Delmer M. Ackels v. Kerwin Krause

CourtAlaska Supreme Court
DecidedJuly 1, 2015
DocketS15358
StatusUnpublished

This text of Delmer M. Ackels v. Kerwin Krause (Delmer M. Ackels v. Kerwin Krause) 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
Delmer M. Ackels v. Kerwin Krause, (Ala. 2015).

Opinion

NOTICE Memorandum decisions of this court do not create legal precedent. A party wishing to cite such a decision in a brief or at oral argument should review Alaska Appellate Rule 214(d).

THE SUPREME COURT OF THE STATE OF ALASKA

DELMER M. ACKELS ) ) Supreme Court No. S-15358 Appellant, ) ) Superior Court No. 4FA-11-03100 CI v. ) ) MEMORANDUM OPINION KERWIN KRAUSE, DANIEL S. ) AND JUDGMENT* SULLIVAN, STATE OF ALASKA, ) DEPARTMENT OF NATURAL ) No. 1545 – July 1, 2015 RESOURCES, and GOLDRICH ) MINING COMPANY, formerly ) LITTLE SQUAW GOLD MINING ) COMPANY, ) ) Appellees. ) _______________________________ )

Appeal from the Superior Court of the State of Alaska, Fourth Judicial District, Fairbanks, Paul R. Lyle, Judge.

Appearances: Delmer M. Ackels, pro se, Fairbanks, Appellant. John Hutchins, Assistant Attorney General, and Michael C. Geraghty, Attorney General, Juneau, for Appellees Kerwin Krause, Daniel S . S ullivan, and State of Alaska, Department of Natural Resources. Gary A. Zipkin and Josh Van Gorkom, Guess & Rudd, P.C., Anchorage, for Appellee Goldrich Mining Company.

Before: Fabe, Chief Justice, Winfree, Stowers, Maassen, and Bolger, Justices.

* Entered under Alaska Appellate Rule 214. I. INTRODUCTION Delmer Ackels filed amendments to four mining claims between 2003 and 2006. With one exception, the State of Alaska, Department of Natural Resources (DNR), failed to adjudicate the amendments until October 2008 when DNR was contacted by a competing claimant, Little Squaw Gold Mining Company.1 DNR then determined that all four amendments were impermissible and rejected them. Ackels appealed to the superior court, asserting procedural errors and independent damages claims. The superior court dismissed his appeal and damages claims, and Ackels again appeals. We affirm because res judicata bars the claims Ackels asserts against Little Squaw and Ackels’s due process claims against DNR and its officials are moot. II. FACTS & PROCEEDINGS A. Facts Delmer Ackels staked and recorded four mining claims (the Claims) in 2003. Ackels’s2 mining location notices stated that he had discovered and posted each Claim in July 2003, except for one Claim where the posting date was illegible. Ackels later filed amendments to these Claims, attempting to amend the illegible posting date and to change the locations of the other three Claims. He recorded the amendments between September 2003 and September 2006. DNR reviews amendments to mining location notices to ensure the amendments comply with Alaska law, which prohibits amending mining claim notices

1 Little Squaw is now known as Goldrich Mining Company. 2 To avoid any confusion that may arise from the naming conventions we have used in other decisions regarding Delmer Ackels and Gail Ackels (his wife), we note that “Ackels,” as used in this opinion, refers only to Delmer Ackels.

