Justia Alaska Supreme Court Opinion Summaries

A mother and son co-owned a property in Kodiak and hired an excavation company to build a retaining wall. The son made a $15,000 payment to the contractor by credit card. Disputes arose over the contract terms, leading both parties to sue each other for breach of contract. The superior court found that the contractor breached the contract and awarded damages to the mother and son, assuming the $15,000 payment would be reversed by the credit card company.The superior court's final judgment was issued on July 13, 2021. The contractor appealed, and the Alaska Supreme Court reversed several aspects of the superior court’s decision unrelated to the $15,000 payment. More than a year after the final judgment, the mother and son moved for relief from the judgment under Alaska Civil Rule 60(b), arguing that the court mistakenly assumed the $15,000 charge would be reversed. The superior court granted relief under Rule 60(b)(1), finding it had made a mistake about the credit card payment and adjusted its damages award accordingly.The contractor appealed to the Alaska Supreme Court, arguing that the superior court abused its discretion in granting relief under Rule 60(b)(1) because the motion was filed more than a year after the final judgment, making the delay unreasonable. The Alaska Supreme Court agreed, noting that Rule 60(b)(1) motions must be made within one year of the judgment and that this period cannot be tolled or extended. The court found that the superior court erred in tolling the one-year limitation period and that the Bishops' motion was untimely.The Alaska Supreme Court reversed the superior court’s order granting the Rule 60(b)(1) motion for relief from judgment and remanded for disbursement of the supersedeas bond consistent with its decision. View "Red Hook Construction, LLC v. Bishop" on Justia Law

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

A mother sought to regain custody of her children, who had been living with their uncle and aunt in Canada for two years. The uncle and aunt opposed the return, arguing it was in the children's best interests to stay with them. Concurrent custody proceedings took place in Alaska and Canada, with Alaska ultimately asserting jurisdiction. After a custody trial, the uncle and aunt were awarded physical and legal custody of the children. The mother appealed, claiming the court made several legal and factual errors.The Alaska Superior Court found that it had jurisdiction under the Uniform Child Custody Jurisdiction and Enforcement Act (UCCJEA) and consolidated the cases. During the trial, the court heard testimony from multiple witnesses, including the mother, the uncle, the aunt, and experts. The court found that the children were thriving in Canada and that returning them to their mother would be detrimental due to her erratic behavior and substance use. The court also conducted in camera interviews with the children, who expressed a preference to stay with their uncle and aunt.The Alaska Supreme Court reviewed the case and affirmed the Superior Court's decision. The court held that the Superior Court did not abuse its discretion in awarding custody to the uncle and aunt, finding that the children's welfare required it. The court also found that the Superior Court correctly applied the Indian Child Welfare Act (ICWA) requirements, determining that the placement constituted a "foster care placement" and that active efforts had been made to prevent the breakup of the Indian family. The court concluded that the expert witnesses were properly qualified and that the evidence supported the finding that returning the children to their mother would likely cause serious emotional damage. The custody and visitation orders were upheld as not being an abuse of discretion. View "O'Brien v. Delaplain" on Justia Law

Baxter Senior Living, LLC, an assisted living facility in Anchorage, Alaska, obtained an insurance policy from Zurich American Insurance Company covering various types of losses, including those caused by microorganisms. In response to the COVID-19 pandemic, Baxter implemented several operational restrictions and incurred additional costs. Despite these measures, the facility experienced COVID-19 cases among staff and residents. Baxter filed a claim with Zurich for loss of business income due to the pandemic, which Zurich denied.Baxter then filed a complaint in February 2022, alleging breach of contract and other claims, arguing that the presence of COVID-19 and related governmental orders caused a loss of use of its property, constituting "direct physical loss of or damage to" the property under the insurance policy. Zurich moved to dismiss the case, arguing that neither the presence of the virus nor the governmental orders constituted "direct physical loss of or damage to" property. The U.S. District Court for the District of Alaska certified two questions to the Alaska Supreme Court regarding the interpretation of this phrase in the context of the pandemic.The Alaska Supreme Court reviewed the certified questions and concluded that neither the presence of the COVID-19 virus at an insured property nor the operational restrictions imposed by pandemic-related governmental orders constitute "direct physical loss of or damage to" the property under a commercial insurance policy. The court emphasized that "direct physical loss" requires some physical alteration or deprivation of possession of the property, and "direct physical damage" requires a tangible alteration of the property. The court noted that the presence of the virus does not physically alter the property but merely attaches to it, and the operational restrictions do not cause a physical alteration or deprivation of possession. Therefore, the court answered both certified questions in the negative. View "Baxter Senior Living, LLC v. Zurich American Insurance Company" on Justia Law

