Justia Maine Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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Plaintiff purchased title insurance for a condominium unit she had recently purchased. Plaintiff's neighbor subsequently initiated a lawsuit against Plaintiff alleging that Plaintiff's property was subject to a view easement. Plaintiff tendered the complaint to her title insurance company (Insurer) requesting a defense pursuant to her title insurance policy. Commonwealth denied Plaintiff's request based on certain exclusions in the policy. Plaintiff sued Insurer alleging a breach of contract and requesting a declaratory judgment that Insurer had a duty to defend Plaintiff against her neighbor's complaint. The superior court granted Insurer's motion for summary judgment, finding that the policy specifically excluded the view easement from coverage. The Supreme Court vacated the judgment, holding that due to the broad nature of the duty to defend and the law's requirement that insurance-policy interpretation be focused on the insured, Insurer had a duty to defend Plaintiff in the underlying litigation. View "Cox v. Commonwealth Land Title Ins. Co." on Justia Law

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First Franklin Financial Corporation and Jason Gardner attended foreclosure mediation. The parties disputed the outcome of the mediation. Gardner argued that the parties reached a binding agreement requiring First Franklin to offer a trial loan modification plan to Gardner and subsequently filed a motion for sanctions. The district court granted the motion and ordered First Franklin to pay monetary sanctions and to enter into a loan modification with Gardner on the terms agreed upon by the parties at foreclosure mediation. First Franklin filed an interlocutory appeal. The Supreme Court granted the appeal and held that the motion court did not err (1) in finding that Gardner and First Franklin entered into a binding agreement requiring First Franklin to offer the loan modification to Gardner; and (2) in finding that First Franklin did not mediate in good faith and in granting Gardner's motion for sanctions. View "First Franklin Fin. Corp. v. Gardner" on Justia Law

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This was the second appeal from a judgment of the superior court finding that Annabelle Robbins had breached implied covenants in her deed when she sold land to David and Vickie Lloyd. On appeal, Robbins' estate argued that the trial court erred in (1) finding that the six-year statute of limitations had not expired, (2) finding that the neighboring landowners never possessed or occupied the disputed land and that it misquoted the neighbor's testimony in its decision, and (3) awarding damages in the amount agreed to by the parties in a stipulated judgment because the court vacated that judgment in 2010. The Supreme Court affirmed, holding (1) the trial court properly found the statute of limitations had not expired at the time when the Lloyds filed their complaint alleging Robbins's breach; (2) the court's misstatement in its decision was harmless; and (3) the court did not abuse its discretion in awarding damages because the Estate failed to present any evidence that the stipulated damages were manifestly unjust and should be set aside. View "Lloyd v. Robbins" on Justia Law

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Jeffrey Stephan was a GMAC Mortgage employee who signed summary judgment affidavits on behalf of GMAC in foreclosure proceedings instituted in Maine. The notarization on the summary judgment documents falsely stated that Stephan personally appeared and swore before the notary, when he did not. The U.S. District Court for the District of Maine certified the following question of state law to the Maine Supreme Court: "Is Maine's common law judicial proceedings privilege an available defense to both legal and equitable claims brought under the Maine Unfair Trade Practices Act based upon statements made in court filings of affidavits and certifications in state judicial foreclosure proceedings?" The Supreme Court declined to answer the certified question, where (1) if the Court answered the question in the affirmative, then the claim would be immediately and summarily dismissed even though the facts may have established that the privilege was not available to the defendant under any circumstances; and (2) if the Court answered the question in the negative, it would render a broad pronouncement of law that would have no application to this case if a threshold issue produced the same result - namely, that the judicial proceedings privilege was simply unavailable on these particular facts. View "Bradbury v. GMAC Mortgage, LLC" on Justia Law

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Home Loan Investment Bank appealed from a judgment entered in the superior court following a bench trial that confirmed the validity of the mechanic's liens to Jim's Plumbing and Heating, Inc. and Westbrook Tools, Inc. against Bedford Falls Associates for work performed at a commercial property. The Bank argued that the court erred as a matter of law and fact by concluding that the liens had priority over two mortgages granted to Bedford Falls for the acquisition and renovation of the property because it did not consent to the work performed by Jim's Plumbing or Westbrook Tools. The Supreme Court affirmed, holding that the evidence supported a finding that the Bank had sufficiently specific knowledge of Jim's Plumbing and Westbrook Tools's labor and materials to infer that the Bank consented to the labor and materials secured by the liens. View "Jim's Plumbing & Heating, Inc. v. Home Loan Inv. Bank" on Justia Law

