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UNITED STATES DISTRICT COURT DISTRICT OF MAINE UNITED STATES OF AMERICA, Plaintiff, v. J.R. LAPOINTE & SONS, INC. and DANIEL R. LAPOINTE, Defendants, AGWAY, INC. and STATE OF MAINE, DEPARTMENT OF TRANSPORTATION, Parties-In-Interest. ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Civ. No. 96-121-B

ORDER AND MEMORANDUM OF DECISION BRODY, District Judge. This foreclosure action was brought by Plaintiff, the United States, against Defendants, J.R. LaPointe & Sons, Inc. and Daniel R. LaPointe.1 Plaintiff moved for summary judgment, pursuant to Rule 56 of the Federal Rules of Civil Procedure, alleging that no genuine issue of material fact remains in the case. After reviewing all relevant submissions and hearing argument on this matter, the Court agrees with Plaintiff and grants summary judgment for the government. I. Background This once complicated action has been significantly simplified by agreements and stipulations among the parties. The Court was informed by both Plaintiff and Defendants, at the

As is obvious from the caption, other parties are involved in this action, however, they are not relevant to the Court's determination here.

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hearing on this matter, that the one remaining dispute is whether the government's suit is barred by the applicable statute of limitations. The material facts of this case are undisputed, hence all that remains is a question of law regarding the statute of limitations that applies to Plaintiff's claim. On August 31, 1978, June 26, 1979, July 24, 1980, July 14, 1981, and May 28, 1982, Defendants executed and delivered to the Farmer's Home Administration six promissory notes for which the original principal amounts were $162,000, $34,000, $150,000, $146,000, $180,000, and $185,000.2 On August 31, 1978 and May 28, 1982, Defendants executed and delivered to Plaintiff two real estate mortgages covering property owned by Defendants, located in Cyr Plantation, County of Aroostook, in the State of Maine. These mortgages secured the six promissory notes. Defendants fell behind on the notes, and, as of December 29, 1995, the principal and interest owed on the notes was $1,799,405.75.3 Defendants broke the conditions of the two mortgages by failing to make payments required under the terms of the promissory notes. On October 19, 1993, Defendants filed an Application for Settlement of Indebtedness (hereinafter "Application for Settlement") with the government. Plaintiff filed its Complaint in this case on May 3, 1996. Defendants argue that Plaintiff's Complaint was filed after the applicable six year statute of limitations had run. Plaintiff responds that Defendants' 1993 Application for

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The Farmers Home Administration is now called the Farm Services Agency.

In addition to this principal and interest total, there are certain per diem interest and collection costs owed on the notes. 2

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Settlement was an acknowledgment of the debt that, under law, triggers a new accrual date for the statute of limitations. II. Statute of Limitations All actions for money damages brought by the government, or an agency of the government, founded upon a contract are barred unless the complaint is filed within six years from the date upon which the cause of action accrues. 28 U.S.C.

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Maine Law