Justia Alaska Supreme Court Opinion Summaries

The Supreme Court of the State of Alaska was asked to determine whether the question of a deceased worker's status as an employee or independent contractor under the Alaska Worker's Compensation Act should be determined by a jury or a judge. The lawsuit was initiated by the estate of Nicholson Tinker, a worker who was killed in a construction accident while working for Mark Welty, doing business as North Country Services. Welty had no workers' compensation coverage at the time of the accident. Tinker's estate argued that he was an employee and that under the Act, Welty was presumed negligent because he had no compensation coverage. Welty argued that Tinker was an independent contractor, hence the Act did not apply.The superior court decided that the question of employee status was an issue for the jury to decide. The estate appealed this decision, arguing that the Supreme Court's earlier decision in Benson v. City of Nenana determined that a judge, not a jury, should decide the issue of a worker's status under the Act.The Supreme Court of the State of Alaska agreed with the estate, holding that the superior court must determine whether Tinker was an employee or independent contractor under the Act as a preliminary issue before trial. The Court reasoned that the applicability of the Act is a legal determination with factual underpinnings that the court should decide as a preliminary matter. The Court also noted that determining the employee status promptly is significant due to its potential impact on basic issues such as the type of action a party can bring or the burden of proof for negligence. Therefore, the Court reversed the superior court’s order that the jury decides the issue of employee status and remanded for further proceedings. View "Leona Seal, Personal Representative of the Estate of Nicholson J. Tinker v. Mark C. Welty D/B/A North Country Services" on Justia Law

In the case before the Supreme Court of the State of Alaska, the petitioner, Eric McDonald, an employee of a subcontractor, suffered injuries during the renovation of a high school. He sued Architects Alaska, Inc. and BBFM Engineers, Inc., alleging that they negligently failed to exercise reasonable care in the design, supervision, implementation, and specifications of the demolition of the renovation project. Before trial, the parties’ attorneys discussed the possibility of a settlement, and the defendants moved to enforce a “walk-away” settlement they claimed had been reached through email correspondence. McDonald, unrepresented at this point, did not file a substantive response to the defendants’ motion. The superior court granted the defendants’ motion and dismissed the case.About a year later, McDonald moved for relief from judgment under Alaska Rule of Civil Procedure 60(b), arguing that he had never given his attorney authority to settle the case. A different superior court judge granted the motion, finding that factual issues precluded summary judgment on whether a settlement agreement existed, that the earlier dismissal was erroneous as a law matter, and that extraordinary circumstances otherwise entitled McDonald to Rule 60(b) relief. The defendants petitioned for review, and the Supreme Court of the State of Alaska reversed the ruling on the ground that McDonald’s Rule 60(b) motion was not filed within a reasonable time. View "BBFM Engineers, Inc. v. McDonald" on Justia Law

In Fairbanks, Alaska, a man, Timothy Teslow, cut down a grove of birch trees on a property that was up for sale by its owner, Wallace Cox. The property was subsequently bought by David and Rhetta Bragg. The Braggs sued Teslow for damages, claiming that he had trespassed on the property and cut down the trees without permission. However, midway through the proceedings, they decided not to oppose Teslow's motion for summary judgment, believing their claims were not viable. The Superior Court of the State of Alaska ruled in favor of Teslow and awarded him full attorney’s fees, finding that the Braggs' claims were frivolous and that they had filed the lawsuit with an improper purpose. The Braggs appealed this decision.The Supreme Court of the State of Alaska held that one of the Braggs' claims was not frivolous and that the finding of an improper purpose was clearly wrong. The court vacated the award of full attorney’s fees and remanded the issue of fees for further consideration. However, the court affirmed the denial of the Braggs' motion for relief from the judgment under Alaska Civil Rule 60(b), stating that the incompetent advice of their attorney is not a ground for relief from judgment under this rule. View "Bragg v. Teslow" on Justia Law

