Southeast Alaska Conservation Council, Inc. v. State of Alaska, Department of Natural Resources and Alaska Mental Health Trust Authority

470 P.3d 129
CourtAlaska Supreme Court
DecidedAugust 21, 2020
DocketS16793
StatusPublished
Cited by11 cases

This text of 470 P.3d 129 (Southeast Alaska Conservation Council, Inc. v. State of Alaska, Department of Natural Resources and Alaska Mental Health Trust Authority) 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
Southeast Alaska Conservation Council, Inc. v. State of Alaska, Department of Natural Resources and Alaska Mental Health Trust Authority, 470 P.3d 129 (Ala. 2020).

Opinion

Notice: This opinion is subject to correction before publication in the PACIFIC REPORTER. Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts, 303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email corrections@akcourts.us.

THE SUPREME COURT OF THE STATE OF ALASKA

SOUTHEAST ALASKA ) CONSERVATION COUNCIL, INC., ) Supreme Court No. S-16793 ) Appellant, ) Superior Court No. 3AN-13-09162 CI ) v. ) OPINION ) STATE OF ALASKA, DEPARTMENT ) No. 7478 – August 21, 2020 OF NATURAL RESOURCES and ) ALASKA MENTAL HEALTH TRUST ) AUTHORITY, ) ) Appellees. ) )

Appeal from the Superior Court of the State of Alaska, Third Judicial District, Anchorage, Frank A. Pfiffner, Judge.

Appearances: Thomas E. Meacham, Anchorage, for Appellant. Colleen J. Moore, Senior Assistant Attorney General, and Jessica Alloway, Assistant Attorney General, Anchorage, and Jahna Lindemuth, Attorney General, Juneau, for Appellees.

Before: Bolger, Chief Justice, Winfree, Stowers, and Carney, Justices, and Eastaugh, Senior Justice.* [Maassen, Justice, not participating.]

BOLGER, Chief Justice. WINFREE, Justice, concurring in part and dissenting in part.

* Sitting by assignment made under article IV, section 11 of the Alaska Constitution and Alaska Administrative Rule 23(a). STOWERS, Justice, dissenting in part.

I. INTRODUCTION This appeal arises from a dispute over a parcel of land. The State selected this parcel in 1989 under an Alaska Statehood Act provision allowing State selections of federal lands for community centers and recreational areas. In the 1990s, in order to settle litigation about the State’s management of lands granted to Alaska under the Alaska Mental Health Enabling Act (Mental Health Act), the State agreed to create a mental health trust. There were extensive negotiations over which lands would be included in this trust. In the course of these negotiations, the State agreed that the parcel selected under the Statehood Act would not be conveyed to the mental health trust, but rather would be classified and managed by the State as wildlife habitat. For years after this settlement, the State managed the parcel as wildlife habitat. By the mid-2000s there were still remaining State entitlements to federal lands; the State and the federal government entered negotiations over remaining entitlements. In 2009 the State and the federal government executed an agreement finalizing the Mental Health Act selections. One of the terms of the agreement was that the parcel selected under the Statehood Act would be converted to a Mental Health Act selection. The parcel was conveyed by the federal government to the State, and the State subsequently conveyed the parcel to the mental health trust. A lawsuit was filed against the State to invalidate the transfer of the parcel to the mental health trust, based primarily on the arguments that the transaction violated contractual and statutory terms of the earlier mental health trust settlement and violated the constitutional public notice requirement for disposing of an interest in State land. The superior court ruled for the State, and the unsuccessful litigant appeals. For the reasons that follow, we reverse in part and remand for further proceedings consistent

