Opinion ID: 1939283
Heading Depth: 1
Heading Rank: 1

Heading: $25,000 Award to Cercena for Money Lent

Text: The referee recommended that on his money lent claim Cercena recover $25,000, the sum he loaned Cote when the parties modified their oral agreement. The referee found that the parties intended their joint checking account to be used exclusively for construction purposes. The referee then concluded that Cote had violated the parties' agreement by his extensive personal use of the account, that Cote's violation constituted a material breach of the parties' agreement, and that therefore the $25,000 loan had become due. Pursuant to M.R.Civ.P. 53(e)(2), the Superior Court is required to adopt the referee's factual findings unless they are clearly erroneous. On appeal, we will uphold the adoption of those findings if there is credible, probative evidence supporting them, even though there may be evidence to support contrary findings. See Walker v. Provost, 566 A.2d 749, 750 (Me.1989). Ample credible evidence supports the referee's findings. Both Cercena and a witness from the bank testified that the account was opened for the exclusive purpose of paying lodge construction expenses. The parties' contract also states that the money was advanced by Cercena for purposes of construction of [the lodge]. Cote admits using the account for his personal expenses, and the record contains dozens of checks drawn on the account for the personal use of Cote and his family. The referee was justified in concluding that Cote's misuse of the joint account constituted a material breach of the agreement. When Cote violated material terms of the agreement, he was in total breach and Cercena was entitled to regard the whole transaction at an end. Cote became liable for immediate repayment of Cercena's $25,000 loan to him. See 4 Corbin on Contracts § 946, at 809-10 (1951).