Federal Jury Sides with Former Owner of Crowe Rope in Breach of Contract Case Involving New Owner

Byron Crowe, represented by Bernstein, Shur, proved that J.P. Bolduc failed to live up to 1995 agreement

A federal jury has concluded that businessman J.P. Bolduc breached a contract that he made with Byron Crowe in 1995 as part of a deal to purchase Warren-based Crowe Rope Company.

Wednesday's unanimous verdict in U.S. District Court in Portland awarded $86,000 to Crowe. During the two-day trial before Magistrate Judge David M. Cohen, Crowe's attorneys, John M.R. Paterson and Jennifer D. Sawyer of Bernstein, Shur, succeeded in proving that Bolduc did not live up to his agreement to indemnify Crowe from liability following the sale.

In 1995, Crowe sold his struggling rope manufacturing company to Bolduc, a Lewiston native who had recently resigned as the CEO of W.R. Grace & Co. under circumstances that attracted national attention. As part of the deal with Crowe, Bolduc acquired all assets of Crowe Rope, leaving Crowe Rope as an empty corporate shell with lots of creditors but no assets. Bolduc also agreed to indemnify Crowe if he was sued by any of the creditors, according to attorney Paterson of Freeport.

Crowe was later sued by a French company, but Bolduc refused to defend the claim. That case eventually went to trial, and Crowe prevailed. He then asked Bolduc to reimburse him for his attorney's fees and other expenses. Bolduc again refused, prompting the lawsuit that was resolved by the eight-member jury this week.

Bolduc was represented by Michael J. Gartland and Lee H. Bals of Marcus Grygiel and Clegg in Portland.

Bernstein, Shur, Sawyer & Nelson is one of northern New EnglandÕs largest law firms, with more than 70 attorneys in offices in Portland and Augusta. The firm provides legal services in all major subject areas, including corporate and commercial law, litigation and trials, municipal and governmental affairs, and tax and estate planning. Bernstein, Shur also has an active practice in bankruptcy, health law, environmental law, technology and commerce, employment law, legislative law, intellectual property, public utilities and other regulated industries. For more information, visit the Bernstein, Shur web site at www.mainelaw.com.

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