-2- 7478 with this opinion. II. FACTS AND PROCEEDINGS A. Mental Health Trust Litigation And Settlement In 1956 the Alaska Mental Health Enabling Act authorized the Territory of Alaska to select and take title to one million acres of defined, available federal public domain in Alaska to administer in trust for mental health programs.1 The State legislature in 1978 authorized the use of trust lands for non-trust purposes;2 much existing trust land was then sold or otherwise encumbered.3 Representatives of Alaskans with mental health needs brought a class action lawsuit in 1982, claiming that disposing of trust lands breached the State’s fiduciary duties under the Mental Health Act.4 When that litigation first reached us in Weiss I, we invalidated the statute authorizing use of trust land for non-trust purposes,5 and ordered that the trust corpus be reconstituted “to match as nearly as possible the holdings which comprised the trust when the 1978 law became effective.”6 And we attempted to guide the superior court by noting that original trust lands still held by the State should be included in the trust along with some form of

1 Alaska Mental Health Enabling Act, Pub. L. No. 84-830, § 202(a), (e), 70 Stat. 709, 711-12 (1956). 2 Ch. 181, § 3(a), SLA 1978; see Weiss v. State (Weiss II), 939 P.2d 380, 383 (Alaska 1997). 3 Weiss II, 939 P.2d at 383. 4 State v. Weiss (Weiss I), 706 P.2d 681, 682 (Alaska 1985). 5 Id. at 683. 6 Id. at 684.

-3- 7478 reimbursement for original trust lands no longer held by the State.7 In 1991 the legislature enacted a statute, commonly called “Chapter 66,” authorizing a settlement to reconstitute the trust through substitution of other state lands to be agreed upon by the class action plaintiffs and Department of Natural Resources (DNR).8 Chapter 66 established the Trust Authority to serve as trustee of the reconstituted trust9 and provided that if the parties could not reach an agreement by December 1994, the trust could be reconstituted by lands to be identified by DNR in a default list.10 A proposed settlement was drafted, winning the support of some, but not all, of the plaintiffs.11 A group that included Southeast Alaska Conservation Council, Inc. (SEACC), referred to as the “ACE Intervenors” (ACE/SEACC), intervened to challenge Chapter 66 and the proposed settlement.12 ACE/SEACC feared that Chapter 66 and the proposed reconstitution settlement would include valuable wildlife habitat and recreational land without adequate planning and public participation safeguards, and that use of these lands would be narrowed for generating revenue. In April 1993 the superior court granted ACE/SEACC summary judgment on 2 of its 11 claims, ruling that the legislature impermissibly had delegated its lawmaking authority by approving DNR’s prospective default lands list before seeing its contents, and that the

7 Id. at 683-84. 8 Ch. 66, § 55, SLA 1991. 9 Id. § 26. 10 Id. § 56; see also Alaska Ctr. for the Env’t v. State, 940 P.2d 916, 918 (Alaska 1997). 11 Alaska Ctr. for the Env’t, 940 P.2d at 918. 12 Id. The organizations were referred to as the “ACE Intervenors” because Alaska Center for the Environment (ACE) was the first listed party in pleadings.

-4- 7478 conveyance of substitute lands to the trust was subject to the land use requirements.13 ACE/SEACC, plaintiffs who supported the proposed settlement, and the State appealed various aspects of the superior court’s decision.14 In December 1993, pending resolution of the issues appealed, the superior court denied preliminary approval of the proposed settlement because its terms were unenforceable.15 The superior court also voiced grave doubts about the viability of any settlement based on Chapter 66, given that the court had (1) invalidated the default lands list that was supposed to provide security, and (2) ruled that any lands the parties agreed to convey to the trust would be subject to land use planning.16 The State then repudiated the Chapter 66 settlement framework, and the parties renewed negotiations.17 In 1994 the legislature enacted another statute, commonly called “HB 201,” authorizing a settlement on modified terms.18 HB 201 incorporated a list of substitute lands for conveyance to the trust (Other Lands List) that had been negotiated by the parties,19 including ACE/SEACC.

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470 P.3d 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southeast-alaska-conservation-council-inc-v-state-of-alaska-department-alaska-2020.