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A developer's missed deadline does not end its promises to a Maine association

A developer's missed deadline does not end its promises to a Maine association
Maine · Courts

A developer's missed deadline does not end its promises to a Maine association

What happened. On 28 July 2026 the Law Court revived a unit owner's suit against a condominium developer that had walked away from a settlement after a municipal approval came through 27 days late. Beane v. Village on Great Brook, LLC, 2026 ME 71, Docket Yor-25-269.1

Whether the deadline mattered, the court held, is a fact question. It cannot be decided on a motion to dismiss.

The deal

Village on Great Brook is a condominium in Eliot. By 2022 its developer had sold most units and was seeking Planning Board approval to amend the subdivision plan and add units. Unit owners objected, citing infrastructure.

On 13 February 2023 the developer, the association and unit owners — including Constance Beane, who owns unit 31 — signed an agreement. The developer would repair infrastructure, pay the association $35,000, and convey a vacant lot, Lot 26, to the association. In exchange, the owners would drop their opposition to the planning application. The whole arrangement was contingent on “Planning Board approval no later than March 1, 2023.”

The Board approved on 28 March 2023. The developer then moved to develop Lot 26 itself rather than convey it. Beane sued for breach of contract and specific performance, and the trial court dismissed under Rule 12(b)(6), holding the missed date was an unmet condition precedent that discharged the developer's obligations — relying on the 1929 decision Colbath v. H.B. Stebbins Lumber Co.

What the Law Court held

The panel (Stanfill, C.J., Mead, Connors, Lawrence, Douglas and Lipez, JJ., Douglas, J., writing) vacated, unanimously:

“whether the specific timing of the approval was material to the parties' agreement—in other words, whether time was of the essence—is a question of fact and thus not properly considered in the context of a Rule 12(b)(6) motion. In the circumstances presented here, we agree.”

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Why a 1929 case did not control

The trial court's authority was Colbath, and the Law Court put it aside on a distinction that predates the modern rules:

“Colbath, however, is not controlling”

Colbath was an action at law; Beane sought specific performance, which is equitable, and “in equity a different rule prevails.” The court then applied its own 2008 decision Raisin Memorial Trust v. Casey, 2008 ME 63:

“whether time is of the essence in a contract is a matter of fact and cannot be determined simply by the presence or absence of these magic words in the contract.”

In practical terms the opinion updates the 1929 rule for the 1959 merger of law and equity under the Maine Rules of Civil Procedure — the kind of tidying that only surfaces when someone builds a defence on the older case.

The facts that made materiality triable

Three features of the record did the work, and they are worth noting because they are the pattern a court will look for:

  • The deadline was “beyond the control of either party” — it depended on a municipal board's calendar, not on a party's performance
  • The approval was late by 27 days, not by a season
  • Correspondence suggested the developer's own counsel was willing to waive the deadline after the approval issued

That last point is the one that converts a clean contractual argument into a jury question. Post-deadline conduct is evidence about whether the date was ever material.

What it changes operationally

For associations still dealing with a developer: a short delay in an outside approval does not automatically release a developer from a conveyance or an infrastructure promise. An association told that a settlement is dead on a missed date has a live question to litigate, and dismissal on the pleadings is now harder to obtain.

For drafting: the corollary cuts the other way too. If a date is genuinely essential, a recital that time is of the essence is not enough by itself — Raisin Memorial Trust says the magic words do not settle it — but silence guarantees a fact fight. Tie the consequence to the date explicitly, and say what happens if the approval arrives late.

On conduct after the deadline: a party that keeps performing, keeps negotiating, or has counsel offer a waiver is building the other side's record. Where a deadline is intended to end the agreement, the party relying on it has to behave as though it did.

Where this fits in Maine's declarant litigation

This is the second substantial developer-versus-association ruling in a year, and it runs in the opposite direction from the first. In The Village at Ocean's End, 2025 ME 85, a declarant's properly reserved withdrawal right beat an association's claim outright. Here a developer's contractual escape hatch was held open to proof. The distinction is the instrument: reserved development rights are statutory creatures construed on their text, while a settlement agreement is a contract, and contracts get juries.

What to watch next

The case returns to the Superior Court for further proceedings on materiality and on specific performance. Whether Lot 26 is ultimately conveyed is undecided, and this article does not forecast it. Maine's single-tier appellate structure means any further appeal goes straight back to the Law Court.

Related Maine HOA Topics

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  1. Beane v. Village on Great Brook, LLC, 2026 ME 71 (Docket Yor-25-269, argued 8 January 2026, decided 28 July 2026) — official opinion PDF, Maine Judicial Branch
  2. The Village at Ocean's End Condominium Ass'n v. Southwest Harbor Properties LLC, 2025 ME 85 — official opinion PDF, Maine Judicial Branch

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