Jury Slams Old Port Landlord with $162,000 Judgment for Harassing, Abusing Tenants

Verdict includes $110,000 in punitive damages aimed at punishing Thomas Tiberii for his bad behavior

A civil jury has returned a $162,000 judgment against an Old Port landlord accused of making life miserable for two tenants as part of a scheme to drive them out so he could charge higher rent.

The verdict late Wednesday in Cumberland County Superior Court followed six days of testimony centered on the behavior of landlord Thomas Tiberii, owner of the Old Port building at the corner of Milk and Market streets that houses Molly's Tavern.

Jurors concluded that Tiberii violated his lease agreement with tenants Diane Casey and Hunt Stehli, awarding them $52,000 in compensatory damages. Additionally, after hearing uncontested testimony that Tiberii, among other conduct, spit and swore at the tenants, shut off their water at odd times and dragged them to court for no reason, the jury awarded $110,000 in punitive damages.

"Once again, the people of Portland have made a loud and clear statement through a jury that abusive, arrogant behavior by landlords towards tenants will not be tolerated," said Leonard M. Gulino of Bernstein, Shur, Sawyer & Nelson, who represented the tenants.

Gulino said testimony in the trial indicated that Tiberii was motivated by "seller's remorse." He entered into a six-year lease with the couple in 1996 for a third-floor loft that they planned to use as a photographer's studio and daily rental. The lease called for a beginning rent of $750 per month with increases up to $1,000 by the end of the term.

But, after making improvements to the space pursuant to the lease, Tiberii concluded that he could get much more for the space and wanted the couple out, said Gulino of Cape Elizabeth.

The current litigation comes on the heels of years of various lawsuits between the parties. In each of the prior three lawsuits, the court ruled against Tiberii's claim that the tenants had defaulted under the lease. Tiberii commenced the most recent suit seeking post termination of lease damages after the tenants finally vacated the premises in 2001.

Casey and Stehli then counterclaimed, alleging breach of lease, wrongful use of civil proceedings, intentional interference with contractual relations, and infliction of emotional distress. The jury sided with them on all counts, Gulino said. The tenants were also represented by Todd Holbrook, also of Bernstein, Shur.

Casey, a mother of two children, cried as the verdict was read Wednesday afternoon. "She was always looking over her shoulder," Gulino said. "He bullied her, he unnerved and intimidated her. But she's been vindicated."

Justice Thomas Humphrey presided over the trial.

About the lawyers:

A shareholder of BSSN, Len Gulino is a member the Bankruptcy & Insolvency, Litigation and Business Law practice groups. In insolvency and commercial litigation cases, GulinoÕs practice focuses on the representation of creditors, debtors, shareholders, trustees, creditor committee's, lessors, and purchasers dealing with troubled businesses or their assets. He has served as a trustee in numerous commercial bankruptcy proceedings, and also represents clients in complex marital property divisions, general business matters and alternative dispute resolutions.

Gulino is a frequent lecturer, panelist and author on insolvency matters, particularly related to the purchase or sale of troubled businesses. He earned both his JD and his MBA from State University of New York at Buffalo with honors. Gulino is admitted to practice in Maine, Massachusetts and New York. He is a former law clerk to the United States Bankruptcy Court for the Western District of New York.

Gulino is a member of the Maine State Bar Association, the American Bar Association and the American Bankruptcy Institute. He also serves on the Board of Directors and Executive Board of the Spurwink Institute, a not-for-profit organization dedicated to the care of those with disabilities, and is a member of the Advisory Board of Mainebiz, a Maine business publication.

Todd Holbrook is chair of the Intellectual Property Practice Group and is a member of BSSN's Litigation Department. He concentrates in the areas of intellectual property, products liability and toxic tort litigation, and general commercial litigation.

Holbrook is a 1992 magna cum laude graduate of the University of Michigan Law School, where he was awarded the Order of the Coif. He graduated from Bates College in 1987 and received his masterÕs degree in physics from Wesleyan University in 1990. He has taught physics, chemistry, and mathematics at all levels. Prior to joining Bernstein, Shur, Holbrook served as a clerk for the Honorable Daniel E. Wathen, then Chief Justice of the Maine Supreme Judicial Court.

Holbrook is the First Vice President of the Cumberland County Bar Association and a member of the Falmouth, Maine Planning Board. He is a past chair of the Electronic Commerce Forum of Maine (EC4ME), a non-profit educational forum that facilitates the exchange of practical information and knowledge about electronic commerce among businesses, government and non profit organization. He is a member of the American Judicare Society and the Maine State and American Bar Associations.

A Maine native, Holbrook lives in Falmouth with his wife and two daughters.

About the firm:

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.bssn.com.

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