Justia Alaska Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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A dispute arose over mining rights to a parcel of land near Nome, Alaska. After the Department of Natural Resources (DNR) deemed certain mining claims abandoned, two individuals, Foster and Baker, relocated and recorded new claims in 2017. However, another miner, Klutchnikov, also recorded claims on the same land, asserting an earlier staking date, which would give his claims priority. DNR notified the parties of the overlap and advised them to resolve the conflict through legal means. Klutchnikov later transferred his claims to Amerigold Holdings, LLC, which invested in developing the site. Baker and Silverbow Mining, LLC, whose claims were closed by DNR due to the unresolved conflict, filed suit seeking a declaration that Klutchnikov’s claims were invalid because he had not physically staked the land, but had instead “paper staked” the claims.The Superior Court of the State of Alaska, Second Judicial District, Nome, held a bench trial. The court admitted testimony from other miners about Klutchnikov’s alleged pattern of paper staking, over Amerigold’s objection. The court found that Klutchnikov had not physically staked the disputed claims and that Baker and Silverbow’s claims were valid. The court rejected Amerigold’s laches defense, concluding that Amerigold had not shown it was prejudiced by the delay in filing suit, and that any harm suffered by Amerigold’s manager, Hice, was not relevant because he was not a party.On appeal, the Supreme Court of the State of Alaska held that laches can apply to both quiet title and declaratory judgment actions when they are equitable in nature. The court further held that prejudice to a nonparty closely connected to the defendant, such as an investor with a contractual relationship, may be considered in the laches analysis. The court vacated the Superior Court’s rejection of the laches defense and remanded for further proceedings on that issue, but affirmed the admission of testimony regarding Klutchnikov’s prior acts as relevant to the absence of accident. View "Amerigold Holdings LLC v. Baker" on Justia Law

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A couple divorced, and the superior court awarded them joint legal custody of their minor child, with primary physical custody to the mother. The court also divided the couple’s marital estate. The father, representing himself, appealed, arguing that the division of the marital estate was inequitable. He claimed errors in the court’s determinations, including not crediting him for post-separation payments, not allowing him to apply for the child’s Permanent Fund Dividend (PFD), not allowing him to claim the child as a dependent for tax purposes, and its custody decision.The superior court held a one-day trial by videoconference, where both parties testified. The court issued a decree of divorce and findings of fact and conclusions of law, awarding joint legal custody to both parties and primary physical custody to the mother. The court divided the proceeds from the sale of the marital home, taking into account the father’s child support arrearage and an escrow shortage. The court also divided the couple’s vehicles and assigned debts based on testimony and the mother’s spreadsheet. The court ordered that the mother would be responsible for the child’s PFD and could claim the child as a dependent for tax purposes. The court ordered that the father’s 401(k) be divided equitably according to the mother’s spreadsheet.The Supreme Court of the State of Alaska reviewed the case. It vacated the superior court’s division of the marital estate, finding that the court’s treatment of the father’s 401(k) was unclear and lacked clarifying findings. It also found legal error in the court’s failure to address post-separation payments when dividing the marital estate. The court remanded for further proceedings on these issues. The Supreme Court otherwise affirmed the superior court’s decisions, including the custody award and the decisions regarding the child’s PFD and tax dependency. View "Wolffe v. Wolffe" on Justia Law

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A contractor hired a subcontractor to work on a remote bridge construction project. The scope of the work changed, and neither party kept detailed records of the changes and associated costs. Years after the project was completed, the subcontractor sued for damages, claiming unpaid work. The superior court found that the subcontract did not govern the extra work, awarded some damages to the subcontractor, and precluded some claims due to discovery violations. The court also found the contractor to be the prevailing party and awarded attorney’s fees. Both parties appealed.The superior court denied summary judgment motions from both parties, finding factual disputes. It precluded the subcontractor from pursuing certain damages claims due to insufficient documentation but allowed evidence for contingent findings. After a bench trial, the court awarded the subcontractor $191,443.42, later reduced to $146,693.42 upon reconsideration. The court found the contractor to be the prevailing party under Rule 68 and awarded attorney’s fees.The Supreme Court of Alaska reviewed the case. It concluded that the superior court abused its discretion by precluding the subcontractor’s claims for snowmachine use and labor without considering less severe sanctions. The court affirmed the superior court’s findings on other damages but reversed the awards for Morris Johnson’s labor and boat use, remanding for recalculation. The prevailing party determination and attorney’s fee award were vacated and remanded for reconsideration. The court otherwise affirmed the superior court’s judgment. View "Johnson v. Albin Carlson & Co." on Justia Law

