In a decision rendered on June 17, 2010 by the United States District Court in Maine, Judge Hornby found that Tetra Financial Group had committed fraud when negotiating an equipment lease with MCM client House of Flavors, Inc. House of Flavors is a manufacturer of bulk and speciality ice creams with its executive offices in Portland, and manufacturing facilities in Michigan. In 2006, House of Flavors sought bids for equipment financing for new ice cream manufacturing equipment that it needed. Negotiations ensued with Tetra Financial Group, which offered advantageous terms, based upon representations regarding the end of lease purchase price for the equipment. When lease end came, Tetra refused to honor the represented price. After trial, the District Court found that Tetra had committed common law fraud, and ordered recision of the transaction. Under Judge Hornby’s order, House of Flavors will retain the equipment it leased, and will receive a refund from Tetra for all amounts paid over and above the “principal” advanced by Tetra, and an imputed interest rate as determined by the Court. Lead trial counsel for House of Flavors were MCM partners Lee Bals and Jennie Clegg. Paralegal assitant Karen Stone did her usual fine job in keeping the trial team organized and on target.
Chambers USA Again Lists George Marcus In Top Tier Chambers & Partners.
A leading publisher of global guides to the legal profession has once again, in 2010, listed senior partner George Marcus in the top tier of Corporate M&A/Bankruptcy practitioners in Maine. In its USA Guide, Chambers reports: “The highly visible and high-quality George Marcus of Marcus, Clegg & Mistretta PA specializes in Chapter 11 work and has been called ‘one of the brightest lights in Maine.‘” When informed of the accolade, George stated: “Well, that’s kind of like being damned with feint praise; what about the rest of the Universe?” Cheer up, George. MCM is very proud.
MCM successfully represented its client, Alexander Baldwin, in an appeal to the Maine Supreme Judicial Court of a judgment entered by the Maine Superior Court in August of 2009. At that time, a jury trial was held in Androscoggin County Superior Court on claims brought by Wahlco Metroflex, Inc. a Delaware corporation doing business in Maine, against its former President and Director, Alexander Baldwin, concerning alleged breaches of fiduciary duty. Although the jury found in favor of Mr. Baldwin on most counts of the Complaint, judgment was rendered in favor of Wahlco Metroflex on two counts. MCM filed a notice of appeal to the Maine Supreme Judicial Court. In its decision issued on March 25, 2010, the Court reversed the Superior Court, holding that it had improperly instructed the jury, and had made errors of law on equitable claims submitted to the Court as well. Congratulations go to partners Lee Bals and Dave Johnson on this successful outcome.
Learn more about Lee Bals and Dave Johnson.