Matanuska Electric Ass'n v. Rewire the Board

36 P.3d 685, 2001 Alas. LEXIS 167, 2001 WL 1563725
CourtAlaska Supreme Court
DecidedDecember 7, 2001
DocketS-9506
StatusPublished
Cited by19 cases

This text of 36 P.3d 685 (Matanuska Electric Ass'n v. Rewire the Board) 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
Matanuska Electric Ass'n v. Rewire the Board, 36 P.3d 685, 2001 Alas. LEXIS 167, 2001 WL 1563725 (Ala. 2001).

Opinion

OPINION

BRYNER, Justice.

I. INTRODUCTION

Members of the rural electrical cooperative Matanuska Electric Association, Inc. (MEA), unhappy with their coop board's plans to acquire the assets of Chugach Electric Association, formed a group called Rewire the Board (Rewire) and forced a recall election of MEA directors. During ensuing litigation, the superior court held MEA in contempt for four violations of court orders forbidding attempts to influence the recall election results. At the conclusion of the case, the court awarded Rewire full reasonable attorney's fees as a prevailing public interest litigant. MEA appeals, challenging the attorney's fees award and the contempt judgments. We affirm the award of attorney's fees. We also affirm the superior court's judgment of contempt on two counts but reverse on the remaining two counts.

II, FACTS AND PROCEEDINGS

A. Background

The issues presented in this appeal require us to describe the history of the case in *688 considerable detail. MEA is an electrical cooperative organized under Alaska Statutes 10.25 and governed by a board of directors. At an October 1998 board meeting, MEA's directors met in executive session to discuss a planning committee's proposal that MEA buy the assets of another public utility, Chu-gach Electric. The board approved the proposal and began negotiations with Chugach Electric that same day.

A group of MEA members calling themselves Rewire the Board submitted to MEA a proposed amendment to MEA's bylaws and a petition to recall all of MEA's directors. The recall petition alleged that the board members had failed to give proper notice of a board meeting and violated board policies and open meeting requirements. MEA and Rewire member Scott Sterling requested MEA's membership list, which he sought in order to verify the signatures on Rewire's recall petition. MEA denied Sterling's request for the membership list and rejected as untimely Rewire's proposals to amend MEA's bylaws.

B. Superior Court Proceedings

Rewire and two individual plaintiffs, Sterling and Edward Willis, 1 filed suit seeking declaratory and injunctive relief. Rewire moved for an order requiring MEA to obtain the services of a neutral accountant to verify the signatures on its recall petition, requiring MEA to share its member list with Rewire, and requiring MEA to accept as timely for voting at the next annual meeting Rewire's proposed bylaw amendment.

MEA opposed Rewire's motion, arguing that Rewire was merely seeking to advance the interests of the International Brotherhood of Electrical Workers (IBEW), that Rewire's recall petition and proposed bylaw amendment were invalid, and that Rewire did not have a legitimate need for MEA's membership list. MEA also filed a counterclaim seeking to have Rewire's recall petition declared invalid on grounds that it contained material misrepresentations and failed to state valid cause to remove directors.

Rewire amended its complaint to request an order requiring MEA to place its recall petition on the agenda at MEA's next annual meeting. It also sought an order appointing a special master to preside over the annual meeting and requiring MEA to place a recall vote on the agenda at the next annual meeting, notify members, permit a vote at the annual meeting, and allow Willis to inspect MEA's financial records relating to the Chu-gach Electric takeover. .

The superior court ruled that the proposed bylaw amendment was timely, that it was not illegal as MEA claimed, and that it should be placed before MEA members at the annual meeting. The court also ruled that the open meeting violation charged in Rewire's recall petition was legally sufficient, that simultaneously accusing multiple directors of wrongdoing did not invalidate the recall petition, and that the mail-balloting provision in MEA's bylaws did not apply to recall elections. The court declined to enjoin MEA from expending funds to shape the results of the recall election but ordered it to provide its member list and financial records relating to the Chugach Electric takeover to Rewire. The court also ordered MEA to report the total number of valid signatures on Rewire's recall petition and, if the number of valid signatures was insufficient, to justify the rejection of any signatures alleged to be invalid.

MEA moved for partial reconsideration, insisting that it should not be required to disclose so many financial records and arguing that it had validated sufficient signatures and should not be required to continue counting. MEA's motion for reconsideration was denied.

MEA sought to depose Rewire to learn the identity of Rewire's members and financial backers. Rewire moved for an order quashing the deposition as premature under Alaska Civil Rule 26 and unlikely to yield relevant information. MEA conceded that the noticed deposition was premature under dis *689 covery rules, but requested expedited discovery. Rewire opposed MEA's request.

The superior court denied MEA's request for expedited discovery and issued an order quashing the notice of deposition. The order also clarified and confirmed the court's earlier ruling that mail balloting did not apply in recall elections. Rewire then moved for a hearing to air contentions that MEA had violated the superior court's prior order by failing to meet with Rewire to discuss how the recall election would be conducted, failing to supply a final tally of valid signatures, and failing to disclose financial records as ordered. MEA countered by moving for summary judgment, seeking to have Rewire's petitions declared invalid. Rewire eross-moved for summary judgment. The superior court denied MEA's summary judgment motion and granted Rewire's cross-motion.

C. Proceedings in This Court and Recall Election

MEA petitioned this court for review of the superior court's rulings. We granted limited review of the superior court's order requiring MEA to conduct a recall election, and we determined that under the MEA bylaws, MEA members were entitled to vote in the recall election by mail. Our order, issued one day before MEA's annual meeting, set forth procedures to govern the meeting and subsequent mail balloting. We then returned full supervisory authority over this case to the superior court.

The day after we issued our order, MEA placed an advertisement in the Anchorage Daily News that appeared to violate provisions in our order forbidding MEA from attempting to influence the results of the recall election. Sua sponte, we ordered MEA to show cause why it should not be held in contempt. After hearing argument, we found that MEA's advertisement had violated the order, but concluded that the violation was not wilful and declined to hold MEA in contempt.

MEA proceeded to hold its annual meeting and to conduct the recall election. In keeping with the procedures that this court had established, Rewire was given time at the meeting to present its charges against the directors, and the directors were given an opportunity to respond. MEA members then voted using mail ballots that included a summary of Rewire's charges and the directors' responses.

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Bluebook (online)
36 P.3d 685, 2001 Alas. LEXIS 167, 2001 WL 1563725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matanuska-electric-assn-v-rewire-the-board-alaska-2001.