PORTLAND — Maine’s largest medical marijuana nonprofit group hit back Monday against its former backer, denying it has outstanding loans and countersuing for monetary awards.

Northeast Patients Group’s answer to a Berkeley Patients Group complaint was filed Monday in Cumberland County Superior Court by Stephen Langsdorf, an Augusta-based lawyer for Preti Flaherty representing Northeast.

It says Northeast wants a judge to dismiss four of eight counts alleged by Berkeley. All other claims were filed against Northeast Executive Director Becky DeKeuster herself, and therefore were left unanswered by Northeast.

Langsdorf’s answer asks the court to dismiss Berkeley’s claims for repayment of debt, unjust enrichment, breach of contract and use of confidential information.

In July, the California-based Berkeley sued Northeast and DeKeuster claiming more than $632,000 in unpaid loans, saying DeKeuster used Berkeley’s proprietary information to negotiate a financing deal with ex-NBA player Cuttino Mobley while serving as New England expansion director for Berkeley. It also asks DeKeuster be removed from her post.

Reached Tuesday morning, Langsdorf said Northeast did receive some of the $632,000 Berkeley claims it provided — and used it to pay luxurious expenses for Berkeley officials. Langsdorf said those expenses included Boston Red Sox tickets and first-class airline travel for Berkeley’s Chief Executive Officer, Timothy Schick, a Maine native.

“So, there are some things we don’t think are recoverable,” Langsdorf said.

The answer denies DeKeuster got advances of loans from Berkeley on Northeast’s behalf and denies Berkeley’s claim DeKeuster acted to “secure outside assistance and usurp opportunities belonging to her employer.”

Notably, a counterclaim asks the court to award Northeast damages allegedly caused by Berkeley’s failure to provide adequate capital.

“Despite such promises and agreements, (Berkeley) has refused and failed to provide the necessary financing capital,” Langsdorf’s counterclaim reads.

The counterclaim alleges a lack of funding by Berkeley was the main reason there was a delay in Northeast starting its growing and retail operations. As a result, Northeast had to seek another financial backer, Langsdorf said.

“It isn’t just the counterclaim — it’s the defense for the case,” Langsdorf said. “The intention was clearly for there to be collaboration.”

In a written statement, Charles Remmel, the Portland-based lead attorney for Berkeley, assailed the counterclaim.

“With regard to the counterclaim, Ms. DeKeuster turned aside other sources of capital and expertise, including those from Maine citizens, and violated the terms and expectations of her employment agreement with Berkeley Patients Group,” the statement said.

DeKeuster’s employment contract with Berkeley, provided to the Kennebec Journal earlier this summer, showed she had a two-year no-compete agreement if she left Berkeley.

She negotiated a letter of intent between Northeast and Mobley in February, then resigned from Berkeley days later.

All in all, Langsdorf said, the damages Northeast seeks from Berkeley is in the hundreds of thousands of dollars, though he said he couldn’t provide an exact figure.

“Their claim is that, without any formal agreement, Berkeley was supposed to fund them,” Remmel said Tuesday afternoon. “That is not reasonable. They’re saying the only thing they can say: Because you gave us hundreds of thousands of dollars, we needed more.

“The departure of several … board members and the failure of (Northeast) to build infrastructure and serve products are only the most visible outcomes,” Remmel wrote, referring to two departed board members: Rep. Mark Dion, D-Portland, a former Cumberland County sheriff who resigned from the Northeast board in the spring; and Faith Benedetti, of Winthrop, who left in July.

“More facts will emerge as this case proceeds to trial,” Remmel said.

Northeast holds four of Maine’s eight dispensary licenses — in Kennebec County, the Bangor area, Thomaston and Portland. None have opened.

Langsdorf blamed Berkeley’s lack of funding for delaying Northeast’s operations for “more than a year.”

Northeast also is asking for reimbursement for legal fees and burdens incurred when it sought another financier.

Northeast formally submitted a $1.6 million financing deal Monday to the Maine Department of Health and Human Services. The money will come from The Wellness and Pain Management Connection LLC — a limited-liability company combining Mobley and The Farmacy Institute for Wellness, with $500,000 issued to Northeast at the document’s Aug. 3 signing.

Northeast has said the new financing will allow its Thomaston dispensary to open in September, followed by all other dispensaries soon after.

Langdorf said he doesn’t expect the case to go to trial until the first half of 2013.

 

Michael Shepherd — 621-5662

mshepherd@mainetoday.com

Copy the Story Link