REAL ESTATE
Prison term for landlord sends message
Landlords in Greater Portland say a judge’s decision to sentence the owner of an apartment building to three months in prison for a building code violation is a wake-up call for those who manage or own rental property. Justice Thomas Warren sentenced Portland landlord Gregory Nisbet on the misdemeanor charge in Superior Court on Thursday. Warren could have imposed the maximum sentence of six months, but opted for 90 days in jail and the maximum fine of $1,000. In October, Nisbet was acquitted of manslaughter charges stemming from a deadly 2014 fire at the building on Noyes Street that killed six people. The code violation stemmed from having a window on the third floor that was too small to qualify as an emergency escape route. The president of the Southern Maine Landlord Association said putting a landlord in jail has sent “shock waves” throughout the landlord community. Read the story.
Former Maine developer on hot seat with SEC
Federal securities officials want former Portland developer Michael A. Liberty to pay all of a nearly $6 million fine that he accepted in a settlement, six years after he said he was too deeply in debt to shell out the full amount. Liberty, who pleaded guilty Monday in a separate Maine case to making illegal campaign contributions, is challenging the Securities and Exchange Commission’s demand that he pay the remaining $5.4 million of the fine for allegedly defrauding investors, including three government pension funds. He had previously paid $600,000 after convincing a court that he was unable to pay all of it. Liberty, who grew up in Gray and now lives in Florida, agreed to settle the SEC allegations in 2010 without admitting or denying guilt. The SEC said Liberty improperly diverted more than $9 million of a $100 million venture capital fund established by Liberty to himself or associates, including $4.5 million for his personal benefit. The fund also lost $18 million in failed investments that the SEC said were improperly directed by Liberty. Read the story.
FOREST PRODUCTS
State seeks rainmaker to find new markets for wood
The LePage administration is seeking help to “stem the slide of Maine’s forest products industry” and identify additional wood markets following mill closures and other events that have rocked the state’s forest-based economy. The Maine Forest Service plans to hire a temporary “point person” – or a firm – to find ways to strengthen and expand a key part of the state’s economy that the agency says is “at a critical turning point.” The closure of five Maine paper mills in two years, global competition and shrinking demand for so-called biomass products have, for the first time in three decades, left some woodland owners without a market. The envisioned contractor position – advertised in a “request for proposals” released last week – is one of several efforts underway at the state, federal and industry level to help a sector that not long ago was the largest economic engine in Maine. It is unclear how those efforts will mesh together, however. Read the story.
LEGAL
Car dealership wins case against Ford
A Bangor Ford dealership might be able to recover millions of dollars in damages from the car manufacturer under a ruling issued this week by the Maine Supreme Judicial Court. The damages are mainly attributable to Ford Motor Co.’s failure to send a certified letter that likely would have cost less than $10. Darling’s, the dealership, sued Ford a decade ago, arguing that the car company failed to provide proper notice of a change in a sales incentive program. The Supreme Court this week said that a lower court was wrong to limit the damages to a nine-month period in 2005 and said instead that Darling’s should be entitled to damages from the time the program was changed in 2005 to the present day. For the nine-month period in 2005 alone, the lower court said Darling’s was due damages of nearly $155,000. Now there’s potential for millions in damages, covering sales for more than 10 years, although the lawyer for Darling’s refused to speculate on the amount. Read the story.
ENERGY
Electric supply rates to increase in southern Maine
In an unexpected turn, thousands of electricity customers in southern Maine will see a slight increase in the supply portion of their monthly bills following action Wednesday by the Maine Public Utilities Commission. The PUC approved an increase in the state’s default rate for electricity supply to homes in Central Maine Power’s service area, starting in January. After reviewing multiple bids from power providers, the commission voted to accept offers from two companies that will result in the standard offer supply rate rising by 3.5 percent, to nearly 6.7 cents per kilowatt hour. For a typical home that uses 550 kilowatt hours a month, the cost of buying electricity will increase by $1.36, to $36.80. Small businesses received the same rate as homeowners. Mid-size businesses that use the standard offer will see their rates fall by 1.3 percent on an annual average. The increase for small customers in CMP’s service area runs counter to market trends, which were reflected in the PUC’s bid selection Tuesday in Emera-Maine’s Bangor service area, where rates declined slightly. Read the story.
MANUFACTURING
DoD funding includes provision for US-made sneakers
The final version of the National Defense Authorization Act includes a requirement that the Department of Defense provide military recruits with American-made shoes, a provision long sought by footwear manufacturer New Balance, which employs 900 in Maine. Members of Maine’s congressional delegation had championed the change and announced its presence in the authorization act Wednesday. The provision could lead to a military contract for New Balance, which operates Maine manufacturing plants in Skowhegan, Norridgewock and Norway. The provision is expected to be approved soon by the U.S. House of Representatives and Senate, and implemented over the next two years. Read the story.
TELECOMMUNICATIONS
PUC expands inquiry into FairPoint
State utility regulators are expanding an investigation of FairPoint Communications for failing to meet minimum service standards for landline customers. The Maine Public Utilities Commission has been considering a $500,000 fine against FairPoint for failing to meet standards in 2014 and 2015. FairPoint had asked regulators not to open an investigation into standards that it failed to meet this year and has contended the metrics are unattainable and unnecessary in the fast-evolving telecom industry. Commissioners agreed Tuesday to expand their investigation to the second quarter of 2016. A state law that went into effect last summer set service quality standards that FairPoint calls more reasonable. Read the story.
HEALTH CARE
UNE and Apothecary by Design collaborate on residency program
The University of New England and local pharmaceutical company Apothecary by Design are launching a residency program this spring to train specialty pharmacists. The program will allow pharmacists to learn from real-world experience with “specialty” medications, which typically involve high costs, complex administration and unique handling requirements, according to a joint news release from the two organizations. Specialty pharmacy is the sole focus of Apothecary by Design, a fast-growing segment of the pharmacy industry. The one-year, Portland-based program will provide hands-on management and clinical training around conditions such as infertility, organ transplant, hepatitis C, HIV and rheumatoid arthritis. Read the story.
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