Justice F. Dana Winslow
Ditkowich agreed to loan friend Stern $200,000 in 2007, wiring the money into the account provided, for Camp Summit, the summer camp Stern operated. Stern provided Ditkowich an acknowledgment letter on Camp Summit letterhead stating he borrowed $200,000 and $2,000 monthly interest was due Ditkowich. It also noted Ditkowich would receive the full balance due upon Stern’s death or transfer of ownership. Stern stopped making payments in June 2008, and transferred ownership of the camp in 2010, thus, the loan became due in full. Stern argued the loan was to the camp and not him personally, but the camp ceased to operate after the sale. The court noted the acknowledgment letter provided that "I, David Stern, borrowed…" and did not include the representative capacity. Further, the funds were transferred into an account selected by Stern, which the court found Stern used as a conduit for personal funds. The court stated by failing to properly use the corporate identity, it disappeared along with the protections it afforded. The court concluded Stern individually, not the camp, was the borrower, thus personally responsible for the payment of principal and accrued interest, including statutory interest from the date of sale.
