Justia Alaska Supreme Court Opinion Summaries

Peter Metcalfe was employed briefly by the State in the early 1970s and contributed to the Public Employees’ Retirement System (PERS). In 1981, Metcalfe took a refund of his PERS contributions. Under a statute in effect at the time, if Metcalfe later secured State employment and returned his refund to PERS with interest, he was entitled to reinstate at his prior PERS service tier and credit. But in 2005 the legislature repealed that statute, leaving a five-year grace period for regaining State employment and reinstating to a prior PERS status. The State then sent notice to former PERS members that “[d]efined benefit members who do not return to covered employment before July 1, 2010 will forfeit their defined benefit tier and all service associated with the refund.” In 2012 Metcalfe inquired about his PERS status. He was informed that even if he were to regain State employment, he could not reinstate to his prior PERS service tier and credit because under the new statute, his grace period for reinstatement ended in 2010. In June 2013 Metcalfe brought a putative class action lawsuit against the State, alleging that the 2005 legislation: (1) violated article XII, section 7 of the Alaska Constitution; (2) deprived a class of former employees of their vested interest in the contractual “benefit to be reinstated to state employment at the tier level they previously held”; and (3) effectively breached the class members’ employment contracts. Metcalfe sought damages, but he also asked for a seemingly mutually exclusive declaratory judgment that the State must comply with former AS 39.35.350. The class was never certified. The State moved to dismiss Metcalfe’s lawsuit for failure to state a claim upon which relief could be granted. The superior court tentatively rejected the argument that Metcalfe failed to state a claim upon which relief could be granted, rejected the argument that Metcalfe’s claim was not ripe and that he lacked standing, but dismissed Metcalfe’s claim as time barred. Metcalfe appealed, and the State cross-appealed the superior court’s ruling that Metcalfe’s claim was ripe and argued that the superior court’s decision could be upheld on the ground that Metcalfe lacked standing to sue. The Supreme Court affirmed dismissal of the contract damages claim on the alternative ground that no such claim existed; the Court reversed and remanded the declaratory and injunctive relief claim for further proceedings. View "Metcalfe v. Alaska" on Justia Law

A worker whose Alaska workers’ compensation case was closed in 1977 filed a new claim in 2012 related to his injury from the 1970s. The Alaska Workers’ Compensation Board dismissed the new claim, and he appealed to the Alaska Workers’ Compensation Appeals Commission. The Commission granted the worker three extensions of time to file his brief and later issued an order to show cause why the appeal should not be dismissed. The Commission dismissed the appeal, relying on its interpretation of a Board regulation. Finding that the interpretation of that regulation was made in error, the Supreme Court reversed the Commission’s decision. View "Eder v. M-K Rivers" on Justia Law

The Alaska Department of Environmental Conservation (the Department or the State) terminated the employment of seafood inspector Ernest Thomas following a contentious airport inspection that resulted in complaints by a seafood processor and an airline. Thomas contended his termination was actually in retaliation for an ethics complaint he had filed over a year earlier against the agency’s director. The superior court decided most of the inspector’s claims against him on summary judgment but allowed one claim, alleging a violation of his free speech rights, to go to trial. The jury found that the ethics complaint was not a substantial or motivating factor in the inspector’s termination, and the superior court entered final judgment for the agency. On appeal, Thomas argued the superior court erred in granting summary judgment, in denying his motion for a new trial based on allegations of jury misconduct, and in awarding attorney’s fees to the agency. Finding no error, the Supreme Court affirmed. View "Thomas v. Dept. of Environmental Conservation" on Justia Law

