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K & K Recycling11/14/2003
ontract. AGC Fairbanks manager Eagan told K&K;s Karl to send the bond, the insurance, and one dollar to AGC when K&K;was ready to move the dredge. Sometime that same month, Seuffert moved his mining camp in front of the dredge, blocking the most obvious route for removing the dredge. Seuffert also blocked the access roads to the dredge with dirt berms.
In July 1998 Seuffert received a letter from an environmental consultant stating that the dredge might contain hazardous materials that could cause contamination if the dredge were dismantled and recommending preparation of an environmental assessment and work plan. Twice that month, Seuffert contacted the Army Corps of Engineers to ask whether the dredge pond would be considered wetlands, whether a permit would be needed if K&K;dismantled the dredge, and whether the Corps would exercise jurisdiction over movement of the dredge. In addition, In-grid Seuffert contacted the Department of Natural Resources to find out what it would do if K&K;moved the dredge by cutting down trees to widen a right-of-way.
On July 31, 1998, Karl found that a lock he had placed on the dredge had been removed and that items were missing from the dredge. Karl then had a confrontation with an armed In-grid Seuffert, who ordered Karl off the property. While leaving, Karl noticed parts and equipment on #6 Below Discovery, an adjacent claim also known as the "pipe yard," that he believed were associated with the dredge.
Seuffert's attorney, Stanley Lewis, faxed Karl a letter on August 4 charging K&K;with trespass, asserting that K&K;had no right of entry on the land, and requesting environmental approvals and assessments. The letter declared that Lewis had "reviewed [K&K;s] . . . agreement with (which has been assigned by AGC to Dr. Seuffert)" and concluded that K&K;s claim of ownership of the dredge was unfounded. The letter stated that " easonable written requests to enable K&K;to perform its contract obligations will not be denied." Lewis enclosed a copy of Seuffert's bill of sale for the dredge but did not provide a copy of the assignment.
On August 7, 1998, K&K;sent AGC the performance bond, an insurance certificate, and a check for one dollar, plus a threat of litigation if the contractual commitments were not met. AGC forwarded this to Seuffert. A few days later, Karl faxed a follow-up letter to AGC requesting a response, advising that K&K;had never been informed that AGC sold the dredge and assigned the contract to Seuffert, and declaring that K&K;had fulfilled its agreement and expected cooperation.
On August 17 AGC mailed K&K;a letter rejecting its tender, telling K&K;to tender to Seuffert, and attaching copies of the assignment and bill of sale. On August 18, apparently before receiving this letter, K&K;faxed AGC requesting notice of any claimed deficiencies in its tender and declaring that it had no responsibility to, and would not, deal with Seuffert, because K&K;s agreement was with AGC.
On August 20 Seuffert faxed K&K;a letter from the Corps asserting jurisdiction and prohibiting movement of the dredge without a permit. In late August K&K;contacted the Corps to show or confirm that no permit was required. After K&K;s contact, the Corps reversed its position. The Department of Natural Resources also ultimately determined that no permit was needed because K&K;was not using a government right-of-way.
On August 26 K&K;re-tendered by fax to both AGC and Seuffert, including a new certificate of insurance listing both of them as additional insureds. Seuffert notified AGC that he objected to the insurance certificat
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