Daigle v. Northwest Trailer Park P'ship

CourtSuperior Court of Maine
DecidedMay 1, 2002
DocketCUMcv-93-722
StatusUnpublished

This text of Daigle v. Northwest Trailer Park P'ship (Daigle v. Northwest Trailer Park P'ship) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daigle v. Northwest Trailer Park P'ship, (Me. Super. Ct. 2002).

Opinion

STATE OF MAINE 4 SUPERIOR COURT CUMBERLAND, ss. >) CIVIL ACTION

oe DOCKET NO. TE MP Say EP Qp PE CeO 2f

JANET M. DAIGLE, et al., Plaintiffs Vv. ORDER ON MOTION FOR SUMMARY JUDGMENT OF DAVID J. DAIGLE, PEGGY A. MOORE, AND IRENE DAIGLE

t DONALD L. GARBRECHT NORTHWEST TRAILER PARK LAW! yb mivaAR

PARTNERSHIP, et al.,

B 2002 Defendants MAY

Defendants, David James Daigle (hereinafter “James”), Peggy Moore, and Irene Daigle, have filed a motion for summary judgment as to Counts I, I, V, VI, and VII of the plaintiff’s complaint. Upon review of the motion, opposition, and the applicable law, the motion for summary judgment will be granted in part and

denied in part.

BACKGROUND The plaintiff, Janet M. Daigle, brought this complaint in connection with the administration of a trust established by David D. Daigle for the benefit of the plaintiff, Janet, and another sibling, John Daigle, who is not involved in this

lawsuit, and administered by co-trustees, the defendants James Daigle and Peggy A. Moore; and the operation of the defendant Northwest Trailer Park Partnership.! The trust provides that during the life of Irene Daigle, widow of David D. Daigle, trust funds may be used for the care of Irene if needed, and that upon her death the trust funds are to be distributed to Janet Daigle and John Daigle.

The trailer park is a partnership that paid net monthly income to each partner in proportion to the percentage interest in the partnership. It was managed by James Daigle until 1982, by Janet Daigle from 1982 to 1992, and by James Daigle from 1992 to present. David D. Daigle borrowed from the income generated by the trust’s interest and when he died on January 16, 1972, his ledgers showed a personal loan of $18,355.06 from the trust, and a loan of $9,182.06 from the trust to the corporation, David D. Daigle Farms. In her complaint Janet Daigle asserted the following claims: breach of fiduciary duty - James Daigle (Count I); breach of fiduciary duty - Peggy A. Moore (Count II); breach of fiduciary relationship (Count III); dissolution of partnership (Count IV); wrongful discharge/breach of implied covenant of good faith and fair dealing (Count V); intentional infliction of emotional distress (Count VI); and punitive damages (Count VII). The defendants, Irene, James, and Peggy, have filed this motion for summary judgrnent as to Counts I, Il, V, VI, and VII.

FACTS David D. Daigle established the “Irrevocable Trust for John Daigle and Janet

Mae Daigle” (hereinafter “the trust”) on December 27, 1961. Defendants’ Statement

1 Since 1961 ownership of the trailer park has been in the following percentages: James Daigle - 25%; Peggy Moore - 25%; Irene Daigle - 22.5%; Janet Daigle - 10%; and Trust - 17.5%. of Material Fact (DSMF) { 1; Plaintiff's Opposing Statement of Material Fact (POSMF) I 1. James Daigle and Peggy Moore were appointed trustees of the trust. DSMF { 2; POSMF { 2. James Daigle, as trustee, is obligated to exercise good faith in his position, and must not engage in willful misconduct in his financial dealings with the trust. Plaintiff's Additional Statement of Material Facts (PASMF) { 3; Defendants’ Response to Plaintiff's Additional Statement of Material Facts (DRPMF) { 3. The trust provides that during the lifetime of Irene Daigle, the trustees may, in their discretion, distribute income and principal of the trust as needed for Irene’s care, comfort maintenance, support and medical care and attention. DSMF { 3; POSMEF { 3. The trust provides that upon the death of Irene Daigle, the remainder of the trust will be distributed to John Daigle (25/40) and Janet Daigle (15/40). A 17.5 percent interest in the trailer park was conveyed to the trust.2, DSMF { 5. David D. Daigle died January 16, 1972, and by that time had personally borrowed $ 18,355.06 from the trust, and his corporation, David D. Daigle Farms had borrowed $ 9,182.06 "from the trust; there was no provision for interest to be paid on these loans.? DSMF

{ 6. The loans were unpaid at the time of David D. Daigle’s death. DSMF J 7;

2 The plaintiff is unsure that this was the sole asset transferred to the trust, because she claims that she has been denied access to the accounts of the trust. POSMF { 5.

