Seagull Condo Ass'n v. First Coast Realty & Dev.

CourtSuperior Court of Maine
DecidedJuly 12, 2012
DocketYORcv-09-93
StatusUnpublished

This text of Seagull Condo Ass'n v. First Coast Realty & Dev. (Seagull Condo Ass'n v. First Coast Realty & Dev.) 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
Seagull Condo Ass'n v. First Coast Realty & Dev., (Me. Super. Ct. 2012).

Opinion

STATE OF MAINE SUPERIOR COURT YORK, ss. CIVIL ACTION DOCKET NO: cy-09-9~ / ,. 1, ;·. 1' . .._. \ 7 .-;/ .L 1 -o;-, ·Yr)('·'- " ' . / "'·- SEAGULL CONDOMINIUM ASSOCIATION,

Plain tiffI Counterclaim Defendant

v.

FIRST COAST REALTY & DEVELOPMENT, LLC

Defendant/Counterclaim Plaintiff

and

ST. JEAN'S CREDIT UNION and MARGARET O'NEIL

Parties- in-Interest

ORDER ON PLAINTIFF /COUNTERCLAIM DEFENDANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT

Before the court is the Plaintiff/Counterclaim Defendant's Motion for Partial

Summary Judgment on Counts V (tortious interference), VI (slander of title), and VII

(defamation) of the Defendant/Counterclaim Plaintiff's Counterclaim. The motion

has been fully briefed and oral argument was held on June 6, 2012.

BACKGROUND

Seagull Condominiums is a condominium complex located in Wells, Maine

and created through an August 2003 condominium declaration. (Pl. SMF ~~ 3, 5.)

The interest of the original declarant, Broderick Associates, was purchased by the

1 Wells Group, LLC. (Pl. SMF ,-r,-rs, 7.) First Coast Realty & Development, LLC ("First

Coast"), solely owned by Harry Zea, later acquired Wells Group, LLC and is now the

"Declarant" of the Seagull Condominium. (Pl. SMF ,-r,-r 2, 11; Def. Add'l SMF ,-r 1.) The

Seagull Condominium Association ("Seagull" or the "Association") is the ownership

association governing the Seagull Condominium complex. (Pl. SMF ,-r 4.)

Management decisions are made by the Board, which is comprised on individual

owners.

The Rental Program

Seagull operates a rental program for the condominium units. Under the

Town of Wells Zoning Code, it is required to make the units available for rent by the

traveling public and is required to maintain an office on the premises to facilitate

this. (Pl. Resp. to Def. Add'l SMF ,-r 16.) The Association takes a 25 to 28 percent fee

of the rental price as an administrative fee regardless of whether the unit owner

rented the unit or the Association rented the unit. (Def. Add'l SMF ,-r,-r 11, 16.) This

program has been operating since the time when the Wells Group LLC as the

"declarant."

In March 2009, one Association Board member, Ms. Higgins, raised questions

as to the lawfulness of the rental program in an email to other Board members.

(Def. Add'l SMF ,-r 17.) Her analysis was based on the condominium Declaration and

Bylaws. (Def. Add'l SMF ,-r,-r 18-19.) Two other board members, Mr. Zaharchuk and

Mr. Roth, met with Ms. Higgins after she sent this email and attempted to "convince"

her that her interpretation was incorrect. (See Def. Add'l SMF ,-r,-r 20-28.) The

Association has apparently continued to operate the rental program after this

discussion. 2 The ''First Packet" and "Lender Beware" Documents

In early January 2009, Linda Starr and Laurie Sprague, both owners of units

in the Association, received a packet of materials containing approximately four

pages of public documents. (Pl. SMF ,nf 27-29.) These documents contained references to Mr. Zea and his wife, Alison. (Pl. SMF ,-r 30; Def. Reply ,-r 30.) Ms. Starr

contacted Mr. Zea to report that she had received these documents. (Pl. SMF ,-r 31.)

Mr. Zea stated that he did not know who sent the materials and that he had no

reason to believe that it was a Board member. (Pl. SMF ,-r 32.) Ms. Starr stated that,

although she is not a handwriting expert, she thought that the writing on the

envelope looked like that of Ms. Gagliastre, another unit owner and former Board

member. (Pl. SMF ,-r,-r 33-34.) Ms. Gagliastre testified that she did not know who

sent the packet. (Pl. SMF ,-r 36.)

A some point after AprillO, 2009, a packet of documents containing a cover

sheet with the words "Lender Beware" was allegedly sent to area lenders by the

Association to hinder First Coast's ability to obtain financing. (Pl. SMF ,-r,-r 39-40.)

The documents contained in this packet are also public records but related to First

Coast Realty and Development Corp., not LLC, a separate and distinct entity than the

defendant in this case. (Def. Add'l SMF ,-r 7 5.) Only one individual, Mr. Stone,

President of the Bank of New England, testified to having received documents

similar to those contained in the "Lender Beware" packet. (Def. Reply. SMF ,-r 60.)

Mr. Stone testified that he thought it would have been inappropriate to take notice

of these documents and he discarded the materials. (Pl. SMF ,-r 60 and Reply ,-r 60.)

The contents of the loan files of other lending institutions did not reveal any of these

documents and Mr. McCarren, also of Bank of New England, stated that he was not 3 aware of the decision to deny extending credit to First Coast to have been made in

reliance on these documents. (Pl. SMF YY 57, 60, 61.) First Coast was denied a

renewal of his credit by Bank of New England and was also denied credit from

Sanford Institute for Savings. (Pl. SMF YY 55, 59.)

The Association claims to have no knowledge of who created or sent either

packet of documents. (Pl. SMF Y45.) It also claims to have no role in authorizing

such documents to be sent. (Pl. SMF Y46.) First Coast alleges that Mr. Zaharchuk

sent the "Lender Beware" materials, on behalf of the Association, based on a

conversation Ms. Gagliastre had with Mr. Zaharchuk in which she stated that she

believed he had sent the documents and he did not deny sending them but did claim

that the documents did not exist. (Def. Add'l SMF yy 67-68.)

Purchase and Sale Agreement with the Iannaccheros

In November 2009, First Coast entered into a purchase and sale agreement

with Antonio Iannacchero and Ruby Allen (the "Iannaccheros") for the purchase of

Unit #1 at Seagull, an undisputedly declared unit. (Def. Add'l SMF y 76.) The

Iannaccheros ultimately did not purchase the unit in part because they (apparently

as advised by their attorney) did not believe that the Association Board had the

authority to impose the fees associated with the rental program based on the

language of the declaration and lack of authority from the condominium members.

(Def. Add'l SMF y 81.) They were also concerned about the practice of imputing

rental income to the owner if a relative stayed in the unit. (Def. Add'l SMF y 78.)

Their agent states that the Association Board assured them that an exception was

made for family members even though that practice contradicted the rules and that

the rules were to be changed in the near future to reflect that practice. (De f. Add'l 4 SMF ,-r 79.) Despite those assurances, the rule was not changed. (Def. Add'l SMF ,-r

80.)1

Procedural History

This action began with Seagull's filing of its Complaint on or about September

15, 2009 through which it sought recovery of back assessments on two declared

condominium units. (Pl. SMF ,-r,-r 12, 13.) First Coast filed a Counterclaim against

Seagull alleging five causes of action involving those and other condominium units.

(Pl. SMF ,-r 17.) In response, Seagull filed an Amended Complaint that included all of

the outstanding issues it believed existed between the parties and filed a Notice of

Lis Pendens, referencing the Amended Complaint, in the York County Registry of

Deeds. (Pl. SMF ,-r,-r 18-22.) First Coast then amended its Counterclaim to add

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