Judge rules in favor of South Thomaston in missing funds lawsuit
ROCKLAND — A judge has ruled in favor with the town of South Thomaston in its lawsuit against two former firefighters for not turning over approximately $15,000 that was designated by the South Thomaston Firemen's Association to the town.
Justice William Stokes agreed with almost all of points in the lawsuit against the defendants, former Fire Chief Wayne A. Brown and former firefighter Colin Grierson, both members of the now defunct South Thomaston Firemen’s Association, who were named as defendants in the lawsuit filed by the town in February 2015 in Knox County Superior Court.
The ruling requires that within 30 days, the defendants are ordered to provide an accounting of the association’s funds, including the principal and all accrued interest. The accounting will also include any withdrawals or disbursements, according to the court document.
The defense attorney for Brown and Grierson, Walter McKee of Augusta, stated in an email that: “We are reviewing the decision now to determine the next best steps. An appeal is certainly under consideration.”
According to the court documents, the funds were held in bank accounts controlled by the South Thomaston Firemen's Association, which dissolved in May 2007. At that time, the association voted that any money in its bank accounts would be turned over to the town for the purchase of a new fire truck.
The town states in the lawsuit that they never received the funds from the association.
Brown and Grierson have been in control of the association’s funds since it dissolved, according to the court documents.
In their defense, McKee filed a response in February 2015 stating their denials to the town’s claims in the lawsuit. Additionally, the response said that the town has no standing to file the lawsuit and that they were also barred by the statute of limitations.
The issue of the missing funds was publicly discussed at a Select Board meeting in 2010. Since then, town officials have made numerous demands to Brown and Grierson for the delivery of the funds. Responses from defendants have included avoidance, denials and assertions that the funds are being withheld contingent upon the town’s purchase of the fire truck, according to the court documents.
Although the monetary gift from the association to the town was dedicated by a vote of the South Thomaston Firemen’s Association to the purchase of a Class A pumper firetruck, delivery of the funds to the town for that purpose was not contingent upon the purchase being made, according to the court documents.
South Thomaston has since purchased a Class A pumper fire truck and the defendants have been made aware of the purchase, according to the court documents.
The suit further alleges that on July 15, 2010, Brown withdrew approximately $15,000 from the association’s bank accounts held at Camden National Bank. Brown also closed the accounts at the same time.
In March 2016, the Attorney General filed a motion to intervene in the case on behalf of the town. The presence of the Attorney General will not delay or offer any facts at the trial, but may offer arguments on legal issues, according to the court documents.
Superior Court Justice William Stokes granted the Attorney General’s motion to intervene on April 14 “for good cause shown.”
McKee, filed an objection to the Attorney General’s motion to intervene. Their objections include that the Attorney General has been aware of the dispute since 2014 and did not take any action.
A response to the defendants’ objection for the motion was then filed by the Attorney General. This response states that although the defendants were correct in their objection that the Attorney General has been aware for some time of the dispute, the office only recently learned of the present litigation. Additionally, that while a motion may be late in the case, the Attorney General has a statutory right to intervene as a necessary party.
The Attorney General requested that the court find “the defendants failure to distribute the funds for charitable purposes which they are intended constitutes a breach of fiduciary duties of good faith and loyalty.” Additionally, “the defendants have misapplied the association’s gift to the town,” according to the court documents.
The case went to a non-jury bench trial Oct. 25 in Knox County Superior Court. A June 2014 mediation session that included the town and the two former firefighters failed to resolve the lawsuit.
The town, in the lawsuit, is seeking the full sum of the monies donated to the town by the South Thomaston Firemen’s Association, interest accrued on the funds and any damages, including punitive and legal fees.
Attorney James Strong, of Thomaston, represented the town in the lawsuit.
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