Justia Real Estate & Property Law Opinion Summaries

In September 2003, Bachner Company Inc. entered into a contract with the Alaska Department of Administration, to lease portions of the Denali Building in Fairbanks. After a ten-year lease term and a one-year renewal, Bachner alleged that the State was in default on its rent payments, and it filed suit in superior court to recover. The State moved to dismiss the complaint, arguing that the claim was governed by the Alaska State Procurement Code and that Bachner had failed to exhaust its remedies under the code before filing suit. The superior court agreed and granted the State’s motion to dismiss. Bachner appealed. After review, the Supreme Court concluded the procurement code covered a rent dispute over an ongoing lease, that the Bachner's claim fell under the procurement code, and Bachner had to exhaust its administrative remedies before filing suit in superior court. View "Bachner Company Incorporated v. State, Dept. of Administration" on Justia Law

The State of Alaska and the owner of a car wash reached an agreement for the State to acquire the car wash site as part of a highway improvement project. After the State acquired the site, the owner elected not to relocate the car wash. The owner then brought an inverse condemnation suit against the State, claiming business damages resulting from the State’s acquisition. At the close of a jury trial the superior court denied the State’s motion for a directed verdict; awarded the owner $1.79 million in damages and the court awarded attorney’s fees and costs. The State appealed, arguing that the owner’s claimed damages were not compensable because it was feasible for the owner to relocate the car wash after the State acquired the original site. After review, the Supreme Court agreed with the State that feasibility was the correct standard for analyzing the owner’s decision not to relocate when deciding whether he was entitled to business damages. Accordingly, the Court reversed the superior court’s denial of the State’s motion for directed verdict, vacated the attorney’s fee and costs awards, and remanded for reconsideration of prevailing party status, attorney’s fees, and costs. View "Dept. of Trans. & Public Facilities v. Alaska Laser Wash, Inc." on Justia Law

At issue in this case was the validity of an easement that Thomas Carnahan claimed extended over property owned by Keven and Marlene Windel. In addition, there were issues surrounding damage allegedly caused by improvements within that easement. Carnahan won at trial in "Windel I," but the Supreme Court remanded the case for reconsideration of attorney fee issues. On remand, the superior court awarded Carnahan feed, finding that he was the prevailing party. The Windels appealed again, arguing the superior court erred in its analysis of Rule 68 when awarding Carnahan attorney fees. Finding no reversible error in the resolution of the fee dispute, the Supreme Court affirmed. View "Windel v. Carnahan" on Justia Law

A narrow strip of land in the Turnagain area of Anchorage, immediately west of Lynn Ary Park and bordering Knik Arm, is at the center of the parties' dispute in this matter. The land is in the shape of a parallelogram; its long sides run in a northeasterly direction up Knik Arm and its short sides run north-south. The property was initially subdivided in May 1952. As initially platted the northern subdivision boundary stopped just south of a 50-70 foot bluff. The bluff itself was just south of the mean high-tide line of Knik Arm; the land between the northern boundary of the lots and the mean high-tide line was not developable land. During the Good Friday Earthquake of 1964, the bluff face flattened out and slid northward into Knik Arm. This caused the existing land between the pre-earthquake bluff face and the pre-earthquake mean high-tide line to become developable and created new land between the pre-earthquake mean high-tide line and the post-earthquake mean high-tide line. Despite the plats of the subdivision apparently indicating that their lots’ northern boundary is at the top of the pre-earthquake bluff face, appellants and lot owners Matthew Fink and Diane Wilke alleged that their property actually extended north to the pre-earthquake mean high-tide line. The parties did not dispute that the Municipality of Anchorage owned the new land between the pre-earthquake mean high-tide line and the post-earthquake mean high-tide line. The Municipality argued that the lot owners did not have a substantial interest in the disputed property and that the statute of limitations barred the lot owners’ claim. The superior court concluded that the lot owners failed to show a substantial interest in the disputed parcel and that, even if the lot owners did have a substantial interest, the statute of limitations barred their claim. Finding no reversible error in the superior court's judgment, the Alaska Supreme Court affirmed. View "Fink v. Municipality of Anchorage" on Justia Law

Williams Alaska Petroleum owned the North Pole refinery until 2004. Williams knew that the then-unregulated chemical sulfolane was present in refinery property groundwater, but it did not know that the sulfolane had migrated off the refinery property via underground water flow. Flint Hills Resources Alaska bought the North Pole refinery from Williams in 2004 pursuant to a contract that contained detailed terms regarding environmental liabilities, indemnification, and damages caps. Almost immediately the Alaska Department of Environmental Conservation informed Flint Hills that sulfolane was to be a regulated chemical and that Flint Hills needed to find the source of the sulfolane in the groundwater. The Department contacted Flint Hills again in 2006. Flint Hills’s environmental contractor repeatedly warned Flint Hills that sulfolane could be leaving the refinery property and that more work was necessary to ascertain the extent of the problem. In 2008, Flint Hills drilled perimeter wells and discovered the sulfolane was migrating beyond its property and had contaminated drinking water in North Pole. A North Pole resident sued Flint Hills and Williams, and Flint Hills cross-claimed against Williams for indemnification. After extensive motion practice the superior court dismissed all of Flint Hills’s claims against Williams as time-barred. Flint Hills appealed. After review, the Supreme Court held that the superior court correctly applied the contract’s damages cap provision, but concluded that the court erred in finding Flint Hills’s contractual indemnification claims and part of its statutory claims were time-barred. The Court also affirmed the court’s dismissal of Flint Hills’s equitable claims. View "Flint Hills Resources Alaska, LLC v. Williams Alaska Petroleum, Inc." on Justia Law