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A former landlord sued two commercial tenants and their law firm, alleging negligent infliction of emotional distress (NIED), malicious prosecution, and abuse of process. The claims arose from prior litigation where the tenants had successfully counterclaimed for damages against the landlord. The landlord claimed that the tenants' actions during the prior litigation caused him emotional distress and were malicious and abusive.In the prior proceedings, the landlord had filed a forcible entry and detainer (FED) action against the tenants, which resulted in the tenants counterclaiming for breach of contract and other damages. The superior court dismissed the landlord's FED claim and some of the tenants' counterclaims but awarded the tenants damages for breach of contract related to property maintenance. The Alaska Supreme Court affirmed this decision.The superior court dismissed the landlord's new claims, taking judicial notice of the prior proceedings without converting the motion to dismiss into a motion for summary judgment. The court ruled that the NIED claim was barred by litigation privilege, the malicious prosecution claim failed because the prior proceedings did not terminate entirely in the landlord's favor, and the abuse of process claim failed because the landlord did not allege an ulterior purpose separate from the litigation process.The Alaska Supreme Court affirmed the superior court's decision. It held that the superior court properly took judicial notice of the prior proceedings and did not need to convert the motion to dismiss. The court agreed that the NIED claim was barred by litigation privilege, the malicious prosecution claim failed due to the lack of favorable termination, and the abuse of process claim failed because the landlord did not allege an ulterior purpose independent from the litigation process. View "Griffith v. Hemphill" on Justia Law

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A husband and wife divorced after 19 years of marriage, with six children, including four adopted minors. The wife, a nurse practitioner, challenged the superior court's division of marital assets, particularly the valuation of the husband's law practice, which the court found lacked marketable goodwill. She also disputed the treatment of a $75,000 payout as a pre-distribution rather than interim support and the offsetting of adoption subsidies against the husband's child support obligation.The superior court, Third Judicial District, Anchorage, held a four-day custody trial and a five-day property trial. The court awarded 50/50 shared physical custody and divided the marital estate 60/40 in favor of the wife. The court valued the husband's law firm based on its net assets, excluding goodwill, and found the Wasilla office building was not a marital asset. The court also calculated the husband's child support obligation but reduced it to account for the adoption subsidies received by the wife.The Supreme Court of the State of Alaska reviewed the case. It affirmed the superior court's decision, holding that only marketable goodwill may be divided on divorce, and the evidence showed the law firm lacked such goodwill. The court found no error in the superior court's other decisions, including the pre-distribution in lieu of interim spousal support and the temporary adjustment of the child support obligation. The court also upheld the superior court's valuation of the law firm, the classification of the Wasilla office building, and the finding that the law firm had no excess cash. The Supreme Court concluded that the superior court did not abuse its discretion in declining to award interim spousal support, in its treatment of post-separation earnings, or in its decision not to award long-term spousal support, above-guidelines child support, or additional attorney's fees. The property division, including the award of the marital home to the husband, was found to be equitable. View "May v. Petersen" on Justia Law

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The case involves a dispute between the developers of an aviation-centric community and the homeowners' association regarding the transfer and use of special declarant rights associated with a unique lot. The developers sold the lot to new owners, but the deed did not clearly convey the special declarant rights, and the homeowners' association was not informed about the transfer of these rights. The new owners sought a declaratory judgment that they held the special declarant rights, allowing them to bypass the association's oversight for construction, rent aircraft facilities to non-lot owners, and permit those non-lot owners to use the airstrip. The association argued otherwise and also contended that the lot owners must make tiedowns available to other community members.The Superior Court of Alaska granted summary judgment in favor of the association, ruling that the new owners did not obtain the special declarant rights, that construction on the lot required the association's approval, that the lot owners must make tiedowns available to other members, and that only lot owners could use the airstrip and aircraft facilities. The court also awarded attorney's fees to the association.The Supreme Court of Alaska reviewed the case and found that the statutory warranty deed was ambiguous regarding the transfer of the special declarant rights. The court reversed the summary judgment on this issue and remanded for further proceedings to determine whether the new owners obtained the special declarant rights. The court affirmed the requirement for the lot owners to make tiedowns available to other members but reversed the determination that only lot owners could use the airstrip and aircraft facilities, finding the declaration ambiguous on this point. The court vacated the award of attorney's fees and remanded for a new prevailing party determination. View "Meyers v. Sky Ranch, Inc." on Justia Law

