Alsworth v. Seybert

323 P.3d 47, 2014 WL 1663391, 2014 Alas. LEXIS 74
CourtAlaska Supreme Court
DecidedApril 25, 2014
Docket6900 S-14978
StatusPublished
Cited by12 cases

This text of 323 P.3d 47 (Alsworth v. Seybert) 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
Alsworth v. Seybert, 323 P.3d 47, 2014 WL 1663391, 2014 Alas. LEXIS 74 (Ala. 2014).

Opinion

OPINION

WINFREE, Justice.

I. INTRODUCTION

A group of citizens sued two borough assembly members, alleging various violations of borough and state conflict of interest laws and the common law conflict of interest doe-trine. After the borough took official action facilitating the assembly members' defense, the citizens moved to enjoin the assembly members from using their official positions to defend the lawsuit or pursue personal financial gain. The superior court granted a preliminary injunction under the balance of hardships standard, concluding that the citizens faced the possibility of irreparable harm if the injunction were not granted and that the assembly members were adequately protected by the injunction. The injunction barred the assembly members from taking various actions in their official capacities, including speaking about a local mining project.

The assembly members filed a petition for review, which we granted. They argue, inter alia, that the superior court applied the wrong preliminary injunction standard and *50 that the injunction violates their free speech rights. We agree. The court should have applied the probable success on the merits standard because the injunction does not adequately protect the assembly members, and the injunction imposes an unconstitutional prior restraint on speech. Shortly after oral argument, we vacated the portion of the preliminary injunction barring the assembly members from taking certain official acts or speaking about the mining project. We now vacate the injunction in full.

II. FACTS AND PROCEEDINGS

A. Facts 1

Petitioner Glen Alsworth, Sr. is the Lake and Peninsula Borough (Borough) Mayor and, as such, is a voting member of the Borough Assembly. Alsworth owns and operates Lake Clark Air, an air taxi business serving the Bristol Bay region. Lake Clark Air has received considerable business from the Borough, the Borough's School District (School District), and Pebble Limited Partnership; 2 the latter two entities are Lake Clark Air's largest revenue sources. Als-worth also owns and operates The Farm Lodge, which has received income from the School District and Pebble Limited Partnership.

Petitioner Lorene "Sue" Anelon was, during all times relevant to the complaint in this case, a voting member of the Borough Assembly. Anelon lost her reelection bid in November 2012 and no longer is on the Assembly. Anelon has been employed by Iliamna Development Corporation since at least 2006. Tliamna Development Corporation's primary client is Pebble Limited Partnership.

The Respondents are registered voters in the Borough. Respondent Victor Seybert is also a voting member of the Borough Assembly. We refer to the Respondents collectively as "Seybert."

The Borough Assembly approves the Borough's and the School District's annual budgets. The Assembly, during Alsworth's and Anelon's tenures, enacted resolutions supporting Pebble Mine's development and subleasing Borough property to Northern Dynasty Mines, the parent company of Pebble Limited Partnership. On at least one occasion, Alsworth gave a speech, ostensibly in his official capacity as Mayor, advocating for Pebble Mine.

B. Proceedings

Seybert filed the present lawsuit against Alsworth and Anelon in May 2012. In an unverified complaint, to which several hundred pages of unauthenticated documents were attached, Seybert alleged Alsworth and Anelon: (1) violated AS 39.50.090, 3 Lake and Peninsula Borough (L & PB) Code § 220.0904, 4 L & PB Charter § 15.01, 5 and the common law conflict of interest doctrine. 6 *51 by participating in Assembly decisions from which they benefit directly and using their official positions to promote Pebble Mine; and (2) violated AS 89.50.020 and .030 7 by failing to properly report gifts and income. Seybert sought various forms of injunctive and legal relief The Borough's attorney entered an appearance and filed an answer for Alsworth and Anelon in early June.

Sometime after the lawsuit was filed, an unsigned "open letter" on official Borough letterhead was mailed to Borough residents refuting the claims against Alsworth and Anelon. The Borough Assembly did not authorize the letter. Shortly thereafter, the Borough Assembly announced it would hold a June 12 vote on Resolution 12-09 to undertake Alsworth and Anelon's legal defense. The Resolution set forth the Borough's rationale in providing the defense: (1) "the Borough [did] not believe that the allegations set out in the Complaint [were] true"; (2) the Alaska Municipal League Joint Insurance Association (AMLJIA) had denied Alsworth and Anelon coverage for the lawsuit; and (8) the financial burden "cases of this kind" impose on assembly members "is so onerous and burdensome that it is highly likely that the prospect of having to defend themselves against these kinds of claims will deter qualified, competent persons [from] serving as Borough Assembly members."

On June 11 Seybert filed a motion for a temporary restraining order and preliminary injunction, requesting expedited consideration of the motion in advance of the Assembly vote on the Resolution. The motion recited the complaint's allegations and cited the open letter, use of the Borough attorney, and the upcoming Assembly vote on Resolution 12-09 as evidence that Alsworth and Anelon were using Borough resources for personal gain. Seybert asked the court to enjoin Als-worth and Anelon from: (1) authorizing, approving, accepting, or using any Borough resources to defend against the current lawsuit or to investigate, attack, or question the allegations or plaintiffs in the lawsuit; (2) speaking in favor of Pebble Mine while acting in an official capacity, or taking any official action against those who oppose Pebble Mine; (8) voting or failing to declare a conflict of interest when any matters come before the Borough Assembly related to the lawsuit; and (4) voting, taking official action, or failing to declare a conflict of interest on matters in which Alsworth or Anelon has a significant financial interest.

The superior court did not rule on the motion before the Assembly voted to approve Resolution 12-09 on June 12. Seybert filed a supplemental memorandum on June 183 expressing concern that the "invalid" Resolution would facilitate Alsworth and Anelon's misuse of Borough resources. 8 Alsworth and Anelon, proceeding with new counsel retained by the Borough, opposed the temporary restraining order and preliminary injunction on June 20.

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Bluebook (online)
323 P.3d 47, 2014 WL 1663391, 2014 Alas. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alsworth-v-seybert-alaska-2014.