Old Town Utility & Technology Park, LLC. v. Consolidated Edison Solutions, Inc.

CourtSuperior Court of Maine
DecidedNovember 5, 2020
DocketCUMbcd-cv-20-17
StatusUnpublished

This text of Old Town Utility & Technology Park, LLC. v. Consolidated Edison Solutions, Inc. (Old Town Utility & Technology Park, LLC. v. Consolidated Edison Solutions, Inc.) 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
Old Town Utility & Technology Park, LLC. v. Consolidated Edison Solutions, Inc., (Me. Super. Ct. 2020).

Opinion

STATE OF MAINE SUPERIOR COURT CUMBERLAND, ss. BUSINESS AND CONSUMER DOCKET DKT. NO. BCD-CV-20-17

OLD TOWN UTILITY & ) TECHNOLOGY PARK, LLC, et al., ) ) Plaintiffs, ) ORDER ON PLAINTIFFS’ MOTION ) FOR LEAVE TO FILE THIRD v. ) AMENDED COMPLAINT ) CONSOLIDATED EDISON ) SOLUTIONS, INC., et al. ) ) Defendants. )

Pending before the Court is a motion to amend complaint brought by Plaintiffs Old Town

Utility & Technology Park, LLC, Relentless Capital Company, LLC, and Samuel Eakin. 1

Defendants Consolidated Edison Solutions, Inc., Con Edison Clean Energy Business, Inc.,

Consolidated Edison Development, Inc., Consolidated Edison Energy, Inc., Ward Strosser, Jack

Bosch, Mark Noyes, Paul Mapelli, James W. Sewall Company, David Edson, Treadwell Franklin

Infrastructure Capital, LLC, and Stephen Jones oppose the motion. The Trustees of the University

of Maine System and the current and former Chancellor of the University of Maine System (the

“University Defendants”) joined the aforementioned opposition and filed a separate opposition to

the motion to amend. 2

The Court convened a hearing on September 23, 2020 and took the motion under

1 The Court will refer to Plaintiffs collectively and individually throughout the order depending on which is necessary for clarity. 2 James Page was the Chancellor during relevant time periods in this case but retired in December 2018. He is a party in his individual and formerly official capacity, but there still appears to be a claim alleged in the proposed amended complaint that would apply against the current Chancellor. Attorney Ruprecht represents James Page in his individual capacity and for the Chancellor of the University of Maine System, while Attorney Strawbridge represents the Trustees of the University of Maine System, though they co- signed their separate opposition.

1 advisement. After review of the proposed amended complaint, the parties’ filings both in support

of and against the motion for leave to amend, Federal District Court Judge Jon Levy’s pertinent

orders issued while this case was in federal court, the relevant law, and consideration of the parties’

arguments at the hearing, the Court issues the following decision.

BACKGROUND

This case stems from an attempted purchase and redevelopment of the Old Town Mill and

a related plan to provide energy to the University of Maine. In effect, Plaintiffs contend that the

various Defendants were engaged in an elaborate scheme “to procure a lucrative multi-decade

energy performance contract to meet all the University [of Maine]’s energy needs, and were able

to do so because public entities and officials associated with the University of Maine System . . .

failed to follow laws regulating governmental procurement and public corruption.” (Prop. Amnd.

Compl. ¶ 1.) This scheme allegedly revolved around the Chancellor of the University of Maine

System at the time, James Page, and his undisclosed financial interest in Sewall. (Prop. Amnd.

Compl. ¶ 1.) Page allegedly manipulated a public bidding process in order to redound to the benefit

of other the other named Defendants. (Prop. Amnd. Compl. ¶ 1.) Plaintiffs contend this scheme

“deprived the Plaintiffs of valuable business opportunities to purchase and redevelop the former

Expera Mill Facility in Old Town, Maine, and to participate in implementation of an energy

performance contract with the University of Maine . . . .” (Prop. Amnd. Compl. ¶ 1.) The

numerous Defendants played various roles in this alleged scheme.

