Pelletier v. Pelletier
2012 ME 15
| Me. | 2012Background
- Brothers Paul and John Pelletier formed St. Sauveur Development Corporation and transferred motel and other properties to it.
- Around 1999 Paul withdrew from active management; John continued to run the business.
- In 2002 the parties arranged an appraisal valuing properties at $4,208,000 to facilitate equalization.
- They agreed Paul would receive three properties and John would receive the rest, with John paying Paul to equalize value.
- From 2004 to 2008 Paul received periodic payments; 2005 accountant analysis helped shape the payment terms and interest.
- In 2010 the court held an equitable division based on 2002 values and ordered John to pay interest at 6% from the appraisal; this was later partially vacated on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2002 agreement was enforceable | Pelletier contends terms were definite enough. | John argues agreement lacked essential terms until 2005. | Agreement found enforceable based on 2002 terms and subsequent actions. |
| Whether interest accrual from 2002 was correct | Paul alleges interest from 2002 per 2002 appraisal. | Interest should start after the 2005 accountant’s analysis. | Error; interest should accrue from 2005 forward, not 2002. |
| Whether the 2009 check constituted accord and satisfaction | Paul should have accepted the 2009 check as final payment. | No clear intent the check settled all obligations. | No accord and satisfaction inferred; not compelled to find final payment. |
Key Cases Cited
- Fitzgerald v. Hutchins, 2009 ME 115 (Me. 2009) (contract terms may be supplied by reasonableness when missing terms exist)
- Carter v. Beck, 366 A.2d 520 (Me. 1976) (existence of a contract is for the fact-finder when terms are disputed)
- VanVoorhees v. Dodge, 679 A.2d 1077 (Me. 1996) (credibility of witnesses within fact-finder’s purview)
- Malenko v. Handrahan, 2009 ME 96 (Me. 2009) (trial court inferences assumed on appeal in absence of Rule 52(b) motion)
- Price-Rite Fuel, Inc., 2011 ME 76, 24 A.3d 81 (Me. 2011) (statements of fact review standard; clear error standard)