United States District Court, D. Maine
JOHN F. CHASE, Plaintiff
ARTHUR MERSON, et al., Defendants
DECISION AND ORDER ON CLOUTIER DEFENDANTS' MOTION
Brock Hornby United States District Judge.
plaintiff filed this federal lawsuit alleging RICO
violations, breach of contract, fraudulent inducement,
negligent misrepresentation, conversion, and unfair trade
practices against a number of defendants. Pl.'s Compl. at
16-23 (ECF No. 1). In general, he alleges that certain
defendants fraudulently told him that for every $250, 000 he
invested in standby letters of credit, he would obtain a
return of approximately $10, 000, 000 within 7 to 12 days.
Id. at 1. He invested $500, 000, and lost it all.
sued several of the defendants in Count IV for breach of
contract based upon an “Irrevocable 17.5% Success Fee
Participation & Payorder Agreement” that he
attaches to his Complaint. Ex. 1 (ECF No. 1-1.) Two of those
defendants, Mark Cloutier and Robert Cloutier, have moved to
dismiss the plaintiff's claim against them, which is
limited to that asserted breach of contract. Defs.' Mot.
at 3 (ECF No. 61). I Grant the
respect to the Cloutier defendants and the alleged breach of
contract, the Complaint states:
The Irrevocable 17.5% Success Fee Participation &
32. Defendants Merson and Roy explained to Attorney
Abbondanza [the plaintiff's lawyer] that in exchange for
introducing Mr. Chase to the opportunity, they, Endeavor
Project Consultants, and Defendants Patch, Mark Cloutier, and
Robert Cloutier (collectively, the “Consultants”)
would require a collective fee equal to 17.5% of Mr.
Chase's proceeds from the transaction.
33. The Consultants in late March 2017 presented Mr. Chase
with an Irrevocable 17.5% Success Fee Participation &
Payorder Agreement (the “Success Fee Agreement”),
which they said memorialized their entitlement to a
collective 17.5% fee for introducing Mr. Chase to the standby
letter of credit opportunity. See Success Fee
Agreement, attached as Exhibit 1.
34. The Success Fee Agreement stated that “All payments
hereunder shall be made pursuant to the above transaction via
S.W.I.F.T., or other appropriate and direct wire of funds
transfer mechanism . . . .”
35. The Success Fee Agreement further provided that Defendant
Patch would sign a note and mortgage in the amount of $250,
000 secured by real estate he owned in Arizona. In fact, Mr.
Patch's real estate in Arizona was worth only
approximately $110, 000.
36. Mr. Chase and the Consultants entered the Success Fee
Agreement on March 29, 2017.
Pl.'s Compl. at 7-8.
Merson, Endeavor Project Consultants, LLC, Roy, Patch, Mark