Floyd Cornelison injured his back at work in 1996 while shoveling dirt. He had back surgery later that year, but it did little to improve his condition. The Board found he was permanently and totally disabled (PTD) in 2001 under the "odd-lot doctrine." TIG Insurance, the workers’ compensation insurer for Floyd’s employer, did not contest that he was PTD; it reclassified his workers’ compensation benefits as PTD in 2000. Floyd also received Social Security disability payments, and the employer received an offset for those payments. The employer and TIG challenged Cornelison's continuing eligibility for workers’ compensation, relying on surreptitious video surveillance and a doctor’s report issued after the doctor viewed an edited surveillance video. Cornelison and his wife sued TIG and a number of others involved in the attempt to terminate benefits; they alleged several causes of action, contending that the video had been purposely edited to provide a false picture of the employee’s physical abilities and that the defendants had participated to varying degrees in a scheme to defraud the Alaska Workers’ Compensation Board. The trial court granted summary judgment or dismissal as to all of the defendants on all counts. After review of the matter, the Supreme Court affirmed in part, and reversed in part. The Court concluded the Cornelisons provided enough evidence to show that a material factual dispute existed about the accuracy of the edited videos and the manner in which the videos were created. They also presented more than generalized claims of emotional distress. Because the superior court failed to address the issues in dispute in the IIED claim against certain persons involved with the making of the videos, we reverse the grant of summary judgment on this claim and remand to the superior court. The case was remanded for further proceedings. View "Cornelison v. TIG Insurance" on Justia Law

Before the Alaska Workers’ Compensation Appeals Commission was created, an Alaska Workers’ Compensation Board decision could be appealed to the superior court, and a party dissatisfied with the superior court’s final resolution of the case then could appeal to the Supreme Court. Construing the appellate rules, the Supreme Court decided in "Borough of Juneau v. Thibodeau," "a decision of a superior court, acting as an intermediate appellate court, which reverses . . . the decision of an administrative agency and remands for further proceedings, is a non-final order of the superior court." Joseph Huit worked for Ashwater Burns, Inc. in 2010. Early in November he was working on a remodel project, and as part of the job he removed a water-damaged vanity from a bathroom. As he was carrying the vanity he scratched his abdomen on a protruding drywall screw; he showed the scratch to some people at the job site, including his brother Steven, but did not file a report of injury. According to Huit at some point later in November the scratch appeared to heal. In early December, Huit felt ill at work, so he went to the emergency room. He would later be diagnosed with “spontaneous endocarditis” with metastatic lesions growing on his spleen, kidneys, brain and heart. By January 2011 Huit had severe aortic regurgitation, and in February he underwent aortic valve replacement surgery. Huit first thought about the possibility that the infection was work related while he was hospitalized; he explained that after the doctors told him he had an infection, he remembered the scratch and notified his employer. Ashwater Burns filed a report of injury on December 21 and later controverted benefits, relying on a cardiologist’s opinion formed after reviewing Huit’s medical records. This appeal presented the Supreme Court's first opportunity to consider whether "Thibodeau," should apply to Alaska Workers’ Compensation Appeals Commission decisions. After review, the Court concluded that it should. This appeal also presented a first opportunity to consider, at least in part, the legislature’s 2005 amendments to the Alaska Workers’ Compensation Act’s presumption analysis. The Court reversed the Commission’s application of that analysis in this case and modified its earlier precedent. View "Huit v. Ashwater Burns, Inc." on Justia Law

In February 2012, Alaska Airlines terminated Helen Lingley, a longtime employee, for violating company rules and polices after she allegedly took earbuds from a left-on-board box, made contradictory statements during the ensuing investigation, and made discourteous comments about her coworkers. The terms and conditions of Lingley’s employment were governed by a collective bargaining agreement negotiated by Lingley’s union,the International Association of Machinists and AerospaceWorkers, pursuant to the federal Railway Labor Act (RLA). This agreement broadly incorporated Alaska Airlines’ rules and policies and gave the company the right to change those rules and policies at any time. Lingley sued Alaska Airlines for wrongful termination without first attempting to arbitrate her claims under the provisions of a collective bargaining agreement subject to the RLA. The superior court denied the Lingley leave to amend her complaint, concluding that her claims and proposed claims were precluded by failure to exhaust contractual remedies and were preempted by the RLA. The Supreme Court found the collective bargaining agreement did not clearly and unmistakably waive the Lingley's right to litigate her claims, a prerequisite to finding her claims precluded. "And a number of her proposed claims may have an independent state law basis that does not depend on an interpretation of the collective bargaining agreement; such claims would not be preempted by the Railway Labor Act." Accordingly the Court reversed the superior court order denying leave to amend. View "Lingley v. Alaska Airlines, Inc." on Justia Law

