Maine Stream Seafood v. Portland Fish Exchange

CourtSuperior Court of Maine
DecidedMay 22, 2006
DocketCUMap-04-016
StatusUnpublished

This text of Maine Stream Seafood v. Portland Fish Exchange (Maine Stream Seafood v. Portland Fish Exchange) 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
Maine Stream Seafood v. Portland Fish Exchange, (Me. Super. Ct. 2006).

Opinion

, ,. . I

STATE OF MAINE ! , SUPERIOR COURT CUMBERLAND, ss. CIVIL ACTION Docket No. AP-04-016 1

/ - .. : f

MAINE STREAM SEAFOOD, INC. and CLINTON C. RAY

Appellants / l'laintiffs,

v. DECISION AND JUDGMENT

PORTLAND FISH EXCHANGE

Appellee / Defendant

This is an appeal pursuant to M.R.Civ.P BOB

I, BACKGROUND

On March 2,2004, the Portland Fish Exchange ( ~ x c h a n ~ eacting )', through its

general manager, suspended Maine Stream Seafood's (Maine Stream) privileges as a

seat-holder at the Exchange effective that day. The manager indicated that the

suspension was occurring for two reasons: (1)evidence that Maine Stream arranged for

theft of product from Exchange buyers, and (2) evidence that Maine Stream arranged to

have the weight of the product it shipped from the Exchange deliberately mislabeled.

The letter of suspension also indicated that Maine Stream employees Clinton Ray and

Craig Carrington were barred from the Exchange. The letter stated that the recipients

would have the opportunity to respond to issues raised in the letter.

Plaintiffs' counsel immediately wrote to the Exchange, demanding that the

plaintiffs be allowed the chance to hear and respond to the allegations against them.

1 The Portland Fish Exchange is a quasi-governmental organization that coordinates the wholesale distribution of fresh fish brought into the Portland market by commercial fishermen. It is operated under the supervision of the City of Portland. A Rule 80B appeal is appropriate. Pursuant to the Exchange's own rules, the manager can suspend Maine Stream's

seat under "extraordinary circumstances," whch the plaintiffs allege was not the case

here. Furthermore, the plaintiffs allege that the suspension violated procedural fairness

and due process.

Plaintiffs' counsel sent the Exchange another letter several days later aslung that

the Exchange explain what had been said about the plaintiffs to cause the suspension.

The manager responded to the plaintiffs that there was other evidence of untoward

activity by Maine Stream, including that Maine Stream: (1)received one order of

blended seafood, (2) received parts stolen from another buyer and (3) warehoused

seafood coming from outside the Exchange at the Exchange in violation of Exchange

policy.

On March 9,2004 the Board of Directors of the Exchange held a special meeting

pursuant to Article V, Section 4 of the bylaws of the Portland Fish Exchange. Plaintiffs

were informed that there would be a meeting, but were not informed of the agenda or

the type of action that could result. On the day of the hearing, for the first time, the

Exchange sent an e-mail to plaintiffs containing detailed information regarding the

charges against them. The e-mail contained the names of employees whom the

Exchange claimed would gtve damagng testimony aboutthem.. The Exchange also

stated that it had incriminating videotapes.

At the meeting, the management of the Exchange also had another written report

that contained other information. A copy was given to plaintiffs at the begtnning of the

hearing. The report stated that the fired Exchange employees were acting on behalf of

Maine Stream (the employees had been terminated for fish theft). In the report four

Exchange employees state that Gronlund (one of the fired employees), who ran the

weighing station, was performing the slumming. Three of the employees implicated Maine Stream and Clinton Ray. Two of the employees indicated that they had seen

money pass from Ray to one of the terminated employees. All of the Exchange

employees interviewed believed that the terminated Exchange employees were

engaged in skimming and that Maine Stream had benefited from the slumming.

The report also stated that on the day that the Exchange employees were

terminated Clinton Ray arrived at the Exchange manager's office and stated that he had

told Exchange employees to weigh his boxes short2and he hoped that no one would be

fired because of that. At the time of h s conversation, only one of the two employees

had been terminated.

At the hearing, plaintiffs' counsel objected to the proceeding because the

plaintiffs were not gven sufficient notice of the charges against them. Plaintiffs

complained that they were not allowed the chance to review evidence or interview

witnesses before the hearing. The Board chose to proceed with the hearing. At the end

of the hearing, several members indicated that they would like to review the videotape

evidence, however the Board finally decided not to view the tapes and rather to proceed

on their manager's word. At the conclusion of the hearing, the Board voted to suspend

Ray and Carrington from the Exchange for life and Maine Seafood for three years.

Plaintiffs allege that pursuant to Section 2.8, the Board may suspend a seat holder

because of a violation of the rules, failure to pay the Exchange in accordance with the

rules, or for other good cause as determined by the Board. Plaintiffs claim that the

Board does not have any rules and/or regulations relevant to labeling and weiglung

fish and that furthermore it was the Exchange's own employees who packed and

2 There is debate as to exactly how short Ray requested that the boxes be weighed. The Board seized on 55 pounds, but one of the terminated Exchange employees said that Ray requested that the fish be packed in the 55-60 pound range. The Exchange manager did admit that there was often mayhem on the floor and that it was difficult to produce consistent weights from box to box. Most boxes packed (in boxes labeled 60 Ibs) range from 57-61 pounds. weighed the fish, not Maine Stream's employees. Plaintiffs also contend that if they had

been told that their request to short weight boxes was against the Exchange's rules, they

would have accepted that, but no one ever told them that it was until they were

suspended"

Plaintiffs allege (1)that the hearing process lacked procedural fairness and was a

violation of due process; (2) that the Board acted improperly in suspending plaintiffs;

and (3) that the Board and the manager were biased against the plaintiffs

11. STANDARD OF REVIEW

In a Rule 80B appeal, this court must decide whether, in the decision below, there

was an abuse of discretion, an error in interpretation of the law, or findings not

supported by substantial evidence in the record. Senders v. Town of Columbia Falls, 647

A.2d 93, 94 (Me. 1994), Grant's Farm Associates, Inc., v. Town of Kittery, 554 A.2d 799, 801

(Me. 1989). The board's decision is affirmed unless it is unlawful, arbitrary, capricious

or unreasonable. Senders, 647 A.2d at 94. The findings will not be dsturbed if

supported by substantial evidence contained in the record, such that a reasonable

person would accept as adequate to support the final conclusion. Palesky v. Town of

Topsham, 614 A.2d 1307,1309 (Me. 1992). A court cannot substitute its own judgment

for that of the board. Boivin v. Town ofsanford, 588 A.2d 1197, 1199 (Me. 1991). If there

is evidence in the record to support the board's conclusion, the fact that the record

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Related

Mathews v. Eldridge
424 U.S. 319 (Supreme Court, 1976)
Senders v. Town of Columbia Falls
647 A.2d 93 (Supreme Judicial Court of Maine, 1994)
In Re Kristy Y.
2000 ME 98 (Supreme Judicial Court of Maine, 2000)
Grant's Farm Associates, Inc. v. Town of Kittery
554 A.2d 799 (Supreme Judicial Court of Maine, 1989)
Boivin v. Town of Sanford
588 A.2d 1197 (Supreme Judicial Court of Maine, 1991)
Palesky v. Town of Topsham
614 A.2d 1307 (Supreme Judicial Court of Maine, 1992)

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