Justia Alaska Supreme Court Opinion Summaries

A fuel distribution company sought to acquire a competitor in Western Alaska, prompting the State to sue for anticompetitive conduct under Alaska’s consumer protection laws. To resolve the dispute, the State and the company negotiated a consent decree requiring the company to divest a portion of its fuel storage capacity in Bethel to another distributor, Delta Western, before completing the acquisition. The consent decree specified that it would expire in 30 years or could be dissolved by court order for good cause. Delta Western was not a party to the consent decree, but entered into a separate fuel storage contract with the acquiring company as required by the decree. The contract’s term extended beyond the initial five years at Delta Western’s option.Years later, the Superior Court for the State of Alaska, Second Judicial District, Nome, dissolved the consent decree at the acquiring company’s request. The company then notified Delta Western that it considered the fuel storage contract terminated as a result. Delta Western filed a breach of contract action in Anchorage Superior Court, seeking to enforce the contract and arguing that its terms were independent of the consent decree. The contract case was transferred to Nome Superior Court, which issued a preliminary ruling that the contract remained valid despite the dissolution of the consent decree. The court also vacated its initial order dissolving the consent decree to allow Delta Western to intervene and present its position.The Supreme Court of the State of Alaska reviewed whether dissolution of the consent decree automatically terminated the fuel storage contract and whether the superior court abused its discretion by permitting Delta Western to intervene. The court held that dissolution of the consent decree did not automatically void the contract between the parties, and that the superior court did not abuse its discretion in allowing Delta Western to intervene. The Supreme Court affirmed the superior court’s decisions and lifted the stay on the contract case. View "Crowley Marine Services, Inc. v. State of Alaska" on Justia Law

A mother and father had their parental rights terminated in two consolidated child in need of aid (CINA) cases. They appealed the termination, and the Alaska Supreme Court reversed the termination order and remanded for further proceedings. While the appeal was pending, the children's foster parents petitioned to adopt them, and the superior court granted the adoption petitions. On remand, the superior court did not require the Office of Children’s Services (OCS) to make further efforts to reunify the family and instead reevaluated the same information, terminating the parental rights again. The parents appealed, and the Alaska Supreme Court reversed the termination order a second time.The parents then sought to vacate the adoption and reopen the CINA case. The adoptive parents opposed, arguing that the parents' attempt to vacate the adoption was barred by the one-year limitation period for challenging an adoption decree. The superior court agreed with the adoptive parents, concluding that the parents' failure to appeal the adoption decree itself within one year barred their challenge. The court also concluded that the motion to reopen the CINA case was moot because the adoption remained valid, and the children were no longer in need of aid.The Alaska Supreme Court reviewed the case and affirmed the superior court's judgment. The court held that the one-year limitation period for challenging an adoption decree under AS 25.23.140(b) applies strictly to appeals of the adoption decree itself, not to appeals of related termination orders in CINA cases. The court emphasized the legislative intent to provide finality and stability for adopted children, noting that allowing collateral attacks on adoption decrees beyond the one-year period would unreasonably disrupt the upbringing of adopted children. Consequently, the adoption remained valid, and the CINA case was moot. View "In re Adoption of C.R. and E.R. v. State" on Justia Law

A general contractor, Keluco General Contractors, Inc., secured a workers’ compensation and employers’ liability policy through Travelers Property Casualty Company of America. The policy was set to last one year, expiring on March 5, 2017. After the policy expired, a Keluco employee was injured at work. Keluco attempted to make a claim on its workers’ compensation policy and discovered it had expired. Travelers claimed to have sent a notice of nonrenewal to Keluco and its insurance agent, Gretchen Santerre, but Keluco claimed it never received the notice.Keluco sued Santerre and her employer, Country Mutual Insurance Company, for failing to inform it of the nonrenewal notice. Santerre filed a third-party complaint against Travelers. The Superior Court of Alaska granted partial summary judgment against Travelers, ruling that it failed to send the nonrenewal notice in the manner required by statute, specifically by not obtaining a certificate of mailing from the United States Postal Service (USPS). The court found that Travelers breached its contract with Keluco.The Supreme Court of the State of Alaska reviewed the case. The court affirmed the Superior Court’s rulings on summary judgment, agreeing that Travelers violated AS 21.36.260 by not obtaining a certificate of mailing from USPS and thus breached its contract with Keluco. The court also affirmed the dismissal of Travelers’ contribution claim against Santerre, noting that Alaska law allows for the allocation of fault to a party who has settled out of a case.However, the Supreme Court reversed the Superior Court’s determination of when prejudgment interest began to accrue. The Supreme Court held that prejudgment interest should begin to accrue on September 20, 2017, the date the Keluco employee was injured and entitled to workers’ compensation benefits, rather than January 9, 2017. The case was remanded for recalculation of prejudgment interest. View "Travelers Property Casualty Company of America v. Keluco General Contractors" on Justia Law

