Justia Professional Malpractice & Ethics Opinion Summaries

A group of landowners (the Andersons) sued their neighbors (the Wilsons) over a property dispute involving access to remote parcels near a lake. The Andersons argued that a public easement existed over the Wilsons' property, providing access from a highway to their properties. They claimed this easement was established by patent, subdivision agreement, prescription, and under Revised Statute 2477 (RS 2477). The Wilsons contended that any access was permissive and private. The dispute arose after the Wilsons blocked access due to perceived excessive use by unauthorized individuals.The Superior Court of Alaska, Third Judicial District, held a 12-day bench trial. The court found in favor of the Wilsons, concluding that no public easement existed. It determined that the Andersons had only a private easement over the Wilsons' property. The court also awarded the Wilsons 75% of their attorney’s fees, finding them to be the prevailing party. The Andersons appealed both the easement determination and the attorney’s fee award.The Supreme Court of the State of Alaska reviewed the case. It affirmed the Superior Court's decision that no public easement existed, agreeing that the Andersons had not provided clear and convincing evidence of public use before the land was withdrawn from the public domain. The court also upheld the finding that no easement by implication, necessity, or estoppel existed. However, the Supreme Court vacated the attorney’s fee award and remanded it for further consideration. It found that the billing records were insufficiently detailed and included fees unrelated to the litigation. The court also noted that the hourly rates charged by the Wilsons' attorney were significantly higher than those customarily charged in the locality, requiring further examination of their reasonableness. View "Anderson v. Wilson" on Justia Law

The case involves a dispute over the control of a nonprofit corporation, which was dissolved by the State due to the executive director’s failure to pay taxes and fees and renew corporate registration. Despite the dissolution, the directors and members continued the corporation’s activities, unaware of the loss of corporate status. When the issue was discovered, some individuals filed paperwork to incorporate a new entity with the same name, offices, and bank account. A national affiliate proposed elections to resolve the leadership, but the new incorporators denied affiliation with the old corporation. Elections were held, and new directors were chosen, leading to litigation over who had authority to act on behalf of the new corporation.The Superior Court of Alaska, Third Judicial District, Anchorage, ruled that the new corporation was essentially the same entity as the old one, with the same members. The court concluded that the disputed election was valid and that the newly elected individuals had authority to act on behalf of the corporation. The court ousted the individuals who had filed the incorporation paperwork and awarded attorney’s fees to the prevailing parties but exempted individual litigants from liability for these fees.The Alaska Supreme Court largely affirmed the Superior Court’s rulings but vacated and remanded the dismissal of one third-party claim for a more detailed explanation. The court also vacated and remanded the Superior Court’s decision to excuse individual litigants from liability for attorney’s fees, finding the reason for this ruling invalid. The main holding was that the new corporation was the same entity as the old one, and the election of new directors was valid, giving them authority to act on behalf of the corporation. View "Aiken v. Alaska Addiction Professionals Association" on Justia Law

The case involves a domestic violence protective order (DVPO) issued in favor of a child's father (Jacob G.) against the child's mother (Savanah F.) following an incident of custodial interference that involved the mother taking the child from Alaska to Texas without the father's knowledge and in violation of a custody order. The father had sought attorney's fees, which were denied by the Superior Court without explanation.The Supreme Court of the State of Alaska reversed the Superior Court's decision, holding that a person who successfully petitions for a DVPO is entitled to seek attorney’s fees from the respondent, and these can only be denied in exceptional circumstances. The Court held that neither of the arguments made by the mother in opposition to the fees - that her act of custodial interference was justified by the father’s substance abuse, and that she could not afford to pay the fees - constituted exceptional circumstances. The Court noted that the mother's argument fails to recognize the harm caused by custodial interference, and that her financial circumstances did not justify denial of the fees, given she had paid her own legal fees and had the ability to earn income. View "Jacob G. v. Savanah F." on Justia Law

