Chenega Corp. v. Exxon Corp.

991 P.2d 769, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20183, 2000 A.M.C. 2408, 51 ERC (BNA) 1032, 1999 Alas. LEXIS 155, 1999 WL 1051953
CourtAlaska Supreme Court
DecidedNovember 22, 1999
DocketS-7252, S-7512
StatusPublished
Cited by38 cases

This text of 991 P.2d 769 (Chenega Corp. v. Exxon Corp.) 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
Chenega Corp. v. Exxon Corp., 991 P.2d 769, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20183, 2000 A.M.C. 2408, 51 ERC (BNA) 1032, 1999 Alas. LEXIS 155, 1999 WL 1051953 (Ala. 1999).

Opinion

OPINION

BRYNER, Justice.

A jury awarded several Alaska Native corporations almost $6,000,000 for harm caused by the EXXON VALDEZ oil spill. Exxon and the corporations appeal, raising numerous issues. We affirm in all respects but one: The superior court determined that the Oil Pollution Act of 1990 did not assign to the corporations certain federal claims for spill-related harm to federal lands that the corporations had selected under the Alaska Native Claims Settlement Act but that the federal government had not yet conveyed to them. Because we conclude that the Oil Pollution Act did assign these federal claims to the corporations, we hold that the superior court erred in precluding their consideration by the jury.

1. FACTS AND PROCEEDINGS

In the early morning hours of March 24, 1989, the EXXON VALDEZ, owned by the Exxon Shipping Corporation, ran aground near Bligh Reef in Prince William Sound, spilling approximately ten million gallons of crude oil owned by the Exxon Corporation. Currents and winds pushed the spilled oil in a southwesterly direction onto the shores of lands owned by several Alaska Native corporations, including Chenega Corporation, Port Graham Corporation, and English Bay Corporation (the Corporation). Each of the Corporations is an Alaska Native corporation organized under the Alaska Native Claims Settlement Act (ANCSA); 1 collectively, they own more than 250,000 acres of wilderness land along western Prince William Sound.

Within a month of the oil spill, the Corporations filed suit in Alaska superior court against the Exxon Shipping Corporation and Exxon Corporation (collectively, Exxon) and the Alyeska Pipeline Service Company (Alyeska). The Corporations alleged that the oil spill affected their lands and damaged coastal archeological sites containing irreplaceable historical evidence of Native people who had used and occupied these lands for thousands of years. They sought compensation on various theories of liability for damage to their real property and archeological sites and artifacts. In September 1990 the trial court entered an order holding Exxon strictly liable for damages proximately caused by the oil spill.

Also in 1990, Congress responded to the oil spill by enacting the Oil Pollution Act of 1990 (OPA 90). Although OPA 90 focuses on preventing oil spills and creates a fund to enable faster response to oil spills, 2 one section' of the act, section 8301, 3 vests Alaska Native *775 corporations with “right, title and interest” to pursue claims arising from the EXXON VALDEZ oil spill that related to federal lands selected by the corporations but not yet conveyed to them under ANCSA.

In 1991, upon learning that the United States and State of Alaska were about to settle spill-related claims with Exxon in federal court, the Corporations intervened in the federal action, seeking injunctive relief to protect their own state-court claims from being impaired. In September 1991 the federal and state governments responded by entering into a consent decree recognizing that the Corporations retained “private claims ... for all private harms” caused by the oil spill to OPA 90 section 8301 lands. 4

Before trial the Corporations obtained compensation for spill damage from two alternative sources: In 1991 the Corporations filed claims for damages with the Trans-Alaska Pipeline Liability Fund (TAPL Fund or Fund); the Fund paid them $23,266,884 in settlement of their claims. In 1993 Exxon’s codefendant Alyeska entered into a settlement, paying the Corporations $5,689,079 in exchange for a release of liability.

Thereafter, the superior court dismissed the Corporations’ state punitive damages claims in deference to a federal court order creating a federal mandatory punitive damages class. The court then held a jury trial on the remaining claims. During trial and at the close of the evidence Exxon moved for a directed verdict. The court denied the motions. The jury returned a verdict totaling $5,915,741.87 for the Corporations. 5

The superior court decided to offset TAPL’s and Alyeska’s pretrial payments against the jury awards. Because the offsets exceeded the jury verdict, the court entered final judgments ordering that the Corporations “take nothing” from Exxon. Exxon moved for a judgment notwithstanding the verdict, but the court denied this motion.

The Corporations appeal, and Exxon cross-appeals.

II. DISCUSSION

A. Instructional Errors
1. Standard of review

The legal sufficiency of jury instructions is a question of law to which this court applies its independent judgment. 6 A legally erroneous instruction warrants reversal only when it prejudices a party 7 — that is, when “substantial rights of the parties were affected or the error had substantial influence.” 8

*776 When evidence supports a plaintiffs theory of the ease, the court must ordinarily give an instruction “consonant with the theory.” 9 Furthermore, if it appears from questions submitted by the jury to the court that the jury is confused on a legal issue and “the resolution is not apparent from an earlier instruction, the trial judge has a responsibility to give the jury the required guidance by a lucid statement of the relevant legal criteria.” 10 But so long as the jury instructions given are adequate, the trial court has broad discretion to decide upon the need for additional instructions responding to jury questions, summarizing potentially helpful statutory provisions, or describing the plaintiffs’ theory of the case. 11 Its decision in such cases is subject to review only for abuse of discretion. 12

2. The court did not abuse its discretion in instructing on the Corporations’ theory of land damages.

The Corporations argue that the superior court erred in instructing the jury that it could award land-use damages only for loss of “actual use” of corporate lands. Citing the Restatement of Torts, they claim that they should not have been required to prove any actual lost monetary use of the damaged lands. 13 They also claim that the court erred in restricting the jury’s consideration of fair market value and in failing to instruct on their specific theory of damages. Before addressing these claims, we will briefly describe the procedural background from which they arise.

a. Background

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Bluebook (online)
991 P.2d 769, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20183, 2000 A.M.C. 2408, 51 ERC (BNA) 1032, 1999 Alas. LEXIS 155, 1999 WL 1051953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chenega-corp-v-exxon-corp-alaska-1999.