Justia Business Law Opinion Summaries

In late April 2006 Samuel Sengul leased a commercial storefront in downtown Juneau to Robert Manus, who was acting on behalf of CMS Franklin, Inc. The building was under construction when Sengul and CMS entered into the lease agreement, but the lease provided that Sengul would deliver the property to CMS in a specified improved condition by the time the lease commenced on June 1. The lease also included a rent abatement provision, which was at issue in this case. The building was not in improved condition until approximately June 8. Manus did not pay any rent, nor did he mention the rent abatement provision when he took possession of the building. Sengul finally demanded rent in late July, but Manus refused to pay, claiming abatement. In September, Manus had still not paid any rent, and Sengul put a lock on CMS's store door and placed signs demanding rent in the store windows. Manus had the lock cut off, but began to move the inventory out of the store, vacating it and returning the keys to Sengul two days after the lockout. Sengul then sued CMS and Manus for unpaid rent. The superior court determined that CMS had waived its right to rent abatement and owed Sengul unpaid rental amounts for the time that Manus had occupied the building. But the court also concluded that Sengul's lockout amounted to constructive eviction and awarded CMS damages as a refund for work performed on the premises that CMS was unable to benefit from after the constructive eviction. Upon review, the Supreme Court agreed with the superior court that Sengul's actions constituted constructive eviction, but the Court disagreed that CMS waived its entitlement to have the rent abated. The case was remanded for the superior court to recalculate the damages owed to CMS.

Appellant Jim Widmyer, a commercial fisher, applied for a permit to fish for sablefish. The State distributes these permits largely on the basis of past participation in the sablefish fishery, specifically participation between 1975 and 1984. Though Appellant had been unable to land many fish between 1975 and 1984, argued that he qualified for participation due to extraordinary circumstances. The Commercial Fisheries Entry Commission and the superior court both determined that Appellant did not qualify for participation due to extraordinary circumstances. The Supreme Court affirmed those decisions after review of the Commission record.

This case involved a contract dispute between 3-D & Co. and Tewâs Excavating, Inc. The dispute was over the terms of a construction contract for two roads in the Scenic View Subdivision of the Matanuska-Susitna Borough. 3-D & Co. raised twelve issues on appeal, which in sum, contended that the superior court applied the wrong legal standards and arrived at the wrong factual conclusions regarding the terms of the contract. The Supreme Court took each of 3-D's issues in turn and affirmed the superior court's decisions in all respects.

Robert J. Henrichs, Derenty Tabios, and Robert E. Burk were shareholders and former directors of Chugach Alaska Corporation who ran for election to the Chugach board in 2005. These former directors sued Chugach because their names were excluded from the boardâs corporate proxy materials and because Chugach did not provide them with shareholder information for their own proxy campaigns within the time frame they demanded. The superior court granted Chugach summary judgment on all claims and the former directors appealed. Upon review, the Supreme Court affirmed because Chugach was not required to deliver the information the former directors demanded and because Chugachâs conduct did not otherwise violate their rights as board candidates.

Appellant Robert Stevens was charged with and convicted of violating local borough noise and adult entertainment ordinances. The borough later protested the continued operation of his bar under its Alcoholic Beverage Control Board (ABC Board) liquor license. The ABC Board sustained the protest and denied Appellant's continued operation. Appellant requested an adjudicatory hearing before an administrative law judge (ALJ) to review the ABC Board's decision. The ALJ recommended the ABC Board uphold its initial decision and enforce the denial of continued operation under the license. Appellant appealed to the superior court which affirmed the ABC Board's decision. Appellant appealed again to the Supreme Court, who found the evidence in the ABC Board's and ALJ's record sufficient to overcome a challenge that the borough behaved in an arbitrary and unreasonable manner in protesting Appellant's operation under his liquor license. The Court affirmed the superior court's decision.

In 2006, Appellant Yvan Safar contracted with developer Per Bjorn-Roli to construct a 12-unit condominium project. Appellee Wells Fargo agreed to finance the project. By early 2007, the developer paid Appellant the entire amount of his contract, and Wells Fargo disbursed the entire loan, but the units were not complete. Appellant allegedly used his own funds to meet his payroll needs on the project. The project overran its budget, and Wells Fargo had to foreclose. Appellant contended that the bank promised to reimburse him for monies he spent in contemplating the completion of the project. After trial, the superior court found that Wells Fargo made no enforceable promise to Appellant to reimburse him. Upon review, the Supreme Court found that the bank did not make any promise or commitment to Appellant sufficient to meet the "actual promise" element of promissory estoppel. Accordingly, the Court affirmed the lower court's dismissal of Appellant's case.