Asrc Energy Services Power v. Golden Valley Electric Ass'n
267 P.3d 1151
Alaska2011Background
- Alaska's UTPA prohibits unfair or deceptive acts or practices in trade or commerce, with a 1974 amendment directing courts to give due consideration and great weight to FTC interpretations of the identical federal statute.
- In State v. O'Neill Investigations (1980), the Alaska Supreme Court adopted contemporaneous agency and federal standards for unfairness and deception, establishing a Sperry-based framework.
- For over three decades Alaska followed O'Neill Investigations; later FTC refinements and Cliffdale Assocs. prompted questions about whether Alaska should adopt post-1980 federal standards.
- This case arises from contract awards and claims related to the Northern Intertie project between Golden Valley Electric Association (GVEA) and Global Power & Communications (Global), including RFIs and alleged UTPA violations.
- Global asserted a UTPA claim and sought damages; GVEA contended the UTPA did not apply to the private contract context, or, alternatively, that damages were limited to non-litigation costs.
- The superior court ultimately applied Alaska’s longstanding standards, denied post-trial adoption of new FTC standards, but remanded to address certain issues, including damages causation and attorney’s fees on remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does AS 45.50.545 require overruling O'Neill standards in light of post-1994 FTC changes? | Global argues FTC changes should govern unfairness/deception; overrule O'Neill. | GVEA argues no overruling; Alaska should maintain precedent. | No overruling; Alaska standards remain controlling. |
| Was Jury Instruction 28 properly grounded in Alaska law on unfairness and deception? | Global contends instruction used outdated standards and failed to reflect current FTC interpretations. | GVEA contends instruction followed Alaska precedent and Rule 51 waiver. | Court did not err; instruction aligned with prior Alaska standards. |
| May damages be awarded for Global's litigation activities under the UTPA? | Global sought damages for review of withdrawn claims and litigation-related activities. | GVEA argues such litigation activities are not recoverable under the UTPA. | Damages for litigation activities are not recoverable; only pre-litigation damages (and post-remand) addressed; certain post-trial amounts vacated. |
| Was Global's December 2004 Rule 68 offer of judgment a valid offer for fees purposes? | Global argues the offer allowed entry of judgment; valid under Rule 68. | GVEA contends the offer was not a valid Rule 68 offer because it required dismissal with prejudice and not entry of judgment. | The offer was not a valid Rule 68 offer of judgment; reversed in that respect. |
Key Cases Cited
- State v. O'Neill Investigations, Inc., 609 P.2d 520 (Alaska 1980) (establishes Sperry-based standards and framework for UTPA unfair/deceptive practices)
- In re Cliffdale Assocs., Inc., 103 F.T.C. 110 (1984) (articulates the FTC deception standard (likely to mislead) with materiality)
- Western Star Trucks, Inc. v. Big Iron Equip. Serv., Inc., 101 P.3d 1047 (Alaska 2004) (ADOPTED interpretation of UTPA as not limited to consumer transactions)
- Kenai Chrysler Ctr., Inc. v. Denison, 167 P.3d 1240 (Alaska 2007) (flexible, case-specific approach to unfairness; supports broad application)
- Odom v. Fairbanks Mem'l Hosp., 999 P.2d 123 (Alaska 2000) (reiterates O'Neill Investigations standards for UTPA)