In this case, Veronica Louise Hudson and Daniel Lee Hudson, a married couple in Alaska, divorced. The major points of contention revolved around the division of marital property and the classification of a severance and bonus package received by Daniel from his former employer, BP. Veronica argued that the severance and bonus pay were marital property, while Daniel contended that they were his separate property. The trial court ruled that the severance and bonus pay were separate property, and divided the remaining marital property equally between the parties. Veronica also challenged the court's order allowing Daniel to make an equalization payment over five years rather than in a lump sum and the court's denial of her request for attorney fees.The Supreme Court of the State of Alaska concluded that the lower court erred in classifying the severance and bonus pay without sufficient information, and in its findings related to economic misconduct and the financial condition of the parties. The court also held that the lower court abused its discretion in ordering a schedule of equalization payments over multiple years. The court remanded the case for further proceedings to determine the purpose of the severance and bonus pay, and whether a different division of property is warranted. The court also required the lower court to reconsider the terms of any equalization payment. The court affirmed the lower court's denial of attorney's fees. View "Hudson v. Hudson" on Justia Law

In this case, the Supreme Court of the State of Alaska was tasked with determining whether a judgment against a self-represented litigant, Jon Buchholdt, was void due to improper service of process. Jeremy Nelson, Buchholdt's former client, had sued him for legal malpractice and won a judgment of $200,000, but Buchholdt argued that he was not properly served and therefore the court lacked personal jurisdiction over him.The main issue in this case was whether Buchholdt was properly served with the summons and complaint by certified, restricted mail sent to his law office, which was rerouted to his home and signed by his alleged agent, "Suz Miller." Buchholdt contended that he was not properly served as he never personally signed for the service, and therefore the court lacked personal jurisdiction over him.The court held that Buchholdt failed to meet his burden of demonstrating that the judgment was void. Despite his claims, Buchholdt did not provide any evidence to contradict Nelson's evidence of service or to show that Suz Miller was not authorized to receive service on his behalf. Additionally, Buchholdt had listed Nelson's lawsuit as a contingent liability when he filed for bankruptcy, indicating he had knowledge of the suit.Therefore, the court affirmed the denial of Buchholdt's motions to set aside the judgment and for reconsideration. The court did not find that the judgment was void due to a lack of personal jurisdiction resulting from improper service of process. View "Buchholdt v. Nelson" on Justia Law

In the case before the Supreme Court of the State of Alaska, a group of trade associations (Resource Development Council for Alaska, Inc., Alaska Trucking Association, Inc., Alaska Miners Association, Inc., Associated General Contractors of Alaska, Alaska Chamber, and Alaska Support Industry Alliance) sued the State and a ballot initiative group "Vote Yes for Alaska’s Fair Share" (Fair Share), seeking to invalidate the State’s approval of a ballot initiative petition. The litigation primarily revolved around the constitutionality of a statute limiting the compensation that could be paid for obtaining signatures on ballot initiative petitions. The superior court ruled that the statute was unconstitutional and dismissed the trade associations’ claims that a large number of petition signatures should be invalidated because the statutory compensation limits had been exceeded.Following this ruling, Fair Share moved for an attorney’s fees award against the trade associations, contending that it was a qualified prevailing constitutional claimant entitled to full reasonable attorney’s fees under AS 09.60.010, or at least an award of partial attorney’s fees under Alaska Civil Rule 82. The trade associations responded that Fair Share could not be a constitutional claimant because it was not a “plaintiff, counterclaimant, cross claimant, or third-party plaintiff.”The superior court concluded that Fair Share was a constitutional claimant because its claim was effectively a counterclaim. However, it also concluded that the Trade Associations did not have sufficient economic incentive to bring their claim, and thus were constitutional claimants protected from an award of full attorney’s fees under AS 09.60.010. The court nonetheless awarded Fair Share partial attorney’s fees under Rule 82.On appeal, the Supreme Court of the State of Alaska affirmed the superior court’s determination that the trade associations did not have a sufficient economic incentive to bring their claims. Thus, the trade associations are qualified, non-prevailing constitutional claimants and the Rule 82 attorney’s fees award must be vacated. View "Vote Yes for Alaska's Fair Share v. Resource Development Council for Alaska, Inc." on Justia Law

