Justia Real Estate & Property Law Opinion Summaries

The Bachner Company leased office space to the State of Alaska. The lease stipulated that the State would occupy 15,730 square feet of space but would not have to pay rent on 1,400 square feet of that space during the lease’s initial ten-year term. The lease further specified that if it was extended beyond the initial term the parties would negotiate a rate for the free space and the State would pay for it. Toward the end of the initial term the State exercised its first renewal option and opened negotiations with the company over the free space’s value. The parties retained an expert to value the space, but the State questioned his methods and conclusions. The State also resisted the company’s claim that the State should begin paying rent for additional space, not identified in the lease, that the company contended the State had been occupying. The parties failed to reach agreement, and the State did not pay rent for any of the extra square footage. Eventually the State executed a unilateral amendment to the lease based on the expert’s valuation and, ten months after the end of the lease’s initial term, paid all past-due rent for the formerly free space identified in the lease. The company filed a claim with the Department of Administration, contending that the State had materially breached the lease, the lease was terminated, and the State owed additional rent. A contracting officer rejected the claim, and on appeal an administrative law judge found there was no material breach, the lease had been properly extended, and the company had waived any claim regarding space not identified in the lease. The Commissioner of the Department of Administration adopted the administrative law judge’s findings and conclusions. The superior court affirmed the Commissioner’s decision except with regard to the space not identified in the lease; it directed the company to pursue any such claim in a separate action. Both parties appealed to the Alaska Supreme Court. After review, the Supreme Court concluded the administrative law judge's findings were supported by substantial evidence, and because the lease did not terminate under the Supreme Court's interpretation of it, the Court affirmed the Commissioner's decision except with regard to the company's claim to rent for space not identified in the lease. The Court concluded that, to the extent it sought rent after the end of the initial term, it was not waived by the document on which the administrative law judge relied to find waiver. Only that issue was remanded to the Commissioner for further consideration. View "Bachner Company, Inc. v. Alaska Department of Administration" on Justia Law

Alaska Housing Finance Corporation (AHFC) held a promissory note and deed of trust executed in connection with a borrower’s purchase of his home. AHFC non-judicially foreclosed on the deed of trust without first providing the borrower an opportunity to present to a decision-maker his argument why under AHFC’s policies and procedures he was entitled to loan assistance to prevent the foreclosure. The borrower brought suit, alleging among other things, that he was denied procedural due process protections before AHFC took his property by foreclosure. The superior court rejected his due process argument and granted AHFC summary judgment on all issues. The sole issue presented to the Alaska Supreme Court on appeal was the due process question. The Court concluded that AHFC, a public corporation, was a “state actor,” that the foreclosure effected a deprivation of the borrower’s property, and that the borrower was not afforded a constitutionally required pre­ deprivation opportunity to be heard. The Court therefore reversed the superior court’s summary judgment decision on the due process question and remanded for further proceedings. View "Anderson v Alaska Housing Finance Corporation" on Justia Law

In the 1940s, Fred E.W. and Clara Seater acquired a roughly five-acre parcel located along the Nikiski Bay beach in the Cook Inlet region, referred to as Lot 9. In 1956, following Fred E.W.’s death, Clara transferred Lot 9 to her sons Ronald Seater and Fred L. Seater, as tenants in common. Fred L. died in 1979. His widow, Lee Seater, as executor of his estate, conveyed his share in Lot 9 to herself. Ronald filed for partition of Lot 9 in January 2010. In February 2012, a superior court issued a partition order severing Ronald and Lee’s tenancy in common. he partition made a straight-line division in Lot 9 to create a northern “Lot 1” and a southern “Lot 2” of “reasonably equal ‘value.’ ” Lee was granted the northern “Lot 1” and Ronald was granted the southern “Lot 2.” In April 2012 Ronald requested the use of an old access trail that crossed Lot 1. In October the superior court granted Ronald “an express appurtenant easement by necessity over Lot 1 for ingress and egress via the trail/road into the northern boundary of Lot 1.” In June 2014 Lee requested that “reciprocal easements for ingress and egress be established between Lot 1 and Lot 2.” In September 2015 the superior court entered a decision granting Lee’s request. In July 2016 Lee moved to enforce the September 2015 decision. She alleged that Ronald was placing boulders on or around the easement to frustrate her access. Ronald claims that in response he “installed boulder fences . . . along a 10-foot wide corridor centered on the ‘diagonal cut’ on Lot 2, in order to mark the boundary between Lots 1 and 2; identify the location of the ‘diagonal cut[’;] deter trespassers (including the Lee Seater family); and prevent more erosion on Lot 2.” In July 2017 Lee filed an enforcement motion alleging that Ronald continued to frustrate her access to the easement. Ronald appealed the modification of the partition, and the subsequent related enforcement orders. The Alaska Supreme Court concluded Ronald's appeal was untimely with respect to all but the most recent enforcement order, which contained an erroneous interpretation of a term used in prior orders. The matter was remanded for the superior court to rectify that mistake. View "Seater v Estate of Fred L. Seater" on Justia Law

