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Staab Agency, Inc. v. L A Delano Agency
CUMcv-13-24
Me. Super. Ct
Dec 10, 2013
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Background

  • Staab Agency, Inc. owned by Shirley St. Pierre, titles and registers vehicles for out-of-state customers.
  • Luke A. Delano was hired in 2005 as St. Pierre's assistant and later managed administrative duties including payroll and checks.
  • St. Pierre executed an Agreement Not to Compete or Disclose in Oct. 2007; Delano witnessed others’ signatures but did not sign, with dispute over whether he should have.
  • St. Pierre was incarcerated from 2009 to 2010 for federal tax evasion; Delano managed the Staab office during her incarceration under a power of attorney.
  • Delano remained in management after St. Pierre’s return in 2010, continuing to issue checks to Staab employees and family members.
  • In 2012 Delano left Staab and formed the Delano Agency, a competing vehicle titling business; in 2013 Staab and St. Pierre filed suits asserting four counts against Delano and the Delano Agency.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether injunctive relief is warranted Plaintiffs contend Delano violated the noncompete and misappropriated information. Delano did not sign the agreement and misappropriation is unsupported by record. Count One granted to Defendants; no irreparable harm shown.
Whether embezzlement occurred Delano issued unauthorized $5,000 checks to himself. Delano was authorized to issue the checks according to St. Pierre’s directives. Count Two denial; issue of authorization fact-for-finder; material facts disputed.
Whether misappropriation of software/information occurred Delano misappropriated Staab's proprietary software/information. Delano uses his own purchased software; no Staab misappropriation. Count Three granted to Defendants; no genuine issue of material fact shown.
Whether punitive damages are warranted Delano acted with actual or implied malice in embezzlement/misappropriation. Punitive damages require clear, convincing evidence; disputed facts remain. Count Four denied; issue reserved for fact-finder; not conclusively proven at summary judgment.

Key Cases Cited

  • Shrader-Miller v. Miller, 2004 ME 117 (Me. 2004) (punitive damages standard and thresholds discussed)
  • Tuttle v. Raymond, 494 A.2d 1353 (Me. 1985) (malice and punitive damages standards reference)
  • Beal v. Allstate Ins. Co., 2010 ME 20 (Me. 2010) (summary judgment standards and burden of proof)
  • Lightfoot v. Sch. Admin. Dist. No. 35, 2003 ME 24 (Me. 2003) (summary judgment standards; light burden on moving party)
  • Reliance Nat'l Indem. v. Knowles Indus. Svcs., 2005 ME 29 (Me. 2005) (summary judgment burden and prima facie showing)
  • Inkel v. Livingston, 2005 ME 42 (Me. 2005) (genuine issue of material fact standard)
  • Kenny v. Dep't of Human Svcs., 1999 ME 158 (Me. 1999) (procedural standards for summary judgment)
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Case Details

Case Name: Staab Agency, Inc. v. L A Delano Agency
Court Name: Superior Court of Maine
Date Published: Dec 10, 2013
Citation: CUMcv-13-24
Docket Number: CUMcv-13-24
Court Abbreviation: Me. Super. Ct