Alakayak v. British Columbia Packers, Ltd.

48 P.3d 432, 2002 Alas. LEXIS 74, 2002 WL 1150730
CourtAlaska Supreme Court
DecidedMay 31, 2002
DocketS-9259, S-9359
StatusPublished
Cited by45 cases

This text of 48 P.3d 432 (Alakayak v. British Columbia Packers, Ltd.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alakayak v. British Columbia Packers, Ltd., 48 P.3d 432, 2002 Alas. LEXIS 74, 2002 WL 1150730 (Ala. 2002).

Opinion

- OPINION

FABE, Chief Justice.

I. INTRODUCTION

A class of commercial sockeye salmon fishers who fished in Bristol Bay between 1989 and 1995 brought an antitrust action under the Alaska Antitrust Act against salmon processors and importers who allegedly conspired to depress the prices paid to fishers for raw salmon. After the class settled with some defendants, the superior court granted summary judgment as to all other defendants, holding that the plaintiffs had failed to present evidence sufficient to raise a genuine. issue of fact as to whether a price-fixing conspiracy existed. After summary judgment was entered, the prevailing defendants requested an award of attorney's fees and costs under Alaska Civil Rules 79 and 82; however, the superior court denied this request. The plaintiff class now appeals the grant of summary judgment. The defendants cross-appeal the denial of attorney's fees, as well as the superior court's ruling construing the statute of limitations for antitrust actions, AS 45.50.588, to allow the plaintiffs to recover damages sustained during the course of the entire alleged conspiracy.

IL. FACTS AND PROCEEDINGS

A. Characteristics of the Bristol Bay Sockeye Salmon Industry

The plaintiffs in this case are a class of commercial fishers who held limited entry *438 permits and fished for sockeye salmon in the Bristol Bay fishery during the seven seasons between 1989 and 1995. The thirteen defendants are processors of salmon, who purchased the raw salmon directly from the fishers, as well as importers, who purchased processed salmon from the processors for later importation and distribution in Japan. The processor defendants are: British Columbia Packers, Ltd./Nelbro Packing Co. (Nelbro); 1 Icicle Seafoods, Inc.; North Pacific Processors, Inc. (NPPI); Unisea, Inc.; Wards Cove Packing Co.; Trident Seafoods Corp.; Peter Pan Seafoods, Inc.; and Ocean Beauty Seafoods, Inc. The importer defendants are: Marubeni Corp./Marubeni American Corp. (Marubeni), Nippon Suisan Kaisha, Ltd. (Nissui); Nichirei Corp.; Okaya & Co., Ltd./Okaya (USA), Inc./Okaya (Canada), Ltd. (Okaya); and Nichiro Corp.

Most fishers in Bristol Bay enter into unwritten agreements with processors to be part of a processor's "fleet." The processors commonly guarantee that they will purchase some or all of their fleet's harvested salmon and provide important services to their fleet, including fuel and provisioning. Many fishers switch from one processor's fleet to another between seasons.

The processors buy the raw salmon from the fishers at a single, homogeneous price per pound that does not change depending on the size, sex, or quality of the salmon harvested. The price paid per pound by the processors to the fishers varied between processors, but the prices generally had three components: (i) an initial in-season 2 price, with or without adjustments during the season, (ii) a post-season "adjustment," and (ii) a "loyalty bonus." 3 The defendant processors are all within the top ten largest processors operating in Bristol Bay, who collectively bought between 70.7% and 77.2% of the total salmon output between 1989 and 1995. The defendant importers together purchased between 21.7% and 36.4% of the Bristol Bay salmon between 1989 and 1995.

The procedure for setting the prices paid for raw salmon varied from season to season and from processor to processor. Some processors announced an in-season price before the season opened, while others required their fleets to fish on an "open ticket," with only a nominal price or even no announced in-season price at the start of the season. Onee announced, the in-season price was sometimes adjusted during the season. After the season ended, the processors would sometimes issue a post-season "adjustment" to the in-season price, which would replace or modify the prices already set for the season. In addition, some processors also issued to some or all of their fishers a "production" bonus, based on a fisher's number or volume of deliveries, and a "loyalty" bonus, based on factors determined by the processor. During the season, the in-season prices paid by different processors were a topic of frequent discussion among fishers, who found out about the prices through word of mouth, from local media, from processor postings on tenders receiving fish, and on company bulletin boards.

After the raw salmon was purchased and processed by the processors, it was in turn resold to importers. All of the importer defendants in this appeal purchased salmon for export to Japan. These Japanese importers maintain access to the Bristol Bay salmon through contracts with processors and through direct ownership-three of the importer defendants own three of the processor defendants. 4

B. The Alleged Conspiracy

From 1984 to 1988 total prices paid by the defendant processors for raw salmon in Bristol Bay climbed dramatically until they reached over $2.00 per pound. In the 1989 season these prices fell to about an average *439 of $1.33 per pound; between 1989 and 1995 the average never rose above this level, falling to about $0.63 per pound in 1995. 5

The defendants presented evidence supporting an innocent explanation for the decline. An expert witness for the defendants maintains that the decline was caused by a worldwide salmon glut that began in 1988. And, a U.S. General Accounting Office report gave three reasons for the decline in prices: the large size of the Bristol Bay catch, a glut in Japan, and the importance of farmed salmon in the Japanese market.

However, the plaintiffs claim that this decline in prices paid to fishers is the result of a price-fixing conspiracy between all or many of the large processors in collusion with importers. The plaintiffs contend that there is both direct and cireumstantial evidence of this conspiracy.

C. The Elements of the Alleged Conspiracy .

The plaintiffs make three general claims: (1) that the processors agreed among themselves to fix current and future prices for raw salmon; (2) that the major processors and importers engaged in strong-arm tactics to force smaller processors to accept lower prices; and (8) that importers attempted to manage, organize, and coordinate processor efforts to lower prices. The evidence marshaled to support these theories is briefly summarized here. 6

1. Agreements between processors to Fix current and future prices

The plaintiffs claim that evidence in the record shows that the defendant processors agreed to fix current and future prices at various times between 1989 and 1995.

a. Torres statement concerning 1991 actions ‘

In a deposition, NPPI employee Robert Torres was asked about the processors' offer of a $0.70 in-season price on or about July 3, 1991.

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Bluebook (online)
48 P.3d 432, 2002 Alas. LEXIS 74, 2002 WL 1150730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alakayak-v-british-columbia-packers-ltd-alaska-2002.