Holdsworth v. Bernstein, Shur Sawyer & Nelson, P.A.

CourtSuperior Court of Maine
DecidedJune 6, 2014
DocketCUMbcd-cv-13-03
StatusUnpublished

This text of Holdsworth v. Bernstein, Shur Sawyer & Nelson, P.A. (Holdsworth v. Bernstein, Shur Sawyer & Nelson, P.A.) 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
Holdsworth v. Bernstein, Shur Sawyer & Nelson, P.A., (Me. Super. Ct. 2014).

Opinion

[~JfRED AUG 2 7 Z014

· STATE OF MAINE BUSINESS & CONSUMER COURT CUMBERLAND, ss. LOCATION: Portland / Docket No. BCD-CV-13-03

MHM--CMfV1-00;DvJLf- ) EARL HOLDSWORTif and ) SANDRA HOLDSWORTH, ) ) ORDER ON DEFENDANT'S MOTION Plaintiff, ) FOR SUMMARY JUDGMENT ) V. ) ) BERNSTEIN, SHUR, SAWYER & ) NELSON, P.A., ) ) Defendant. ) )

Defendant Bernstein, Shur, Sawyer & Nelson ("BSSN") moves for summary judgment

on the one and only Count of Plaintiffs Earl and Sandra Holdsworths' Complaint. The

Holdsworths allege four claims against BSSN stemming from BSSN's representation ofDavid

Higgins and Linda S. Rivard in negotiating the terms of a proposed easement. In particular, the

Holdsworths' allege that BSSN's representation of Higgins and Rivard constituted: 1) an adverse

relationship against an existing client; 2) representation against a former client without first

obtaining that client's informed written consent; 3) dual representation of both sides regarding

easement issues which were or could have been inherently adverse or conflicted as between the

parties; and 4) interference with Plaintiffs' existing contractual relations and/or prospective

economic advantage.

The Court held oral argument on Defendant's Motion for Summary Judgment ("MSJ")

on May 12, 2014. For the reasons discussed below, the Court grants Defendant's MSJ on all

claims. BACKGROUND

In 1969, Plaintiffs purchased a house and 35 acres of land at Ill Bruce Hill Road in

Cumberland, Maine (the "Cumberland House" on the "Cumberland Property"). (Defendant's

Statement ofUndisputed Material Fact C'Def.'s S.M.F."), ~ 3.) BSSN did not represent or advise

Plaintiffs in their purchase of the Cumberland Property. (See id. at~ 22.) BSSN did, however,

represent Dr. Earl Holdsworth in 1968 or 1969 regarding his dental partnership with another

doctor. (!d. at~ 4.) Thereafter, BSSN proceeded to represent Dr. Holdsworth, primarily through

Attorney Jerry Goldberg, on a number of matters in the 1970s and 80s. (!d. at~ 5.) While the

majority of these matters related to Dr. Holdsworth's dental practice, in 1972, Attorney Goldberg

drafted reciprocal wills and a trust for the Holdsworths. (!d. at~~ 5, 6.)

After Attorney Goldberg left the practice of law in 1986, BSSN's relationship with the

Holdsworths dwindled. (See id. at~ 6.) In the early 1980s, BSSN formed Fundy Road

Associations, a partnership that owned a building in Falmouth, Maine consisting of four dentist's

offices, one of which was used by Dr. Holdsworth. (!d. at~ 7.) In 1987, BSSN formed a non-

profit corporation called Fundy Road Condominium Association. (/d.) Subsequently BSSN

performed the legal work necessary to convert the Fundy Road building into a condominium

and, in December I 993, to convey the four offices as condominium units. (!d. at~ 8.) After

1994, BSSN did not represent or advise the Holdsworths on any matter until the sale of Dr.

Holdsworth's dental practice in 2003-2005. (/d. at~ 21.)

