South Bristol obtained a $150,000 consent judgment against Jim Nelson Feb. 13, a settlement five years in the making.
Parson & Drum Attorneys, the firm that represents South Bristol, hailed the outcome as a victory for the town and a successful defense of an important municipal ordinance and state statute. Some town officials, however, are skeptical about whether the town will collect.
The South Bristol Board of Selectmen, on June 26, 2007, ordered Nelson to pay $60,000 in fines for violations of the municipal shoreland zoning ordinance.
Nelson admitted to cutting 59 trees, including trees within a Damariscotta River Association conservation easement, in October 2006.
“The town of South Bristol enforced the ordinance,” attorney Peter Drum said. “They did not allow a violator to go unpunished for what he did.”
Ken Lincoln, the chairman of the South Bristol Board of Selectmen, and South Bristol Selectman Chester Rice, at a Feb. 23 meeting, said they don’t expect the town to collect on the judgment.
Drum and his partner, Patrick Parson, however, believe the town will collect at least some of the $150,000.
Parson issued a press release about the “hard-fought” case and judgment, which includes awards for fines, remediation of damage and legal fees.
“The town is continuing in its efforts to collect some portion of the judgment against James Nelson and will likely recover some funds through one or more sources,” Parson wrote.
Nelson filed for bankruptcy in 2008. His bankruptcy estate “has recovered more than $100,000 for distribution to creditors,” according to the press release. “As a secured, priority creditor, the Town can expect to receive a portion of those funds when the bankruptcy trustee begins distributing funds to creditors.”
Nelson bought a Rutherford Island home in September 2006. The next month, he cut the trees. Shortly thereafter, Hildegard Perkins, the owner of the property where Nelson cut the trees, and South Bristol informed Nelson that they were considering litigation.
Nelson recorded a mortgage in his mother’s favor in November 2006.
Perkins and South Bristol allege that this action constitutes a fraudulent transfer under Maine law and an attempt to defraud Perkins and South Bristol.
The property went into foreclosure in December 2008. Bath Savings Institution, the original mortgage holder, collected a portion of the proceeds from the sale. Another $120,000 remains in an escrow account.
The contents of the escrow account will be distributed based on whether a Lincoln County Superior Court justice rules in favor of Perkins in her lawsuit against Jim Nelson and the estate of Margaret Nelson.
Margaret Nelson died in 2008.
If the justice rules in Perkins’ favor, she would likely collect the $120,000. South Bristol has an arrangement to obtain a portion of those funds, as well as a portion of whatever Perkins might collect from Nelson’s share of his mother’s inheritance.
Hildegard Perkins v. James A. Nelson and the Estate of Margaret Nelson went to bench trial before Justice Jeffrey Hjelm in Lincoln County Superior Court Feb. 23.
A court clerk said the justice has not reached a decision. Parson said he might not for several weeks, owing to the complex nature of the case.
“The town is going to get something at some point,” Parson said.
South Bristol has already collected $15,000 as the result of an agreement with the buyer of the Nelson property.
The town pursued Nelson in two Maine courts and all the way to a California bankruptcy court, according to the press release.
Parson stressed the importance of enforcing Maine’s shoreland zoning statue.
The law “mandates the protection of our coastal waters by limiting how we use lands in closest proximity to the shore,” Parson wrote. “This is important for wildlife, and the many working families who depend on healthy fisheries in Maine waters.”
