04/12/2006

Businesses file suit against Georgia-Pacific, former manager

They claim G-P broke their contracts

BY SHERI McWHIRTER

sherimcwhirter@hotmail.com

GAYLORD — Two northern Michigan logging companies filed suit against Georgia-Pacific after the company closed its Gaylord particle board factory.

Carroll's Forest Products of Lewiston and Tulgestka Total Harvesting of Rogers City hired Petoskey attorney Daniel Harris to file a lawsuit for breach of contract and interference with a business relationship. Both Georgia-Pacific and a former company employee are named in the complaint, filed last week in 46th Circuit Court in Otsego County.

Harris said 210 laid-off factory workers weren't alone in not receiving advance notice of the plant closure last month. The plaintiffs had long-standing business deals with Georgia-Pacific, which required 90 days notification of contract termination to Carroll's Forest Products and 60 days notice to Tulgestka Total Harvesting.

Georgia-Pacific disregarded those contract stipulations, Harris said.

"As far as breach of contract, it's a pretty clear-cut case," Harris said.

The businesses contend that about $2 million in special equipment was invested by each company, specifically for Georgia-Pacific contracts. The companies each were set to provide between 1,000 and 1,200 tons of wood chips per week.

Both companies seek more than $25,000 in damages. Harris said not only is the immediate contract termination at issue, but also questionable business practices by former wood procurement manager Frank J. Laurence, Jr. of Gaylord, who was terminated by Georgia-Pacific in February. Laurence gave wood chip work contracted to Harris's clients instead to two other companies, according to the suit.

Laurence allegedly gave Georgia-Pacific contracts to Stuckman Logging and Timberline Logging(*), both of Gaylord, rather than the companies with longtime "master logging contracts," Harris said.

The suit alleges that Laurence received personal financial benefits for directing timber contracts to companies with which he was in private business.

Laurence could not be reached for comment at his Gaylord residence.

James C. Malone, spokesman for Georgia-Pacific, said he would not discuss pending litigation but confirmed the company's legal department received a copy of the lawsuit.

Both the company and Laurence have several weeks to file legal briefs before a pretrial hearing in Gaylord.