State of Alaska v. Chevron Chemical Company Phillips Pacific Chemical Company Western Farm Service, Inc. Etc.

Alaska appeals from the summary judgment in favor of certain members of the agricultural fertilizer industry in the Northwest, the defendants in this antitrust action. We conclude that the district court erred in determining that direct purchases by the University of Alaska did not entitle the State of Alaska to sue as a direct purchaser of an allegedly price-fixed product. Therefore, we reverse and remand.

I

FACTUAL BACKGROUND

In 1975 the State of Alaska filed an antitrust class action complaint against certain large suppliers of agricultural fertilizer. As amended, the complaint alleged violations of sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1 and 2, and of section 7 of the Clayton Act, 15 U.S.C. § 18 . 1 Alaska sought to represent two classes: (1) political subdivisions within the state that purchased fertilizer during the relevant time period; and (2) all other end-users, i.e., persons purchasing fertilizer for their own use, whose purchases in any year during the relevant time period exceeded a certain amount. Alaska sought, inter alia, treble damages under section 4 of the Clayton Act, 15 U.S.C. § 15 , and injunctive relief under section 16 of the Clayton Act, 15…

dissenting:

The narrow issue upon which the majority opinion turns is whether Alaska law provides the State with the authority to file a federal antitrust action, in its own name, on behalf of the University. In concluding that it does, the majority ignores the unique and substantial independence granted to the University by the Alaska constitution and statutes. Therefore, I respectfully dissent. I would hold that the State has no standing to seek damages on behalf of the University, and I would reach the remaining issues the majority avoids.

The Alaska Supreme Court has held that “[t]he [Ujniversity is a corporation of independent authority established by the Alaska Constitution,” with standing to assert its legal interests against the State. Alaska v. University of Alaska, 624 P.2d 807, 818 (Alaska 1981). As a constitutional corporation, owing its existence to a charter from the people of the State, the basic corporate power to sue and be sued inheres in the University. University of Alaska v. National Aircraft Leasing, Ltd., 536 P.2d 121, 127 (Alaska 1975). Although this power has also been recognized by the Alaska legislature, Alaska Stat. § 14.40.040 (1), the Alaska Supreme…

669 F.2d 1299 1982-1 Trade Cases 64,607 STATE OF ALASKA, Plaintiff-Appellant, v. CHEVRON CHEMICAL COMPANY; Phillips Pacific Chemical Company; Western Farm Service, Inc.; etc., et al., Defendants-Appellees. No. 79-4817. United States Court of Appeals, Ninth Circuit. Argued and Submitted July 9, 1981. Decided Feb. 24, 1982. C. David Sheppard, Seattle, Wash., argued, for plaintiff-appellant; Mark E. Ashburn, Chief Asst. Atty. Gen., Anchorage, Alaska, Ferguson & Burdell, Seattle, Wash., Avrom M. Gross, Atty. Gen., Anchorage, Alaska, on brief. George A. Cumming, Jr., Brobeck, Phleger & Harrison, San Francisco, Cal., argued, for defendants-appellees; James Michael, Gary H. Anderson, Reginald D. Steer, Pillsbury, Madison & Sutro, San Francisco, Cal., on brief, for Chevron Chemical Co.; Peter D. Byrnes, Spencer Hall, Jr., Bogle & Gates, Seattle, Wash., on brief, for Phillips Petroleum Co. & Phillips Chemical Co.; William Simon, Robert B. Abrams, Howrey & Simon, Washington, D.C., on brief, for Shell Oil Co., Shell Chemicals, Inc., IND/AG Chemicals Inc. & Western Farm Service, Inc.; James L. Magee, Donald K. Franklin, Sax & Maciver, Seattle, Wash., on brief,…