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AUGUSTA — As the
new blueberry season rapidly approaches, the stage
is set once again for what appears to be a
showdown among the four wild blueberry processors
found to have conspired to fix field prices in the
late 1990s.
Superior Court
Judge Joseph Jabar will preside Friday over a
settlement hearing in Augusta to consider
preliminary approval of settlement agreements
between the processors and wild blueberry growers.
The settlements
are a result of winter-long mediation sessions to
stave off a $56 million penalty against three of
the blueberry processors late last year after a
class-action lawsuit.
Cherryfield Foods
Inc. of Cherryfield, Jasper Wyman and Son of
Milbridge and Merrill Blueberry Farms Inc. of
Ellsworth have all entered into settlement
agreements with the growers.
The fourth
processor in the case, Allen’s Blueberry Freezer
Inc. of Ellsworth, did not enter any settlement
agreement and is objecting to the preliminary
approval of the proposed settlements.
Both Cherryfield
Foods and Wyman agreed to settlement terms
brokered by state mediator David Bustin last
February after lengthy negotiations initiated by
state Agricultural Commissioner, Robert Spear.
Under the terms of
the agreement, Cherryfield Foods will pay $2.5
million; $1.75 million will be paid immediately
and annual payments of $187,500 will be made for
the next four years.
It has agreed to
pay a minimum field price of 34 cents per pound to
all Cherryfield growers for the next four years.
It will commit to extend this minimum field price
to non-Cherryfield growers if their processing
capacity allows for the use of the additional
fruit.
Wyman has agreed
to pay $1.5 million in five annual payments of
$300,000. It has agreed to a final field price for
all Wyman growers of 35 percent of the average
commodity price that Wyman’s receives for its
processed blueberries during the year. This price
will be adjusted to reflect the entire year.
The third
processor to enter into settlement, Merrill’s, was
not a part of the court case. Merrill’s had agreed
to a pre-trial settlement of $85,000 to be paid in
a lump sum. Merrill’s agreed to cooperate with the
plaintiffs during the trial.
Allen’s objects to
the settlement. In a document filed last week at
Knox County Superior Court, counsel for Allen’s
argues that the settlement agreements would allow
field prices to be set for the next four to five
years and violate the very antitrust laws on which
this case was based.
Their argument for
their objection states, “If an agreement to set
field prices is unlawful, as Plaintiffs’ lawyers
repeatedly urged upon this Court and the jurors,
then certainly Plaintiffs, and one or more
processors, cannot as a group, or combination, be
allowed to enter into such an agreement.”
Attorneys for
Allen’s state that by setting a floor price for
fruit, Allen’s and other processors would be
forced to operate at lower profit margins and
depressed competition.
Allen’s refused
the settlement offer in February of $1 million,
payable in $200,000 increments over five years.
All three
processors involved in settlement hope to get
preliminary approval of the settlements on Friday.
If approval is given, notice will given to all
members involved in the class-action lawsuit.
Class members will be given an opportunity to
review the terms of the settlement. A hearing date
will be set at which time they may comment on the
terms.
Preliminary
approval Friday will stay the court’s actions
against the settlement parties until a final
decision is rendered by the court. A final
settlement hearing date also will be determined.
Prior judgments
made Nov. 19, 2003 and Jan. 2 also could be
vacated at the final settlement hearing.
If Jabar
determines Allen’s objection to be valid and does
not give preliminary approval for the settlement
agreements, Cherryfield, Wyman’s and Allen’s will
face the original judgment of $56 million.
Merrill’s
attorney, Daniel A. Pileggi of Roy, Beardsley,
Williams & Granger in Ellsworth, said Merrill’s,
which was not involved in the trial, will be given
the opportunity to go to court.
“It will be more
cost-effective to the class members if a blanket
approval is reached,” Pileggi said. |