A man and woman and the man’s grandmother decided to buy a home that they would share. They also decided that because the woman qualified for a mortgage with better terms than the others, the mortgage would be in her name. The grandmother sold her home to provide money to buy the shared home and signed a gift letter to enable the woman to qualify for a mortgage. The relationship between the man and woman deteriorated and she tried to sell the home. She refused to repay the grandmother the money the grandmother had contributed to the home purchase. The grandmother sued her. The superior court determined that the grandmother had not provided the money as a gift. The court also concluded that a written agreement the woman had signed confirmed their oral agreement to jointly buy the home and that therefore their agreement did not violate the statute of frauds. The court ordered the woman to repay the grandmother the money she had contributed to the home purchase, as well as a portion of the grandmother’s attorney’s fees. The woman appealed. Finding no reversible error, the Alaska Supreme Court affirmed the superior court’s decision. View "Shields v. Clark" on Justia Law

In this case, the trial court dismissed a mining company’s claims when its sole filing in the prior year was a substitution of counsel. The Alaska Supreme Court held that the substitution of counsel was not a “proceeding” that terminated the period of delay. The Court also concluded that actions taken by the company after the defendant moved to dismiss for lack of prosecution do not preclude dismissal. “And because the company failed to clearly explain its dilatory conduct, the superior court did not abuse its discretion by finding no good cause for the failure to prosecute.” View "Highlight Canyon, LLC v. Cioffoletti, et al." on Justia Law

Wife Connie Stockton challenged a superior court’s order denying relief from judgment under Alaska Civil Rule 60(b). She sought to overturn a default judgment entered against her in 2013, that divided marital property upon divorce from her husband Veral Stockton. Asserting that she suffered from severe depression during the divorce proceedings and that her husband improperly served the notice of default, she argued the judgment was void for lack of due process and, alternatively, should have been vacated due to extraordinary circumstances. The Alaska Supreme Court affirmed the superior court’s factual finding that she was not incompetent at the time of divorce and its legal rulings that the judgment was not void and extraordinary circumstances warranting relief were not shown. View "Stockton v. Stockton" on Justia Law

A young woman died of heart failure while hospitalized. Her mother, acting on her own behalf and as personal representative of the woman’s estate, sued the hospital, several doctors, and the doctors’ employers for medical malpractice. In successive orders the superior court decided that all the witnesses proposed by the mother as medical experts failed to meet the statutory requirements for expert testimony on the relevant standards of care. The court also denied the mother’s motion to replace the rejected expert witnesses; granted summary judgment in favor of the defendants on the mother’s claim for damages for a lost chance of survival, deciding that such a claim was contrary to Alaska’s medical malpractice statutes; and found that the amended complaint sought to impermissibly allege a new claim for negligent infliction of emotional distress against the doctors. The mother appealed. The Alaska Supreme Court concluded that exclusion of the mother’s proposed expert witnesses rested on a misinterpretation of the statutes that governed standard-of-care testimony; this portion of the trial court's judgment was reversed for reconsideration within the proper statutory framework. The Court concluded the superior court did not abuse its discretion by denying the mother’s tardy request to replace one of her expert witnesses, who had lost the necessary board certification years earlier. The Court also affirmed the grant of summary judgment on the loss of chance claim, concluding, as the superior court did, that whether to recognize such a claim was a policy choice for the legislature to make. Finally, the Supreme Court concluded that under Alaska’s generous notice pleading rules, the mother adequately alleged a claim for negligent infliction of emotional distress against the doctors, and it was not necessary for her to amend her complaint in order to pursue such a claim. The case was remanded for further proceedings. View "Doan v. Banner Health, Inc., et al." on Justia Law