In re: David T. Marrett, Sandy J. Marrett v. Aroostook County Federal Savings & Loan, Zurich North American Insurance Company, Solman & Hunter, P.A., Marden Dubord, Bernier & Stevens, P.A., O'Donnell, Lee, Marden, Dubord, Monaghan Leahy, LLP, William

CourtUnited States Bankruptcy Court, D. Massachusetts
DecidedFebruary 19, 2026
Docket25-03006
StatusUnknown

This text of In re: David T. Marrett, Sandy J. Marrett v. Aroostook County Federal Savings & Loan, Zurich North American Insurance Company, Solman & Hunter, P.A., Marden Dubord, Bernier & Stevens, P.A., O'Donnell, Lee, Marden, Dubord, Monaghan Leahy, LLP, William (In re: David T. Marrett, Sandy J. Marrett v. Aroostook County Federal Savings & Loan, Zurich North American Insurance Company, Solman & Hunter, P.A., Marden Dubord, Bernier & Stevens, P.A., O'Donnell, Lee, Marden, Dubord, Monaghan Leahy, LLP, William) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: David T. Marrett, Sandy J. Marrett v. Aroostook County Federal Savings & Loan, Zurich North American Insurance Company, Solman & Hunter, P.A., Marden Dubord, Bernier & Stevens, P.A., O'Donnell, Lee, Marden, Dubord, Monaghan Leahy, LLP, William, (Mass. 2026).

Opinion

UNITED STATES BANKRUPTCY COURT DISTRICT OF MASSACHUSETTS WESTERN DIVISION

____________________________________ ) In re: ) Chapter 13 ) Case No. 25-30440-EDK DAVID T. MARRETT, ) SANDY J. MARRETT, ) ) Debtors ) ____________________________________) ) DAVID T. MARRETT, ) Adversary Proceeding SANDY J. MARRETT, ) No. 25-03006 ) Plaintiffs ) ) v. ) ) AROOSTOOK COUNTY FEDERAL ) SAVINGS & LOAN, ZURICH NORTH ) AMERICAN INSURANCE COMPANY, ) SOLMAN & HUNTER, P.A., MARDEN ) DUBORD, BERNIER & STEVENS, P.A., ) O'DONNELL, LEE, MARDEN, DUBORD, ) MONAGHAN LEAHY, LLP, WILLIAM ) DRUARY, JR., LAUREN K. SOUZA, ) DIANE GLIDDEN, DIANA DURGIN, ) CHRISTINE KENNEDY-JENSEN, JOHN ) AND JANE DOE, ) ) Defendants ) ____________________________________)

MEMORANDUM OF DECISION Before the Court are motions to dismiss filed by several defendants in this adversary proceeding seeking dismissal of the complaint (the “Complaint”) brought by David T. Marrett and Sandy J. Marrett, the plaintiffs in this adversary proceeding and debtors in the underlying Chapter 13 bankruptcy case (the “Debtors”). This decision addresses the motions to dismiss filed by (1) Aroostook County Federal Savings and Loan (“Aroostook”); (2) Solman & Hunter, P.A. (“Solman & Hunter”), Monaghan Leahy, LLP (“Leahy”), Christine Kennedy-Jensen (“Kennedy-Jensen”), Lauren K. Souza (“Souza”), Marden, Dubord, Bernier & Stevens, P.A. (“Marden”), William Druary, Jr. (“Druary”), and Richard Solman (“Solman”); and (3) Fidelity and Deposit Company of Maryland (“Zurich”)1

(collectively, the “Motions to Dismiss”).

I. FACTS AND TRAVEL OF THE CASE2 This adversary proceeding is but the most recent installment in a series of lawsuits across various state and federal courts involving the Debtors, all of which relate to real property located at 35 York Street, Caribou, Maine (the “Property”). In September 2004, the Debtors borrowed funds from Aroostook to finance the purchase of the Property and granted Aroostook a mortgage on the Property to secure the loan.3 In November 2009, the Debtors refinanced their existing mortgage obligation, obtaining a new loan from Aroostook secured by a mortgage on the Property (the “Mortgage”).4 The Debtors have not

1 Fidelity and Deposit Company of Maryland (“F&D”) was incorrectly sued as Zurich. See Zurich’s Mot. to Dismiss, Dkt. No 57. However, for ease of reference, this memorandum of decision will continue to refer to F&D as Zurich.

2 The facts are drawn from the Complaint, the attachments thereto, documents central to the claims, documents fairly incorporated into the complaint, facts susceptible to judicial notice, concessions in response to the motions to dismiss, and documents the authenticity of which are not disputed. See Cheng v. Neumann, 51 F.4th 438, 441 (1st Cir. 2022); Watterson v. Page, 987 F.2d 1, 3 (1st Cir. 1993).

3 See Warranty Deed, Notice of Suppl. Authority and Procedural Development (“Notice of Suppl. Authority”), Ex. B, Dkt. No. 77; Letters Approving Mortgage Loan Request and Settlement Statement, Notice of Suppl. Authority, Ex. A-1, Dkt. No. 77.

