Opinion ID: 2329576
Heading Depth: 1
Heading Rank: 3

Heading: Liability of the members and officers of CCA

Text: Finally, the parties dispute whether the individual Defendants, as members and officers of CCA, are personally liable to the Plaintiffs for the debts of CCA. The Commission found that N. Laurence Willey, Jr. was authorized by CCA to employ the Plaintiffs. The employment was ratified by Walter Birt, Richard Kennedy and Douglas I. Hodgkin, who, together with N. Laurence Willey filed the petition for fee arbitration with the Commission. Members of an association not legally incorporated are liable on contracts lawfully made by the associated persons. McKenney v. Bowie, 94 Me. 397, 47 A. 918 (1900). Accordingly, an action for their legal services could have been maintained by the Plaintiffs against all or any of the members of CCA. See McGeary v. Chandler, 58 Me. 537 (1870). In the instant case, however, Willey, Birt, Kennedy and Douglas initiated an arbitration proceeding pursuant to Maine Bar Rule 9 to determine their liability, if any, for the legal services rendered by the Plaintiffs to CCA. Rule 9 requires, inter alia, that the petitioners be bound by the decision of the Commission and allows any award rendered to be enforced in accordance with the Uniform Arbitration Act, 14 M.R.S.A. § 5927 et seq. The Commission held that $12,741.23 was due the Plaintiffs. That decision is binding upon Defendants Willey, Birt, Kennedy and Hodgkin. Defendant Alan L. Baker, who did not join in the petition before the Commission cannot be bound by its decision. Accordingly, the entry is: Judgment vacated. Remanded for entry of judgment for the Plaintiffs and against the Defendants N. Laurence Willey, Jr., Walter Birt, Richard Kennedy and Douglas I. Hodgkin in the amount of $12,741.23 together with interests and costs. All concurring.