The court ruled that power of attorney does not protect agents from liability for dishonest or improper actions.
Family, property and financial power can combine to complicate inheritance disputes. A Maine case involving a grandfather’s home, a deeply discounted sale and a contested estate is headed back to court after the state’s highest court ruled a granddaughter had shown enough to pursue her claims.
Scroll down to read the details of this property dispute.A will that left everything to his granddaughterAccording to Justia US Law, the October 2026 case involves grandfather Steven of Maine, who named his granddaughter, Ms Sabin, in his will. Steven had three children, one of whom was Sabin's father, who had predeceased him. According to the terms of the will, Sabin was to have the share which would otherwise have gone to her father.In 2022, as he and his wife began to suffer cognitive decline, Steven gave his stepson broad financial power of attorney. It gave the stepson wide-ranging powers over Steven's property, including the power to convey assets and make gifts.However, the power of attorney did not relieve liability for conduct involving dishonesty, an improper motive or reckless disregard of its purposes.
Selling a house for $225,000
The feud intensified following Steven's wife's death in February 2024, which left Steven the sole owner of the family home.
Sabin’s lawsuit says the property was up for sale at $225,000 in March 2024. The stepson had already agreed to sell the property to his son, for a much lower price than its worth, according to the suit. The home changed hands for $105,000 on March 29, with a $5,000 seller credit.Sabin claimed the use of a real estate agent gave the impression of a typical sale considering that the transaction had already been arranged within the family.Proceeds from the sale were deposited into a joint account held by stepchildren and Steven. Stepchildren allegedly received the money instead of it going into the estate when Steven died on June 21, 2024. Sabin also disputed the lack of baseball cards and antique coins and claimed other assets were diverted.
Her case was dismissed by lower court
In March 2025 Sabin sued in Franklin County Superior Court, claiming someone interfered with an inheritance she expected to receive.
She asked the court for various remedies, including a constructive trust and punitive damages.The Superior Court dismissed the case later that year, stating that she had not sufficiently established the nature and extent of the inheritance she was to receive. Sabin appealed the ruling. The Maine supreme judicial court disagreed.
Supreme Court revives lawsuit
On Oct. 22, 2026, the court ruled that Sabin had adequately alleged an expectancy of inheritance.
At this stage of the proceedings her status as Steven’s granddaughter, her status in the will and her allegations regarding the house and other property were sufficient.The defendants also failed to convince the court that they were shielded from liability by Steven’s power of attorney. As a matter of Maine law, an agent cannot escape liability for acts done dishonestly or with an improper purpose.Importantly, the ruling does not mean that Sabin will ultimately win her claim to the inheritance.
Rather, it means that her allegations are enough to go forward, and there remains evidence to be reviewed about the value and disposition of Steven’s property.The dismissal has been overturned by the Supreme Judicial Court, which has sent the case back to the lower court for further action. The case has revived a family inheritance fight that began over the sale of a house, and now centers on events surrounding the estate both before and after the death of Steven.Image Courtesy: istock