Leisnoi, Inc. v. Stratman

960 P.2d 14, 1998 Alas. LEXIS 107, 1998 WL 288726
Alaska Supreme Court·Decided June 5, 1998·No. S-7339·Published·Cited by 3 cases

Opinion

OPINION

COMPTON, Chief Justice.

I. INTRODUCTION

Omar Stratman holds a grazing lease on lands owned by Leisnoi, Inc., a village corporation established under the Alaska Native Claims Settlement Act (ANCSA), 43 U.S.C. § 1601 et seq. (1971), Leisnoi appeals the superior court’s dismissal of it's request for a writ of forcible entry and detainer (FED) against Stratman. Leisnoi also appeals the superior court’s award of attorney’s fees to Stratman. We reverse in part, vacate in part, and remand.

II. FACTS AND PROCEEDINGS

Omar Stratman is the holder of a grazing lease that allows him to graze cattle on 15,-870 acres on Kodiak Island. This land is owned by Leisnoi. Stratman originally leased this land and an additional 4,530 acres, when they were owned by the federal government and managed by the Bureau of Land Management (BLM). He held a federal grazing lease, #A-059264, issued under the Alaska Livestock Grazing Act, 43 U.S.C. § 316 et seq. (1994).

In December 1966 the State selected the 20,400 acres leased by Stratman, pursuant to the Alaska Statehood Act. The State received tentative approval from the federal government for its selections, and Stratman’s federal lease was canceled by the BLM with the understanding that the State would issue its own grazing lease for the lands. The State decided not to issue a new lease document, however. Instead, it wrote Stratman that “[t]he State will not issue a new lease but will administer the lease under the terms and conditions of the former lease and in a manner that will not deprive you of any rights or benefits which you held under the Federal lease.” The lease was- renumbered ADL 36306. In December 1980 the State renewed ADL 36306 through the year 2001.

The 15,870 acres at issue were never conveyed to the State, hoWever, because of the passage of ANCSA. As the ANCSA corporation for the Native Village of: Woody Island, Leisnoi was allowed in January 1976 to select this land. Because the lands selected by Leisnoi were lands previously “selected by, or tentatively approved to, but not yet patented to, the State under the Alaska Statehood Act,” they had to be withdrawn from selection by the State, pursuant to subsection 11(a)(2) of ANCSA, 43 U.S.C. § 1610(a)(2). 1 The- BLM rescinded its tentative approval and voided State selection of these lands in August 1985.

In November 1985 the lands were interim conveyed to Leisnoi. The interim conveyance document provided that the conveyance was “subject to” Stratman’s pre-existing grazing lease, as required by subsection 14(g) of ANCSA. The State and the federal government both waived lease administration of these lands in favor of Leisnoi. The State instructed Stratman to make pro rata rental payments to Leisnoi “for [the 15,870 acres] transferred to them.”

Leisnoi alleged that Stratman committed various breaches of the lease; it sought an order evicting Stratman from, and entitling Leisnoi to possession of, the leased lands it owns. Leisnoi filed a combined FED and declaratory judgment action against Strat-man in the superior court. The superior court denied Leisnoi’s FED request, basing its denial on two separate grounds. First, the court found that Stratman’s lease “cannot be terminated without providing Mr. Strat-man with the due process guaranteed by Article I, section 7 of the Alaska Constitution,[ 2 ] under McCarrey v. Commissioner, 526 P.2d 1353 (Alaska 1974),” - and that “[without a termination of the lease Leisnoi does not enjoy a right of possession and so *17 the FED request must be denied.” Second, the court found that “[t]he land description in Leisnoi’s complaint is insufficient to form the basis of a judgment or order,” as it did not meet the requirements of Alaska Civil Rule, 85. 3 Leisnoi appeals.

III. DISCUSSION

A. Standard of Review

This appeal presents questions of law requiring the interpretation of the due process clause of the Alaska Constitution, subsection 14(g) of ANCSA, and Alaska Civil Rule 85(a)(1). On questions of law, we do not defer to the lower court’s decision, but will adopt the rule of law that is most persuasive in light of precedent, reason, and policy. See Guin v. Ha, 591 P.2d 1281, 1284 n. 6 (Alaska 1979).

B. The Superior Court Should Have Provided the Hearing Procedures and Due Process Required under the Lease.

ADL 36306 was the State grazing lease held by Stratman. Stratman’s original lease, federal grazing lease #A-059264, was canceled in 1967, and ADL 36306 was created with the State as lessor and Stratman as lessee. ADL 36306 incorporated by reference the terms of the federal grazing lease. However, when the State waived administration of the lease as to the 15,870 acres at issue, ADL 36306 was effectively severed into two distinct leases. One, for 4,530 acres, continues to be administered by the State and is not at issue in this case. The other, for 15,870 acres, is now administered by Leisnoi.

ANCSA subsection 14(g) guarantees Stratman’s rights under the pre-existing federal grazing lease, as follows:

All conveyances made pursuant to this Act shall be subject to valid existing rights. Where, prior to patent of any land or minerals under this Act, a lease ... has been issued for the surface or minerals covered under such patent, the patent shall contain provisions making it subject to the lease ... and the right of the lessee ... to the complete enjoyment of all rights, privileges, and benefits thereby granted to him.

Such rights necessarily include not only those ’ contained in the lease itself, but also the right to due process and to the various statutory protections and guarantees that are incidental to the possession of a grazing lease under the Alaska Livestock Grazing Act (43 U.S.C. § 316 et seq.). Of particular importance in the instant case are Grazing Act sections 316g and 316m. Section 316g provides:

Grazing fees
(a) The Secretary shall determine for each lease the grazing fee to be paid. Such fee shall—
(1) Be fixed on the basis of the area leased or on the basis of the number and kind of stock permitted to be grazed;
(2) Be fixed, for the period of the lease, as a seasonal or annual fee, payable annually or semiannually on the date specified in the lease;

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Leisnoi, Inc. v. Stratman, 960 P.2d 14, 1998 Alas. LEXIS 107, 1998 WL 288726 (Ala. 1998).

960 P.2d 14 (Leisnoi, Inc. v. Stratman) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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