to the $6,000 statutory monetary limit for small claims actions.The Maine Supreme Judicial Court affirmed the judgment. It held that sufficient evidence supported the lower court’s finding that the lease had been terminated by agreement and that Shoreline failed to return the security deposit or provide a written explanation. The Court also held that attorney fees awarded under a fee-shifting statute such as 14 M.R.S. § 6034(2) are considered “costs” and are not included within the $6,000 small claims cap set by 14 M.R.S. § 7482. Thus, the award of attorney fees in addition to $6,000 in damages was proper. Judgment was affirmed. View "Allaf v. Shoreline Holdings Five, LLC" on Justia Law
U.S. Bank, N.A. v. Jewett
In this case, the Jewetts obtained a mortgage loan in 1999, which was later assigned to U.S. Bank. The Jewetts stopped making payments before March 2016. U.S. Bank sent a notice of right to cure in July 2018 and initiated foreclosure proceedings against the Jewetts in September 2018, also naming Unifund as a party due to its judgment lien on the property.The District Court (Newport, Larson, J.) conducted a bench trial and dismissed U.S. Bank’s foreclosure action without prejudice, finding that U.S. Bank’s notice of default and right to cure did not comply with statutory requirements under 14 M.R.S. § 6111. The court’s order barred U.S. Bank from recovering attorney fees, costs, and certain charges in any future action, but did not expressly bar claims for unaccelerated amounts due under the note. Unifund then moved to alter or amend the judgment, seeking a judgment in favor of the Jewetts to preclude future claims for unaccelerated amounts, but the court denied the motion.The Maine Supreme Judicial Court reviewed the matter de novo. It held that when a foreclosure action is dismissed due to a defective notice of default and right to cure, the dismissal is not on the merits, but claim preclusion applies to any amounts that could have been litigated in the action. The court concluded that the District Court was within its authority to dismiss the case without prejudice and was not required to enter a judgment for the Jewetts or explicitly bar future claims for unaccelerated amounts. The judgment of the District Court was affirmed. View "U.S. Bank, N.A. v. Jewett" on Justia Law
Posted in:
Civil Procedure, Real Estate & Property Law
Cannon v. Town of Mount Desert
A group of seven property owners and part-time residents in Northeast Harbor challenged the approval of a six-unit subdivision proposed by Mount Desert 365 (MD 365) on a 0.9-acre parcel. The subdivision, called Heel Way, was designed to provide workforce housing and consisted of two double-dwelling-unit buildings and two single-dwelling-unit buildings on a commonly owned lot. The Town of Mount Desert Planning Board held nine meetings, considered input from the developer, residents, and the public, and ultimately approved the application in October 2023, issuing a written decision in December 2023.The residents sought judicial review in the Maine Superior Court, which transferred the case to the Business and Consumer Docket. In June 2024, the Business and Consumer Docket affirmed the Planning Board’s decision, and the residents appealed to the Maine Supreme Judicial Court.The Maine Supreme Judicial Court reviewed the Planning Board’s decision directly, applying de novo review to the ordinance interpretation. The Court held that the Planning Board correctly determined that the subdivision did not create separate lots and thus did not need to meet access-road requirements. The Planning Board also did not abuse its discretion in waiving the performance bond in favor of a conditional agreement. The Court affirmed the Planning Board’s calculation of density requirements, finding no error in its methodology.However, the Court found that the Planning Board erred by declining to calculate the open-space requirements under the Town’s Subdivision Ordinance. The Court vacated the judgment and remanded the matter to the Business and Consumer Docket with instructions to remand to the Planning Board for further consideration of the open-space calculation. View "Cannon v. Town of Mount Desert" on Justia Law
The Village at Ocean’s End Condominium Association v. Southwest Harbor Properties LLC
A condominium association challenged the validity of a property transaction involving a shorefront parcel that was originally added to the condominium by the declarant, who had expressly reserved development rights, including the right to withdraw land. After the original declarant’s unsuccessful development efforts, the property and associated development rights were transferred to a lender and then to a successor declarant. The successor declarant withdrew the shorefront parcel from the condominium and conveyed it to another entity without obtaining the written consent of 80% of the unit owners. The association argued that this withdrawal and conveyance violated the Maine Condominium Act and sought to have the transaction set aside, as well as to recover attorney fees.The Business and Consumer Docket (a Maine trial court) granted partial summary judgment in favor of the defendants, concluding that the withdrawal and conveyance were valid exercises of the declarant’s reserved development rights under the condominium declaration and the Maine Condominium Act. The court denied the association’s motion for summary judgment and set remaining claims for trial. On the day of trial, the parties reached a settlement, which was incorporated into a final judgment. The settlement preserved the association’s right to appeal the summary judgment ruling on the withdrawal of the shorefront parcel.The Maine Supreme Judicial Court reviewed the case and affirmed the lower court’s judgment. The court held that a declarant’s properly reserved development rights, including the right to withdraw land, are not subject to the statutory requirement that 80% of unit owners approve the withdrawal of common elements. The court also rejected the association’s claim for attorney fees, finding that the parties’ settlement agreement foreclosed such a claim. View "The Village at Ocean's End Condominium Association v. Southwest Harbor Properties LLC" on Justia Law
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Real Estate & Property Law