Justia Alaska Supreme Court Opinion Summaries

The Alaska Department of Revenue audited a non-resident corporation doing business in Alaska. The Department issued a deficiency assessment based in part on an Alaska tax statute requiring an income tax return to include certain foreign corporations affiliated with the taxpaying corporation. The taxpayer exhausted its administrative remedies and then appealed to the superior court, arguing that the tax statute the Department applied was facially unconstitutional because: (1) it violated the dormant Commerce Clause by discriminating against foreign commerce based on countries’ corporate income tax rates; (2) it violated the Due Process Clause by being arbitrary and irrational; and (3) it violated the Due Process Clause by failing to provide notice of what affiliates a tax return must include, and therefore is void for vagueness. The superior court rejected the first two arguments but ruled in the taxpayer’s favor on the third argument. The Department appealed, claiming the superior court erred by concluding that the statute was void for vagueness in violation of the Due Process Clause. The taxpayer cross-appealed, asserting that the court erred by concluding that the statute did not violate the Commerce Clause and was not arbitrary. After review, the Alaska Supreme Court reversed the superior court’s decision that the statute was facially unconstitutional on due process grounds, and affirmed the court’s decision that it otherwise was facially constitutional. View "Alaska Dept. of Revenue v. Nabors International Finance, Inc. et al." on Justia Law

In two separate cases, an Alaska superior court decided that it could not terminate parental rights to children with alleged Indian heritage without cultural expert testimony, and that the cultural expert testimony presented was too vague and generalized to be helpful. Although it was error to construe the Alaska Supreme Court precedent to require cultural expert testimony in every ICWA case, the Supreme Court affirmed the superior court’s decision to require expert testimony based on its explanation that it could not competently weigh the evidence of harm in these cases without cultural context. And because the cultural expert testimony presented did not provide a meaningful assessment of tribal social and cultural standards and was not grounded in the facts of these particular cases, the Supreme Court held the court did not clearly err by giving the testimony no weight. The Supreme Court affirmed the superior court's decision to deny termination of parental rights in each case. View "Alaska Dept. Health & Soc. Serv. v. C.A., et al." on Justia Law

A man appealed superior court orders authorizing his commitment for mental health treatment and the involuntary administration of psychotropic medication, arguing the superior court relied on erroneous facts to find that he was gravely disabled and that the court did not adequately consider the constitutional standards established in Myers v. Alaska Psychiatric Institute before authorizing medication. Because the evidence supported the court’s finding that the man was gravely disabled, the Alaska Supreme Court affirmed the commitment order. But the Supreme Court vacated the medication order because the court’s analysis of the Myers factors was not sufficient. View "In the Matter of the Necessity for the Hospitalization of: Jonas H." on Justia Law

A general contractor hired a subcontractor to provide material for a project at a state park. After the project was completed, the general contractor sent the subcontractor a check described as “final payment.” The subcontractor, believing it was owed more, initially refused to accept the check. Months later, the subcontractor cashed the check but then attempted to repay the amount to the general contractor. The general contractor refused repayment, claiming that the subcontractor’s cashing the check constituted satisfaction of its claim of payment. The superior court granted summary judgment to the general contractor, ruling that the evidence established an accord and satisfaction. The Alaska Supreme Court held there was a genuine dispute of material fact about two requirements for an accord and satisfaction: whether the payment was tendered in good faith, and whether there was a bona fide dispute about the amount owed. The superior court's judgment was therefore vacated, and the case remanded for further proceedings. View "Smallwood Creek, Inc. v. Build Alaska, LLC" on Justia Law

A limited liability company (LLC) member sold his interest to another LLC member as part of a settlement agreement, under which funds were to be paid to the selling member and his attorneys. A judgment creditor of the selling member sought a charging order against the settlement funds; meanwhile, the selling member’s attorneys filed an attorney’s lien against the same funds. The superior court granted the charging order and enforced the attorney’s lien, resulting in partial recoveries for the judgment creditor and the attorneys. The judgment creditor appealed, arguing that the attorney’s lien was invalid, or, if valid, should have been prioritized beneath his charging order. The selling member cross-appealed, arguing that the charging order was invalid and, if valid, should have been prioritized beneath the attorney’s lien. Because evidentiary issues prevented the Alaska Supreme Court from determining the validity or extent of the charging order and lien, it remanded the case for the superior court to conduct the appropriate inquiries. View "Duffus v. Baker" on Justia Law

