Justia Alaska Supreme Court Opinion Summaries

Kaiser-Francis Oil Company (KFOC), a Delaware corporation, and its subsidiary Aurora-KF, LLC, sold Aurora Gas, LLC, an Alaska company, to Rieck Oil, Inc., a Delaware corporation formed by Kay Rieck. The sale included an indemnity guarantee from Deutsche Oel & Gas, S.A. (DOGSA), another company owned by Rieck, to cover obligations under a pre-existing guarantee by George B. Kaiser to Cook Inlet Regional, Inc. (CIRI). When Aurora Gas went bankrupt, CIRI called on Kaiser and KFOC to fulfill the obligations, but DOGSA and Rieck Oil did not indemnify them.KFOC sued Rieck Oil, DOGSA, and Kay Rieck in the Alaska Superior Court, seeking to pierce Rieck Oil’s corporate veil to hold Rieck personally liable. The superior court applied Delaware law, reasoning that most jurisdictions apply the law of the state of incorporation for veil-piercing claims. Under Delaware law, the court found that KFOC failed to prove the necessary element of fraud or injustice to pierce the corporate veil and ruled in favor of Rieck.The Supreme Court of Alaska reviewed the case, focusing on whether Alaska or Delaware law should apply to the veil-piercing claim. The court held that Alaska law applies, as veil-piercing is not a matter of internal corporate affairs but involves the rights of third parties. The court reasoned that Alaska has a more significant interest in the matter, given the involvement of Alaska land and an Alaska Native Corporation. Consequently, the court vacated the superior court’s ruling and remanded the case for further proceedings under Alaska law. View "Kaiser-Francis Oil Company v. Deutsche Oel & Gas, S.A." on Justia Law

A husband and wife divorced after 19 years of marriage, with six children, including four adopted minors. The wife, a nurse practitioner, challenged the superior court's division of marital assets, particularly the valuation of the husband's law practice, which the court found lacked marketable goodwill. She also disputed the treatment of a $75,000 payout as a pre-distribution rather than interim support and the offsetting of adoption subsidies against the husband's child support obligation.The superior court, Third Judicial District, Anchorage, held a four-day custody trial and a five-day property trial. The court awarded 50/50 shared physical custody and divided the marital estate 60/40 in favor of the wife. The court valued the husband's law firm based on its net assets, excluding goodwill, and found the Wasilla office building was not a marital asset. The court also calculated the husband's child support obligation but reduced it to account for the adoption subsidies received by the wife.The Supreme Court of the State of Alaska reviewed the case. It affirmed the superior court's decision, holding that only marketable goodwill may be divided on divorce, and the evidence showed the law firm lacked such goodwill. The court found no error in the superior court's other decisions, including the pre-distribution in lieu of interim spousal support and the temporary adjustment of the child support obligation. The court also upheld the superior court's valuation of the law firm, the classification of the Wasilla office building, and the finding that the law firm had no excess cash. The Supreme Court concluded that the superior court did not abuse its discretion in declining to award interim spousal support, in its treatment of post-separation earnings, or in its decision not to award long-term spousal support, above-guidelines child support, or additional attorney's fees. The property division, including the award of the marital home to the husband, was found to be equitable. View "May v. Petersen" on Justia Law

