Justia Alaska Supreme Court Opinion Summaries

Articles Posted in Civil Procedure
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A project developer that used state-allocated federal tax credits for a low-income housing project sued the state housing authority, asserting an option to eliminate a contractual obligation to maintain the project as low-income housing for 15 years beyond the initial 15-year qualifying period. The superior court granted summary judgment in favor of the housing authority, and the developer appealed several aspects of the court’s ruling. After review of the superior court record, the Alaska Supreme Court concluded that court correctly interpreted the relevant statutes and contract documents, and correctly determined there were no material disputed facts about the formation of the parties’ agreements. View "Creekside Limited Partnership, et al. v. Alaska Housing Finance Corporation" on Justia Law

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A business owner formed a brewing company with plans to open a brewpub. He signed a lease that provided rent-free access to a commercial unit for a period of time to allow him to prepare the rental space prior to opening for business. But the brewing company encountered numerous delays during construction and did not open for business as planned. It also did not pay rent once the rent-free period ended. After the property owner received no rent for several months, it entered the property and changed the locks. The business owner then sued, claiming the property owner breached the lease, tortiously interfered with a business relationship, and breached the implied covenant of good faith and fair dealing. The property owner counterclaimed that the brewing company breached the lease. On cross-motions for summary judgment, the superior court dismissed all claims against the property owner and ruled in the property owner’s favor on its counterclaim. The court also denied the business owner’s request to compel discovery and awarded the property owner over $200,000 in damages. The business owner appealed the superior court’s grants of summary judgment, its denial of his motion to compel discovery, and its award of damages. Finding no reversible error, the Alaska Supreme Court affirmed. View "Kimp v. Fire Lake Plaza II, LLC" on Justia Law

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Several months after returning from maternity leave, an association’s employee accepted a new special projects position with reduced hours that allowed her to work from home. Later that year she was terminated; the association explained that there were no more special projects for her to work on and the position was no longer necessary. The employee filed suit, alleging that the association had unlawfully discriminated against her based on pregnancy and parenthood. Considering all the evidence before it, the trial court concluded that there were no genuine issues of material fact relevant to the employee’s discrimination claim, and that the association was entitled to summary judgment. The employee appealed, contending the superior court should not have considered the evidence submitted after the filing of the deficient motion and that, even if all evidence was considered, the association was not entitled to summary judgment. The Alaska Supreme Court concluded the superior court acted within its discretion by accepting the authenticating affidavit with the association’s reply, and that it properly considered all the evidence before it in granting summary judgment. View "Werba v. Association of Village Council Presidents" on Justia Law

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An employee sued her former employer for wrongful termination. The employee died, but her attorney continued to litigate, negotiate, and mediate the case for another year before informing the court or opposing counsel of her death. The superior court concluded the attorney had committed serious ethical violations related to this delay and disqualified him from the case. Post-disqualification, the attorney filed a motion to substitute the personal representative of the employee’s estate as plaintiff. The superior court issued an order dismissing the case on several grounds. The Alaska Supreme Court found the court did not abuse its discretion by disqualifying the attorney and denying the motion for substitution he submitted. The superior court was correct to dismiss the case, as only one party remained, but the Supreme Court concluded granting summary judgment in favor of the former employer and supervisor was error. "The estate is not entitled to appeal the court’s refusal to enforce a draft settlement agreement signed by the employee before her death and does not have standing to appeal the sanctions imposed against the attorney. But because the estate was not allowed to participate as a party, we conclude that awarding affirmative relief against it was error." View "Bunton v. Alaska Airlines, Inc." on Justia Law

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In March 2014, Evvie Punches rented a one-bedroom apartment in the Conifer Groves complex in Anchorage; she renewed the lease in April 2015. The complex was owned by McCarrey Glen Apartments, LLC and managed by Weidner Property Management, LCC. Punches complained to the property manager since moving in regarding air quality in the apartment, and mold around the toilet. These issues continued despite a number of attempts by Weidner’s maintenance staff to fix them. Punches nonetheless renewed her lease in April 2015. When the property manager tried to arrange an inspection, Punches refused to allow maintenance staff into her apartment because she would not be home. Punches moved out of her apartment on March 2016 after delivering Weidner a “Notice of Defects in Essential Services.” Her notice listed issues with the front door, mold on the ceiling, mold on the carpet, damage from a previous fire, water damage, and “insufficient windows” that permitted “free flowing air throughout” the apartment. Punches moved to Minneapolis some time after she left her Alaska apartment, and sought care in Minnesota for various skin infections and reported that she had been exposed to mold for two years. She continued to pursue a connection between mold exposure and her recurring skin infections and other ailments. In 2017, she sued her former landlord and the property management company, claiming the companies negligently failed to eradicate mold in her apartment, thereby breaching the habitability provisions of the lease and causing her to suffer personal injury and property damage. After considerable delay involving discovery disputes, the superior court granted summary judgment dismissing Punches' personal injury claim. The parties went to trial on the tenant’s property damage and contract claims after the superior court precluded the tenant from introducing evidence relating to her personal injury claim. The jury rejected Punches' claims, and judgment was entered in favor of the companies. Punches appealed, contending that the court erred by ruling against her in discovery disputes, by denying her a further extension of time to oppose summary judgment, and by limiting the evidence she could present at trial. The Alaska Supreme Court concluded the court did not abuse its discretion when making the challenged rulings, and therefore affirmed the judgment against the tenant. View "Punches v. McCarrey Glenn Apartments LLC" on Justia Law

