Ex-campground owner sues Eaton Peabody
The former owner of three campgrounds in the Ellsworth and Bar Harbor area has filed a malpractice lawsuit against law firm Eaton Peabody, seeking more than $6.7 million in damages.
Patty Rae Stanley of Tennessee filed the suit against Bangor-based Eaton Peabody and two of the firm's lawyers, Dan McKay and Sarah Zmistowski, Tuesday in U.S. District Court for breach of fiduciary duties. The suit alleges the firm failed to provide Stanley with adequate representation when she sold the campgrounds to Chicago-based Equity Lifestyle Properties in 2005. According to the lawsuit, Stanley did not understand the complicated deal, and alleged her lawyers "lacked the level of competence required to represent her or to protect her in this transaction."
Stanley -- who owned Mt. Desert Narrows Camping Resort, Narrows Too Camping Resort and Patten Pond Camping Resort -- believed she was selling the properties for $13.5 million, their fair market value, but instead received half that amount and was also required to pay off $4 million in outstanding debt on the properties. After taxes, Stanley netted less than $2 million from the sale, according to the suit.
The lawsuit asks a judge to award damages for economic harm and emotional distress, as well as punitive damages against the defendants.
Eaton Peabody has not formally responded to the lawsuit, but attorney Bernard Kubetz told the Bangor Daily News the law firm gave Stanley "appropriate advice...and provided good representation."
Most Recent
Most Recent
Comments