Zemco Industries, Inc. v. FCW Technologies, Inc.

CourtSuperior Court of Maine
DecidedJanuary 20, 2004
DocketKENcv-02-85
StatusUnpublished

This text of Zemco Industries, Inc. v. FCW Technologies, Inc. (Zemco Industries, Inc. v. FCW Technologies, 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
Zemco Industries, Inc. v. FCW Technologies, Inc., (Me. Super. Ct. 2004).

Opinion

STATE OF MAINE SUPERIOR COURT

CIVIL ACTION KENNEBEC, ss. DOCKET NO. CV-02-85 ZEMCO INDUSTRIES, INC, Plaintiff Vv. DECISION AND ORDER FCW TECHNOLOGIES, INC., ue nee se et al, Pa we me wit wf Defendant FEB $ (%yué

This matter is before the court on motion for summary judgment by defendant Michael D. McLucas on crossclaim of defendant, FCW Technologies, Inc. The underlying complaint alleges that FCW Technologies, Inc. contracted with plaintiff Zemco Industries, Inc., d/b/a Jordan’s Meats, Jos. Kirschner Co., for the installation of an “FCW Rosin Laminate Floor System” in designated areas of the meat processing facility of the plaintiff in Augusta, Maine. The contract required that the area to receive the new flooring was to be clear of food and equipment, maintained at a specified temperature, maintained in a dry condition and that the specifications be completed 48 hours before the floor installation. Defendant FCW Technologies, Inc. subcontracted the floor installation to numerous defendants including MORMIC, Inc., a Pennsylvania corporation. It is alleged that a large amount of meat products, plaintiff’s finished product for sale, was ruined and subsequently necessarily destroyed because of the floor installation process. MORMIC, Inc.’s shareholder and employee is defendant Michael D. McLucas. Defendant McLucas has received summary judgment on the

complaint by this court on July 8, 2003, but remained as a crossclaim defendant. Defendant FCW Technologies, Inc. has brought a crossclaim against defendant MORMIC, Inc. and Michael McLucas seeking contribution and indemnification from MORMIC, Inc. and contribution and indemnification from McLucas. In its crossclaim, FCW avers the subcontract it entered with MORMIC, Inc. “whereby MORMIC agreed to provide labor for the performance of the Phase II work.” It also alleges that FCW entered into a contract agreement with MORMIC “whereby MORMIC agreed to provide labor for the performance of the Phase IT work.” Crossclaim, [J 6,9. FCW further alleges that defendant McLucas performed certain portions of the Phase II and Ill work. The crossclaim goes on to assert that by written contract, MORMIC expressly agreed to indemnify FCW for all loss arising out of any breach of warranty or negligence by MORMIC, Inc. of the performance of Phase II and Phase III work. With regards to the allegations arising out of the complaint of contamination of meat products during the performance of Phase III, FCW alleges in its crossclaim that MORMIC and McLucas had a duty to perform the work on the project in a good workmanlike manner.

In support of his motion for summary judgment, defendant Michael D: McLucas provides an affidavit noting the subcontract agreements entered into between FCW and MORMIC on December 6, 2000, and in September of 2000 to perform labor for the installation of the floor. It was apparently further agreed that neither MORMIC, Inc. nor McLucas ever had any contract directly with the plaintiff Zemco or Kirschner. Finally in his affidavit, McLucas makes it clear that all of his work in this project was as an employee of MORMIC, Inc., during Phase I, September 23-25, 2000, and Phase IIL, March 16-18, 2001.

Crossclaim defendant argues that before the court may pierce the corporate veil,

a plaintiff must establish that (1) the defendant abused the privilege of a separate Go

corporate entity, and (2) an unjust or inequitable result would occur if the court recognized the separate corporate existence. Johnson v. Exclusive Props. Unlimited, 720 A.2d 568, 1998 ME 244: Snell v. Bob Fisher Enterprises, Inc., 106 F.Supp. 2d 87 (D.C. Me. 2000). The court may pierce the corporate veil when equity so demands and may disregard the corporate entity when used to cover fraud, illegality, or to justify a wrong. Id. See also GMAC Commercial Mortgage Corp. v. Gleichman, 84 F.Supp. 2d 127 (D.C. Me. 1999). Unless fraud or misrepresentation is involved, there can be little justification for disregarding corporate entities which parties obviously expected to remain in tact. United Paperworkers Intern v. Union Pennttech Papers, Inc., 439 F.Supp. 610 (D.C. Me. 1977).

There is no disagreement of fact that the subcontract entered into by FCW which is the basis for the crossclaim was with MORMIC, Inc. alone and defendant McLucas is not a party to the contract. There is no evidence under the law as recited to justify piercing the corporate veil in order to impose personal liability upon defendant McLucas as an incorporator or shareholder. There does not appear to be express or implied contractual relationships between FCW Technologies and McLucas personally.

Crossclaimant’s opposition to the motion for summary judgment does not dispute the facts and it agrees that the work performed by McLucas was done in the capacity of a MORMIC, Inc. employee. However, crossclaimant points out that plaintiff's complaint alleges negligent performance of that work by the defendant and argues that its crossclaims arise out of that negligent performance complaint. Going further, “FCW agrees that Mr. McLucas is not liable to FCW on a contract theory of liability, but that Mr. McLucas is liable to FCW on a tort theory of liability, based on his own negligent acts in carrying his work on the project. To the extent that Mr. McLucas

performed his work on this project negligently, and his negligence was a proximate cause of the damages sustained by plaintiff, FCW may properly assert contribution and indemnity actions against Mr. McLucas.” Defendant FCW Technologies, Inc. Opposition to Motion for Summary Judgment by Defendant Michael McLucas, p. 2. FCW recites RESTATEMENT, SECOND. OF AGENCY, § 343, for the proposition that: “An agent who does an act otherwise a tort is not relieved from liability by the fact that he acted at the command of the principal or on account of the principal...“ FCW then goes on to argue a hypothetical situation comparing the negligence of defendant McLucas were he to be engaged in a traffic accident while arriving at a job site working for his corporation.

Summary judgment is proper if the citations to the record found in the parties’ Rule 56(h) statements demonstrate that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. See Dickinson v. Clark, 2001 ME 49, J 4, 767 A.2d 303, 305. “A fact is material if it has the potential to affect the outcome of the case under governing law.” Levine v. R.B.K. Caly Corp., 2001 ME 77, 7 4, n.3, 770 A.2d 653, 655, n.3 (citing Burdzel v. Sobus, 2000 ME 84, J 6, 750 A.2d 573, 575). “The invocation of the summary judgment procedure does not permit the court to decide an issue of fact, but only to determine whether a genuine issue of fact exists. The Court cannot decide an issue of fact no matter how improbable seem the opposing party’s chances of prevailing at trial.” Searles v. Trustees of St. Joseph’s College, 1997 ME 128, 7 6, 695 A.2d 1206, 1209 (quoting Tallwood Land & Dev. Co. v. Botka, 352 A.2d 753, 755 (Me. 1976)). To avoid a judgment as a matter of law for a defendant, a plaintiff must establish a prima facie case for each element of her cause of action. See Fleming v. Gardner, 658 A.2d 1074, 1076 (Me. 1995).

The obvious question is whether defendant McLucas can be held jointly liable for

contribution or indemnification purposes with FCW if it is found liable in the underlying action even though this court has found no contractual relationship between FCW and McLucas. Logic dictates that if Michael D.

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