On January 23, 2009, the U.S. Bankruptcy Court for the District of Maine issued a judgment in favor of MCM client Northeast Bank ruling that the Bank’s lien in certain construction and logging equipment owned by a Chapter 7 debtor was superior in priority to a lien asserted by another secured creditor, Caterpillar Financial Services, Inc. In its decision, the Bankruptcy Court accepted MCM’s argument that the sale of the logging equipment was consummated more than twenty-days before Caterpillar perfected its lien, thereby precluding Caterpillar from establishing a first-priority, purchase money security interest in the equipment.

MCM is pleased to announce that we have moved to our new offices located at One Canal Plaza, Suite 600, Portland, ME 04101. Click here for directions to our new location.

MCM is pleased to announce that we will be moving our offices on
December 5th. Our new offices will be located at One Canal Plaza, Suite 600, Portland, ME 04101. Click here for directions to our new location. We hope to see you there as soon as we get settled.

MCM is pleased to announce that Claudia D. Raessler has joined the firm as “of counsel”. Claudia is a senior corporate lawyer whose work has focused on the representation of non-profit organizations, particularly those in the human services areas and recipients of federal and state funding. Claudia has taken an interesting approach to the law and life. In 2004, she retired from a partnership at one of Portland’s largest law firms whereupon she and her husband Ken, a physician, founded the Royal River Alpaca Company at their rural home in North Yarmouth, Maine. In a very short time, the Raesslers established their farm as a model for modern methods of Alpaca husbandry. As often happens, the client community refuses to recognize the retirement of valued counsel, and Claudia found herself pressed to resume her role as trusted counselor. With the farm and the alpacas under control, and the call of the law and loyal clients difficult to resist, Claudia joined our firm in order to bring to her clients all of the services of an established corporate and commercial law firm. Combining her non-profit and public sector funding experience with her most recent interests in agriculture, Claudia has expanded her legal practice to address commercial and business transactions involving the farming industry.

As recently reported, MCM client Retail Investments, LLC, the operator of the Joe Jones Ski Shops in New England, filed a Chapter 11 petition in the Maine Bankruptcy Court on June 12, 2007. On July 3, 2007, the Bankruptcy Court approved bidding and sale procedures with respect to a proposed sale of substantially all of Joe Jones' assets to New England Mountain Ventures, Inc. On August 1, 2007, following a hearing held on July 24, 2007, the Bankruptcy Court entered its order approving the sale, and the sale closed on August 3, 2007. The sale will result in satisfaction of all secured claims against the Debtor, the payment of administrative claims, and the payment of a modest dividend to unsecured creditors. In addition, the sale will result in the continued operation of eight retail stores and an associated warehouse operation in Maine, New Hampshire, Vermont and Massachusetts.

Publisher Key Professional Media, Inc., publisher of the Super Lawyers Magazine, which is distributed in 48 States, and available on the web, www. superlawyers.com, has now come north of Boston to Maine and established its list of New England Super Lawyers. Super Lawyers has announced that MCM's senior lawyer, George Marcus, will be included in the first list of New England Super Lawyers when published in the fall of 2007. Read more about George on his profile at this website.

As recently reported, MCM client Retail Investments, LLC, the operator of the Joe Jones Ski Shops in New England, filed a Chapter 11 petition in the Maine Bankruptcy Court on June 12, 2007. On July 3, 2007, the Bankruptcy Court approved bidding and sale procedures with respect to a proposed sale of substantially all of Joe Jones assets to New England Mountain Ventures, Inc. A final hearing on the sale is expected to occur in late July.

Retail Investments does business as the "Joe Jones Ski Shops" in retail locations throughout Maine, New Hampshire, Vermont and Massachusetts. The Company has suffered from a string of unseasonably warm winters in New England, and expects to accomplish a sale of all of its assets utilizing the provisions of Section 363 of the Bankruptcy Code.

MCM acted as Maine counsel for SCP Capital, the buyer/lessor of nearly 290 CVS retail store locations throughout the country. The transaction closed on December 1, 2006. MCM's Kevin McCarthy utilized his extensive real estate acquisition and financing expertise to advise SCP with respect to the Maine aspects of the deal.

On March 22, 2006, a jury empanelled by the U.S. District Court in Portland, Maine returned a verdict of $3,000,000 for MCM client Tear of the Clouds, LLC d/b/a Keeper Springs, after a three week trial. Keeper Springs is a bottler and seller of natural spring water, located in New York and owned in part by Robert F. Kennedy, Jr. It devotes all of its profits to water related environmental organizations. In the spring of 2004, Keeper Springs and other bottlers entered into negotiations with Nestle Waters, USA, bottler of the well known brand Poland Spring Water, regarding Lanham Act claims arising from alleged false advertising about the source of Poland Spring Water.