-2- 1545 where the change “interferes with the rights of others.”3 As part of this review process, a DNR employee searches DNR’s records for conflicts. If a conflict exists, DNR rejects the amendment and informs the recording party. Of Ackels’s four amendments, only one amendment was reviewed within several months of being recorded. DNR waited two or more years to review the remaining amendments, and it only began to review the amendments after Richard Walters, Little Squaw’s president, contacted Kerwin Krause, DNR’s Mineral Property Manager, in late 2008 and asked Krause about the status of Ackels’s amendments. At the time Walters contacted Krause, there was an ongoing dispute between Ackels and Little Squaw. In 2007, Little Squaw had sued Ackels, Gail Ackels (Ackels’s wife and business partner), and Gold Dust Mines, Inc. (the Ackelses’ corporation) in an attempt to quiet title to various mining claims that Little Squaw asserted it owned.4 Little Squaw contended, in part, that the Claims were adverse to mining claims Little Squaw had staked and that Little Squaw’s claims were superior. Little Squaw also argued that a mining lease agreement it had with Ackels and Gold Dust Mines, Inc. required that any claims Ackels had staked during the life of the agreement, which extended through October 2003, should be held in constructive trust for Little Squaw. Ackels asserted a counterclaim against Little Squaw based on an alleged oral agreement related to Ackels’s performance of annual assessment work on the claims. On October 29, 2008, approximately one month before trial was to start, Krause issued a decision concluding that all of Ackels’s amendments were invalid

3 AS 38.05.200. 4 The lawsuit asserted a variety of other claims, but the quiet title claims are most relevant here.

-3- 1545 because they conflicted with Little Squaw’s pre-existing claims. Krause mailed the letter to Ackels and sent a copy to Little Squaw. Little Squaw subsequently filed a motion asking Superior Court Judge Randy M. Olsen, who was presiding over the civil suit, to declare Little Squaw the holder of best title to five of the Little Squaw claims at issue in the litigation. Little Squaw argued that DNR’s rejection of the amendments meant that the Claims would no longer conflict with Little Squaw’s claims.5 DNR’s rejection did not, however, affect Little Squaw’s argument regarding the constructive trust issue before Judge Olsen. Ackels was apparently unaware that Krause had issued a decision until his attorney received Krause’s letter as an attachment to Little Squaw’s motion. Ackels opposed the motion, primarily asserting a lack of due process in front of DNR. While the briefing on the motion was proceeding, Little Squaw contacted Krause and asked him to revise his initial decision to include additional Little Squaw claims with which the Claims conflicted. Ackels’s attorney also wrote to Krause, complaining that Ackels had received no notice that DNR was adjudicating the amendments. Krause issued a revised decision on November 11, 2008, rescinding the October 29 letter. Krause did not change his rulings, but did note additional pre-existing

5 The importance of the amendments to the litigation was that the original claims notices for three of the Claims allegedly did not conflict with Little Squaw’s claims, clearing Little Squaw’s title. Little Squaw believed that these three Claims only conflicted with Little Squaw’s claims if the amendments were valid.

With respect to the fourth Claim, Ackels’s original location notice had an illegible posting date. According to Little Squaw, if his amendment was invalid, the entire Claim would be invalid because a claim must be recorded within forty-five days of posting and the notice must include the posting date. See 11 Alaska Administrative Code (AAC) 86.215(a)(2) (2015).

-4- 1545 claims with which the Claims, if amended, would conflict. Some of these were the claims Little Squaw had mentioned to Krause. Little Squaw informed Judge Olsen of the revised opinion in its reply brief. Based in part on DNR’s adjudication of the amendments, Judge Olsen ruled on directed verdict that Little Squaw was the owner of best title to the mining rights in the land covered by the allegedly conflicting claims. Judge Olsen indicated that Ackels would have to challenge Krause’s decision through the administrative appeal process,6 which he did. At the end of the trial, however, and based on the jury’s verdict and admissions Ackels had made at trial, Judge Olsen separately ruled that the lease between Little Squaw and Gold Dust Mines, Inc. required that any claims Ackels staked from the beginning of the lease until October 1, 2003, were staked on Little Squaw’s behalf. Thus, Judge Olsen imposed a constructive trust for Little Squaw’s benefit on the Claims because Ackels had staked them in July 2003. And the constructive trust extinguished Ackels’s ownership interest in the Claims.

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Delmer M. Ackels v. Kerwin Krause, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delmer-m-ackels-v-kerwin-krause-alaska-2015.