Justia Alaska Supreme Court Opinion Summaries

Articles Posted in Labor & Employment Law
by
Railroad conductor Sean Janes was injured while railcars were being loaded onto a barge built to transport railcars and non-rail cargo at the same time. Janes and his family sued the barge owner, alleging that placing cargo across the tracks and failing to provide devices to stop moving railcars from hitting the non-rail cargo made the barge unseaworthy under federal maritime law. After a bench trial, the superior court found that the barge was reasonably fit for its intended purpose and that Janes had not proved that the barge was unseaworthy. On appeal, Janes argued the trial court erred by rejecting his unseaworthiness claim. Because the superior court's findings of fact were not clearly erroneous and because the court committed no legal error, the Supreme Court affirmed. View "Janes v. Alaska Railbelt Marine, LLC" on Justia Law

by
Appellant Hugo Rosales suffered an injury working on a fish-processing vessel. He filed both a workers' compensation claim and a maritime lawsuit. Appellant and the employer ultimately entered into a global settlement of both cases. The state Workers' Compensation Board initially rejected the settlement. Appellant later tried to withdraw from the settlement but changed his mind. At a hearing, he testified that the though the settlement was in his best interests. The Board approved the settlement after the hearing. Several months later, appellant moved to have the agreement set aside. The Board denied this request. The Workers' Compensation Appeals Commission affirmed the Board's decision. Finding no error in the Commission's decision, the Supreme Court affirmed. View "Rosales. v. Icicle Seafoods, Inc." on Justia Law

by
The Aleut Corporation terminated its chief executive officer, Troy Johnson. He challenged the termination, and according to his employment contract, the matter was submitted to binding arbitration. That agreement contained a broad arbitration clause providing that "[a]ny and all disputes . . . arising out of, relating in any way to or in connection with this Agreement and/or Executive's employment with or termination of employment from the Company . . . shall be solely settled by an arbitration." The parties disputed whether the Corporation had violated the contract by terminating Johnson and whether Johnson's alleged breach of contract justified the termination. The arbitrator awarded damages to Johnson, finding the Corporation violated the contract. The Aleut Corporation petitioned the superior court to vacate the arbitrator's decision, claiming that the arbitrator had addressed an issue that was never submitted to arbitration and was thus not arbitrable. The superior court vacated the arbitration award, concluding that the arbitrator had exceeded his authority, and Johnson appealed. Because the dispute was arbitrable, the Supreme Court concluded that the arbitrator did not exceed his authority, and therefore reversed the superior court's decision to vacate the award. View "Johnson v. The Aleut Corporation" on Justia Law

by
An unpaid employee of a closely-held corporation sued the corporation and its president for back wages. The day after the employee filed suit, the corporation filed for Chapter 11 bankruptcy. The bankruptcy court discharged the corporation's debts, and the superior court dismissed the corporation, but the superior court allowed trial to proceed against the president on a veil-piercing theory. A jury found that the corporation was a mere instrumentality of the president, and that the president owed the former employee wages under a bonus agreement. The president appealed the superior court's decision. Upon review, the Supreme Court concluded that the superior court did not err in holding the president liable, and affirmed the superior court's judgment. View "Brown v. Knowles" on Justia Law

by
Two former police officers brought claims against the Municipality of Anchorage for racial discrimination, alleging a hostile work environment in violation of state law. The officers claimed damages for mental anguish, and the Municipality sought discovery concerning the nature of their mental anguish claims. But the officers refused to comply with these discovery requests, invoking the physician and psychotherapist privilege. The Municipality moved for an order to compel the officers to sign releases authorizing the disclosure of medical, pharmacy, and psychological counseling records, which the superior court granted. The officers then petitioned the Supreme Court for review of the order. Upon review, the Court concluded that the assertion of "garden-variety" mental anguish claims in an employment discrimination case does not automatically waive the physician and psychotherapist privilege. View "Kennedy v. Municipality of Anchorage" on Justia Law