3 The plaintiff attempts to dispute the fact that there was no provision for interest by pointing to subsequent loans rade by the trust to the trailer park, which do include provisions for interest; however, the subsequent loans were not made to one of. David D. Daigle’s business entities while David D. Daigle was living, nor were the subsequent loans made to David D. Daigle, personally. POSMF { 6; Plaintiff’s Exhibit C. POSMF q 7. James Daigle and his wife, Eloise, are shareholders of the corporation David D. Daigle Farms, which has been inactive for many years and has no assets or liabilities. PASMF J 2; DRPMF { 2. The parties are in dispute as to whether they agreed, at the time of David D. Daigle’s death, that the outstanding loans would be paid by Irene Daigle’s estate at the time of her death. DSMF { 8; POSMF J 8; see Exhibit C3 to James Daigle Aff. The loans made by the trust to David Daigle, personally, and David D. Daigle Farms have been repaid by Irene Daigle. DRPMF 3.

Peggy Moore, as trustee since 1982, has had primary responsibility for the management of the trust and has rendered personal and financial services to beneficiary Irene Daigle.? DSMF { 14. Peggy Moore, with the approval of Irene Daigle, charged an average of $ 1949.00 annually for personal and financial services rendered to the trust and beneficiary Irene Daigle from 1983 through 1992; however she charged nothing from 1983 through 1991 and then charged $ 19,490.00 for her

services in 1992-93. DSMF {J 15; POSMF ¥ 15. The average amount of fees charged

4 The document alleged to be an agreement for the forgiveness of debt does not clarify the dispute, as it makes no reference to the debt owed by David D. Daigle and David D. Daigle Farms to the trust. Exhibit C3 to James Daigle Aff.

5 Janet Daigle asserts that she performed most (99 percent) of the financial services for the trust during the years 1982-1993. POSMF { 14; Janet Daigle (10-11-01) Aff. TJ 23, 24, 25, 26; Janet Daigle (12-6-93) Aff. | 4; Barbara Bagley (CPA who reviewed financial records and tax returns prepared by Janet, since 1983, pertaining to Northwest Trailer Park) Aff. {J 10, 12. by Peggy Moore is less than a bank in the locality would charge to oversee the trust.® DSMF { 16. The corpus of the trust increased from $ 241,140.00 in 1982 to $ 451,037.00 in 1994. DSMF J 17; POSMF 17.

On May 27, 1993, Peggy Moore withdrew, or caused to be withdrawn, $20,000.00 from the trust account 060-50-178-0, and invested the money in a trust CD along with other trust funds. DSMF J 18; POSMF { 18.

Janet Daigle was employed as manager by Northwest Trailer Partnership as an at-will employee. DSMF { 19; Peggy Moore Aff. I 14; Janet Daigle Dep. pp. 64, 69, 72 (no written contract); POSMF J 19. In December 1992, the other partners removed her as manager because of her difficult and abusive behavior and hostility in all matters including the operation of the trailer park.’ DSMF { 20; James Daigle Aff. {i 10, 11, 12, 13; Peggy Moore Aff. [J 16, 17, 18; Irene Daigle Dep. pp. 24, 25, 32, 33, 62, 63. After her removal as manager, Janet Daigle continued to receive her distribution from Northwest Trailer Park and received $ 14,270.00 in 1993, an

increase of about $ 470.00 from the previous year. DSMF J 21; James Daigle Aff. {

6 Janet Daigle asserts that the comparison is unpersuasive as the services provided by Peggy Moore and those that would have been provided by a bank are not comparable. POSMF { 16; Janet Daigle (10-11-01) Aff. {| 28; Janet Daigle (12-6-93) Aff. [J 5-6; Bagley Aff. [J 10, 11, 13.

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