Because the proposed amended complaint does not substantively change the basic factual

allegations underlying this alleged scheme—other than eliminating the Racketeer Influenced and

Corrupt Organization Act (“RICO”) aspect of the complaint and attempting to provide more

specifics to bolster claims previously dismissed by Judge Levy—the Court incorporates Judge

2 Levy’s description of the general factual allegations. See Old Town Util. & Tech. Park, LLC v.

Consol. Edison, Sols., LLC, No. 2:19-cv-00029-JDL, 2019 U.S. Dist. LEXIS 168043, at *3-10 (D.

Me. Sep. 30, 2019). The procedural history of the attempted amendments is described in two

subsequent orders issued by Judge Levy. See Old Town Util. & Tech. Park, LLC v. Consol. Edison,

No. 2:19-cv-00029-JDL, 2020 U.S. Dist. LEXIS 94294, at *3-8 (D. Me. May 29, 2020); Old Town

Util. & Tech. Park, LLC v. Consol. Edison, Sols., Inc., No. 2:19-cv-00029-JDL, 2019 U.S. Dist.

LEXIS 222443, at *3-7 (D. Me. Dec. 30, 2019).

LEGAL STANDARD

Because Defendants raised the issue of whether Plaintiffs’ proposed amendments to the

complaint would be futile, the Court lays out the standard of review for a motion to amend and the

standard of review for a hypothetical motion to dismiss of the complaint were amendment to be

granted in full.

A party must obtain leave of the court to amend the complaint after a responsive pleading

is served, and “leave shall be freely given when justice so requires.” M.R. Civ. P. 15(a). “Courts

and commentators have repeatedly stressed that the Rule requires that leave to amend be liberally

granted.” Barkley v. Good Will Home Ass’n, 495 A.2d 1238, 1240 (Me. 1985). It is within the

trial court’s discretion whether to grant a motion to amend. Diversified Foods, Inc. v. First Nat’l

Bank, 605 A.2d 609, 616 (Me. 1992). Because the Rule provides that “leave shall be freely given

when justice so desires,” generally, absent the moving party’s bad faith or delay tactics, “the

motion will be granted in the absence of undue prejudice.” Id. However, futility of amendment

may be a reason to deny a motion to amend. Montgomery v. Eaton Peabody, LLP, 2016 ME 44,

¶ 13, 135 A.3d 106. When “a proposed amended complaint would be subject to a motion to

dismiss, the court is well within its discretion in denying leave to amend.” Id. (quoting Glynn v.

3 City of S. Portland, 640 A.2d 1065, 1067 (Me. 1994) (holding that when a proposed amended

complaint fails to state a claim for relief the trial court properly denied the plaintiffs’ motion).

“A motion to dismiss tests the legal sufficiency of the complaint, the material allegations

of which must be taken as admitted . . . .” Packgen, Inc. v. Bernstein, Shur, Sawyer & Nelson,

P.A., 2019 ME 90, ¶ 16, 209 A.3d 116 (citations omitted). While the Court must accept as true all

well-pleaded factual allegations in the complaint, it is “not bound to accept the complaint’s legal

conclusions.” Bowen v. Eastman, 645 A.2d 5, 6 (Me. 1994) (citing Robinson v. Washington Cnty.,

529 A.2d 1357, 1359 (Me. 1987)). “A dismissal is only proper when it appears beyond doubt that

[the] plaintiff is entitled to no relief under any set of facts that [it] might prove in support of [its]

claim.” Packgen, 2019 ME 90, ¶ 16, 209 A.3d 116 (alterations in original).

A complaint only needs to consist of a short and plain statement of the claim to provide

fair notice of the cause of action. Johnston v. Me. Energy Recovery Co., Ltd. P’ship, 2010 ME 52,

¶ 16, 997 A.2d 741. While Maine is a notice pleading state, that does not mean a plaintiff can

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