A man domiciled in Washington passed away, leaving a will that specified it should be administered according to Alaska law. He had married his surviving spouse after executing the will. The will devised property to the surviving spouse, his brother, and the National Kidney Foundation (NKF). The surviving spouse claimed statutory allowances and an elective share under Alaska law, arguing she was entitled to the entire estate as an after-married spouse.The Superior Court of Alaska, Third Judicial District, Anchorage, initially ruled that Washington law governed the surviving spouse's rights because the decedent was domiciled in Washington at the time of his death. The court held that Washington law, not Alaska law, determined the surviving spouse's entitlement as an after-married spouse. The court also awarded the surviving spouse a statutory spousal allowance under Washington law but denied her claim to inherit as an after-married spouse. The court granted attorney's fees to NKF and denied the surviving spouse's motion for fees.The Supreme Court of the State of Alaska reviewed the case. The court held that Alaska law should govern the interpretation and effect of the will, including the rights of an after-married spouse, because the testator had explicitly chosen Alaska law to administer his will. The court found that Alaska's after-married spouse statute pertains to the interpretation and effect of a will when the testator subsequently marries, and thus, Alaska law should apply. The court reversed the Superior Court's decision to apply Washington law and remanded the case for further proceedings consistent with its opinion. The court also vacated the Superior Court's attorney's fee award. View "In the Matter of the Estate of: Bentley" on Justia Law

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

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

Gregory Numann and Diane Gallant were married in 2002 and separated in October 2016. They verbally agreed to maintain separate residences, with Numann paying child support and both contributing to their child's college fund. Numann served in the military from 1989 to 2015, accruing a pension worth about $730,000 at separation. Gallant, who worked throughout the marriage, had two retirement accounts worth about $30,000. Gallant filed for divorce in 2021, seeking a portion of Numann’s military retirement benefit.The Superior Court of Alaska, Third Judicial District, held a two-day trial and issued a divorce decree in July 2022. The court awarded Gallant 50% of the marital portion of Numann’s military retirement benefit from the date of separation. It also credited Numann for child support payments made after their child reached the age of majority. The court found that Gallant was entitled to a portion of the retirement benefit starting from the date of separation and ordered Numann to pay Gallant $94,248.70, representing her share of the retirement payments received since separation. The court balanced this against other obligations to avoid prolonged financial entanglement.The Supreme Court of Alaska reviewed the case and affirmed the lower court’s decision. The court held that the division of the military retirement benefit from the date of separation did not violate federal law under the Uniformed Services Former Spouses’ Protection Act (USFSPA). The court clarified that the USFSPA allows state courts to treat military retirement pay as marital property subject to division under state law. The court also found no evidence of judicial bias against Numann. However, the court remanded the case to correct an inconsistency in the final written order regarding the division of the military retirement benefit. View "Numann v. Gallant" on Justia Law

Evan D., an Indian child, was born with significant health complications. Shortly after his birth, the Office of Children’s Services (OCS) filed an emergency petition to adjudicate him a child in need of aid due to his parents' history of neglect, substance abuse, and domestic violence. Evan was placed with foster parents Rosalind and Max M., who lived near a medical facility capable of addressing his health needs. The Native Village of Togiak, Evan’s tribe, was informed of the proceedings and later petitioned to transfer jurisdiction over Evan’s case to the tribal court.The Superior Court of Alaska, Third Judicial District, adjudicated Evan a child in need of aid and granted temporary custody to OCS. OCS petitioned to terminate the parental rights of Evan’s parents, and the Tribe petitioned to transfer jurisdiction. Rosalind and Max moved to intervene, arguing that the Tribe might place Evan with his grandmother, who they believed could not meet his health needs. The Superior Court denied their motion, stating that federal law prohibits considering potential placement changes when deciding whether to transfer jurisdiction.The Supreme Court of the State of Alaska reviewed the case. The court held that the foster parents' arguments against transferring jurisdiction were contrary to federal law, which prohibits considering whether transfer could affect the child's placement. The court affirmed the Superior Court's decision, stating that the foster parents did not present valid grounds to deny the transfer of jurisdiction and therefore did not share any issue of law or fact in common with the underlying proceedings that would justify their intervention. The court also addressed the procedure for staying transfer orders pending appeal, emphasizing the need to balance competing interests. View "Rosalind M. v. State" on Justia Law

The case involves a dispute between two lakefront property owners, the McCavits and the Lachers, over a dock extension built by the McCavits. The Lachers claimed that the extension interfered with their riparian rights and constituted a private nuisance. The superior court agreed and ordered the removal of the dock extension. The McCavits appealed, leading to the articulation of a new rule of reasonableness to determine whether the dock unreasonably interfered with the neighbors' rights. The case was remanded for the superior court to apply this new rule, and the court again ruled in favor of the Lachers.Initially, the superior court found that the dock extension unreasonably interfered with the Lachers' riparian rights and constituted a private nuisance. The court ordered the removal of the dock extension and awarded attorney’s fees to the Lachers. The McCavits appealed, and the Alaska Supreme Court remanded the case for the superior court to apply a newly articulated rule of reasonableness. On remand, the superior court reaffirmed its earlier findings and again ruled in favor of the Lachers, ordering the removal of the dock extension and awarding attorney’s fees.The Alaska Supreme Court reviewed the case and concluded that the superior court did not abuse its discretion in applying the new rule of reasonableness or in finding that the dock constituted a private nuisance. However, the Supreme Court vacated the award of attorney’s fees and remanded for further consideration, noting that fees related to the litigation against the Alaska Department of Natural Resources (DNR) should not be charged to the McCavits. The main holding is that the superior court's application of the reasonableness rule and its finding of a private nuisance were upheld, but the attorney’s fees award was vacated and remanded for recalculation. View "McCavit v. Lacher" on Justia Law