Keeper Springs and other bottlers retained two law firms to represent them. The law firms also undertook the representation of a representative of a putative class of consumers. The negotiations resulted in a settlement agreement with Nestle, however, without authority from the bottlers, the attorneys filed a class action lawsuit on behalf of the putative consumer class. As a result of the class action filing, Nestle withdrew its agreement to settle. The bottlers brought suit against their former attorneys for breach of fiduciary duty, negligence, and tortious interference with contract. After a three week jury trial, judgment was rendered against the attorneys, and in favor of the bottlers, including Keeper Springs, whose award was $3,000,000. MCM partner Lee Bals served as lead trial counsel. All members of the firm provided back up, brainstorming, and moral support. We are very proud of Lee and our team for this result, and we congratulate our client Keeper Springs.

MCM Completes Sale of Morse Brothers, Inc. In Chpt. 11 Section 363 Transaction
February 17, 2006

On February 17, 2006, MCM completed the sale of Morse Brothers, Inc. and its affiliates, the Northeast's largest manufacturer and distributor of bark mulch, to JWA Holdings, Inc.   The sale, completed under Section 363 of the Bankruptcy Code, had more than its fair share of complications, including four secured creditors holding liens in different categories of assets, and an original buyer that defaulted in the purchase. MCM's team of Chapter 11 lawyers, lead by partner Jennie Clegg, overcame these imposing obstacles and completed the closing on time, without a hitch. We wish JWA Holdings much success.

MCM Completes Sale of Morse Brothers, Inc. In Chpt. 11 Section 363 Transaction
February 17, 2006

On February 17, 2006, MCM completed the sale of Morse Brothers, Inc. and its affiliates, the Northeast's largest manufacturer and distributor of bark mulch, to JWA Holdings, Inc.   The sale, completed under Section 363 of the Bankruptcy Code, had more than its fair share of complications, including four secured creditors holding liens in different categories of assets, and an original buyer that defaulted in the purchase. MCM's team of Chapter 11 lawyers, lead by partner Jennie Clegg, overcame these imposing obstacles and completed the closing on time, without a hitch. We wish JWA Holdings much success.

Myer M. Marcus Recognized as Dean of the Maine Bar
July 21, 2005

On July 20, 2005, the Portland Press Herald published an article featuring our very own Myer Marcus, Of Counsel to the firm. Myer, who turned 91 in May of 2005, has been practicing law in Portland, continuously since 1937, longer than any other lawyer in Maine. He shows no sign of slowing down. One of his long standing corporate clients had this to say about Myer:

"Over the years, he has taken impossible situations for us and solved them; many, many times. His experience, intuitive skills and understanding of situations make him very, very unusual".

We knew that. Myer inspires the culture and work ethic of our firm. To read more about him, go to "Who We Are" in this website.

Chambers and Partners, a London based publisher of prestigious, worldwide guides to the legal profession, has listed George Marcus in its United States guide for bankruptcy attorneys. Here's what Chambers had to say about George:

"Many commentators consider the "phenomenal" George Marcus of Marcus, Clegg & Mistretta PA to be the "predominant personality in Maine bankruptcy law."

Clients specifically applauded him as "aggressive, goal-driven, pragmatic and truly in tune to our business objectives." He handles a diverse commercial workload, and has particular expertise in Chapter 11 proceedings across Maine, New Hampshire, Delaware and beyond."

It is good to know that clients concur with MCM's own view of its "goal-driven, pragmatic" approach to the practice of law.

The Trustee for the Great Northern Paper Co. brought an adversary proceeding in the Bankruptcy Court in Bangor against electric utility Bangor Hydro-Electric Company seeking a declaratory judgment that a release provided by Great Northern to Bangor-Hydro in 1999 was not effective to discharge Bangor Hydro of a claim for millions of dollars in so-called "headwater benefits". At the same time, the Trustee commenced proceedings in the Federal Energy Regulatory Commission in Washington D.C. (FERC) to recover its asserted claims. Bangor-Hydro sought the dismissal of the bankruptcy litigation and permission to proceed in FERC. On May 24, 2005, MCM, after nearly nine months of intensely fought litigation with the Trustee, prevailed in obtaining such dismissal, as well as permission to proceed before FERC.

On May 14, 2005, the Cedars Nursing Care Center of Portland honored George Marcus for his eight years of service as Chairman of the Board of Trustees. At the same time, the Cedars celebrated its 75th Anniversary.
 The hightlight of the gala affair was an hilarious movie made by the Cedars featuring the Governor of Maine, and George's 16 month old son, Harry. The Cedars was founded in Portland in 1929 as the Jewish Home for the Aged. Today, it is a state of the art, integrated health care facility for the elderly, providing long term care, rehabilitation services, and independent living for people of all faiths on its campus in Portland. In the fall, it will break ground on a 30 unit assisted living facility to be located on its campus.

