Former country club goes to court
The case of the Bank of Maine versus the Boothbay Country Club is nearing its next phase.
The two sides met June 17 at Kennebec County Superior Court, where the Bank of Maine tried to have the case dismissed and Jim Reeves and the Boothbay Country Club tried to move the case forward.
Judge John Nivison said a ruling would be forthcoming as to whether or not the case would be dismissed.
Boothbay Country Club and Jim Reeves filed a complaint in March arguing that the sale of the country club to Paul Coulombe should be voided because there was an alleged misuse of confidential information and that the sale was not public and held too far from the club.
The Bank of Maine moved to have the case dismissed, saying that there was not enough evidence and that there was nothing in the suit that could potentially void the sale.
The suit stems from the sale of the foreclosed Boothbay Country Club, now known as Boothbay Harbor Country Club, to Coulombe for $1.4 million.
Sumner Lipman, Reeves company's lawyer, said the handling of the auction warrants his client's case to be moved forward with the goal of voiding the sale.
Lipman said there could have been another potential buyer willing to spend more money and decrease the amount owed. However, Lipman alleged that because the auction wasn't public and was held too far from the club a potential bidder might have been excluded.
A notice was posted in magazines and newspapers for three weeks prior to the auction and the club's owners and the Lincoln County Registry of Deeds were notified ahead of time.
The bank is still owed $1.09 million on a $2.5 million loan; if another buyer purchased the club for a greater sum, the amount owed would have been lower, Lipman said.
One of the points raised was that there was a conspiracy between the Bank of Maine and Coulombe because both utilized attorneys from Bernstein Shur, to which the Bank of Maine attorney's said that such a situation is common in a small state like Maine, but that there was no evidence of information sharing.
Lawyers from Augusta's Bernstein, Shur, Sawyer and Nelson were used during the auction and to represent Coulombe during the same auction.
Lipman alleges that information was shared internally at the law firm but couldn't show how without discovery.
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