The case involves a dispute over the control of a nonprofit corporation, which was dissolved by the State due to the executive director’s failure to pay taxes and fees and renew corporate registration. Despite the dissolution, the directors and members continued the corporation’s activities, unaware of the loss of corporate status. When the issue was discovered, some individuals filed paperwork to incorporate a new entity with the same name, offices, and bank account. A national affiliate proposed elections to resolve the leadership, but the new incorporators denied affiliation with the old corporation. Elections were held, and new directors were chosen, leading to litigation over who had authority to act on behalf of the new corporation.The Superior Court of Alaska, Third Judicial District, Anchorage, ruled that the new corporation was essentially the same entity as the old one, with the same members. The court concluded that the disputed election was valid and that the newly elected individuals had authority to act on behalf of the corporation. The court ousted the individuals who had filed the incorporation paperwork and awarded attorney’s fees to the prevailing parties but exempted individual litigants from liability for these fees.The Alaska Supreme Court largely affirmed the Superior Court’s rulings but vacated and remanded the dismissal of one third-party claim for a more detailed explanation. The court also vacated and remanded the Superior Court’s decision to excuse individual litigants from liability for attorney’s fees, finding the reason for this ruling invalid. The main holding was that the new corporation was the same entity as the old one, and the election of new directors was valid, giving them authority to act on behalf of the corporation. View "Aiken v. Alaska Addiction Professionals Association" on Justia Law

The Supreme Court of Alaska affirmed a lower court's decision that the Copper River Native Association (CRNA), a non-profit corporation formed by federally recognized Alaska Native tribes, is an arm of its member tribes and thus entitled to tribal sovereign immunity. The case arose when a former employee sued CRNA over her termination. The superior court dismissed her complaint, concluding that CRNA was an arm of its member tribes and therefore entitled to sovereign immunity. The former employee appealed, arguing that CRNA was not entitled to tribal immunity. The Supreme Court of Alaska agreed with CRNA that the legal landscape defining the contours of tribal sovereign immunity has shifted significantly since its 2004 decision in Runyon ex rel. B.R. v. Association of Village Council Presidents. The court adopted a multi-factor inquiry to determine whether an entity is entitled to “arm-of-the-tribe” immunity. Applying this multi-factor inquiry, the court concluded that CRNA is an arm of its member tribes and affirmed the superior court's decision. View "Ito v. Copper River Native Association" on Justia Law

In the case before the Supreme Court of the State of Alaska, MJ Corporation, the owner of an automated teller machine (ATM), sued Societe Financial, LLC, an ATM processor, and its owner, James Dainis, for breach of contract, conversion, and for piercing the corporate veil. MJ Corp. alleged that it had not been receiving its full share of transaction fees and reimbursement for vault cash dispensed by the ATM as per their agreement.The court reversed summary judgment on the breach of contract claim and piercing the corporate veil, as the processor presented genuine issues of material fact pertaining to those claims. The court held that while MJ Corp. presented admissible evidence of an implied contract and breach of the same, Dainis's affidavit raised a genuine dispute of material fact regarding the damages, thus barring summary judgment on the breach of contract claim.The court affirmed the superior court’s decision to grant summary judgment on the conversion claim. It found that MJ Corp. satisfied its prima facie burden for summary judgment, and Societe's evidence was too conclusory to present a genuine dispute of material fact regarding conversion.Regarding the claim to pierce the corporate veil, the court found that there was insufficient evidence on summary judgment to hold Dainis personally liable or to pierce the corporate veils of Societe's subsidiary company and another company owned by Dainis. The case was remanded for further proceedings in line with the court's opinion. View "Societe Financial, LLC v. MJ Corporation" on Justia Law

In this case, Lee Baker and Kenneth Duffus were partners in a real estate development company, Harvest Properties, LLC. Baker was accused of defrauding the company, leading to a lawsuit from the company's members for defaulting on a loan. Duffus cross-claimed against Baker, alleging Baker had violated the Unfair Trade Practices and Consumer Protection Act (UTPA). Baker argued that the UTPA did not apply since his conduct was part of a real estate transaction and was within the company's internal operations. The Supreme Court of the State of Alaska rejected Baker's arguments and affirmed the superior court's ruling. The court held that Baker's fraudulent actions were not part of a real estate transaction because they did not involve the actual transfer of an interest in real property. Instead, they interfered with the company's ability to realize larger, future real estate transactions. The court also held that the UTPA applies even when a party has a fiduciary relationship with a business entity if the parties also engage in arms-length commercial transactions. Baker's provision of services through his separate corporation was considered such an arms-length transaction. View "Baker v. Duffus" on Justia Law