This case arose from a boundary dispute between the Collinses and the Halls, who were adjoining property owners in a recreational subdivision on an island near Juneau, Alaska. The Collinses alleged that structures on the Halls’ property encroached onto the Collinses’ property and violated the subdivision’s restrictive covenants. They brought claims for quiet title and trespass based on boundaries recorded in a 2014 survey of their lot. This survey was prepared by the same surveyor who had initially platted the subdivision in the mid-1970s; the 1970s survey in turn referred to a survey monument established in 1927. The Halls responded that the Collinses’ surveyor had used the wrong point of beginning for his subdivision survey; that a surveyor they had hired in 2012 found the true point of beginning based on the 1927 survey; that the correct property boundary lay some distance from where the Collinses claimed; and that the supposedly encroaching structures were fully on the Halls’ land. The superior court found that the boundary advocated by the Halls was correct and issued a judgment quieting title based on their 2012 survey, though it acknowledged that its decision could cloud title for other property owners on the island. The court also found that the restrictive covenants at issue had been abandoned and concluded they could not be enforced against the Halls. The Alaska Supreme Court concluded the superior court’s findings as to the boundary location and restrictive covenants were not clearly erroneous, and therefore affirmed the court’s decision on those issues. But because the superior court’s findings and conclusions did not address one of the Collinses’ trespass claims, the matter was remanded for consideration of that issue. View "Collins v. Hall" on Justia Law

Jerry and Brenda McCavit built a dock extending into Wasilla Lake from their upland property. Their neighbors, Barbara and Louis Lacher, sued the McCavits claiming the dock unreasonably interfered with their riparian rights and constituted a private nuisance. The superior court found for the Lachers and issued an injunction ordering the McCavits to remove a portion of their dock. The McCavits appealed. Because the Alaska Supreme Court, by this case, announced a new rule of reasonableness regarding riparian or littoral rights, it vacated the superior court’s Findings of Fact and Conclusions of Law and Order Granting Injunctive Relief and Nuisance Abatement, remanded for the superior court to conduct the proper legal analysis, and vacated the superior court’s award for attorney’s fees and costs. View "McCavit v. Lacher" on Justia Law

For several years two condominium owners withheld a portion of their dues in protest. Then beginning in 2014, they sent the condominium association several payments, with instructions to apply them to recent debts and current dues. In this appeal, the owners argued they accrued no debts within the statute of limitations because their payment directives were binding. The Alaska Supreme Court agreed with the superior court’s conclusion that these payment directives were not effective because the governing declaration allowed the association to apply any payments to “the oldest balance due.” The Court affirmed the trial court in all other respects. View "Black v. Whitestone Estates Condominium HOA, et al." on Justia Law