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A company that leased space to a government agency lost its bid to renew that lease to another landowner in a different zoning district. The new lessor requested the municipal planning department to approve the government agency’s proposed use of its space, which the planning department determined was appropriate for the property’s zoning designation. The former lessor challenged this determination by appealing to the municipal zoning board, which affirmed the planning department’s decision.The former lessor then appealed the zoning board’s decision to the Superior Court of the State of Alaska, Third Judicial District. The superior court, on its own initiative, questioned the former lessor’s standing to appeal. After briefing, the court determined that the former lessor was a “party aggrieved” and therefore had standing. On the merits, the court found the zoning board’s findings insufficient and remanded the case for reconsideration. The new lessor petitioned for review, which was granted.The Supreme Court of the State of Alaska reviewed the case and concluded that the former lessor’s interest as a business competitor was insufficient to show that it was a “person aggrieved” with standing to appeal a zoning decision to the superior court. The court held that a general interest in upholding the zoning plan is not sufficient for aggrievement and that the former lessor’s competitive interest did not meet the statutory requirement of being a “person aggrieved.” Consequently, the Supreme Court reversed the superior court’s decision and remanded with instructions to dismiss the former lessor’s appeal for lack of standing. View "Winco Anchorage Investors I, LP v. Huffman Building P, LLC" on Justia Law

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The City of Soldotna sought to expand its boundaries by annexing adjacent land and submitted an annexation petition to the Local Boundary Commission (Commission) for legislative review. The Commission, however, decided to convert the petition to a local vote, exercising its authority under a regulation that had not been previously used. Soldotna appealed the Commission’s decision, arguing that the Commission exceeded its authority, the regulation was invalid due to lack of standards and required rulemaking, there was insufficient basis for the decision, and the decision was internally inconsistent.The Superior Court of the State of Alaska, Third Judicial District, Kenai, upheld the Commission’s decision. The court found that the regulation under which the Commission acted was authorized by the Alaska Constitution and that the Commission’s decision to convert the petition was reasonable. The court held that the Commission acted within its statutory grant of authority and had a reasonable basis for converting the petition.The Supreme Court of the State of Alaska reviewed the case and affirmed the superior court’s decision. The court held that the Commission had the authority under the Alaska Constitution and relevant statutes to adopt the regulation allowing it to convert a legislative review petition to a local action petition. The court found that the regulation provided a standard by requiring the Commission to balance the best interests of the locality and the state. The court also determined that the Commission’s decision had a reasonable basis in the record, considering the public opposition to the annexation and the support for local action from the Kenai Peninsula Borough. The court concluded that the Commission acted within its discretion and expertise in deciding to proceed by local action. View "City of Soldotna v. State" on Justia Law

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A couple owning a lot in Homer, Alaska, added a second dwelling made from a shipping container and obtained a permit from the city. A neighboring property owner challenged the permit, arguing that the container dwelling required a conditional use permit and was a nuisance under the city’s zoning code. The city’s zoning board determined that the container dwelling was an accessory building to the existing mobile home and did not require a conditional use permit. The board also found that the container dwelling was not a nuisance because it had been modified and no longer functioned as a shipping container.The neighboring property owner appealed to the Homer Board of Adjustment, which upheld the zoning board’s decision. The Board of Adjustment concluded that the container dwelling was an accessory building and did not require a conditional use permit. It also agreed that the container dwelling was not a nuisance. The neighboring property owner then appealed to the superior court, which affirmed the Board of Adjustment’s decision and awarded attorney’s fees to the city.The Supreme Court of Alaska reviewed the case and affirmed the lower court’s decision. The court held that the Board of Adjustment’s interpretation of the zoning code was reasonable and that the container dwelling qualified as an accessory building. The court also found that the Board’s conclusion that the container dwelling was not a nuisance had a reasonable basis. However, the court vacated the superior court’s award of attorney’s fees and remanded for further proceedings, noting that fees cannot be awarded for defending against nonfrivolous constitutional claims, and some of the challenger’s constitutional claims were not frivolous. View "Griswold v. City of Homer" on Justia Law

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A man sued his neighbors, claiming that an access road on their property caused flooding on his property. After settling with the neighbors and dismissing his claims with prejudice, he sued them again over continued flooding, alleging nuisance, trespass, intentional infliction of emotional distress (IIED), and breach of contract.The Superior Court of Alaska, Third Judicial District, granted summary judgment for the neighbors on the tort claims, citing res judicata, but allowed the breach of contract claim to proceed. After a bench trial, the court found the neighbors had breached the settlement agreement and awarded specific performance, consequential damages, and attorney’s fees, but denied punitive damages. The neighbors appealed the breach of contract ruling, and the man cross-appealed the dismissal of his tort claims and the denial of punitive damages.The Supreme Court of Alaska reversed the Superior Court’s ruling on the breach of contract claim, finding it was filed outside the three-year statute of limitations. The court held that the man was on inquiry notice of the breach when the driveway reconstruction was completed, as he observed defects at that time. The court affirmed the Superior Court’s decision that the tort claims were barred by res judicata, as they stemmed from the same transaction as the prior lawsuit. The court also upheld the denial of punitive damages, finding no evidence of egregious conduct by the neighbors.In summary, the Supreme Court of Alaska reversed the breach of contract ruling and associated awards, affirmed the dismissal of the tort claims under res judicata, and upheld the denial of punitive damages. View "Williams v. Strong" on Justia Law