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