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J. Cole and P. Daphne Harris filed a complaint against The Woodlands Club and The Woodlands Homeowners Association (collectively, the Woodlands), alleging that the Woodlands tortiously discharged surface water onto their property causing flooding and an increase in wetland. The superior court granted a partial summary judgment in favor of the Woodlands on the Harrises' statutory trespass and negligence claims and concluded that disputes of material facts precluded a summary judgment on the common law trespass claim. Both parties appealed. The Supreme Court affirmed, holding that the trial court did not err in (1) concluding that the Woodlands was not liable for trespass; (2) entering judgment in favor of the Woodlands on the Harrises' negligence claim; and (3) entering a pretrial order excluding certain testimony. View "Harris v. Woodlands Club" on Justia Law

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Nancy Ramsey filed a complaint against Baxter Title Company and the company's owner, James Lemieux, for breach of fiduciary duty and duty of care and for punitive damages arising from a real estate transaction. The superior court dismissed Ramsey's complaint for failure to state a claim upon which relief can be granted. The Supreme Court affirmed, holding (1) Ramsey's complaint did not allege the kind of close, confidential relationship necessary for a court to find the existence of a fiduciary duty; and (2) Baxter Title and Lemieux did not owe Ramsey a duty of care to explain to her that the loan she secured was more favorable to the lender than to her. View "Ramsey v. Baxter Title Co." on Justia Law

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The Lougee Conservancy; Eleanor Lougee Chapin, as trustee and beneficiary of the Lougee Conservancy; David Lougee, as trustee and beneficiary of the Lougee Conservancy; and Arthur “Jim” Lougee, as beneficiary of the Lougee Conservancy (collectively, the Lougees) appealed the superior court's grant of summary judgment in favor of CitiMortgage, Inc. The court granted summary judgment on the Lougees’ complaint for common law and statutory trespass, invasion of privacy, conversion, intentional infliction of emotional distress, punitive damages, and negligence, and in favor of Safeguard Properties, LLC, and David and Shelly Alley, d/b/a D&S Properties, LLC, on all claims except common law and statutory trespass. The Lougees' claims arose when an unencumbered home and barn owned by the Lougee Conservancy were entered and secured as part of CitiMortgage’s foreclosure action that pertained to a neighboring property. The Supreme Court affirmed the judgment on the claims for invasion of privacy, conversion, intentional infliction of emotional distress, and punitive damages, and vacated on the claim of negligence as to all three defendants. View "Lougee Conservancy v. CitiMortgage, Inc." on Justia Law

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Dale Henderson Logging, Inc. (DHL), and Oak Leaf Realty, Inc. (OLR). DHL owned property in Washington County, and OLR owned several thousand acres in Hancock County. The DHL and OLR properties have a four-rod-wide rail corridor running over them that was once owned by the Maine Central Railroad Company which was later conveyed to the State of Maine, which the Department of Transportation (DOT) claimed to own in fee simple absolute by virtue of deeds given to Maine Central's predecessor in title from 1897 to 1898. DHL and OLR contended that Maine Central held only a railroad easement that it abandoned prior to its purported conveyance to the State, and therefore DOT owned nothing. Alternatively, OLR contended that if DOT held an interest in the corridor, two deeds in DOT's chain of title contained covenants allowing OLR to compel DOT to build and maintain a fence along a portion of the corridor in Hancock County. DHL and OLR appealed the grant of summary judgments entered in favor of DOT by the Superior Court on their complaints seeking a declaration on who owned what. Upon review, the Supreme Court concluded that the superior court correctly found that DOT held an easement that had not been abandoned in the Washington County portion of the corridor, and owned the fee simple in the Hancock County portion of the corridor. Furthermore, the Court concluded that the covenants requiring Maine Central to build and maintain a fence along the corridor were not enforceable against DOT in equity. View "Dale Henderson Logging, Inc. v. Dept. of Transportation" on Justia Law

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The issue on appeal before the Supreme Court in this case was whether the notice provision of the Paper Streets Act requires that the person asserting the claim to own a paper street notify all record lot owners in the subdivision that includes the street, or only those lot owners that the person asserting ownership of the paper street seeks to exclude from the paper street property. Barbara Carson appealed a superior court judgment in favor of her neighbors who brought suit to determine if they had rights to use a portion of a paper street that bisected Carson's property in order to access another paper street that provides access to the Atlantic Ocean. Because the Court concluded that notice to all subdivision lot owners is required, the Court affirmed that portion of the trial court's judgment addressing the notice issue. View "Brooks v. Carson" on Justia Law