4 December 1, 2009 Mortgage and Settlement Statement, Ex. A2, Notice of Suppl. Authority, Dkt. No. 77. resided at the Property since 2017.5 They fell into default on the Mortgage in July 2021.6 On September 14, 2021, Aroostook sent the Debtors a “35-Day Notice of Right to Cure Default” letter (the “September 2021 Letter”), providing the Debtors 35 days to pay a $5,979.45 default balance, and further providing that if the Debtors failed to timely cure the default, Aroostook would foreclose on the mortgage.7

The Debtors listed the Property for sale on October 25, 2021 to avoid foreclosure litigation, informing Aroostook by email. Aroostook later proposed a deed in lieu of foreclosure. In an email dated November 18, 2021, in which Aroostook requested a response to its proposal, Aroostook indicated that a representative had visited the Property, that the furnace was not working, and that there was no oil in the tank. As a result, a technician was called to fix the furnace and to put fuel into the tank to protect the Property from frozen pipes and frost damage. The Debtors then responded on November 23, 2021, demanding that Aroostook cease communications with the realtor and return any keys in their possession. In January 2022, Aroostook filed a complaint against the Debtors in Aroostook County

Superior Court for foreclosure of the Property (the “Foreclosure Case”). In response, the Debtors filed an answer and asserted several counterclaims.8 At some point between late April and late May 2022, Sandy Marrett returned to Maine and discovered that the Property had been damaged by water, which the Debtors assert is Aroostook’s fault.

5 See Nov. 20, 2025 Hr’g Tr. 21:4–6, Case No. 25-30440-EDK, Dkt. 214.

6 See September 14, 2021 35-Day Notice of Right to Cure Default, Compl., Ex. A-2, Dkt. No. 1.

7 Id.

8 The Debtors asserted five counterclaims: (1) breach of the duty of good faith and fair dealing; (2) economic duress; (3) tortious interference with contract; (4) breach of contract; and (5) unfair trade practices. See Answer, Affirmative Defenses, and Countercl., Ex. B-1, Compl. Sandy Marrett filed an insurance claim through Zurich’s online portal on May 25, 2022 after obtaining information on force-placed insurance from Aroostook. Zurich denied the claim on May 31, 2022, stating that “[t]he policy is a contract with [Aroostook] and they are the insured. . . . [T]he insured has confirmed they are not pursuing a claim . . . .”9

On August 16, 2022, Maine Superior Court Justice Stephen Nelson, sitting in Aroostook County, issued an order recusing himself from the Foreclosure Case and transferring the Foreclosure Case to the Penobscot County Superior Court (the “Recusal Order”).10 Approximately two weeks later, on August 31, 2022, Chief Justice Robert E. Mullen of the Maine Superior Court issued an order acknowledging that the Foreclosure Case was to be transferred to Penobscot County and specifically assigning all matters related to the Foreclosure Case to Justice Bruce Mallonee (sitting in the Penobscot County Superior Court) (the “Special Assignment Order”).11 In January 2023, the Debtors removed the Foreclosure Case to the United States District Court for the District of Maine.12 Souza appeared as counsel for Aroostook in federal court. Ultimately, on April 10, 2023, the District Court granted Aroostook’s motion to remand, holding that the removal was untimely.13 Meanwhile, in an order dated March 3, 2023, the state court

denied the Debtors’ motion for leave to amend their counterclaims.14 The court articulated two reasons for denial: first, permitting amendment would cause undue prejudice, and second, the

9 Email dated May 31, 2022, 3:34 p.m., Compl., Ex. K.

10 Recusal Order, Compl., Ex. M. 11 Special Assignment Order, Compl., Ex. O.

12 Order on Mot. to Remand, Aroostook Mot. to Dismiss, Ex. 3, Dkt. No. 33.

13 Id.

14 Order on Defs.-Counterclaimants’ Mot. for Leave to Amend and Suppl. Countercl. and Mot. to Strike, Compl., Ex. Q-2. proposed amendments were futile because they failed to state claims upon which relief could be granted.15 In the order, the court noted that some of the proposed amended counterclaims were brought under the implementing regulations of the Real Estate Settlement Procedures Act (“RESPA”), known as Regulation X, specifically 12 C.F.R. §§ 1024.39(a)–(b) and 1024.41(f), and concluded that such claims would be futile.16 Before the case was remanded to state court, Druary

filed on the federal docket a copy of the state court’s March 3, 2023 order denying leave to amend.

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In re: David T. Marrett, Sandy J. Marrett v. Aroostook County Federal Savings & Loan, Zurich North American Insurance Company, Solman & Hunter, P.A., Marden Dubord, Bernier & Stevens, P.A., O'Donnell, Lee, Marden, Dubord, Monaghan Leahy, LLP, William, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-david-t-marrett-sandy-j-marrett-v-aroostook-county-federal-mab-2026.