Bangor Savings Bank v. Darling Consulting Group

CourtDistrict Court, D. Maine
DecidedJune 4, 2026
Docket1:25-cv-00652
StatusUnknown

This text of Bangor Savings Bank v. Darling Consulting Group (Bangor Savings Bank v. Darling Consulting Group) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bangor Savings Bank v. Darling Consulting Group, (D. Me. 2026).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MAINE BANGOR SAVINGS BANK, ) ) Plaintiff ) ) v. ) 1:25-cv-00652-JCN ) DARLING CONSULTING GROUP, ) ) Defendant ) ORDER ON MOTION TO COMPEL ARBITRATION Plaintiff Bangor Savings Bank (Bangor Savings) commenced this action against Defendant Darling Consulting Group (Darling) seeking damages for breach of contract, negligence, breach of fiduciary duty, and negligent misrepresentation. (Compl., ECF No. 1.) Darling moves the Court for an order compelling arbitration of the dispute and staying or dismissing this action under 9 U.S.C. §§ 3-4. (Mot. to Compel, ECF No. 8.) Bangor Savings opposes the motion. (Opp. to Mot. to Compel, ECF No. 18.) Following a review of the record, and after consideration of the parties’ written and oral arguments, the Court denies the motion to compel arbitration. BACKGROUND1 In the complaint and in its opposition to the motion to compel, Bangor Savings describes the pertinent background as follows: Beginning in 2000, and for nearly 25 years

1 The record “for purposes of resolving a motion to compel arbitration generally includes the complaint and the record materials submitted in support of or opposition to the motion.” Air-Con, Inc. v. Daikin Applied Latin Am., LLC, 21 F.4th 168, 171 n.1 (1st Cir. 2021). thereafter, Bangor Savings contracted with Darling, a risk management consulting group, to provide modeling and financial consulting services. (Compl. ¶¶ 13, 19, 21.) During this

period, Darling provided services to implement Bangor Savings’ asset-liability management (ALM) policies. (Id. ¶¶ 4, 19.) Darling managed Bangor Savings’ ALM model, analyzing the extent to which Bangor Savings was exposed to interest rate risk. (Id. ¶ 4.)2 Bangor Savings also separately contracted with Darling to provide other kinds of consulting services. (Opp. to Mot. to Compel at 2.) Every three years, Bangor Savings and Darling signed an agreement describing the

scope of Darling’s ALM services. (Compl. ¶ 22.) In 2014, Darling sent Bangor Savings an engagement letter providing for the renewal of the parties’ three-year retainer agreement along with an attached Summary of Engagement Scope describing the services to be provided under the engagement, which services included building and maintaining a model that would be used to analyze Bangor Savings’ ALM position. (Id. ¶¶ 22-24; Compl. Ex.

1, ECF No. 1-1.) Thereafter, the parties renewed their agreement in writing following the conclusion of each three-year term. (Compl. ¶ 26.) Bangor Savings submits that the engagement letters, which do not include an arbitration clause, govern the dispute in this case. (Opp. to Mot. to Compel at 2-5.) According to Bangor Savings, in 2019, the parties agreed to adjust the “repricing

dates” of certain commercial loans in the ALM model. (Compl. ¶ 5.) Bangor Savings told

2 Bangor Savings describes the ALM model as a program permitting it to “monitor financial risks associated with any mismatches between the structure and composition of its assets and liabilities.” (Compl. ¶ 19.) Darling that it needed a specific bundle of commercial adjustable-rate loans that were subject to “back-to-back interest rate swaps” to be repriced so that the ALM model accounted for the structure of payments associated with the loans.3 (Id. ¶¶ 5-6.) Darling

accordingly created an electronic script, repricing that specific bundle of loans for the following two years. (Id. ¶ 6.) In the fall of 2020, a new analyst with Darling was assigned to Bangor Savings’ ALM model, and in May 2021, the analyst inquired about the repricing dates on some of Bangor Savings’ variable-rate commercial loans. (Id. ¶ 7.) Bangor Savings instructed the

analyst to continue using the previously created script to apply, as before, to the specific bundle of commercial adjustable-rate loans that were subject to back-to-back interest rate swaps to account for their monthly repricing nature. (Id.) Darling never stated or implied to Bangor Savings that it could not or would not limit the script only to the specific bundle of loans identified by Bangor Savings. (Id.) Nevertheless, Bangor Savings alleges that

Darling inappropriately applied the script adjusting repricing dates to a significantly broader set of loans than the specific bundle identified by Bangor Savings, and did so without Bangor Savings’ knowledge or approval, causing the ALM model to produce results reflecting that Bangor Savings’ balance sheet was significantly less liability

3 Bangor Savings describes “back-to-back interest rate swaps” as typically involving a bank: (1) “issuing an adjustable interest loan to a commercial customer,” (2) “entering into an interest rate swap agreement with such customer effectively converting to a fixed-interest loan” and then (3) entering “into a second adjustable interest rate swap with a third-party dealer” resulting in the bank receiving a variable interest rate on the commercial loans, while the customer pays a fixed rate. (Compl. ¶ 5.) According to Bangor Savings, the “second swap with the dealer offsets the bank’s exposure from the first swap with the borrower, thereby allowing the bank to manage its interest rate risk effectively.” (Id. ¶ 30.) sensitive than it was. (Id. ¶¶ 8, 35.) Bangor Savings alleges that as a result, it was unable to take timely action to protect itself from rising interest rates, and its net income was nearly

$15 million lower than it would have been if the ALM model had not been impacted by Darling’s mismanagement of the script. (Id. ¶¶ 8, 10.) According to Darling, the dispute in this case is governed by a Master Services Agreement (MSA) that the parties executed in August 2020. (Mot. to Compel ¶ 1.) As to the MSA, the record reveals the following: In July 2020, Darling’s managing director sent an email to the vice president of Bangor Savings under the subject “Credit Stress Test

Proposal.” (Transmittal Email, ECF No. 9-2.) The email stated that certain “executable documents to move forward with the Credit Stress Testing service” were attached, including (1) a “Master Services Agreement,” which would function as the parties’ “new confidentiality agreement moving forward”; (2) a “Credit Stress Test Proposal” outlining the scope of the service and the fee structure;4 and (3) a “Credit Stress Test Fee Schedule,”

which was described as the executable contract for the service. (Id.) The managing director advised that Darling would “need the MSA and Fee Schedule signed and returned

4 The Proposal was attached to a letter to the vice president of Bangor Savings outlining a proposed engagement for provision of Darling’s annual “Credit Stress Testing subscription.” (Opp. to Mot. to Compel, Paradis. Dec. Ex. B, ECF No. 18-3.) The letter provided, in pertinent part: “If you would like to proceed with this engagement, we will send you a Master Services Agreement and Fee Schedule for execution.” (Id.) The Proposal provided: “The objective of this engagement is the ongoing management and insight into how the Bank’s credit losses and capital position might be impacted by stressful and changing economic conditions.” (Id.) The Proposal further provided: “Upon receipt of an executed Master Services Agreement (MSA) and Fee Schedule, we will promptly initiate the process to deliver the Credit Stress Test.” (Id.) to begin the project” and that Darling looked “forward to working with [Bangor Savings’] team on this project!” (Id.)

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Bluebook (online)
Bangor Savings Bank v. Darling Consulting Group, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bangor-savings-bank-v-darling-consulting-group-med-2026.