Reich v. Cominco Alaska, Inc.

56 P.3d 18, 2002 Alas. LEXIS 150, 2002 WL 31207520
CourtAlaska Supreme Court
DecidedOctober 4, 2002
DocketS-9717
StatusPublished
Cited by37 cases

This text of 56 P.3d 18 (Reich v. Cominco Alaska, 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
Reich v. Cominco Alaska, Inc., 56 P.3d 18, 2002 Alas. LEXIS 150, 2002 WL 31207520 (Ala. 2002).

Opinion

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

Geri Reich sued her former employer, Cominco Alaska, Inc., alleging that it subjected her to a hostile work environment at the Red Dog Mine. The mine was operated by Comineo but owned by NANA Regional Corporation. Alaska Rule of Civil Procedure 4T(c)(12) exeludes prospective jurors who have a financial interest in the litigation. Does this rule apply to stockholders of a corporation, such as NANA, which is not a party to the lawsuit but which may be financially affected by the verdict? We conclude that it does, and hold that the superior court did not err by excluding prospective jurors who were NANA shareholders.

The timeliness of Reich's hostile work environment claim potentially depended on the continuing violations doctrine. The trial jury found for Cominco. Because Reich has not demonstrated that the instructions and special verdict form prevented the jury from finding a continuing violation, we affirm Comineo's judgment.

II. FACTS AND PROCEEDINGS

On June 25, 1997 Geri Reich filed a lawsuit in the superior court in Kotzebue against her former employer, Cominco Alaska, Inc. The complaint asserted claims of sexual and racial discrimination, 1 hostile work environment, and unlawful termination, negligent infliction of emotional distress, and intentional infliction of emotional distress. Reich had worked as an electrician at the Red Dog Mine from 1989 until July 17, 1995; she was terminated in August 1995. Cominco operates the mine but NANA Regional Corporation owns the mine and the surrounding land. NANA was created by the Alaska Native Claims Settlement Act; almost all of its members are Inupiat Eskimos, one of the largest ethnic groups in the Kotzebue area.

Per the terms of their Development and Operating Agreement for the mine, NANA and Cominco annually share the mine's net profits. The agreement permits Comineo to subtract from gross revenues its costs of defending lawsuits against it and any judgment against it, unless the judgment is based on a jury award that finds Cominco liable for gross negligence or willful misconduct.

At Comineo's request, the superior court excluded for cause all prospective jurors who owned stock in NANA; it found that each had a direct financial interest in the outcome of the lawsuit. The court relied on Alaska Civil Rule 47(c)(12), which permits parties to challenge for cause prospective jurors who have "a financial interest, other than that of a taxpayer or permanent fund dividend recipient in the outcome of the case." The court found that any verdiet other than one holding Cominco liable for gross negligence or willful misconduct would reduce NANA's share of the mine's profits; it found that even a verdict of no liability would reduce NANA's profits because Cominco could deduct its defense costs so long as there was no finding of liability for fault greater than ordinary negligence. The court therefore concluded that concern about the amount of corporate dividends NANA would pay its shareholders could influence the decision of jurors who were NANA shareholders.

Reich filed a petition for review asking us to reverse the order excluding NANA shareholders. Although we denied her petition, *21 we directed the trial court to examine the prospective jurors before excluding them because Civil Rule 47(c) only permits for cause challenges "[alfter the examination of prospective jurors is completed and before any juror is sworn." 2 We also directed the trial court to decide whether Cominco had standing to assert this challenge based on a showing of a substantial risk of prejudice.

The trial court allowed the prospective jurors to be examined, and exeluded all NANA shareholders-including those who claimed they would not be influenced. The trial court also impliedly found that Cominco had standing to challenge prospective jurors who were NANA shareholders because Cominco demonstrated that, to avoid reduced dividends, those jurors would have incentive to find Cominco grossly negligent or its conduct willful. Reich appeals these rulings.

After Comineo moved for summary judgment, the superior court dismissed Reich's claims of intentional infliction of emotional distress and negligent infliction of emotional distress, 3 but allowed her wrongful discharge and hostile work environment claims to proceed. Reich argued that the continuing violations doctrine applied to her hostile work environment claim. The superior court allowed Reich to rely on the continuing violations doctrine. Her last day at the mine was July 17, 1995 and she filed her lawsuit on June 25, 1997. Reich offered evidence of incidents occurring before June 26, 1995 to support her claim that a hostile work environment continued after June 26, 1995. Question No. 5 on the special verdict form asked the jury whether "Ms. Reich was subjected to a hostile or abusive work environment at Cominco because of her race or sex after June 26, 1995." Reich objected that the quoted language was inconsistent with her hostile work environment claim. Reich claims on appeal that the quoted language in the special verdict form effectively prevented the jury from finding liability unless Reich established that all of the elements of hostile work environment arose after June 26, 1995.

III. DISCUSSION

A. The Superior Court Did Not Abuse Its Discretion by Excluding NANA Shareholders.

1. Standard of review

We review a trial court's interpretation of a rule of civil procedure applying our independent judgment, adopting the rule of law that is most persuasive in light of precedent, reason, and policy. 4 "It is well settled that challenges for cause under Rule 4T(c) ... are within the sound discretion of the trial judge, with which we are most relue-tant to interfere." 5 We will reverse a trial court's grant or denial of juror challenges for cause "only in exceptional cireumstances and to prevent a miscarriage of justice. 6 We review the trial court's factual determinations, such as whether a prospective juror is a NANA shareholder, for clear error. 7

2. Civil Rule 47(c)(12)

Civil Rule 47(c)(12) permits challenges for cause of jurors who have a financial interest in the outcome of the case. Civil Rule 47(c) states:

After the examination of prospective jurors is completed and before any juror is sworn, the parties may challenge any juror for cause.... The following are grounds for challenge for cause: ...
(12) That the person has a financial interest, other than that of a taxpayer or permanent fund dividend recipient in the outcome of the case.

'Does this rule permit-as the trial court held here-the exelusion of sharehold *22

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Bluebook (online)
56 P.3d 18, 2002 Alas. LEXIS 150, 2002 WL 31207520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reich-v-cominco-alaska-inc-alaska-2002.