Alaska Conservation Foundation v. Pebble Limited Partnership

350 P.3d 273
CourtAlaska Supreme Court
DecidedMay 29, 2015
Docket7012 S-15059/S-15060/S-15089
StatusPublished
Cited by31 cases

This text of 350 P.3d 273 (Alaska Conservation Foundation v. Pebble Limited Partnership) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaska Conservation Foundation v. Pebble Limited Partnership, 350 P.3d 273 (Ala. 2015).

Opinion

OPINION

WINFREE, Justice.

I. INTRODUCTION

Alaska Statute 09.60.010 was enacted to abrogate our previous common law public interest litigation attorney's fees framework and replace it with a narrower constitutional litigation framework. The statute both encourages and protects those challenging governmental action as a violation of federal or state constitutional rights. First, the statute provides that a successful claimant generally is entitled to an award of full reasonable attorney's fees and costs incurred in connection with a constitutional claim, unless the claimant had "sufficient economic incentive" to bring the claim regardless of its constitutional nature. Second, the statute protects an unsuccessful claimant from an adverse attorney's fees award if the constitutional claim was not frivolous and the claimant did not have "sufficient economic incentive" to bring the claim regardless of its constitutional nature. The primary question raised in this case by the original applications for relief and petition for review, which seek to quash an order for wide-ranging discovery about the petitioners' financial information and the third-party funding of this litigation, is what "sufficient economic incentive" means in this context.

As presented to us here, the question arose from unsuccessful constitutional claimants' invocation of the statutory protection against adverse awards of attorney's fees and the responsive assertion that they had sufficient economic incentive to bring their claim regardless of its constitutional nature. But in a related decision issued today, 1 we reversed the superior court's decision on the merits of the constitutional claim and remanded for entry of declaratory judgment in the claimants' favor. The constitutional claimants have therefore become the prevailing parties, and we assume that on remand they will seek an award of attorney's fees and costs under AS 09.60.010. Because such *275 an award is conditioned on the absence of sufficient economic incentive to bring the claim regardless of its constitutional nature, we also assume that on remand the superior court would enter the same discovery orders regarding the petitioners' financial information and third-party funding of the litigation. We see no purpose in dismissing the original applications for relief and petition for review as moot in light of the change in prevailing party status, only to have them re-filed as a result of further attorney's fees proceedings in the superior court; we therefore address the meaning of "sufficient economic incentive."

We first conclude that our earlier public interest litigation case law, outlined below, provides the guiding parameters for the meaning of "sufficient economic incentive." We also conclude that in this case the claimants did not have "sufficient economic incentive" to bring the claim regardless of its constitutional nature. We therefore vacate the superior court's discovery order and remand for further proceedings consistent Wlth today's decisions.

II. FACTS AND PROCEEDINGS

A. Underlying Litigation

Four individual Alaskans and Nunamta Aulukestai, a non-profit organization whose members are village corporations in the Bristol Bay region, sued the State of Alaska, Department of Natural Resources, for alleged constitutional violations related to land and water use permits issued to Pebble Limited Partnership (Pebble) for what we will refer to as the Pebble Project. 2 They sought declaratory and injunctive relief-primarily a court order requiring the State to provide public notice and make best-interest findings before authorizing land and water use permits for the Pebble Project. 3 Pebble intervened to defend its existing permits and the State's permitting process. 4 After a non-jury trial the superior court issued findings of fact and conclusions of law resolving the case in favor of the State and Pebble. 5

B. Motions For Attorney's Fees And Related Discovery

The State sought awards of costs and attorney's fees under Alaska Civil Rules 79 and 82, requesting about $82,000 in costs and 30% of its attorney's fees, about $484,000. Pebble requested about $105,000 in costs and 30% of its attorney's fees, about $284,000. Altogether the State and Pebble sought costs and attorney's fees awards in excess of $950,000 against Nunamta Aulukestai and the individuals.

Nunamta Aulukestai and the individuals responded by invoking AS 09.60.010(c)(2)'s constitutional claimant protection, which provides:

[A court] may not order a claimant to pay the attorney fees of the opposing party devoted to claims concerning constitutional rights if the claimant ... did not prevail in asserting the right, the action ... was not frivolous, and the claimant did not have sufficient economic incentive to bring the action ... regardless of the constitutional claims involved.

Nunamta Aulukestai and the individuals argued that the court could not award attorney's fees against them because the case concerned a non-frivolous constitutional claim. Nunamta Aulukestais executive director and the individuals disclaimed any economic interest in the litigation's outcome. 6

*276 The State and Pebble disputed Nunamta Aulukestai's protected constitutional claimant status, arguing that Nunamta Aulukestai had sufficient economic incentive to bring the claim. According to Pebble, Nunamta Au-lukestai made economic arguments throughout the litigation, particularly during closing statements when Nunamta Aulukestai's attorney described people who "have lost their livelihoods" because of Pebble's mineral exploration. Pebble also alleged that Nunamta Aulukestai acted as a "mere stalking horse," bringing the litigation on behalf of the commercial fishing industry and other entities with economic interests in stopping the Pebble Project. The State conceded that it did not know who funded the litigation, but echoed Pebble's accusation that third parties with economic incentives used Nunamta Au-lukestai and the individuals as alter egos to bring the litigation.

The superior court issued a preliminary order regarding the requests for costs and attorney's fees. The court determined that Nunamta Aulukestai and the individuals brought a non-frivolous constitutional claim that "trigger[ed] the possible protection within AS 09.60.010(c)(2)." But the court also determined that the State and Pebble "made a prima facie showing that some plaintiffs had an economic incentive to make the claims litigated at trial." Because the court believed that "some source" had funded the litigation, it concluded that the State and Pebble were entitled to discovery and an evidentiary hearing on the economic incentive issue.

The State and Pebble made discovery requests seeking an array of financial information from Nunamta Aulukestai and the individuals.

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Cite This Page — Counsel Stack

Bluebook (online)
350 P.3d 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alaska-conservation-foundation-v-pebble-limited-partnership-alaska-2015.