PORTLAND (AP) – Two of three Maine blueberry processors found guilty of price-fixing have settled their differences with the state’s blueberry growers.
Under the agreement, Cherryfield Foods and Jasper Wyman and Sons will make combined cash payments totaling $4 million to the blueberry growers. They have also agreed to adopt more transparent pricing methods.
The third processor, Allen’s Blueberry Freezer, has rejected Wednesday’s proposal from state mediator David Bustin.
“Allen’s does not believe the proposed settlement is in their best interest,” said attorney Robert Keach, who represented Allen’s. “We do not think there were any damages, nor was there any price fixing.”
About 600 blueberry growers won a price-fixing lawsuit last year against the processors, who handle about 95 percent of the state’s crop. A jury awarded them a $56 million verdict, which processors said could bankrupt them.
William Robitzek, who represented the growers, said he had filed a motion to dismiss the processors’ appeal of the verdict.
The processors are scheduled to ask the Maine Supreme Judicial Court Friday to dissolve attachments on company assets, but Wyman attorney James Kilbreth said he hopes to skip those arguments.
“My expectation about tomorrow is we will sign documents with the plaintiffs that will release all attachments on Wyman’s and Cherryfield,” Kilbreth said. “We will not be participating in the argument.”
The settlement of the other defendants’ claims does not affect Allen’s plans in court, Keach said.
“We are prepared to see the process through alone if necessary,” he said. “We also think that the appeals would eventually overturn the verdict in any event.”
Under the agreement, the two growers acknowledged no wrongdoing. But Cherryfield will pay the growers $2.5 million, and Wyman must pay $1.5 million. Cherryfield will make a $1.75 million initial payment and four installments of $187,000 over the next four years. Wyman will make five equal payments of $300,000.
Those sums are significantly smaller than the $56 million verdict, but Robitzek said his clients were satisfied.
“Beside the $5 million in cash that Mr. Bustin recommended, there were two pricing components that add another $5 to $7 million of value,” he said.
Instead of the traditional pricing method, Cherryfield has guaranteed growers a minimum of 34 cents per pound over the next four years. Wyman guaranteed growers 35 percent of the full price Wyman receives for the berries.
Allen’s attorney said his client was not impressed with the settlement offer, and he had made a counterproposal that the growers had not answered.
“We made a proposal, we think it’s a fair proposal, and we have not received a response from the growers,” Keach said. “The ball is in the growers’ court.”
Robitzek characterized the offer differently.
“It was not even in the ballpark,” he said. “We told him the mediator’s solution was what we considered to be a fair solution.”
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