by
Yauna Taylor and Calvin Grimmett were both University of Alaska employees terminated through notices of nonretention; Grimmett was alternatively terminated for cause. The Superior Court found that the University violated Taylor's due process rights by nonretaining her without a hearing rather than for cause; the court upheld the nonretention for Grimmett, but set aside his for-cause termination because the University violated the objective prong of the implied covenant of good faith and fair dealing. The University appealed Taylor's case; Grimmett appealed his and the University cross-appealed. Upon review of both cases, the Supreme Court concluded that the University indeed violated Taylor's due process rights by using a notice with no hearing. In Grimmett's case, the Court found the University violated his due process rights to terminate his employment without a hearing. The Court reversed the Superior Court's decision to uphold Grimmett's nonretention and reversed the for-cause termination. Both cases were remanded to their respective tribunals for further proceedings on backpay remedies. View "Grimmett v. University of Alaska" on Justia Law

by
In two cases consolidated by the Supreme Court for this opinion, the Alaska Workers' Compensation Appeals Commission applied different standards to evaluate motions to stay future medical benefits, and the losing party in each case petitioned for review of the Commission's stay decision. The Court granted review to decide what standard applies to stays of future medical benefits. After review, the Court held that to stay future medical benefits, the employer must show the existence of the probability that the appeal will be decided adversely to the compensation recipient. View "Municipality of Anchorage v. Adamson" on Justia Law

by
An employee filed an affidavit of readiness for hearing in her workers' compensation case approximately four years after her employer filed a controversion of her written workers' compensation claim. The employer petitioned to dismiss her claim based on the statutory deadline for a hearing request. After a hearing, the Alaska Workers' Compensation Board dismissed her claim, and the Alaska Workers' Compensation Appeals Commission affirmed the Board's decision. Because the employee did not file a timely request for a hearing and was not excused from doing so, the Supreme Court affirmed the Commission's decision. View "Pruitt v. Providence Extended Care" on Justia Law

by
A hotel worker fell and injured her back while cleaning a room. Her employer initially paid benefits, but it filed a controversion of benefits after its doctor doubted the accident’s occurrence and said any work injury was not the substantial cause of the worker’s continuing need for medical care. The Alaska Workers’ Compensation Board decided that the fall was the substantial cause of the worker’s disability, finding the worker’s testimony about the injury credible and the employer’s doctor’s testimony not credible. Based on the testimony of the worker and her treating physician, as well as an MRI showing a herniated disc, the Board decided that the injury was compensable. The Alaska Workers’ Compensation Appeals Commission reversed the Board’s decision because, in the its view, substantial evidence did not support the decision. Because the Commission incorrectly decided the substantial evidence question, the Supreme Court reversed the Commission’s decision. View "Sosa de Rosario v. Chenega Lodging" on Justia Law

by
In 2008 a city promoted a police officer to chief. The city’s hiring determination and the officer’s subsequent conduct led four police department employees to sue the police chief and the city. The employees asserted several claims including wrongful termination, sexual harassment, and negligent hiring. The superior court entered summary judgment in favor of the police chief and the city on all claims. The employees appealed several of the superior court’s summary judgment rulings, its denial of sanctions for evidence spoliation, and an attorney’s fees award in the city’s favor. Upon review, the Supreme Court concluded that there were no genuine issues of material fact barring judgment, and affirmed the superior court’s dismissal of both the employees’ hostile work environment sexual harassment claims against the police chief and the employees’ negligent hiring claim against the city. And because the superior court did not abuse its discretion in denying discovery sanctions, the Supreme Court affirmed that ruling too. But because genuine issues of material fact precluded summary judgment as to the employees’ claims against the city for wrongful termination and sexual harassment, the Court reversed those rulings, vacated the attorney’s fees award, and remanded for further proceedings. View "Mills v. Hankla" on Justia Law