In 1987 or 1988, the Holdsworths began using Attorney Gary Vogel, a non-BSSN

attorney, for a number oflegal services including, but not limited to: 1) the purchase and

financing of an office condominium; 2) a junior mortgage on the Cumberland Property to

2 securing financing for an office condominium; 3) a real estate niatter regarding Dr. Holdsworth's

Portland office; and 4) certain matters involving investment properties. (Id. at~ 12.) Attorney

Vogel represented the Holdsworths until 1994, when the Holdsworths moved their legal work to

the law firm of Van Meer & Belanger. (See id. at~ 14.)

The law firm of Van Meer & Belanger began representing Dr. Holdsworth in 1989,

primarily with respect to business and corporate matters involving his dental practice. (Id. at~

1S.) On May 11, 1994, Attorney Thomas Van Meer, a non-BSSN attorney, became the clerk of

Dr. Holdsworth's professional corporation and held that office until February 4, 2004. (Id. at~

16.) By 1994, Van Meer & Belanger were also representing the Holdsworths concerning various

personal matters including, but not limited to: 1) refinancing of the Cumberland Property and

their commercial property; and 2) estate planning, culminating in the preparation and execution

by the Holdsworths of Revocable Living Trust Agreements, Last Wills and Testaments, Powers

of Attorney, and Health Care Powers of Attorney in August 199S. (Id. at~ 17.) Van Meer &

Belanger have not rendered any legal services for the Holdsworths since the sale of Dr.

Holdsworth's dental practice in 200S. (/d. at~ 18.)

In 2002, Dr. Holdsworth began taking steps to sell his dental practice. (/d. at~ 19.) He

first retained Attorney Zeigler, a non-BSSN attorney, to draft an agreement for the sale of his

practice to Dr. Yu. (/d.) Dr. Holdsworth then took that agreement to Attorney Eric Saunders at

BSSN in 2003 and retained him to complete the sale. (/d.) In 2003, Dr. Yu purchased SO% of

the stock in Dr. Holdsworth's professional corporation. (/d.) Dr. Yu then practiced with Dr.

Holdsworth for two years before purchasing the remaining SO% of stock. (/d.) The sale closed

with Dr. Yu's second stock purchase in October 200S after which, Dr. Holdsworth retired. (/d.)

3 Beginning on February 4, 2004, Attorney Saunders succeeded Attorney Van Meer as

Clerk of Dr. Holdsworth's professional corporation. (!d. at~ 20.) Attorney Saunders resigned

that position on October 14, 2005 and was replaced as Clerk at Dr. Yu' s request by her own,

non-BSSN attorney. (!d.) After November 2005, BSSN did not perform any legal work for the

Holdsworths and never sent the Holdsworths a bill for legal services rendered after that date. 1

(!d.) Although denied by BSSN, Dr. Holdsworth asserts that Attorney Saunders-through

conversations with Dr. Holdsworth and/or Dr. Holdsworth and Timothy Hepburn, the

Holdsworths CPA and financial advisor-"from time to time understood the importance of my

maximizing the income that I would receive from the sale of my property in terms of my overall

retirement plan." (Affidavit of Dr. Earl Holdsworth ("Dr. Holdsworth Aff."), ~ 5.) Based in part

on these conversations, Dr. Holdsworth believed he was a current client ofBSSN through

January 2007. {Plaintiffs' Statement of Additional Material Facts in Opposition to Defendant's

Motion for Summary Judgment ("Pl.'s A.S.M.F"), ~ 3.)

In the summer of2006, the Holdsworths listed the Cumberland Property for sale at an

asking price of$1,200,000. (Def.'s S.M.F., ~ 28.) On August 6, 2006, John and Mary Jo

Cashman signed a full price offer to buy the Cumberland Property for $1,200,000, subject to the

results of the usual inspections. (ld. at 129.) The Holdsworths accepted the offer on August 9,

2006. (!d.) Shortly thereafter, the Cashmans learned that the driveway leading to the

Cumberland House was shared with the abutting landowners, Higgins and Rivard. (!d. at 130.)

On August 26, 2006, the Cashmans' broker drew up an Addendum to the Purchase & Sale

1 Plaintiffs note that in 2007, Attorney Saunders processed documentation for Dr. Holdsworth in relation to a bank loan, but do not contend this constituted legal representation.

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