Company seeks lien against hospital property for unpaid work

By Juliette Laaka | Jul 16, 2013

Rockland — A civil action was filed July 12 against Pen Bay Medical Center and Rockland-based Ferraiolo Construction Inc. seeking a lien on the hospital's Rockport property by a company claiming labor and services went unpaid for improvements of the property.

The complaint, filed in Knox County Superior Court by Maine Drilling & Blasting, Inc. of Gardiner, alleges the invoice sent to Ferraiolo Construction totaled nearly $27,000 for materials, labor and equipment. The bill remains unpaid, breaching a contract between the companies, and interest is accruing on the balance, according to court papers.

The action is also filed against Maine Health and Higher Educational Facilities Authority of Augusta, who hold mortgages on the property.

The project was completed in March 2013, said court papers.

The claim was filed to preserve the Gardiner company's lien rights on the project during the Ferraiolo's bankruptcy action, said Portland Attorney Randy J. Creswell, who represents the plaintiff.

The complaint states the medical center and Maine Health have been unjustly enriched by accepting the work done on the Glen Cove Road properties without compensation for the work done.

In June, Maine Drilling recorded a lien certificate in the Knox County Registry of Deeds to secure the $26,990 remaining due on the project.

George Marcus, attorney for Ferraiolo Construction, said he has not seen the complaint yet, but said the money owed Maine Drilling and Blasting, Inc. is not a significant amount and believes the action will be resolved.

In March, The Bank of Maine filed foreclosures on multiple properties owned by members of the Ferraiolo family, claiming the defendants owed nearly $10 million.

Marcus said about six or seven parcels owned by Ferraiolo Construction were auctioned off in June, substantially reducing the amount of money owed to the bank. He said the bank also forgave some debt, and when Ferraiolo Construction comes out of Chapter 11 bankruptcy, they will owe about $1 million. The company filed a re-organization plan that is expected to be approved this summer by the U.S. Bankruptcy Court, he said.

A re-organization plan is submitted to the court for settlement and adjustment of debts. Ferraiolo Construction has negotiated with creditors to settle the debts, and the money garnered from property and equipment sales will be used to pay the bank, Marcus said.

Defendants Frank Ferraiolo, John Ferraiolo, Vincent Ferraiolo and Filomena Ferraiolo face 10 counts, including six foreclosures, breach of contract and unjust enrichment, according to the March civil claim filed in Knox County Superior Court.

The defendants own properties in Rockland, as well as real estate in Camden, Rockport Union, Warren and Washington.

Justice Jeffrey Hjelm granted a motion for attachment filed by the plaintiff in March. The attachment was made against the property of each of the defendants in the amount of $1 million.

In June, a motion to stay action until September 16 was granted by Hjelm to allow Ferraiolo Construction time to re-organize the business.

A message to Pen Bay Medical Center seeking comment on the July civil action including the property lien was not immediately returned.

Courier Publications' reporter Juliette Laaka can be reached at 594-4401 ext. 118 or via email at

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