Justia Alaska Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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The Department of Natural Resources restricted the non-winter use of large vehicles on the Rex Trail. The issue before the Supreme Court in this case was whether these restrictions were within the Department's authority. Because the Department has broad authority to manage public lands in general and specific authority to manage rights-of-way such as the Rex Trail, and the restrictions did not violate any statutory limitations on this authority, the Supreme Court concluded that they were authorized. View "Caywood v. Alaska Dept. of Natural Resources" on Justia Law

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Diana Albrecht brought a class-action lawsuit against Alaska Trustee, LLC, on behalf of a group of Alaska homeowners who had faced foreclosure on their homes. Alaska Trustee, acting as foreclosure trustee, had provided Albrecht and the other homeowners reinstatement quotes that included the costs of foreclosure. Albrecht maintained that the inclusion of foreclosure costs in her reinstatement quote violated her right to cure under a former version of AS 34.20.070(b), the non-judicial foreclosure statute, which provided that a homeowner’s "default may be cured by payment of the sum in default other than the principal that would not then be due if no default had occurred, plus attorney fees or court costs actually incurred by the trustee due to the default." According to Albrecht, Alaska Trustee's inclusion of foreclosure costs in addition to "attorney's fees or court costs" constituted a violation of not only the non-judicial foreclosure statute but also Alaska’s Unfair Trade Practices Act (UTPA). The superior court concluded that Albrecht lacked standing to sue and denied her motion for class certification. The superior court further ruled that Alaska Trustee's practice of including various fees and charges as foreclosure costs was permitted under the statute. The superior court awarded attorney's fees to Alaska Trustee as the prevailing party, enhancing those fees under AS 45.50.537(b) on the ground that Albrecht's claims were frivolous. Because the inclusion of foreclosure costs in a reinstatement quote did not violate AS 34.20.070, the Supreme Court affirmed the superior court in most respects. But because the Court concluded that Albrecht’s claims were not frivolous and attorney's fees could not be awarded under Rule 82 for time spent litigating the structure of a class action, the Court remanded for recalculation of fees awarded. View "Albrecht v. Alaska Trustee, LLC" on Justia Law

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Two mining companies entered a ten-year mining lease. The lessee was responsible for mining and prospecting claims owned by the lessor and its president. The companies entered a holdover tenancy after the expiration of the lease. During this time, an officer of the lessee company staked mining claims that overlapped with the claims his company had mined under the ten-year lease. In his own name, that officer filed location notices for the newly staked claims with the State Department of Natural Resources. The parties disagreed about who rightfully owned the claims staked during the holdover tenancy and broke off their lease agreement in October 2003. In 2007, the former lessor filed suit against the former lessee and its two officer-shareholders, seeking to quiet title to the disputed mining claims, to eject the former lessee and its officers from the claims, and to secure damages under several tort and contract causes of action. The former lessee denied various allegations, raised 13 affirmative defenses, and counterclaimed for the value of labor performed on the claims. Following a three-week trial, the superior court resolved the dispute in favor of the former lessor. The former lessee filed two appeals of post-trial orders, which we have consolidated for decision. Upon review of the matter, the Supreme Court affirmed the superior court on all but one issue: because specific findings were needed to pierce the corporate veil, the Court reversed the entry of judgment and the award attorney's fees against the wife of the officer of the lessee company and remanded for further proceedings. View "Gold Dust Mines, Inc. v. Little Squaw Gold Mining Company" on Justia Law

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A homeowner sought a declaratory judgment that foreclosure fees were not properly included in the reinstatement amount necessary to halt foreclosure proceedings under Alaska law. The superior court concluded that the foreclosure fees were properly included in the reinstatement amount. Upon review, the Supreme Court agreed with the superior court and therefore affirmed. View "Kuretich v. Alaska Trustee, LLC" on Justia Law

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Offshore Systems – Kenai (Offshore) operates a commercial dock facility on Cook Inlet in the Kenai Peninsula Borough (Borough). Nikishka Beach Road traverses Offshore's property. The public has used this road to access the beach since the 1950s. In 2007 Offshore installed a gate blocking the road. The State and the Borough sought an injunction against Offshore, alleging a public right-of-way or prescriptive easement exists over Nikishka Beach Road. Offshore counterclaimed for a declaratory judgment quieting title to its property. The parties disputed the length and history of Nikishka Beach Road. The superior court concluded that Nikishka Beach Road provided public access to the beach on several alternative grounds. Offshore appealed the superior court's decision. Upon review, the Supreme Court affirmed, finding that a 1980 patent reserved a valid easement for public access to the shoreline of Cook Inlet. The Court held that the superior court had the authority to locate an easement over Nikishka Beach Road. The Court reversed the award of attorney's fees to the Borough. View "Offshore Systems - Kenai v. Alaska" on Justia Law