After a work-related injury left appellant Laurie Vandenberg (a nurse) with a permanent partial impairment, she applied for reemployment benefits. The rehabilitation specialist assigned to her case used two job descriptions to describe one of her former jobs because the specialist did not think that a single job description adequately described that former job. The Alaska Workers’ Compensation Board decided that only one job description was needed and that appellant retained the physical capacity to perform the functions of that job description; it therefore denied her reemployment benefits. The Alaska Workers’ Compensation Appeals Commission affirmed the Board’s decision. Appellant appealed, arguing that the Board erred in selecting only one job description because the job description it selected did not adequately describe the job she held. The Supreme Court agreed and reversed the Commission’s decision. View "Vandenberg v. Dept. of Health & Social Services" on Justia Law

A former airline employee sued his former employer for wrongful termination without first attempting to arbitrate his claims under the provisions of a collective bargaining agreement subject to the federal Railway Labor Act. The superior court dismissed the employee’s complaint for failure to exhaust his contractual remedies. It also denied him leave to amend his complaint a second time on the ground that the six-month limitations period for such claims had expired. The employee appealed. After review, the Supreme Court held that the employee’s right to bring his claims in state court was not clearly and unmistakably waived under the collective bargaining agreement and he therefore should have been allowed to pursue them. The Court agreed with the superior court, however, that the employee’s claim that the union breached its duty of fair representation was time-barred. View "Bernard v. Alaska Airlines, Inc." on Justia Law

Lee Stenseth was injured at work many years ago. He and his employer, the Municipality of Anchorage, entered into a compromise and release agreement (C&R) in August 1996 in which Stenseth waived all future benefits except medical benefits in exchange for $37,000. Stenseth retired from the Municipality in 1996, but he continued to receive medical benefits for his work-related injury, including narcotic pain medication. Ten years later, Stenseth was charged with multiple felonies related to selling or delivering narcotics that he had acquired, some from forged prescriptions modeled on the prescriptions for his work-related injury. Stenseth pleaded guilty to a number of felonies and served time in jail. He was released in June 2010. The Municipality sought to terminate future workers’ compensation benefits and be reimbursed for the benefits it paid out, alleging that Stenseth obtained those benefits by making a false statement or misrepresentation. The Alaska Workers’ Compensation Board dismissed the Municipality’s fraud petition after deciding that the parties had reached an enforceable settlement. The Municipality appealed the dismissal, arguing that any settlement of its fraud petition was void because the settlement did not meet the requirements set out in the Alaska Workers’ Compensation Act and the Board’s regulations. The Alaska Workers’ Compensation Appeals Commission affirmed the Board’s decision. The Municipality appealed to the Alaska Supreme Court, arguing that the Commission’s interpretation of the statute was incorrect and that the Commission incorrectly interpreted our decisions about estoppel. Finding no reversible error, the Supreme Court affirmed the Commission’s decision. View "Municipality of Anchorage v. Stenseth" on Justia Law

Luis Rodriguez was a gay Hispanic man employed by Delta Airlines, Inc. In November 2010 Rodriguez filed a complaint with the Alaska State Commission for Human Rights, accusing Delta of race-based discrimination. Rodriguez alleged that Delta (1) "did not delete the position of a Caucasian coworker with less seniority," and (2) "recently brought another Caucasian employee with less seniority . . . back from layoff status." After an investigation, the Commission concluded that Rodriguez's racial discrimination allegations were not supported by substantial evidence, and the Commission dismissed the complaint without holding a hearing. The employee appealed to the superior court, and the superior court affirmed the Commission's conclusion that the employee's complaint was not supported by substantial evidence. The employee appealed to the Alaska Supreme Court. Because the Supreme Court agreed that the employee failed to present the Commission substantial evidence of race-based discrimination, it affirmed the superior court's decision affirming the Commission's dismissal. View "Rodriguez v. Alaska Commission for Human Rights" on Justia Law