ROCKLAND — The attorneys for Rockport 1075 LLC filed a lawsuit in Knox County Unified Court in October against Kenneth DePasquale, of Ocala, Florida., who was the former operating manager at Walker’s Restaurant in Rockport, and which closed its doors for business in early September.

In the lawsuit, Rockport 1075 LLC alleges a breach of fiduciary duties, breach of contract with the operating agreement and unjust enrichment against DePasquale, according to the court document.

The suit states that Rockport 1075 LLC was doing business as Walker’s Restaurant, a limited liability company that is owned equally by Rockport 1075 LLC and DownEast Development LLC.

In addition to acting as the operating manager of Walker’s, DePasquale was also the manager of DownEast Development, according to the lawsuit.

The operating agreement between Rockport 1075 and DownEast Development stated that the operating manager of Walker’s could not agree to incur or refinance any indebtedness on behalf of the company in excess of $15,000, without the vote of the members.

According to the lawsuit, Rockport 1075 had not been aware that DePasquale had agreed to over $85,000 in renovations to the property with McCormick and Associates, a contracting firm in Rockport.

The suit further alleges that when Rockport 1075 reviewed the financial records, they found inconsistencies with DePasquale’s accounting and treatment of cash transactions, accounts payable and of capital advances, made to Walkers’ by Rockport 1075 and DownEast. The records also indicate that DePasquale allegedly provided capital advances in substantially greater amounts than DownEast.

DePasquale resigned as the operating manager at Walkers Aug. 10, according to the court document.

On September 11, McCormick recorded a mechanic’s lien on the property for $42,214. Rockport 1075 stated in the lawsuit that it contributed approximately $14,000 in additional capital to Walker’s, but it was not used to pay a part of the money owed to McCormick for the renovations.

The attorneys for DePasquale filed a response in Knox County Unified Court Nov. 16. The court document states that their client denies many of the allegations, that Rockport 1075 has not made a reasonable effort to resolve the alleged dispute on an amicable basis, and has also failed to arbitrate the disputes as required by the operating agreement.

Rockport 1075 LLC is represented by attorneys D. Sam Anderson and Conor Shankman, of Bernstein Shur in Portland.

DePasquale is represented by attorneys Stephen Hanscom and Jamie Levensaler, of Rockland.

Reach Sarah Shepherd at news@penbaypilot.com