We are pleased to announce that our senior partner, George J. Marcus, has been designated as a "Leader in their Field" (Bankruptcy law) by Chambers & Partners, a British research company that publishes the prestigious Chambers
Global and Chambers USA Guides to the legal profession. Chambers recently decided to include a bankruptcy section in its Guides, and Mr. Marcus will appear in the 2005 edition of the Guides.

We are pleased to announce that our senior partner, George J. Marcus, has been designated as a "Leader in their Field" (Bankruptcy law) by Chambers & Partners, a British research company that publishes the prestigious Chambers
Global and Chambers USA Guides to the legal profession. Chambers recently decided to include a bankruptcy section in its Guides, and Mr. Marcus will appear in the 2005 edition of the Guides.

On December 29, 2004, the Bankruptcy Court in Portland confirmed the
Chapter 11 Plan of Reorganization for our client, Vital Basics, Inc. Vital
Basics is one of the country's leading direct and retail marketers of
consumer products in the health and dietary supplement fields. The Plan
provides for payment of all Vital Basics creditors in full, and paves the
way for the introduction of new products and the opening of new retail
channels in the coming year. We wish the owners and employees of Vital
Basics the best for 2005 and beyond.

On December 22, 2004, the Bankruptcy Court in Portland confirmed the
Chapter 11 Plan of Reorganization for our client, Northeastern Graphic
Supply, Inc. ("NEGS"). NEGS was founded in Portland in 1939, and has since
remained under the ownership of the founding family. The Plan puts into
effect a financial restructuring that enables NEGS to transition out of its
traditional role in the graphics supply business, a business which is
rapidly evolving into an all digital medium, and into new ventures. We wish
the family owners the best of luck in repositioning this sixty five year old
business.

In the first known judicial decision under Section 1434 of Maine's newly enacted Business Corporation Act, Cumberland County Superior Court Justice Roland Cole, after a trial before the Court without a jury, has ordered that a corporation in which MCM's client is a minority shareholder must be dissolved, unless the majority shareholders buy the minority shareholder out at the value for the corporation found by the Court, without a minority discount. The Court has also ordered the recharacterization of salaries drawn by the majority shareholders as improper dividends. The Court's order will result in a payment to MCM's client, the minority shareholder, of nearly $1,500,000.

On June 2, 2004, Pegasus Satellite Television, Inc., a nationwide distributor of satellite television services to rural areas, filed a Chapter 11 petition in the Bankruptcy Court for the District of Maine. MCM has been retained as Maine counsel for DIRECTV, Inc., www.directv.com, the nation's largest provider of digitial satellite broadcast services. The central issue in the Case is Pegasus' challenge to DIRECTV's right to compete for satellite television subscribers in Pegasus' service area. With over one billion dollars in assets, the case is the largest Chapter 11 case ever filed in the District of Maine.

MCM is representing a "John Doe" in a case involving the right of a cable subscriber to prevent the disclosure of personally identifying information by his cable Internet service provider, where no criminal activity has been alleged. The Maine Superior Court entered an order requiring Time Warner Cable to disclose the identity of the subscriber, the "John Doe" in connection with a civil action, on the grounds that the subscriber had consented to such disclosure when signing up for the cable service. The subscriber, represented by George J. Marcus, has appealed this order to the Maine Supreme Judicial Court, in a case which is receiving considerable local and national attention.

MCM filed a petition on behalf of client Vital Basics, Inc., a national direct consumer marketer of nutritional supplements, for protection under Chapter 11 of the Federal Bankruptcy Code. In 2003, Vital Basics had approximately $70 million in sales in the United States and Canada. Vital Basics expects to submit and obtain confirmation of its Chapter 11 reorganization plan promptly.

MCM assisted Penobscot McCrum, LLC in the purchase of the assets of Penobscot Frozen Foods, Inc., a potato processing plant in Belfast, Maine, in a foreclosure auction conducted by Key Bank on April 29, 2004. Penobscot Frozen Foods employed more than 200 workers in Belfast and Washburn making potato appetizers, baked and fried potato skins, and stuffed potatoes.These jobs have been preserved following the sale. Penobscot McCrum, LLC is a family-owned company with ties to County Super Spuds, Inc., a long time supplier of potatoes to the plant.