The Supreme Court of the State of Alaska affirmed the decision of the Superior Court to grant summary judgement in favor of an attorney, John Wallace, in a case brought against him by the estate of a deceased entrepreneur. The estate, represented by Courtney Guerra, blamed Wallace for the financial mismanagement of the estate by its previous personal representative, Robert Nesbitt, who Wallace had represented. The estate alleged that Wallace was liable for damages due to his negligent performance of duties as Nesbitt's attorney. However, the Supreme Court agreed with the lower court that Wallace had no duty of care to the estate's beneficiaries, as they were not his clients. Furthermore, the estate's claims of malpractice against Wallace were waived due to insufficient briefing in their appeal. The court concluded that Wallace didn't know or have reason to know that Nesbitt was mismanaging the estate's funds, and therefore, he had no legal duty to prevent or rectify Nesbitt's actions. View "Guerra v. Nesbitt" on Justia Law

In this case, the Supreme Court of the State of Alaska was tasked with determining whether a judgment against a self-represented litigant, Jon Buchholdt, was void due to improper service of process. Jeremy Nelson, Buchholdt's former client, had sued him for legal malpractice and won a judgment of $200,000, but Buchholdt argued that he was not properly served and therefore the court lacked personal jurisdiction over him.The main issue in this case was whether Buchholdt was properly served with the summons and complaint by certified, restricted mail sent to his law office, which was rerouted to his home and signed by his alleged agent, "Suz Miller." Buchholdt contended that he was not properly served as he never personally signed for the service, and therefore the court lacked personal jurisdiction over him.The court held that Buchholdt failed to meet his burden of demonstrating that the judgment was void. Despite his claims, Buchholdt did not provide any evidence to contradict Nelson's evidence of service or to show that Suz Miller was not authorized to receive service on his behalf. Additionally, Buchholdt had listed Nelson's lawsuit as a contingent liability when he filed for bankruptcy, indicating he had knowledge of the suit.Therefore, the court affirmed the denial of Buchholdt's motions to set aside the judgment and for reconsideration. The court did not find that the judgment was void due to a lack of personal jurisdiction resulting from improper service of process. View "Buchholdt v. Nelson" on Justia Law

This matter arose from four Child in Need of Aid (CINA) cases. In each, the superior court appointed a guardian ad litem for the child through the Office of Public Advocacy (OPA), and in each case Brenda Finley, working under contract with OPA, appeared as the GAL. Pursuant to CINA Rule 11(e), Finley disclosed to the parties that she was a foster parent in another CINA case. She stated that she did not believe that her role as a foster parent “will affect her ability to be [impartial] in this specific case, or in other cases.” A parent in each case moved for an evidentiary hearing “regarding whether Ms. Finley should be disqualified as a guardian ad litem.” Arguing that Finley’s role as a foster parent might create a conflict of interest due to her relationship with the Office of Children’s Services (OCS) as both a foster parent and a GAL, the parents sought additional details to determine whether a conflict existed, suggesting a hearing would allow them to elicit information regarding Finley’s past, present, and possible future tenure as a foster parent, the status of the cases in which she served as a foster parent, her financial arrangements with OCS, and her relationship with OCS workers. Both OCS and OPA filed qualified oppositions to the parents’ request for a hearing, arguing: that categorical disqualification of foster parents from serving as GALs was overbroad; the court should provide clarity on what framework should govern the potential conflict; and that a low bar for disqualification would fail to recognize “the difficulty of keeping positions in child welfare staffed by qualified individuals, ideally with ties to the community . . . .” The Alaska Supreme Court held that the Alaska Rules of Professional Conduct applied to determine whether the GAL has a disqualifying conflict of interest and that the superior court must permit limited discovery to ascertain the underlying facts for determining whether a disqualifying conflict exists. View "C.L. v. Office of Public Advocacy" on Justia Law

A police officer applied for a Permanent Fund Dividend (PFD) for several years when he was not eligible to receive one. Following an investigation, the Executive Director of the Alaska Police Standards Council petitioned the Council to revoke the officer’s police certificate on the ground that he lacked good moral character. An administrative law judge recommended against revoking the certificate, finding that the officer’s mistakes were not sufficient to demonstrate dishonesty or a lack of respect for the law. The Council, however, concluded that the officer’s hearing testimony - that he would fill out the applications in the same way if he had to do it over again - showed dishonesty and a lack of respect for the law, and it therefore revoked his certificate. The superior court agreed with the administrative law judge’s analysis of the evidence and the law and reversed the Council’s decision. The Council appeals. The Alaska Supreme Court determined the evidence disproportionately supported the finding of the administrative law judge that the police officer’s PFD applications and hearing testimony, while mistaken about the law, were not sufficient to raise substantial doubts about the officer’s good moral character. The Court affirmed the superior court's decision reversing the Council's revocation of the police certificate. View "Alaska Police Standards Council v. Maxwell" on Justia Law

