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Business Organizations Keyed to Macey
Northeast Harbor Golf Club, Inc. v. Harris
Citation:661 A.2d 1146 (1995)
Nancy Harris was the president of the Northeast Harbor Golf Club. The Club’s only major asset was a golf course in Mount Desert. In 1988, Harris and her children began the process of obtaining approval for a five-lot subdivision. Even when the board learned of the proposed subdivision, a majority failed to take any action. A group of directors formed a separate organization to oppose the subdivision on the basis that it violated the local zoning ordinance. The Club filed a complaint against Harris, alleging that during her term as president Harris breached her fiduciary duty by purchasing the lots without providing notice and an opportunity for the Club to purchase the property and by subdividing the lots for future development. The Club sought an injunction to prevent development and also sought to impose a constructive trust on the property in question for the benefit of the Club.
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