MCM welcomes Harry Joseph Savage Marcus into the world.  Harry was born on Tuesday, December 30, 2003, weighing in at 5 pounds, 14 ounces.  Mother, father, and baby are doing well.  Congratulations to Nancy and George!  Baby pictures are on our "Life" page.   

On December 17, 2003, the United States Bankruptcy Court for the District of Maine confirmed the Second Amended Plan of Reorganization for MCM client Keeley Construction Co., Inc. After a little over a year in a complex reorganization case, Keeley Construction, one of Southern Maine's most active commercial contractors, comes out of Chapter 11 reorganized and ready to continue its long standing service to its clients in the region. MCM wishes Jim Keeley, President, and all Keeley employees, the best of luck

On Friday, Oct. 10, 2003, U.S. Magistrate Judge David M. Cohen of the U. S. District Court for the District of Maine made his recommended decision dismissing the claim of the bankrupt Bangor & Aroostook Railroad Company that the Court, sitting as a Bankruptcy Court, had authority under 11 U.S. C. Sec. 1170, to order the Canadian National Railroad Company to discontinue service to a major customer in Maine. MCM represented Canadian National, and together with regular Canadian National counsel, successfully argued in a case of first impression in the United States, that a bankrupt railroad could not use the railroad reorganization provisions of the bankruptcy code to oust a non-bankrupt railroad from use of the bankrupt's railroad lines.

By Order dated November 19, 2003, the District Court adopted the magistrate's recommended decision in full.

A defense team led by George Marcus and Debbie Brown helped an MCM client obtain a favorable arbitration award after a five-day arbitration in late October.  The client, a nationwide consumer products distributor, was involved with a licensing dispute with an inventor of one product.  The case was heard by three arbitrators appointed by the American Arbitration Association, and involved numerous contract law and interpretation issues. 

MCM received a favorable verdict for our client in a complex and fiercely litigated business partnership dispute.  Lee Bals headed the litigation team, including attorneys Kevin McCarthy, George Marcus, and Sherry Fowler and paralegal Karen Stone.  The judge found that the defendants had frozen our client out of partnership earnings and rendered worthless his share in the business, in violation of their fiduciary duty.  The verdict is worth significant dollars to our client, and showcases MCM's expertise in complex business litigation matters.  We are pleased to have helped vindicate our client's position with this strongly-worded favorable verdict. 

George Marcus, senior attorney at MCM, has been asked to moderate a panel of turnaround professionals who will make a presentation on the "Business of Turnarounds" at the 10th Annual Northeast Bankruptcy Conference, to be held on July 17-20, 2003 in Newport, Rhode Island. The Conference is sponsored by the American Bankruptcy Institute. Joining George on the panel will be Boston based turnaround consultants Robert Wexler of The Tron Group, Michael Epstein of TRG, and David Ferrari of Argus Management Corporation.

Marcus, Clegg & Mistretta, P.A. has just acquired the DocStar system.   This technology will enable MCM to scan, capture and optically read all incoming correspondence, filings, pleadings and other paper documentation.  Once scanned, these items will be uploaded to our system and delivered electronically to lawyers in the office, filed in an electronic filing system, and will be permanently stored on DVD.  Hard copies will be saved in chronological files.  The documents so scanned will be fully searchable and retrievable by document name, date, and text search.  This system will enable us to retrieve, share, and process all case documents quickly and efficiently.  We are excited by this cutting edge technology, and believe it will help us deliver better service to our clients.

The pile of documents currently sitting on George's desk, however, is unlikely to be disturbed by the march of technological progress.  It will remain untouched, for posterity and effect, as it has been for years. 

Asked to react to this dramatic advance in office technology, shareholder Lee Bals quipped, "Now the only paper you'll see at Marcus, Clegg and Mistretta is in the restrooms!"  

In 2002, MCM prevailed in three cases at the federal circuit court of appeal level. In the Court of Appeals for the First Circuit, MCM successfully represented the Maine Credit Union League and the Credit Union National Association as amicus curie in establishing the right of consumer lenders to condition their consent to reaffirmation of secured debt in bankruptcy proceedings, upon simultaneous reaffirmation of unsecured debt owed by the same debtor. Also in the First Circuit, the firm successfully defended a $660,000 jury verdict it had obtained in the U.S. District Court for the District of Maine, on behalf of its client, the Estate of Murray Keatinge. In the Ninth Circuit Court of Appeals, (which sits in Los Angeles California,) the firm successfully represented a Maine resident, formerly a Chapter 7 debtor in California, in a case which established that Transamerica Financial Corp. had violated the discharge injunction set forth in the Bankruptcy Code by attempting to collect a quarter of a million dollar debt. MCM has several additional cases pending in the circuit courts of appeal. Stay tuned for more news in 2003.