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Purchasers of a lot in a newly formed airpark subdivision prepared and properly executed an easement agreement granting them access to the subdivision's aviation facilities. The purchasers later claimed the easement agreement gave them a priority right to use the subdivision's common areas, distinct from use rights granted to other lot owners. The subdivision's homeowner's association disputed that claim. The superior court ruled that the easement agreement did not grant the purchasers the right to exclude other lot owners from common areas. The court also issued a variety of orders on related issues, declaring the subdivision a common interest community and quieting title to its common use areas as superior to the easement agreement. The court awarded attorney's fees against the purchasers. One of the purchasers appealed but subsequent events rendered all issues except the attorney's fees decision moot. Because the Supreme Court agreed with the superior court that the easement agreement did not grant priority rights to the purchasers, the Court affirmed the superior court's award of attorney's fees against the purchasers. View "Schweitzer v. Salamatof Air Park Subdivision Owners, Inc." on Justia Law

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Petitioner Sherman "Red" Smith built and operated a sawmill on 14 acres of land under a special-use permit from the U.S. Forest Service. He alleged that Alaska acquired title to the land and conveyed it to a third party without acknowledging his claim or compensating him for his improvements. The last disputed conveyance of the land took place in 1983. The superior court dismissed Petitioner's claim, finding it to be time-barred under any applicable statute of limitations. The superior court also ruled in favor of the State on two alternative grounds: first, concluding that sovereign immunity bars fraud actions against the State and second, determining that res judicata bars the relitigation of a claim the superior court previously dismissed in 2007. Petitioner appealed, arguing that statutes of limitations cannot bar claims brought for the vindication of constitutional rights. Because statutes of limitations do apply to constitutional claims, and because Petitioner did not allege harm amounting to a continuing violation, the Supreme Court affirmed the superior court's dismissal of Petitioner's claim as time-barred. The Court also affirmed the superior court's alternative finding that the 2007 dismissal of Petitioner's previous claim bars his current action. View "Smith v. Alaska" on Justia Law

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Citizens sought a ballot initiative to eliminate the special regulations that govern real property transactions in a local economic development area. After the municipal clerk twice denied their petition for a ballot initiative, the sponsors sued for an order placing the initiative on the ballot. Finding the petition to be both contrary to existing law and misleading, the superior court upheld the municipal clerk's denial. The sponsors appealed. Because the Supreme Court concluded that the petition is neither contrary to existing law nor misleading, it reversed. View "Sitkans for Responsible Government v. City & Borough of Sitka" on Justia Law

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This case concerned the ownership of James "Jim" and Terrie Gottstein’s former marital home. Jim paid for the property, but Terrie’s name alone was on the deed. The Gottsteins lived in the home for 15 years before moving out; they later separated. Terrie entered into a deal to sell the property to another couple, the Krafts, for significantly less than its appraised value, and Jim objected. One month before closing, Jim recorded a notice of interest under AS 34.15.010, which forbid a spouse from selling "the family home or homestead" without the consent of the other spouse. Neither the Krafts nor Terrie knew about the notice of interest, and the sale went ahead as planned. Following the sale, Jim filed suit against the Krafts, requesting that the superior court recognize his ownership interest in the property. The superior court granted summary judgment in favor of the Krafts. The superior court concluded that it was not "the family home or homestead," rendering Jim’s notice of interest under AS 34.15.010 ineffectual. Jim appealed, arguing: (1) that the statute protected his interest in the property; (2) that the Krafts had constructive notice of his interest and therefore were not bona fide purchasers; and (3) that Jim has an equitable interest in the property and the superior court was mistaken in not granting his request for an equitable remedy. Upon review, the Supreme Court concluded that the phrase "family home or homestead" in AS 34.15.010 refers to a family’s residence. Because the disputed property was vacant, and the couple had moved to another home at the time of sale, it did not fall under the spousal consent requirement of AS 34.15.010(b). Jim thus did not put the Krafts on notice of any legally valid claim to the property. View "Gottstein v. Kraft" on Justia Law

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Margery Kniffen, as Trustee for the Margery T. Kniffen Family Trust and Darrell Kniffen II, purchased an undeveloped tract in Fairbanks North Star Borough, planning to develop a subdivision. They also purchased a lot in Gold Country Estates, an existing subdivision adjacent to the undeveloped tract. The Kniffens sought a variance allowing them to construct a road across their Gold Country Estates lot to provide access to the planned subdivision. After hearing public testimony, the local Platting Board unanimously voted to deny the variance based on safety concerns. But after a subsequent site visit, the Board reconsidered the variance request and approved it. Gold Country Estates homeowners appealed to the Planning Commission, which upheld the Platting Board’s decision. The homeowners filed suit in superior court, arguing that the Platting Board denied them due process and violated the Open Meetings Act and that the proposed road violated Gold Country Estates’ covenants. The superior court ruled that Gold Country Estates’ covenants did not allow a Gold Country lot to be used as access for the new subdivision. Though the Kniffens’ access proposal was defeated, Gold Country continued to pursue its due process and Open Meetings Act claims against the Borough. The superior court ultimately ruled in favor of the Borough on those claims. The homeowners appealed to the Supreme Court, arguing that the superior court erred by not finding that the Platting Board denied them due process and violated the Open Meetings Act. Upon review, the Supreme Court affirmed the superior court’s grant of summary judgment in favor of the Borough on the homeowners' Open Meetings Act and due process claims, as well as the superior court's order declining to award attorney’s fees. View "Gold Country Estates Preservation Group, Inc. v. Fairbanks North Star Borough" on Justia Law