United States v. Portac, Inc., United States of America v. Howard L. Wolf

869 F.2d 1288, 1989 U.S. App. LEXIS 2816, 1989 WL 19341
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 9, 1989
Docket87-3132, 87-3178
StatusPublished
Cited by40 cases

This text of 869 F.2d 1288 (United States v. Portac, Inc., United States of America v. Howard L. Wolf) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Portac, Inc., United States of America v. Howard L. Wolf, 869 F.2d 1288, 1989 U.S. App. LEXIS 2816, 1989 WL 19341 (9th Cir. 1989).

Opinion

CANBY, Circuit Judge:

Portae, Inc., a sawmill company, and Howard Wolf, an employee of Portae, appeal criminal convictions stemming from a conspiracy to rig bidding on a government timber sale held on March 22,1985. Portae was charged with aiding and abetting the formation of a conspiracy in unreasonable restraint of trade, in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1 (1982), and 18 U.S.C. § 2 (1982). Howard Wolf was charged with making false material declarations under oath, before a grand jury investigating the rig bidding. 18 U.S. C. § 1623 (1982). We affirm both convictions.

FACTS

On February 18, 1985, the U.S. Forest Service advertised that an estimated 8,100,-000 board feet of timber in Soleduck Ranger District would be auctioned on March 22, 1985, by competitive bidding. The sale was known as the “Up and Adam” timber sale. Three companies, Hoh River Timber Inc., (“Hoh River”), Astoria Plywood Corp., (“Astoria”), and Seattle-Snohomish Inc., (“Sea-Sno”) submitted sealed bids, and were the only companies represented at the sale. Hoh River and Sea-Sno bid the minimum acceptable amount ($515,728) established by the Forest Service. Astoria bid $20.50 above the minimum amount. Evidence was introduced which tended to show that Hoh River had originally been prepared to bid up to $791,000. Although oral bids were allowed after the opening of the sealed bids, none of the three companies made an oral bid. The sale accordingly went to Astoria.

On February 23, 1987, a federal grand jury indicted Astoria, Hoh River, Portae Inc. (“Portae”) and Howard Wolf, Portae’s timber manager. Astoria and Hoh River were charged with conspiracy in restraint of trade, in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1. The conspiracy was an agreement to refrain from bidding competitively against Astoria, which would then allocate logs from the sale among the conspirators and Portae. Astoria and Hoh River pleaded guilty to this conspiracy charge. 1 Portae was charged with having “willfully aided, abetted, counseled, commanded, induced or procured” the formation of the conspiracy in violation of 18 U.S.C. § 2. Wolf was charged with making false material declarations under oath before the grand jury, in violation of 18 U.S.C. § 1623.

The government’s prime witness at trial was Dean Hurn. As president and manager of Hoh River, Hurn was responsible for bidding on Forest Service timber. Hum's testimony revealed that Hoh River was interested in bidding on the sale because of *1292 the timber's location and because “[i]t is very high grade wood.” The day before the sale, Hurn and Wolf spoke and discussed Portae’s desires for timber from the sale. Portae itself was not eligible to bid, because its parent company exports logs.

Hurn and Wolf also discussed the deal, by phone, on the morning of the sale. Hurn testified that, “I ... told [Wolf] that I was going to go see Norm Axon from Astoria Plywood ... I told Howard I was going to go down to the auction and we discussed, ... Astoria being there and Howard, the way that we left it was that I was to go to the timber sale and either bid the timber sale or try to make a, some type of a deal with Astoria on the timber sale.” Wolf instructed Hurn to “see what Astoria had to say” about a deal and also informed him that Sea-Sno’s buyer “wanted logs out [of] that timber sale.”

On the morning of the sale, Norm Axon, (Astoria’s timber manager), Neill Bowman, (Sea-Sno’s timber manager), and Hurn met in the parking lot of the Soleduck Ranger Station. Bowman told Hurn “that ... he wanted logs out of that sale or was going to bid the timber sale.” Hurn responded that Bowman “could get some logs out of that sale ... if we bought the sale.” The three buyers then worked out the distribution of logs. Hum’s company would get the Hemlock and the other three companies (two bidders and Portae) would get the Douglas Fir. “[I]t was agreed that [Astoria would] buy the sale, [and] that [Hurn] wouldn’t bid against them.” When the sealed bids were opened, Hurn did not bid because he had agreed not to bid against his competitors.

After the auction Hurn called Wolf at Portae. Because Wolf was not available, Hum spoke to Portae’s president, Smokey Pittman, and “let him know what happened at the timber sale.” The agreed division of logs from the Up and Adam Sale never came to pass. Approximately one year later, when Astoria’s Norm Axon learned that a grand jury was investigating the sale, he announced that the agreement was off and Astoria would keep the logs.

Wolf testified at length before the grand jury, and he was ultimately charged with making 21 false declarations. He and Por-tae were tried together. Wolf was convicted of only two false statements, those being his answers to the last two of the following questions:

Q. Do you know whether or not Mr. Hum had any contact with a representative of Astoria Plywood prior to the Up and At ‘Em [sic] timber sale?
A. No.
Q. Do you have any reason to believe that he did?
A. No.
Q. Has anybody ever told you that a sale was rigged?
A. No.

After reaching a verdict separately against Wolf, the jury advised the court that it was unable to reach a verdict with regard to Portae and requested that the trial testimony of Dean Hurn be read to it. The judge read Hum’s testimony to the jury. Shortly thereafter a verdict of guilty was returned against Portae.

ISSUES

Portae and Wolf raise a number of issues, with some overlap. They may be stated as follows:

Portae:

(1) Does the charge of aiding and abetting the formation of a conspiracy state an offense?
(2) Was the evidence sufficient to convict?
(3) Were the aiding and abetting charges against Portae improperly joined with the perjury charges against Wolf?
(4) Were statements of the deceased Norm Axon improperly admitted through hearsay?
(5) Did the prosecutor engage in improper final argument amounting to plain error?
(6) Did the trial court err in reading Hum’s testimony to the jury at its request?

*1293 Wolf:

(1) Did the indictment sufficiently allege perjury?
(2) Was the evidence sufficient to convict?

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Cite This Page — Counsel Stack

Bluebook (online)
869 F.2d 1288, 1989 U.S. App. LEXIS 2816, 1989 WL 19341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-portac-inc-united-states-of-america-v-howard-l-wolf-ca9-1989.