Daily Record Financial News &
Monday, August 24, 2015
Vol. 102, No. 201 • Two Sections
35¢ www.jaxdailyrecord.com
Contract dispute brings new hit
Rayonier AM stock drops after lawsuits
Circuit Judge Steven Fahlgren takes the oath on a Bible held by his wife, Kimberly. Fahlgren was appointed by Gov. Rick Scott to replace E. McRae Mathis, who retired.
A perfect fit for the job
Fahlgren’s childhood helps bring perspective in court
Photos by Bobby King
Rayonier Advanced Materials Inc.’s already beleaguered stock took another major hit last week when the company revealed a contract dispute with its largest customer. Jacksonville-based Rayonier AM and the customer, Eastman Chemical Co., filed competing lawsuits in separate courts asking for an interpretation of certain language in their contract that covers sales of cellulose specialties products to Eastman. Eastman accounted for 31 percent of Rayonier AM’s sales in 2014, so any disruption in that agreement would have a major impact on Rayonier AM. Disappointing earnings results have already sent Rayonier AM’s stock down since it was spun off from Rayonier Inc. 14 months ago, and the company’s disclosure about the lawsuits produced another drastic selloff. Rayonier AM fell as much as $7.47 to $6 Wednesday before closing the day at $7.62. The stock had traded in the $40s in July 2014, shortly after the spinoff. The dispute involves “meet or release” clauses in the supply agreement between the companies. Basically, if Eastman can get a better price from a different supplier, Rayonier AM is obligated to meet that price or else allow Eastman to buy products from the other supplier. Rayonier AM contends the contract limits the amount that Eastman can buy from other suppliers, but Eastman says the meet or release clause applies to all of the products it buys from Rayonier AM, according to a Securities and Exchange Commission filing by Rayonier AM. Eastman filed its lawsuit in its home state of Tennessee on Aug. 4 and Rayonier AM countered with its lawsuit Aug. 13 in Basch continued on Page A-6
Fahlgren accepts a Bible as a gift from Giselle Carson, president of The Jacksonville Bar Association.
By Marilyn Young Editor
See more photos Page A-8
Sometimes when Circuit Judge Steven Fahlgren looks at the young faces in his courtroom, he sees himself. The innocent victims of a broken marriage, children hurt by a dysfunctional family life. He knows those wounds don’t heal easily. Sometimes, they don’t heal, at all. The family court judge knows those wounds can shape a person, both good and bad. Fahlgren’s parents split when he was 8 or 9 years old. He didn’t talk to his father for a decade, and that was only after Fahlgren looked him up.
His mother and father were both married three times. Fahlgren has 17 siblings and step siblings, some he’s never met and others whose names he doesn’t know. “I was bent, dinged, just about broken,” Fahlgren said. “But for whatever reason, I wasn’t.” Part of that reason is linked to Fahlgren’s determination, part is tied to his strong faith. It was God who sent him on a life-changing mission to Argentina. Who gave Fahlgren the strength to leave a thriving law practice in Orlando and become a country Fahlgren continued on Page A-7
Retired judge wants to be general counsel
By David Chapman Staff Writer At the end of last week, the group searching for the city’s top attorney had received two submitted resumes. By the end of today, they should have at least one more. Retired 4th Circuit Judge Aaron Bowden plans to formally submit his resume, said Michael Tanner, a member of the General Counsel Review committee.
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Bowden retired in 2009 after more than 20 years on the bench. He will join current General Counsel Jason Gabriel and GrayRobinson attorney Patrick Krechowski. The latter also serves of counsel to the city of Neptune Beach. The review committee met Friday afternoon to potentially name finalists for the position and set up interviews this week. It was decided both Gabriel and Krechowski deserved an
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interview. Tanner said he wanted to reach out to two people he’d spoken to about the position before ruling them out. After a conversation later Friday, Tanner said Bowden planned to formally submit. Tanner declined to name the other potential candidiate, as he wasn’t able to reach the person. One possibility who decided to not pursue the position was Charles Trippe, a partner at Mos-
ley Prichard Parrish Knight & Jones along with being general counsel to Gov. Rick Scott in 2011-12. The group vaguely discussed Trippe, with chair John Delaney calling him a “great talent” and the reasoning behind him not pursuing the job as being “complicated.” “As you know, we were all very high on that option,” said Delaney. Trippe’s name was the only one specifically mentioned during the
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meeting, outside of Gabriel and Krechowski. Gabriel and Krechowski also came with praise. Gabriel received positive reviews from some City Council members and Mayor Lenny Curry, said Delaney. Krechowski was held in high regard by the Neptune Beach mayor and a city councilor. The application process isn’t closed. Attorneys interested are still Counsel continued on Page A-2
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