Asrc Energy Services Power v. Golden Valley Electric Ass'n

267 P.3d 1151, 2011 Alas. LEXIS 118, 2011 WL 5288786
CourtAlaska Supreme Court
DecidedNovember 4, 2011
DocketNos. S-12630, S-12989
StatusPublished
Cited by28 cases

This text of 267 P.3d 1151 (Asrc Energy Services Power v. Golden Valley Electric Ass'n) 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
Asrc Energy Services Power v. Golden Valley Electric Ass'n, 267 P.3d 1151, 2011 Alas. LEXIS 118, 2011 WL 5288786 (Ala. 2011).

Opinion

OPINION

PER CURIAM.

I. INTRODUCTION

When the legislature enacted the Alaska Unfair Trade Practices and Consumer Protection Act (UTPA)1 in 1970, it declared unlawful "unfair or deceptive acts or practices in the conduct of trade or commerce." 2 Through a 1974 amendment to the UTPA, the legislature directed Alaska courts to give "due consideration and great weight" to Federal Trade Commission (FTC) and federal court interpretations of 15 U.S.C. § 45(a)(1), a subsection of the Federal Trade Commission Act (FTC Act)3 The 1974 legislature specifically directed Alaska courts to adhere to these interpretations to provide uniformity in unfair trade laws4 In a seminal 1980 decision, State v. O'Neill Investigations, Inc., we rejected a void-for-vagueness challenge to the prohibition against "unfair or deceptive acts or practices in the conduct of trade or commerce," reasoning that the language of the Alaska UTPA had a "fixed meaning" derived from "agency and judicial interpretation of the identical words of the federal statute." 5 We then adopted the contemporaneous agency and federal court standards for "unfair or deceptive acts or practices." 6

For over 30 years, we have consistently defined "unfair or deceptive acts or practices" in line with O'Neill Investigations.7 During that time, however, the FTC and some federal courts have modified their definitions of unfairness and deception. The FTC adopted a modified definition of unfair practices in 1980,8 which was codified by Congress in a separate subsection of the FTC Act in 1994.9 And an FTC adjudication in 1984, In re Cliffdale Associates, Inc., provided a modified definition of deception.10

The primary issue in this case is whether the Alaska legislature's directive that courts should give "due consideration and great weight" to the FTC and federal court interpretations of 15 U.S.C. § 45(a)(1) requires us to overrule our previous line of cases. We [1154]*1154hold that it does not, and that the trial court did not err in evaluating UTPA claims and formulating a jury instruction according to our precedent and previously articulated standards for deception and unfairness. But for other reasons explained below, we vacate in part the judgment in this case and remand for further proceedings.

II. FACTS AND PROCEEDINGS

A. Facts

This litigation arises from the award by Golden Valley Electric Association (GVEA) of two competitively bid construction contracts on its Northern Intertie Project. In November 2001 GVEA awarded Global Power & Communications, LLC (Global)11 an approximately $39.4 million contract (Contract NI-8) for construction of the Northern Intertie's Tanana River flats section. Later GVEA awarded Global an approximately $5.3 million contract (Contract NI-9) for construction of the Northern Intertie's Tanana River crossing and Fairbanks sections.

Subsequently, after Global had been awarded NI-9 and before it had completed work on NI-8, Global presented GVEA with requests for additional compensation (RFIs) totaling approximately $2.4 million in connection with NI-8. GVEA responded that it found "no legitimate basis in the construction documents" to justify Global's RFIs and was "rejecting Global's request for additional payment."

Several months later, Global requested a meeting with GVEA to discuss the merits of the rejected RF Is. Global also notified GVEA that Global would submit more RF Is, arising out of both NI-8 and NI-9. Global submitted additional RFIs to GVEA that month, including additional claims of approximately $2.3 million in connection with NI-8 and claims of approximately $765,000 12 in connection with NI-9. Through these RFIs, Global sought additional compensation totaling approximately $5.7 million under the two contracts. Global primarily alleged that it had incurred lost profits and expenses due to GVEA's inability to timely provide permits, materials, and instructions as required by the contracts. (ilobal also alleged that GVEA requested extra work for which Global was entitled to compensation.

GVEA responded to Global denying most of the RFIs but indicated that it would approve a few and consider partial payment for a few others.

B. Proceedings

1. Pre-trial proceedings

Global filed two complaints against GVEA in October 2003, asserting in the first that GVEA owed Global "in excess of $50,000" in connection with NI-8 and in the second that GVEA owed Global "in exeess of $50,000" in connection with NI-9. GVEA answered each complaint and the two actions were consolidated.

In December 2004 GVEA conveyed what it considered an Alaska Civil Rule 68 offer of judgment to Global, "offer[ing] to allow entry of Judgment in favor of [Global] for Seven Hundred and Fifty Thousand Dollars ($750,-000.00) ... contingent on the [consolidated lawsuits] being dismissed with prejudice." Global did not accept this offer.

Global then filed an amended complaint alleging new causes of action regarding NI--8, including misrepresentation, failure to disclose, and a claim under the UTPA.13 Specifically, Global alleged that GVEA had concealed and misrepresented the existence of technical data about subsurface conditions along the project route.

GVEA moved for judgment on the pleadings on Global's UTPA claim. GVEA argued that the UTPA did not apply to the contractual relationship between GVEA and Global despite its application to a commercial dispute in Western Star Trucks, Inc. v. Big Iron [1155]*1155Equipment Service, Inc.14 GVEA argued that the construction contracts "were complex, private, arm's-length business transactions between two sophisticated business entities" and that the "contracts did not implicate consumer protection concerns." Global countered that Western Star required the denial of GVEA's motion for judgment on the pleadings. The trial court agreed with Global and denied GVEA's motion after oral argument.

In early 2006 Global reformulated its claims using a different calculation methodology, reducing the total amount of its claims from approximately $5.7 million to approximately $8.2 million. It apparently did so after consulting a damages expert who found the original methodology "probably not as accurate as it should be."

GVEA amended its answer to Global's amended complaint, asserting new counterclaims against Global for misrepresentation and alleging that Global had falsified doeu-ments, including reports, employee time sheets, and RFIs.

GVEA later amended its counterclaims, asserting that Global had violated the UTPA by presenting falsified RFIs. GVEA alleged that it suffered damages from relying on false or misleading statements in Global's RFIs.

The parties filed trial briefs in April 2006.

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Cite This Page — Counsel Stack

Bluebook (online)
267 P.3d 1151, 2011 Alas. LEXIS 118, 2011 WL 5288786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asrc-energy-services-power-v-golden-valley-electric-assn-alaska-2011.