A contractor hired a subcontractor to work on a remote bridge construction project. The scope of the work changed, and neither party kept detailed records of the changes and associated costs. Years after the project was completed, the subcontractor sued for damages, claiming unpaid work. The superior court found that the subcontract did not govern the extra work, awarded some damages to the subcontractor, and precluded some claims due to discovery violations. The court also found the contractor to be the prevailing party and awarded attorney’s fees. Both parties appealed.The superior court denied summary judgment motions from both parties, finding factual disputes. It precluded the subcontractor from pursuing certain damages claims due to insufficient documentation but allowed evidence for contingent findings. After a bench trial, the court awarded the subcontractor $191,443.42, later reduced to $146,693.42 upon reconsideration. The court found the contractor to be the prevailing party under Rule 68 and awarded attorney’s fees.The Supreme Court of Alaska reviewed the case. It concluded that the superior court abused its discretion by precluding the subcontractor’s claims for snowmachine use and labor without considering less severe sanctions. The court affirmed the superior court’s findings on other damages but reversed the awards for Morris Johnson’s labor and boat use, remanding for recalculation. The prevailing party determination and attorney’s fee award were vacated and remanded for reconsideration. The court otherwise affirmed the superior court’s judgment. View "Johnson v. Albin Carlson & Co." on Justia Law

A creditor and a debtor’s law firm both claimed settlement funds held by the superior court. The creditor had a charging order against the debtor’s distributions from a limited liability company (LLC), while the law firm had an attorney’s lien on the funds. In a previous appeal, the attorney’s lien was deemed valid, but the case was remanded to determine if the funds were LLC distributions subject to the charging order and the value of the attorney’s lien.The superior court ruled that the funds were LLC distributions and subject to the charging order. It also found that the debtor failed to prove any money was owed to the law firm for work performed, thus invalidating the attorney’s lien. The court mistakenly released the funds to the creditor, who returned them within two days, but was sanctioned with attorney’s fees for temporarily keeping the funds.The debtor appealed, and the creditor cross-appealed the attorney’s fee award. The Supreme Court of Alaska affirmed the superior court’s rulings on the merits but reversed the attorney’s fee award. The court held that the funds were indeed LLC distributions subject to the charging order and that the debtor and law firm failed to prove the value of the attorney’s lien. The court also vacated the second final judgment and the attorney’s fee award against the creditor, finding no rule violation by the creditor. View "Baker v. Duffus" on Justia Law

Erna Rousey transferred five real properties and nearly $225,000 in cash assets to her son, James “Jimmy” Rousey, Jr., in the last few years of her life. After her death, her estate sought recission of these transfers, alleging undue influence. The estate argued that Erna lacked the mental capacity to make the transfers and that they were the product of fraud, undue influence, or coercion. Jimmy contended that the transfers were valid gifts and that Erna had sufficient mental capacity.The Superior Court of the State of Alaska, Third Judicial District, Anchorage, found that Jimmy maintained a confidential relationship with Erna and that the property transfers were the result of undue influence. The court concluded that the estate was entitled to recission of the property transfers and awarded attorney’s fees to the estate. Jimmy, representing himself, appealed the recission and attorney’s fee award, arguing that the transfers were valid gifts and that the court erred in its findings.The Supreme Court of the State of Alaska reviewed the case and affirmed the recission of the property transfers. The court held that the estate provided clear and convincing evidence that Jimmy exerted undue influence over Erna, who was susceptible due to her diminished mental capacity, isolation, and reliance on Jimmy. The court found that Jimmy failed to rebut the presumption of undue influence and that the transfers were not gifts. However, the Supreme Court vacated and remanded the enhanced attorney’s fee award for reconsideration, noting that the superior court may have improperly relied on Jimmy’s actions before the litigation started and did not sufficiently explain why Jimmy’s opposition to the petition was in bad faith. The Supreme Court instructed the lower court to reconsider the attorney’s fee award based on appropriate factors. View "In re Estate of Rousey" on Justia Law

The case involves a former principal of a charter school, Emily Roseberry, who alleged that the school district superintendent, Pauline Harvey, overstepped her authority in violation of Alaska statutes and the governing charter school contract and bylaws. Roseberry was fired after making complaints about Harvey’s conduct to the superintendent, the board of education, and an independent commission. Roseberry initially filed suit in federal court, raising federal civil rights claims and a state whistleblower claim. The federal court dismissed her federal claims with prejudice and declined to exercise supplemental jurisdiction over her state whistleblower claim.Roseberry then filed suit in state court, bringing the whistleblower claim and three additional state-law claims: intentional interference with contractual relations, negligent supervision, and defamation. The defendants moved to dismiss, arguing that the claims were barred by issue and claim preclusion. The superior court agreed and dismissed the complaint. Roseberry appealed the decision.The Supreme Court of the State of Alaska reviewed the case and concluded that Roseberry’s state claims were not barred by issue and claim preclusion. The court held that the federal court’s dismissal of Roseberry’s First Amendment claim did not preclude her whistleblower claim because the definitions of “matter of public concern” under the First Amendment and the Alaska Whistleblower Act are different. The court also held that Roseberry’s additional state-law claims were not barred by claim preclusion because the federal court would likely have declined to exercise supplemental jurisdiction over them, given that it had already declined to exercise jurisdiction over the whistleblower claim.The Supreme Court of the State of Alaska reversed the superior court’s judgment and remanded the case for further proceedings consistent with its opinion. View "Roseberry v. North Slope Borough School District" on Justia Law