In this case, the Supreme Court of the State of Alaska upheld a lower court's decision that Williams Alaska Petroleum, Inc. and The Williams Companies, Inc. (collectively, "Williams") were strictly liable for the release of hazardous substances at a North Pole refinery they previously owned and operated. The substances, including sulfolane, a purifying solvent, had contaminated local groundwater. The court also upheld the ruling that Williams was responsible for paying damages to the State of Alaska and making contributions to the current owner, Flint Hills Resources, for its remediation costs.The court rejected Williams's claims that sulfolane was not a hazardous substance under state law. It also rejected the argument that the company's due process rights were violated because, it argued, it did not have fair notice that its conduct was prohibited. The court further denied Williams's argument that the imposition of retroactive liability for past releases constituted an unconstitutional taking of property.In addition, the court determined that Williams had retained liability for offsite sulfolane releases when it sold the refinery to Flint Hills. It also found that Flint Hills could seek statutory contribution from Williams for certain costs related to the contamination. However, the court remanded the grant of injunctive relief for more specificity as required by rule. Williams was ordered to pay damages for loss of access to groundwater due to sulfolane contamination, and for the costs of response, containment, removal, or remedial action incurred by the state. View "Williams Alaska Petroleum, Inc. v. State of Alaska" on Justia Law

A landlord leased a commercial building to two tenants who operated an automotive repair business on the property. The landlord refused to adhere to provisions in the lease requiring him to maintain and repair the property and to cover the property insurance, so the tenants paid for the property insurance and for substantial repairs that were needed after the roof failed. The landlord initiated a forcible entry and detainer action after the tenants held over at the end of the lease term; the tenants counterclaimed for breach of contract. After trial, the superior court ruled that the landlord had breached the lease and awarded the tenants damages. The superior court also awarded the tenants attorney’s fees. The landlord appealed, arguing: (1) the tenants did not file their counterclaim within the applicable statute of limitations; (2) the evidence did not support the damages award; and (3) the attorney’s fees award was an abuse of discretion. Seeing no error, the Alaska Supreme Court affirmed the superior court’s decisions. View "Griffith v. Hemphill, et al." on Justia Law

A corporate shareholder alleged the corporation violated his statutory right to inspect certain records and documents. The superior court found that the shareholder did not assert a proper purpose in his request. The shareholder appealed, arguing the superior court erred by finding his inspection request stated an improper purpose, sanctioning him for failing to appear for his deposition, and violating his rights to due process and equal protection by being biased against him. After review, the Alaska Supreme Court reversed the superior court’s order finding that the shareholder did not have a proper purpose when he requested the information at issue from the corporation, but it affirmed the superior court’s discovery sanctions. View "Pederson v. Arctic Slope Regional Corporation" on Justia Law

The dispute that arose in this case concerned an easement that lead from the Glenn Highway over residential property to a parcel of land used as a jumping-off point for a Matanuska Glacier tourism business. After years of disagreement over issues related to road maintenance, traffic, safety, and trespass on the homeowner’s property by visitors to the glacier, the homeowner erected a sign stating “No Glacier Access” near the entrance to the road. The business owner filed suit, and the homeowner counterclaimed for defamation based on inflammatory allegations made in the complaint. The superior court largely ruled in favor of the business owner, holding that he had a right to use the easement for his glacier tourism business, that his road maintenance work was reasonably necessary and did not unreasonably damage the homeowner’s property despite minor increases in the width of the road, and that the “No Glacier Access” sign had unreasonably interfered with his use of the easement. The superior court also dismissed the defamation counterclaims and awarded attorney’s fees to the business owner. Finding no reversible error in the superior court’s judgment, the Alaska Supreme Court affirmed the superior court’s judgment in full. View "Wayson v. Stevenson" on Justia Law