Advanced Construction Corp. v. Pilecki

2006 ME 84, 901 A.2d 189, 2006 Me. LEXIS 73
CourtSupreme Judicial Court of Maine
DecidedJuly 13, 2006
StatusPublished
Cited by82 cases

This text of 2006 ME 84 (Advanced Construction Corp. v. Pilecki) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced Construction Corp. v. Pilecki, 2006 ME 84, 901 A.2d 189, 2006 Me. LEXIS 73 (Me. 2006).

Opinion

CALKINS, J.

[¶ 1] Advanced Construction Corporation and Aaron Spence appeal from a judgment entered in the Superior Court (Penobscot County, Mead, J.) in favor of Michael and Christine Pilecki, following a jury trial. Advanced brought several claims against the Pileckis, who filed claims against Advanced and Spence, all stemming from a home construction project. After the trial and post-judgment motions, the end result was (1) judgment for the Pileckis against Advanced in the amount of $10,415.80 on claims of breach of contract, breach of warranties, and negligence; (2) judgment for the Pileckis against Advanced and Spence, jointly and severally, in the amount of $23,789.46, for violations of the Home Construction Contracts Act (HCCA), 10 M.R.S. §§ 1486-1490 (2005); the Unfair Trade Practices Act (UTPA), 5 M.R.S. §§ 205-A to 214 (2005); and the Uniform Deceptive Trade Practices Act (DTPA), 10 M.R.S. §§ 1211-1216 (2005); 1 (3) judgment for the Pileckis *193 against Spence in the amount of $1271.25 for abuse of process; (4) judgment for Advanced on its quantum meruit claim but no damages awarded; (5) judgment for Advanced against the Pileekis in the amount of $987.26 for conversion; and (6) an award of attorney fees to the Pileekis on the UTPA violation in the amount of $44,594.25.

[¶ 2] Advanced and Spence raise numerous issues on appeal, including several evi-dentiary rulings, but we discuss only the following issues: (1) the personal liability of Spence; (2) the court’s refusal to give a jury instruction requested by Advanced and Spence that a contractor has a right to stop work for nonpayment; (3) the sufficiency of the evidence on the abuse of process claim; and (4) the attorney fee award. 2 We affirm the judgment.

I. BACKGROUND

[¶ 3] On June 1, 2002, Advanced and the Pileekis signed a home construction contract, which provided that Advanced would construct a house on land in Corinth for $94,290. Spence, who is the sole shareholder of Advanced, signed the contract as the president of Advanced. The contract provided that the work was to commence in August 2002 and be completed by October 2002. The Pileekis told Spence that time was of the essence because of their lack of housing.

[¶ 4] The Pileekis obtained a home construction loan from Wells Fargo Home Mortgage. Advanced was required to complete a number of documents for Wells Fargo, and there is evidence that in the builder validation statement, Spence falsely stated that he had never filed for bankruptcy. In order for funds to be disbursed to Advanced, Wells Fargo required both Advanced and the Pileekis to sign draw requests. Advanced was required to certify that it had paid suppliers for the items in the draw requests and that it waived any right to assert a lien with regard to those items. Wells Fargo sent an inspector to examine the progress on the home after each properly signed draw request.

[¶ 5] Construction on the residence did not begin until November 2002. Thereafter, Advanced received a check from Wells Fargo for $16,972.20, and another check for $13,672.05, but neither was for the full amount of the draw requests Advanced had submitted. The $13,672.05 check was payment in full for the trusses Advanced purchased from McLaughlin Roof Trusses. Later, Advanced submitted two additional draw requests, but it received no further payment from Wells Fargo because neither draw request was signed by the Pi-leckis. The fourth and final draw request was for the electrical rough-in, which had not been completed. After the fourth draw request, the Pileekis informed Wells Fargo that they refused to sign any further draw requests.

[¶ 6] On January 17, 2003, Advanced stopped work on the Pileekis’ house. Advanced filed a mechanic’s lien on the property for $34,750. It subsequently issued an invoice, which Spence testified was the *194 support for the lien claim Advanced had filed. The invoice billed the Pileckis for items that had been included in the draw requests, such as the trusses and the electrical rough-in, and for items that had not been included in the draw requests.

[¶ 7] The parties dispute how much work had been done on the house at the time Advanced stopped working. The Pileckis estimated that the house was twenty-five to thirty-three percent complete, and Spence estimated that it was sixty percent complete. Even though Spence told the Pileckis that he and Advanced could construct the residence according to the Pi-leckis’ plans, Spence and Advanced failed to follow the building plan and contract in several regards. There is also evidence that Spence installed different windows than the brand requested by the Pileckis; that Spence installed the wrong type of roof trusses, which eliminated two closets and the use of a loft, and made the second floor uninhabitable; and that Spence altered some of the roof trusses, which rendered the manufacturer’s warranties invalid.

[¶ 8] This litigation began when McLaughlin Roof Trusses sued Spence and the Pileckis to enforce a hen and collect over $10,000, which it claimed was due and owing for the trusses. 3 Spence cross-claimed against the Pileckis, and the Pileckis cross-claimed against Spence and Advanced. Both Advanced and the Pileck-is filed amended cross-claims, and Spence dismissed his cross-claim. Advanced’s claims that went to the jury were (1) enforcement of the hen; (2) breach of contract; (3) quantum meruit; and (4) conversion. The Pileckis’ claims that went to the jury were (1) breach of contract; (2) breach of warranties; (3) fraud; (4) negligence; (5) violation of the HCCA; (6) violation of the UTPA; (7) violation of the DTP A; and (8) abuse of process.

[¶ 9] The jury returned a verdict for Advanced on the quantum meruit claim but awarded no damages on it. The jury found for Advanced on its conversion claim with damages in the amount of $987.26. The jury also returned a verdict for Advanced and Spence on the Pileckis’ fraud claim. On all other claims the jury found in favor of the Pileckis. The jury found damages in the amount of $10,415.80 against Advanced on the breach of contract, breach of warranties, and negligence claims. It found damages in the amount of $23,789.46 against Advanced and Spence for the statutory violations. Lastly, it found damages in the amount of $1271.25 against Spence for abuse of process. The court subsequently determined $44,594.25 to be the amount of attorney fees assessed against Advanced and Spence in favor of the Pileckis for the UTPA violation.

II. DISCUSSION

A. Spence’s Personal Liability

1. Piercing the Corporate Veil

[¶ 10] The jury found Spence individually liable on the abuse of process claim and liable, jointly and severally with Advanced, on the statutory claims. Spence argues that he cannot be held individually liable unless the requirements for piercing the corporate veil are satisfied.

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2006 ME 84, 901 A.2d 189, 2006 Me. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-construction-corp-v-pilecki-me-2006.