A divorcing couple settled their property dispute by executing a settlement agreement that included a litigation waiver. The superior court accepted the settlement five months later. The former wife subsequently sued her former husband, alleging tort claims based upon actions taken in the months between the time the agreement was executed and when it was accepted. The superior court granted the husband's motions to dismiss and for summary judgment. The wife appealed. After review, the Alaska Supreme Court agreed with the superior court that one of the torts alleged by the wife did not exist in Alaska, so the Court affirmed dismissal of that claim. However, because the settlement agreement was effective between the parties when signed, even though it was subject to court approval, the Supreme Court reversed the superior court’s grant of summary judgment regarding the other torts and remanded for further proceedings on those issues. View "Notti v. Hoffman" on Justia Law

A man filed suit against a former romantic partner to resolve disputes about property acquired during their relationship. The superior court ruled the parties had been in a domestic partnership (a marriage-like relationship) with implications for division of the parties’ property when the relationship ended. It then determined the woman owed the man for his contributions toward a Wasilla property they jointly bought and improved, an out-of-state property acquired in his name that was later sold at a loss, and veterinary bills charged to the man’s credit card. Although the Alaska Supreme Court determined it was error to determine the parties were in a domestic partnership without making predicate factual findings, this error did not affect the superior court’s ruling on the Wasilla property or veterinary bills, and the superior court’s decision on those points was affirmed. But the Court concluded the error could affect the ruling on the out-of-state property, so the case was remanded for additional proceedings on that issue. View "Wright v. Dropik" on Justia Law

In 2019 a woman sued her former husband’s medical provider, alleging that from 2003 to 2010 the provider negligently prescribed the husband opioid medications, leading to his addiction, damage to the couple’s business and marital estate, the couple’s divorce in 2011, and ultimately the husband's death in 2017. The superior court ruled the claims were barred by the statute of limitations and rejected the woman’s argument that the provider should have been estopped from relying on a limitations defense. Because the undisputed evidence shows that by 2010 the woman had knowledge of her alleged injuries, the provider’s alleged role in causing those injuries, and the provider’s alleged negligence, the Alaska Supreme Court concluded that the claims accrued at that time and were no longer timely when filed in 2019. And because the record did not show that the woman’s failure to timely file her claims stemmed from reasonable reliance on fraudulent conduct by the provider, the Supreme Court concluded that equitable estoppel did not apply. View "Park v. Spayd" on Justia Law

An Alaska citizen filed an application to recall a member of the Anchorage Assembly, alleging that the assembly member had committed misconduct in office by participating in an indoor gathering of more than 15 people in violation of an executive order. The municipal clerk rejected the application after concluding that the alleged conduct did not constitute misconduct in office. The superior court reversed the clerk’s denial of the application. After review, the Alaska Supreme Court found no reversible error and affirmed the superior court’s decision. View "Jones v. Biggs" on Justia Law

A boiler exploded in a home owned by a nonprofit regional housing authority, severely injuring a man who lived there. He sued the housing authority in both contract and tort, claiming that his lease-purchase contract included a promise that the authority would inspect the boiler, which it failed to do with reasonable care. After the man dismissed his contract claim, the housing authority asked the court to decide as a matter of law that a breach of a contractual promise could not give rise to a tort claim. But the superior court allowed the man to proceed to trial on his tort claim, and the jury awarded over $3 million in damages, including over $1.5 million in noneconomic damages and separate awards to several of his family members for negligent infliction of emotional distress. The court reduced the man’s noneconomic damages award to $1 million because of a statutory damages cap, but it excluded the family members’ awards from the amount subject to the cap. The housing authority appealed, maintaining it should have been granted a judgment notwithstanding the verdict because the contract did not create a continuing legal duty to inspect the boiler with reasonable care. It also argued it should have been granted a new trial because it had established that the boiler explosion was caused by a product defect rather than negligent inspection. Finally, the authority argued the family members’ damages for negligent infliction of emotional distress should have been included in the amount subject to the statutory damages cap. The man cross-appealed, arguing that the damages cap violated due process because it failed to account for inflation or the severe nature of his physical injuries. After review, the Alaska Supreme Court found no reversible error and affirmed the superior court's judgment on all issues. View "Association of Village Council Presidents Regional Housing Authority v. Mael, et al." on Justia Law