The case involves the appellant, Gregory Smith, challenging the Municipality of Anchorage's decision to abate unauthorized campsites in Davis Park. The Anchorage Municipal Code (AMC) outlines procedures for campsite abatement, including posting a notice and allowing for an appeal to the superior court. In June 2022, the Municipality posted a notice in Davis Park, advising that the area was not legal for storage or shelter and that any personal property would be removed and disposed of as waste after ten days. Smith and five others appealed the abatement, arguing it violated due process and the Eighth Amendment.The superior court dismissed the appeal, agreeing with the Municipality that its jurisdiction was limited to reviewing the legal sufficiency of the posted notice, not the abatement decision itself. The court noted that the appellants did not challenge the notice's compliance with the Code, thus leaving no issues for the court to decide. The court also observed that the appellants' claims were not without merit and suggested that a civil suit could address their concerns.The Supreme Court of the State of Alaska reviewed the case and concluded that the superior court's jurisdiction was not limited to the notice's legal sufficiency. The court held that the superior court has jurisdiction to review the substantive decision to abate the campsite, including constitutional challenges. The court reversed the superior court's decision and remanded the case for further consideration of the constitutional issues raised by Smith. The court also directed the superior court to determine if the administrative record was sufficient for meaningful appellate review and to take necessary steps to ensure it has an adequate record. View "Smith v. Municipality of Anchorage" on Justia Law

A man was injured in an accident outside city limits and sued a city and an emergency-responder employee for negligently providing assistance and aggravating his injuries. The city and employee offered the man $7,500 to settle the lawsuit, which he did not accept. They also moved for summary judgment, arguing that they could not be sued because AS 09.65.070(d)(4) does not allow lawsuits based on the “gratuitous extension of municipal services” beyond city limits. The superior court granted summary judgment in their favor, ruling that their actions were gratuitous because they were under no legal obligation to take them. The court also granted attorney’s fees to the city and employee based on a court rule that requires a party to pay the other side’s legal fees if the party rejected an offer of judgment to settle the case that was more favorable than the judgment the party ultimately received.The man appealed, arguing that the city’s emergency response was not gratuitous because he was billed a mileage fee for the ambulance service. He also argued that the city and employee were not entitled to attorney’s fees because their pretrial offer of judgment was invalid.The Supreme Court of the State of Alaska reviewed the case. The court held that AS 09.65.070(d)(4) bars the lawsuit because the city and employee’s actions were gratuitous, meaning they were performed without legal obligation and without charging more than the standard fee. The court also held that the offer of judgment was valid and that the superior court did not err in awarding attorney’s fees to the city and employee. The court affirmed the superior court’s grant of summary judgment and the award of attorney’s fees. View "Rochon v. City of Nome" on Justia Law

A former landlord sued two commercial tenants and their law firm, alleging negligent infliction of emotional distress (NIED), malicious prosecution, and abuse of process. The claims arose from prior litigation where the tenants had successfully counterclaimed for damages against the landlord. The landlord claimed that the tenants' actions during the prior litigation caused him emotional distress and were malicious and abusive.In the prior proceedings, the landlord had filed a forcible entry and detainer (FED) action against the tenants, which resulted in the tenants counterclaiming for breach of contract and other damages. The superior court dismissed the landlord's FED claim and some of the tenants' counterclaims but awarded the tenants damages for breach of contract related to property maintenance. The Alaska Supreme Court affirmed this decision.The superior court dismissed the landlord's new claims, taking judicial notice of the prior proceedings without converting the motion to dismiss into a motion for summary judgment. The court ruled that the NIED claim was barred by litigation privilege, the malicious prosecution claim failed because the prior proceedings did not terminate entirely in the landlord's favor, and the abuse of process claim failed because the landlord did not allege an ulterior purpose separate from the litigation process.The Alaska Supreme Court affirmed the superior court's decision. It held that the superior court properly took judicial notice of the prior proceedings and did not need to convert the motion to dismiss. The court agreed that the NIED claim was barred by litigation privilege, the malicious prosecution claim failed due to the lack of favorable termination, and the abuse of process claim failed because the landlord did not allege an ulterior purpose independent from the litigation process. View "Griffith v. Hemphill" on Justia Law