Schweitzer v. Salamatof Air Park Subdivision Owners, Inc.

308 P.3d 1142, 2013 WL 5021497, 2013 Alas. LEXIS 120
CourtAlaska Supreme Court
DecidedSeptember 13, 2013
Docket6825 S-14170
StatusPublished
Cited by4 cases

This text of 308 P.3d 1142 (Schweitzer v. Salamatof Air Park Subdivision Owners, 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
Schweitzer v. Salamatof Air Park Subdivision Owners, Inc., 308 P.3d 1142, 2013 WL 5021497, 2013 Alas. LEXIS 120 (Ala. 2013).

Opinion

OPINION

WINFREE, Justice.

I. INTRODUCTION

A judgment debtor challenges the superior court's denial of an Alaska Civil Rule 60(b) motion to set aside an order permitting the sale of an airplane seized to execute on the judgment against him. At the time of seizure, the airplane was in the process of being reconstructed and did not have certain identifying information attached to it. Third parties claimed an interest in the seized airplane. After an evidentiary hearing the superior court determined that the judgment debtor had an interest in the airplane and permitted its sale. But at that point the underlying judgment was paid by one of the third parties, and the execution sale did not occur. The judgment debtor, joined by the third parties, filed a Rule 60(b) motion to set aside the order regarding ownership of the airplane. The superior court denied the Rule 60(b) motion and awarded attorney's fees to the judgment ereditor and against the judgment debtor and the third-party claimants.

Appealing the denial of the Rule 60(b) motion, the judgment debtor argues that the superior court's ownership decision is void for lack of subject matter jurisdiction because federal law grants the Federal Aviation Administration sole power to "identify" aircraft. He also argues that the superior court improperly modified statutory sale procedures, erred by not concluding that newly discovered evidence supported relief from the ownership decision under Rule 60(b)(2), and erred by awarding execution-related attorney's fees to the judgment creditor. The third parties join in the judgment debtor's *1145 appeal. For the reasons discussed below, we affirm the superior court's decisions.

II. FACTS AND PROCEEDINGS

This appeal arises out of execution of judgment proceedings. In January 2009 the superior court entered a money judgment against Craig Schweitzer in favor of Salamatof Air Park Subdivision Owners, Inc. (the Association). 1 The Association conducted a judgment debtor examination to determine whether Schweitzer had assets available to satisfy the judgment. Schweitzer testified that certain Otter 2 airplane parts in his airplane hangar belonged to Airflow Leasing, LLC, but that he did not know the Otter's serial or N number 3 or who owned Airflow Leasing.

The Association obtained a writ of execution and a process server seized a partially rebuilt Otter airplane and some parts from Schweitzer's hangar. Schweitzer filed a claim of exemptions asserting that he had no ownership interest in the airplane, which he said was "De Havilland DHC-8 Otter N26DE, Serial #26." Attached to the claim of exemptions was an affidavit, made pursuant to AS 09.35.130 4 and executed by Don Reesor on behalf of Airflow Leasing; Reesor claimed that the seized airplane was Otter N26DE and was owned by Airflow Leasing. Airflow Leasing later requested an evidentia-ry hearing on its ownership interest in the seized property.

After holding the requested evidentiary hearing, the superior court issued extensive written findings of fact and conclusions of law about the seized property. The court found that the Association had seized a partially reconstructed single-engine Otter with "no aircraft data plate, no airframe data plate, and no log books." 5 It found that the seized Otter was reconstructed using parts from two different airplanes, Otter 398 and Otter 26. 6 It found that Schweitzer was the owner of Otter 398 and Airflow Leasing was the owner of Otter 26. The court found that Otter 398 previously was outfitted with a turbine engine and an up-gross STOL kit. 7 The court found that Otter 26 previously was outfitted with a piston engine and without an up-gross STOL kit. The court found that the seized airplane was equipped with a mount for a turbine engine and an up-gross STOL kit. The court found that the seized Otter was "the partially re-built Otter 898 to which the tail section from Otter 26 was affixed."

The superior court concluded that Airflow Leasing had the burden of proving it owned the airplane because it did not have possession of the Otter at the time of seizure, 8 and *1146 that Airflow Leasing had failed to meet its burden. The court concluded that the Otter could be sold to satisfy the judgment against Schweitzer. Modifying statutory execution procedures, the court then: (1) delayed the sale so the parties could find the airplane data plate and log books for Otter 398; (2) required the process server to re-advertise the new sale date "in a manner that is reasonably likely to reach interested wrecked Otter buyers globally"; and (8) ordered that any excess proceeds be paid into the court registry, rather than to Schweitzer, to give others who might claim an ownership interest in the airplane an opportunity to be heard.

In June 2010 Reesor paid the Association $ 85,000 to satisfy the underlying judgment against Schweitzer and assumed possession of the seized airplane and parts. No execution sale was held.

After the superior court's decision, the Association asked the court to enter a partial final judgment on the ownership issue and to award it attorney's fees as the prevailing party in the contested evidentiary hearing. The Association sought fees jointly and severally against Schweitzer, Reesor, and Airflow Leasing, relying on AS 09.85.180 and AS 09.38.080(e) as well as Rules 82 and 89. Airflow Leasing opposed and asked the court to award it attorney's fees as the prevailing party because the court found that Airflow Leasing was the owner of Otter 26. Airflow Leasing argued in the alternative that because the proceeding was a postjudgment collection action, no one was entitled to attorney's fees.

In September 2010 Schweitzer filed a Rule 60(b) motion for relief from the superior court's ownership decision, along with a letter from the FAA giving Reesor permission to install a replacement identification plate on Otter 26. Schweitzer argued, under Rule 60(b)(4), that the ownership decision was void because federal law preempted the court's jurisdiction to "identify" the seized aircraft. He also argued, under Rule 60(b)(2), that new evidence, primarily the FAA letter, also supported setting aside the ownership deci-gion. Airflow Leasing joined in Schweitzer's Rule 60(b) motion. Schweitzer also opposed the Association's motion for attorney's fees resulting from the evidentiary hearing related to ownership, arguing that, because the judgment was void, the Association could not be the prevailing party.

The superior court denied the Rule 60(b) motion in December 2010 and awarded attorney's fees to the Association against Schweitzer relating only to the Rule 60(b) proceedings. The superior court awarded Rule 82 enhanced attorney's fees to the Association against Reesor and Airflow Leasing for work related to the evidentiary hearing and Rule 82 non-enhanced attorney's fees for the time period May through November 2010.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jon Buchholdt v. Jeremy Nelson and Erin Gonzales-Powell
534 P.3d 91 (Alaska Supreme Court, 2023)
Alaska Judicial Council v. Kruse
331 P.3d 375 (Alaska Supreme Court, 2014)
21st Century Premier Insurance v. Smith
998 F. Supp. 2d 884 (D. Alaska, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
308 P.3d 1142, 2013 WL 5021497, 2013 Alas. LEXIS 120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schweitzer-v-salamatof-air-park-subdivision-owners-inc-alaska-2013.