MACHIAS — A bank foreclosure lawsuit against owners of the former Ramsdell Construction Co. has taken a new turn, with accusations of unethical behavior being made against the bank and its president.

Attorney Ralph A. Dyer of Portland, who represents Yvonne Ramsdell, a defendant in the lawsuit, alleges that Machias Savings Bank and its president, Edward J. Hennessey of Marshfield, called in nearly $1.2 million in loans with the intention of forcing Ramsdell Construction Co. out of business.

According to Dyer, the move established a construction monopoly in Machias benefiting Hanscom Construction Co., a Ramsdell competitor, which became the only major construction firm operating in the Machias area.

Hennessey, meanwhile, provides services as a clerk for Hanscom Construction Co. Hennessey denies receiving payment for those services.

Hanscom Construction Co., which is owned by Donald Hanscom of Marshfield, formed a partnership with Ramsdell Construction Co. in 1987 as a means to pool manpower and equipment so that Hanscom and Ramsdell could bid on jobs too big for each company to undertake on its own.

According to the partnership agreement, profits were to be evenly divided. The partnership dissolved in 1990 amidst claims by Hanscom that Ramsdell took more than his share of the profits.

Mired in debts totaling nearly $2 million, Ramsdell Construction Co. filed for reorganization under Chapter 11 on Sept. 22, 1992. On Nov. 9, the Chapter 11 filing was converted to a request for liquidation under Chapter 7 bankruptcy rules.

Bankruptcy records show that Yvonne Ramsdell’s husband, Roland W. Ramsdell, owned 85 percent of the business, while his son Kenneth “Pete” Ramsdell, owned the remaining 15 percent. Their interests are now owned by their bankruptcy estate.

The company’s equipment and machinery were seized by Machias Savings Bank in October 1992 and held until May, when it was auctioned off. The auction netted the bank $521,269 through equipment sales. Additionally, Coastal Leasing & Sales Co. paid the bank $67,500 for two airplanes — a Piper Arrow and Cessna 150 — and an Enstrom helicopter formerly owned by Kenneth Ramsdell.

The allegations and counterclaims lodged by Dyer grew from a civil suit filed in February, in which the bank moved to foreclose on three properties used as collateral by the Ramsdells to secure more than $1 million in loans from the bank.

Attorney Stephen G. Morrell of Brunswick, who represents Machias Savings Bank in the case, contends that the allegations claimed by Yvonne Ramsdell and her attorney are “simply not credible.” According to Morrell, the Ramsdells mismanaged their business, yet are trying to blame their financial woes on the bank.

So far, Yvonne Ramsdell, through Dyer, has asked the court for three continuances in order to obtain documents and evidence sufficient to file a countersuit against the bank. According to Dyer, the bank has deliberately stonewalled Ramsdell’s efforts to obtain material held by the bank — material which Dyer argues would prove unethical wrongdoing by the bank and Hennessey — to prevent a countersuit from being filed.

In addition, the bank has filed a motion for a protective order to prevent Hennessey and other bank officers from being required to give depositions, now scheduled for November. The bank, meanwhile, still intends to hold Ramsdell to the procedure.

“The crystal clear purpose is to frustrate and block Yvonne Ramsdell’s attempt to get the facts in this case,” Dyer wrote in a motion filed last week. “The bank does not want anyone asking embarrassing and difficult questions.”

Dyer also charged that Machias Savings Bank “intends to go forward as scheduled with its deposition of the defendants, but not its own deposition. The condition speaks volumes about the attitudes and intentions of the bank.” Dyer then accused the bank of “using its depositors’ resources to run up the cost of litigation and to win its case by means of unbridled economic power.”

Dyer, in other documents contained in a file nearly 6-inches thick and growing, alleges “wrongful conduct” by “Machias Savings Bank and its president which has resulted in and otherwise caused the default of Kenneth and Roland Ramsdell’s loans. … ” Those actions allegedly include:

Breach of contract by the bank in its administration of a $171,000 federal Small Business Administration loan. The money was allegedly diverted “to purposes not authorized by the terms of the loan agreement and by the SBA guarantee,” Dyer said;

“Improper and unauthorized release of confidential information by Machias Savings Bank” about the Ramsdells to their competitors;

Negligent and intentional misconduct” by the bank in its handling of the Ramsdells’ financial affairs, including ” … the taking of control over receipt of funds of the business, improper and negligent disposition of funds from the business, improper diversion of funds for the benefit of Machias Savings Bank and the friends, customers and business associates of Machias Savings Bank and its president.”

In addition to claims of fraud and failure to meet certain contractual obligations, Dyer accused the bank of reneging on various “oral agreements” that were allegedly struck in return for “free airplane travel, free use of construction equipment and free construction of a driveway” at Hennessey’s home in Marshfield.

Hennessey stated in an affidavit filed in July that Ramsdell, while still in a partnership with Hanscom Construction Co., agreed to do the driveway project for between $1,500 and $2,000. The project was completed at a cost of $1,820, for which Ramsdell was paid by check, Hennessey said. The check “was later endorsed by Ramsdell Construction Co. and deposited in its account at Machias Savings Bank,” Hennessey said.

In July 1988, Hanscom, while still in partnership with Ramsdell, completed a road improvement project on property Hennessey owned in East Machias. Hennessey again maintains that the service was not provided free, but instead cost him $5,000, of which Ramsdell received $2,240.86.

Hennessey goes on to detail three flights which he took with Kenneth Ramsdell. Hennessey claims that in each case he offered to pay Ramsdell for the flights, but that Ramsdell first refused the money, then, on two occasions, accepted a portion of the money for fuel and other expenses.

A number of motions filed in recent weeks, including two new motions received Thursday, are scheduled to be heard on Nov. 24 in Washington County Superior Court.