SUULUTAAQ, INC. v. Williams

782 F. Supp. 2d 795, 39 Media L. Rep. (BNA) 1099, 2010 U.S. Dist. LEXIS 142235, 2010 WL 6243320
CourtDistrict Court, D. Alaska
DecidedDecember 1, 2010
Docket3:10-cr-00048
StatusPublished
Cited by5 cases

This text of 782 F. Supp. 2d 795 (SUULUTAAQ, INC. v. Williams) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SUULUTAAQ, INC. v. Williams, 782 F. Supp. 2d 795, 39 Media L. Rep. (BNA) 1099, 2010 U.S. Dist. LEXIS 142235, 2010 WL 6243320 (D. Alaska 2010).

Opinion

ORDER

TIMOTHY M. BURGESS, District Judge.

Defendants Lance Williams, Center for Investigative Reporting (“CIR”), and the San Francisco Chronicle (the “Chronicle”) have moved for judgment on the pleadings requesting that the Court dismiss Plaintiffs Suulutaaq, Inc. (“Suulutaaq”) and Samuel Boyle’s claims for defamation. 1 For the reasons discussed below, Defendants’ motion is GRANTED, in part, and DENIED, in part. Defendants related request for a hearing 2 is DENIED.

I. BACKGROUND

A. Suulutaaq and the Section 8(a) Program

Suulutaaq is an Aaska Native Corporation (“ANC”) that pursues federal contracts under § 8(a) of the Small Business Act. 3 Section 8(a) tasks the federal government with “negotiating or otherwise letting [procurement contracts] to socially and economically disadvantaged small business concerns” to supply various goods and services. 4 The § 8(a) program is intended “to help small businesses owned and controlled by socially and economically *799 disadvantaged individuals [and groups] ... including Alaska Native Corporations ... to compete on an equal basis in the mainstream of the economy.” 5 Under the program, the government places projects in the § 8(a) program and awards the contracts to eligible contractors. The government may award qualifying § 8(a) contracts — including contracts awarded to ANCs 6 — without competitive bidding. 7 Regardless, however, § 8(a) contracts must not exceed “a fair market price.” 8

Regulations restrict the contact that government officials may have with § 8(a) contractors, 9 however, they do provide that the contractors may “influence” the process through “self-marketing.” 10 Under the “self-marketing” rules, § 8(a) contractors may contact agency personnel and market their services for projects that they are capable of performing. 11

Consistent with the goals of the program, Suulutaaq began pursing § 8(a) contracts “shortly after its inception ... in order to ultimately alleviate some of the economic disadvantage and poverty in the isolated and rural villages of its region and to fund further cultural preservation.” 12

B. Boyle

Boyle is the CEO for one of Suulutaaq’s affiliates, TKC Aerospace, and served as “the transitional CEO” for Suulutaaq during a “reorganization” period that lasted less than one year. 13 Boyle has “extensive business management experience,” 14 including consulting work where he advised companies on “their strategies, processes, business plans and operational execution.” 15 His prior experience included working with “government contractors” and “government agencies” on “long-term projects.” 16 This background provided him with “insight into federal contracting.” 17 Boyle also has “substantial experience in the Aerospace Industry” but does not have “specific construction experience.” 18 He lived in Alaska for several years during the 1980s, and currently resides in South Carolina. 19

Prior to joining TKC Aerospace, Boyle was the CEO of Sailnet, a “dot-com” business. 20 Sailnet declared bankruptcy in July 2005, approximately seven months after Boyle left the company. 21 Before do *800 ing so, Sailnet spent approximately $13 million in venture capital. 22 Boyle and his family personally lost everything that they had invested in Sailnet when it went bankrupt. 23

After leaving Sailnet, Boyle performed some consulting work for TKC Aerospace. 24 He was then asked to become the CEO in June 2005. 25 In March 2009, he was asked to become the transitional President of Suulutaaq. 26

C. The Napa Flood Control Project

This dispute centers around a flood control construction project in Napa Valley, California. 27 Suulutaaq won the contract and has been working on it as the prime contractor. 28 It is unclear how Suulutaaq became aware of the Napa Valley Flood Control Project, however, it may have been through an email from the U.S. Army Corps of Engineers notifying it of the opportunity and inviting it to participate in the procurement process. 29 According to Suulutaaq, this is a typical procedure where an agency identifies an opportunity as a set aside under § 8(a) or other similar programs. 30 Suulutaaq asserts that it:

cannot find any evidence suggesting that Suulutaaq, either directly or indirectly through others, made any attempt at any time to influence the U.S. Army Corps of Engineers, the Napa Valley Flood District, the City of Napa or any other local, state or federal employee, agency or legislator to determine that the Napa Valley Flood Control Project should be: 1) a set aside of any kind or 2) reserved for Suulutaaq in any manner. 31

Suulutaaq has subcontracted out some of the work on the Napa Flood Control Project, but is exceeding the 15% self-performance minimum requirement under the § 8(a) program. 32

D. Defendants and the Allegedly Defamatory Article

Williams is a reporter who wrote an article about the Napa project (the “Article”), which contains the allegedly defamatory statements. 33 CIR is “an investigative news reporting organization” that founded “California Watch,” a subsidiary that employs Williams. 34

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782 F. Supp. 2d 795, 39 Media L. Rep. (BNA) 1099, 2010 U.S. Dist. LEXIS 142235, 2010 WL 6243320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suulutaaq-inc-v-williams-akd-2010.