Appellant James Bingman, Sr. sought to redeem his foreclosed property by offering the City of Dillingham a promissory note for the amount due, without interest, that would mature 20 years later. The taxpayer asserted that his offer would be deemed accepted unless the City satisfied certain requirements to “terminate its power of acceptance.” The City explicitly rejected the offer by letter and, at the close of the statutory redemption period, filed for a tax deed in superior court. The taxpayer intervened, arguing that he had redeemed the property, but the superior court ruled there was no contract between him and the city. The taxpayer appealed; but finding no error, the Alaska Supreme Court affirmed. View "Bingman v. City of Dillingham" on Justia Law

The issue this case presented for the Alaska Supreme Court's review arose from competing claims of right to the pore space in a large limestone formation about a mile underground. Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) had leases with the holders of the mineral rights, the State of Alaska and Cook Inlet Region, Inc. (CIRI), that allowed it to use the porous formation as a reservoir for storing injected natural gas. But the City of Kenai, which owned a significant part of the surface estate above the reservoir, claimed an ownership interest in the storage rights and sought compensation from CINGSA. CINGSA filed an interpleader action asking the court to decide who owns the storage rights and which party CINGSA should compensate for its use of the pore space. On summary judgment CINGSA argued that CIRI and the State owned the pore space and attendant storage rights because of the State’s reservation of certain subsurface interests as required by AS 38.05.125(a). The superior court granted CINGSA’s motion. The City appealed both the grant of summary judgment and the superior court’s award of attorney’s fees to CIRI. After review, the Supreme Court affirmed, finding that the State and CIRI indeed owned the pore space and the gas storage rights, and that it was not an abuse of discretion for the superior court to award attorney’s fees to CIRI. View "City of Kenai v. Cook Inlet Natural Gas Storage Alaska, LLC" on Justia Law

Wasilla landowner, appellant Ray Pursche appealed the tax foreclosure against his property, arguing that the property was exempt from local property taxes because it was originally transferred to his predecessor by federal patent. He claimed that the federal patent made this property beyond state court jurisdiction. The Supreme Court affirmed the tax foreclosure, finding that after a patent issues, property disputes must generally be resolved in state court. Land once owned by the federal government was subject to local property taxes after it was conveyed to a private party. View "Pursche v. Matanuska-Susitna Borough" on Justia Law

John and Xong Chao Beeson owned and lived in the Palmer West Subdivision in the City of Palmer. Since they moved to the property in 1985, the Beesons have experienced several flooding incidents on their land, which they attributed to water backing up against Helen Drive, a two-lane road adjacent to their property originally built by Matanuska-Susitna Borough but controlled by the City since 2003. After the City installed a water line under Helen Drive and repaved the road surface in 2005, the flooding became more severe and caused serious damage to the Beesons’ home. The Beesons brought an inverse condemnation claim against the City, arguing that the City was liable for the damage to their property. After a three-day bench trial the superior court found that the City’s road reconstruction project was not a substantial cause of the flooding and therefore the City could not be liable in inverse condemnation. The superior court also granted attorney’s fees to the City. The Beesons appealed both rulings. After review, the Supreme Court affirmed the superior court’s decision with respect to the inverse condemnation claim and remanded for further proceedings regarding attorney’s fees. View "Beeson v. City of Palmer" on Justia Law

Brett and Josephine Ambridge defaulted on their home loan. Alaska Trustee, LLC sent the Ambridges a notice of default that failed to state the full amount due as required by the federal Fair Debt Collection Practices Act (FDCPA). The Ambridges filed suit against Alaska Trustee and its owner, Stephen Routh, seeking damages under the FDCPA and the Alaska Unfair Trade Practices and Consumer Protection Act (UTPA), as well as injunctive and declaratory relief. The superior court held that both Alaska Trustee and Routh were “debt collectors” subject to liability under the FDCPA, awarded damages under the Act, and awarded injunctive relief under the UTPA. Alaska Trustee and Routh appealed, arguing that neither of them is a debt collector as defined by federal law and that injunctive relief was improperly awarded. The Supreme Court found no reversible error in the Superior Court's judgment and affirmed. View "Alaska Trustee, LLC v. Ambridge" on Justia Law