A woman who bought a newly built house in Hampden is accusing the developer, inspector and real estate agent of fraudulently selling the property after she immediately encountered issues with the home, according to a lawsuit.
Peggy Gagnon moved into a newly built house in a 36-home development off Main Road South in Hampden in December 2023.
Gagnon bought the Stearns Farm Road home, which was advertised as being primarily built by Jason Hewitt, in part because he had a good reputation, according to a lawsuit filed Monday in Bangor District Court.
She later found out her house was built by a different contractor who did a “non-professional job,” the lawsuit said.
Gagnon is suing the developer Stan MacMillan, owner of S.E. MacMillan Company; Alliance Home Inspection and inspector Erik Morse; real estate agent Emily Ellis; and Berkshire Hathaway Home Services.
The lawsuit alleges that the defendants breached the contract, as well as breached Maine’s Unfair Trade Practices Act. It also alleges negligence, negligent misrepresentation, fraudulent misrepresentation and unjust enrichment.
Gagnon asked a judge to award her $40,000 for the repairs, plus civil penalties. She also asked for damages the judge deems reasonable.
Deceptive practices were used against Gagnon because they advertised one contractor while another contractor actually performed the work, the lawsuit said.
None of the defendants responded to requests for comment. Gagnon’s attorney, Jeremiah Rancourt did not respond to a request for comment.
The parties tried to use the mediation services offered by the Office of the Maine Attorney General, but no resolution could be reached, the lawsuit said.
Ellis, who sold the home, failed to provide Gagnon with accurate information and made assurances that her home was built by Hewitt, the lawsuit said.
A home inspection was done Nov. 2, 2023, and did not locate any major issues, the lawsuit said. The inspector, Morse, used a drone to inspect the roof and missed issues he would have seen if he had climbed onto it, the lawsuit said.
As soon as she moved in, Gagnon had immediate problems with the roof and maintaining heat in the kitchen and living room, according to the lawsuit. Two different roofing consultants found there was a leak in the attic and improper installation of the underlayer and a roof pipe boot, which provides a watertight seal.
The inspectors also found the roof’s shingles were improperly installed and needed to be replaced.
The home had “excessive moisture” and did not have adequate circulation, according to the lawsuit. A dehumidifier “struggled” to keep humidity in a normal range. An environmental engineer and home inspector confirmed the issues in April 2024, the lawsuit said.
A radon mitigation system was not installed in the house, despite state law mandating it, the lawsuit said. Hampden requires a form documenting radon mitigation, which was not filed. Gagnon later bought a system for $1,320.
Another home inspection found there was a lack of insulation around the slab, which explained the heat loss, the lawsuit said. The windows did not have flashing tape properly installed, which led to drafts.
The dishwasher was pulled out and blown insulation was put into the walls, which “substantially” helped the heat issue, according to the lawsuit.
An electrician was needed to do some minor work to help stop flicking lights, the lawsuit said.
All of the necessary immediate repairs were costly and there are more repairs that will need to be done, the lawsuit said, These are problems that should have been identified by the defendants.