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The Alaska Division of Banking and Securities civilly fined Sitnasuak Native Corporation shareholder Austin Ahmasuk for submitting a newspaper opinion letter about Sitnasuak’s shareholder proxy voting procedures without filing that letter with the Division as a shareholder proxy solicitation. Ahmasuk filed an agency appeal, arguing that the Division wrongly interpreted its proxy solicitation regulation to cover his letter and violated his constitutional due process and free speech rights. An administrative law judge upheld the Division’s sanction in an order that became the final agency decision, and the superior court upheld that decision in a subsequent appeal. Ahmasuk raised his same arguments on appeal to the Alaska Supreme Court. After review, the Supreme Court concluded Ahmasuk’s opinion letter was not a proxy solicitation under the Division’s controlling regulations, therefore reversing the superior court’s decision upholding the Division’s civil sanction against Ahmasuk without reaching the constitutional arguments. View "Ahmasuk v. Division of Banking and Securities" on Justia Law

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A worker died at a construction site when a retaining wall collapsed. Neither the putative employer, who claimed the worker was an independent contractor, nor the property owner, who hired the putative employer, had workers’ compensation coverage. The worker’s mother, who also was the personal representative of the worker’s estate, filed both a workers’ compensation claim against the Alaska Workers’ Compensation Benefits Guaranty Fund and a superior court wrongful death action against both the putative employer and the property owner. The Fund later caused the property owner, the putative employer, and the worker’s father to be joined as parties to the workers’ compensation claim before the Alaska Workers’ Compensation Board.All parties to the workers’ compensation proceeding, except the putative employer, entered into a settlement agreement; in the settlement the estate elected the wrongful death suit as its remedy, agreed to dismiss the workers’ compensation claim entirely to effectuate its remedy election, received a settlement payment from the property owner’s general liability insurer, and dismissed the wrongful death claim against the property owner. The agreement explicitly preserved the estate’s wrongful death claim against the putative employer. The Board approved the agreement, and the superior court dismissed the property owner from the wrongful death action based on a separate stipulation. The putative employer then sought dismissal of the wrongful death suit, contending that the Alaska Workers’ Compensation Act’s exclusive liability provision precluded the lawsuit because the settlement effectively paid workers’ compensation benefits to the estate. The superior court granted the putative employer summary judgment, relying on the Act to decide that the Board’s approval of the settlement transformed the settlement money into workers’ compensation benefits. Because the superior court misinterpreted the settlement agreement and the Act, the Alaska Supreme Court reversed the grant of summary judgment and remanded for further proceedings. View "Seal v. Welty d/b/a North Country Services" on Justia Law

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The district court entered a default judgment against a litigant in a dispute over real property improvements and rent. Following a levy on his bank account, the litigant moved for relief from the default judgment, attesting that he had stopped participating in the lawsuit because he believed it was about to be dismissed. The district court denied the motion, but on appeal the superior court reversed on procedural grounds. On remand the litigant amended his answer to assert a counterclaim for conversion of personal property; the counterclaim would have been time-barred unless allowed to relate back to the date of the litigant’s original answer. The district court held that the litigant was judicially estopped from pursuing the counterclaim because it was contradictory for him to assert it after attesting that he believed for years that the case against him had been dismissed. The superior court affirmed this decision. The Alaska Supreme Court granted certiorari review to address one issue: whether judicial estoppel barred the conversion counterclaim. The Court concluded the litigant’s two positions — his asserted belief that the case had been dismissed and his later assertion of a counterclaim — were not clearly inconsistent and that the judicial estoppel doctrine therefore was inapplicable. The superior court’s decision affirming the district court’s judgment on this issue was reversed and the matter remanded to the district court for further proceedings on the counterclaim. View "Zwiacher v, Capstone Family Medical Clinic, LLC" on Justia Law

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A property owner cut down trees on his lot to build a cabin. The trees were protected by his subdivision’s Declaration of Covenants, Conditions, and Restrictions (CCRs) and could not be cut down without prior approval. The owners of an adjacent lot sued him. The superior court found the property owner liable and, following a two-day bench trial, awarded the neighbors compensatory restoration damages and punitive damages. The property owner appealed, arguing that the superior court erred in both damages awards. After review of the trial court record, the Alaska Supreme Court agreed: there was no basis in the evidence for an award of restoration costs when the trees would not be restored, and there was no evidence to support an award based on a loss of value to the neighbors’ property. Nor was there proof of an independent tort as necessary to support a punitive damages award in a case premised on the breach of CCRs. The superior court's judgment was vacated and the matter remanded for entry of a nominal damages award. View "Galipeau v. Bixby" on Justia Law

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Ge Vue was an asset-protection worker at the Walmart in Eagle River, Alaska in 2016. On February 3, he was shot in the back and face with a pellet gun when he and another asset-protection worker tried to stop three juveniles from taking a cart full of merchandise they had not paid for. No pellets penetrated his back, but one pellet penetrated the skin near his right eye and came to rest in his right orbit, or eye socket, near his optic nerve. He underwent surgery for the injury, and received treatment for post-traumatic stress disorder. His employer contended that he was not disabled by the psychological injury and, after an ophthalmologist retained by the employer questioned specific pain-related medical care, the employer controverted that treatment. The Alaska Workers’ Compensation Board granted the worker’s claim for medical care, found the employer had not unfairly or frivolously controverted benefits, and denied the worker’s request for disability during periods of time when his eye doctors said he had the physical capacity to perform asset-protection work. The Alaska Workers’ Compensation Appeals Commission affirmed the Board’s decision. Vue appealed,, making arguments related to disability and the standard for finding an unfair or frivolous controversion. The Alaska Supreme Court reversed the Commission’s decision, and remanded with instructions to remand to the Board for calculation of benefits and penalty owed to the worker. View "Vue v. Walmart Associates, Inc." on Justia Law