Petitioner Lorna Weston was seriously injured when she slipped and fell on ice in a hotel parking lot. Medicare covered her medical expenses, settling the providers’ bills by paying less than one-fifth of the amounts billed. When she later sued the hotel for negligence, the hotel sought to bar her from introducing her original medical bills as evidence of her damages, arguing that only the amount Medicare actually paid was relevant and admissible. The superior court agreed and excluded the evidence. The Alaska Supreme Court granted Weston's petition for review the following questions: (1) whether evidence of medical expenses was properly limited to the amounts actually paid, or whether the amounts billed by the providers - even if later discounted - were relevant evidence of damages; and (2) whether the difference between the amounts billed by the providers and the amounts actually paid was a benefit from a collateral source, subject to the collateral source rule. The Supreme Court concluded that the amounts billed by the providers were relevant evidence of the medical services’ reasonable value. Furthermore, the Court concluded the difference between the amounts billed and the amounts paid was a benefit to the injured party that was subject to the collateral source rule; as such, evidence of the amounts paid was excluded from the jury’s consideration but was subject to post-trial proceedings under AS 09.17.070 for possible reduction of the damages award. View "Weston v AKHappytime, LLC, d/b/a Alex Hotel & Suites" on Justia Law

A public utility filed a condemnation action seeking the land use rights necessary to construct a natural gas storage facility in an underground formation of porous rock. The utility held some rights already by assignment from an oil and gas lessee. The superior court held that because of the oil and gas lease, the utility owned the rights to whatever producible gas remained in the underground formation and did not have to compensate the landowner for its use of the gas to help pressurize the storage facility. The court held a bench trial to determine the value of the storage space. The landowner appealed the resulting compensation award, arguing it retained ownership of the producible gas in place because the oil and gas lease authorized only production, not storage. It also argued it had the right to compensation for gas that was discovered after the date of taking. The landowner also challenged several findings related to the court’s valuation of the storage rights: that the proper basis of valuation was the storage facility’s maximum physical capacity rather than the capacity allowed by its permits; that the valuation should not have included buffer area at the same rate as area used for storage; and that an expert’s valuation methodology, which the superior court accepted, was flawed. The Alaska Supreme Court concluded the superior court did not err in ruling that the landowner’s only rights in the gas were reversionary rights that were unaffected by the utility’s non-consumptive use of the gas during the pendency of the lease. Furthermore, the Court concluded the trial court did not clearly err with regard to findings about valuation. View "Kenai Landing, Inc. v Cook Inlet Natural Gas Storage, et al." on Justia Law

The Alaska Department of Transportation and Public Facilities (DOT or the State) condemned a strip of property along the Parks Highway. DOT filed a declaration of taking, allowing it to take title immediately, and deposited approximately $15,000 in court as estimated compensation for the taking. The landowner challenged DOT’s estimate and was eventually awarded approximately $24,000, as well as attorney’s fees and costs. Pursuant to AS 09.55.440, the superior court awarded prejudgment interest to the landowner on the difference between the amount of DOT’s initial deposit and the amount the property was ultimately determined to be worth. The landowner appealed, arguing that the prejudgment interest should have been calculated on the difference between the deposit and his entire judgment, including significant amounts for attorney’s fees and appraisal costs. The Alaska Supreme Court concluded the landowner’s argument was not supported by the statutory language, legislative history, or policy. Furthermore, the Court rejected the landowner’s arguments that the superior court applied the wrong postjudgment interest rate and abused its discretion by denying discovery of the State’s attorneys’ billing records. The trial court failed to state its reasons for excluding attorney time from its attorney's fees award, and therefore vacated that award and remanded for reconsideration only of the fees award. View "Keeton v. Alaska, Department of Transportation and Public Facilities" on Justia Law

In 2013 and 2014 attorney Gerald Markham applied for a senior citizen tax exemption on his residential property in Kodiak, Alaska. The Borough assessor denied the applications due to Markham’s prolonged absences from Alaska. When given the opportunity to prove his absences were allowed under the applicable ordinance, Markham refused to provide corroborating documentation. He appealed the denials to the Borough Board of Equalization, which affirmed the denials. He appealed the Board’s decisions to the superior court. The superior court dismissed the 2013 appeal for failure to prosecute, denied the 2014 appeal on the merits, and awarded attorney’s fees to the Borough. Markham appealed. The Alaska Supreme Court affirmed the superior court’s 2013 dismissal and the Board’s 2014 denial on the merits, but vacated the superior court’s award of attorney’s fees and remanded for further findings. View "Markham v. Kodiak Island Borough Board of Equalization" on Justia Law