An attorney began representing two injured workers after both encountered difficulties representing themselves in their workers’ compensation claims against the same employer. Both claimants then successfully resolved their claims through mediation, with both receiving substantial settlements. The parties were unable to resolve the question of their attorney’s fees, so the Alaska Workers’ Compensation Board held hearings on that issue. The Board limited the witnesses at the hearings and ultimately awarded significantly reduced attorney’s fees in both claims. The Alaska Workers’ Compensation Appeals Commission affirmed the Board’s decisions. Because the Alaska Supreme Court concluded the Commission incorrectly interpreted Alaska case law about attorney’s fees, because the Board denied the claimants the opportunity to present witnesses, and because the amount of attorney’s fees awarded to both claimants was manifestly unreasonable, the Supreme Court reversed in part the Commission’s decisions and remanded for further proceedings. View "Rusch v. Southeast Alaska Regional Health Consortium" on Justia Law

Johnny Williams worked for Violeta Baker and her home healthcare services company, Last Frontier Assisted Living, LLC (Last Frontier), from 2004 to 2009. Baker hired Johnny to provide payroll, tax-preparation, bookkeeping, and bill-paying services. She authorized him to make payments from her accounts, both for tax purposes and business expenses, such as payroll. She also gave him general authority to access her checking account and to execute automated clearing house (ACH) transactions from her accounts. In addition, Baker allowed Johnny to write checks bearing her electronic signature. Johnny did not invoice Baker for his labor; rather he and Baker had a tacit understanding that he would pay himself a salary from Baker’s payroll for his services. In 2009 the Internal Revenue Service (IRS) notified Baker that her third-quarter taxes had not been filed and she owed a penalty and interest. Baker contacted Johnny to find out why the taxes had not been filed. When he could not produce a confirmation that he had e-filed them, Baker contacted her son for help. Baker’s son discovered that several checks had been written from Baker’s accounts to Personalized Tax Solutions (a business he maintained) and Deverette. A CPA audited the books and found that Johnny’s services over the time period could be valued between $47,500 and $55,000. Subtracting this from the total in transfers to Johnny, Deverette, and Personalized Tax Solutions resulted in an overpayment to the Williamses of approximately $950,000. A superior court found Deverette and Johnny Williams liable for defrauding Baker, after concluding that both owed her fiduciary duties and therefore had the burden of persuasion to show the absence of fraud. The court totaled fraud damages at nearly five million dollars and trebled this amount under Alaska’s Unfair Trade Practices and Consumer Protection Act (UTPA). After final judgment was entered against Deverette and Johnny, Johnny died. Deverette appealed her liability for the fraud. The Alaska Supreme Court affirmed Deverette’s liability for the portion of the fraud damages that the superior court otherwise identified as her unjust enrichment. But the Court reversed the superior court’s conclusion that she owed Baker a fiduciary duty, and reversed the UTPA treble damages against Deverette. The Court vacated the superior court’s fraud conclusion as to Deverette and remanded for further proceedings. View "Williams v. Baker" on Justia Law

One morning in March 2011, Nixola Doan went to Fairbanks Memorial Hospital with her adult daughter, Tristana, who was coughing and having trouble breathing. Doan stayed with Tristana for much of the day. Around 7:00 p.m. Tristana’s condition worsened, and Doan was “ushered . . . out” of the room while Tristana was intubated. Doan remained in the waiting area and did not see Tristana again until approximately the time of her death at 11:41 p.m., when Doan reentered the room and saw her daughter’s body. As the personal representative of Tristana’s estate, Doan filed suit against a number of medical providers, alleging malpractice and wrongful death. Doan also brought her own claim for negligent infliction of emotional distress. Several of the defendants moved for summary judgment on the emotional distress claim, arguing it was legally untenable for Doan to understand, while Tristana was undergoing care, her caregivers were acting negligently. On appeal, the Alaska Supreme Court concluded a viable bystander claim for negligent infliction of emotional distress did not depend on the plaintiff’s contemporaneous realization that the injuries she observed were negligently caused. Therefore, the Court reversed the grant of summary judgment. View "Doan v. Banner Health, Inc." on Justia Law