City of Kenai v. Friends of the Recreation Center, Inc.

129 P.3d 452, 2006 Alas. LEXIS 24, 2006 WL 362409
CourtAlaska Supreme Court
DecidedFebruary 17, 2006
DocketS-11506
StatusPublished
Cited by33 cases

This text of 129 P.3d 452 (City of Kenai v. Friends of the Recreation Center, Inc.) 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
City of Kenai v. Friends of the Recreation Center, Inc., 129 P.3d 452, 2006 Alas. LEXIS 24, 2006 WL 362409 (Ala. 2006).

Opinion

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

Was it error to award full reasonable attorney’s fees to public interest litigants who sued the City of Kenai? They claimed that awarding a contract to manage the city’s recreation center without competitive bidding violated the city’s code. The superior court entered a preliminary injunction preventing the city from using public funds to pay the manager, but later dismissed the suit as moot after the city amended the pertinent ordinance and recontracted with the manager. Because it was not an abuse of discretion to enter the preliminary injunction, we conclude that the court did not err in finding that the plaintiffs were the prevailing parties. We also conclude that the dismissal for mootness did not deprive them of that status, and that the superior court was not obliged to apportion the attorney’s fees award.

II. FACTS AND PROCEEDINGS

In early 2003 the City of Kenai was examining options for adjusting its budget; the options included budget cuts. City employees had operated the city’s Kenai Recreation Center since it opened in the 1980s, but it appeared that the city could realize net savings of $110,000 by contracting for private management of the center. The city therefore solicited from the Boys & Girls Club of the Kenai Peninsula (“the club”) a proposal for a “Partnering Agreement,” a contract under which the club would manage the center. The city did not solicit competitive bids for the proposed contract, and the city manager discouraged another interested private party from bidding.

Over the next several months the Kenai Parks & Recreation Advisory Commission— which makes recommendations to the city council regarding parks and recreation facilities in Kenai — and the city council met to discuss a partnering agreement with the club. The city council approved a contract with the club on May 21, 2003. Friends of the Recreation Center, Inc. and three individuals, Mark and Anita Necessary and Clifford Massie, (collectively, “Friends”) sued the city on June 26, contending in part that the city had not conducted competitive bidding for the contract as required by city ordinance. 1 Friends asked the superior court for a temporary restraining order and a preliminary injunction preventing the city from honoring its contract with the club. Friends also asked for a judgment declaring that the contract was void for, among other reasons, violating the competitive bidding requirement of KMC .7.15.040. 2

The club began operating the center on July 1, 2003. On July 10 the superior court *455 rejected the city’s contention that, because KMC 7.15.050(5) as it then read exempted a service “of a professional nature,” the contract was exempt from KMC 7.15.040’s competitive bidding requirement. The court then issued a preliminary injunction preventing the city from paying the club under the contract. 3

On September 3, 2003 the city council amended KMC 7.15.050(5) to exempt contracts for “facilities management” services from KMC 7.15.040’s competitive bidding requirement. 4 The city then solicited bids for private management of the center, assigned the club’s bid the highest score, and replaced the club’s first contract with a second contract.

On May 7, 2004 the superior court granted the parties’ joint motion to dismiss Friends’s suit as moot. Then, over the city’s objection, it found that Friends was a public interest litigant and the prevailing party, and awarded Friends its full reasonable attorney’s fees.

The city appeals.

III. DISCUSSION

A. Standard of Review

We review for abuse of discretion the superior court’s determination of prevailing party status for purposes of awarding attorney’s fees. 5 We also review the issuance of preliminary injunctions for abuse of discretion. 6 We will find an abuse of discretion “only ‘when we are left with a definite and firm conviction, after reviewing the whole record, that the trial court erred in its ruling.’ ” 7 But we review de novo the superior court’s legal determinations in issuing the preliminary injunction. 8 We will approve the apportionment of a prevailing public interest litigant’s attorney’s fees award “only in exceptional circumstances.” 9

B. Friends Is Entitled to Full Reasonable Attorney’s Fees as a Prevailing Party Public Interest Litigant.

“Under Alaska law, the prevailing party is the one who successfully prosecuted or defended the action and prevailed on the main issue.” 10 The prevailing party in civil litigation is normally entitled to recover partial attorney’s fees under Alaska Civil Rule 82. But if the prevailing party is a public interest litigant, it is normally entitled to full reasonable attorney’s fees. 11 Because the city does not argue on appeal that Friends is not a public interest litigant, Friends is entitled *456 to full reasonable attorney’s fees if the superior court did not err in finding it to be the prevailing party.

After the superior court issued the preliminary injunction, the city rendered the merits of the competitive bidding dispute moot by amending KMC 7.15.050(5) to exempt “facilities management” from KMC 7.15.040’s competitive bidding requirement and by entering into a new contract with the club. We will decide the merits of otherwise-moot cases in order to determine the prevailing party for purposes of attorney’s fee awards. 12 We therefore focus on whether Friends successfully prosecuted the case and prevailed on the main issue in obtaining the preliminary injunction; this requires us to consider whether the superior court abused its discretion in issuing the preliminary injunction.

1. The superior court did not abuse its discretion in issuing the preliminary injunction.

We have recently described what a plaintiff must show to obtain a preliminary injunction:

The showing required to obtain a preliminary injunction depends on the nature of the threatened injury. If the plaintiff faces the danger of irreparable harm and if the opposing party is adequately protected, then we apply a balance of hardships approach in which the plaintiff must raise serious and substantial questions going to the merits of the case; that is, the issues raised cannot be frivolous or obviously without merit.

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Cite This Page — Counsel Stack

Bluebook (online)
129 P.3d 452, 2006 Alas. LEXIS 24, 2006 WL 362409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-kenai-v-friends-of-the-recreation-center-inc-alaska-2006.