Vertical Harvest, a new indoor farm in downtown Westbrook and first of its kind in Maine, is facing a lawsuit after allegedly failing to make payments to a broker that helped secure funding for its development.
The hydroponic farm uses artificial light to grow vegetables without the need for soil.
In 2022, Vertical Harvest hired a Canadian broker called Waterside Commercial Finance to help secure over $48 million in loans from the U.S. Department of Agriculture.
The dispute, filed in Cumberland County Superior Court last month, is over the terms of repaying Waterside's $1 million brokerage fee.
Waterside's complaint alleges Vertical Harvest, and investors Ravain Fund Management, misled the broker to defer payment of the fee despite having funds available. It accuses the defendants of breach of contract and misrepresentation.
Written in the complaint, "Waterside demands judgment against Vertical Harvest for an amount sufficient to compensate it in full for all damages it has uncured as a result of Vertical Harvest's breaches of the Subordinate Note Agreement, along with an award of its attorney's fees, interests and costs."
Jim Haddow, a Portland-based attorney representing Waterside, referred Maine Public to Frank Romita, a managing partner at Waterside for comment. When reached, Romita declined to comment on the lawsuit.
Vertical Harvest CEO Nona Yehia said the claims of the lawsuit are inaccurate and that the dispute is over financing — not the operations of the farm.
"We are committed to the community," she said. "We are committed to the jobs that we will create, and we are committed to serving the community for years to come with fresh, nutritious, healthy product."
The complaint was served last week and Vertical Harvest will have a chance to respond.
Last year, the City of Westbrook filed a tax lien against the company for around $45,000 in unpaid taxes. Yehia said the company is working with the city to settle its payments.
"Legal disputes happen when projects are complex and timelines stretch," Yehia said. "But they don't define the work or the long-term viability of what we're building."
The four-story building is currently growing produce and is expected to yield over 3 million pounds of mixed greens per year. Yehia said Vertical Harvest intends to partner with Maine school systems to provide fresh food this year.
