Raymond Dapo v. State of Alaska, Department of Health and Social Services, Office of Children's Services and Taun Lucas ( 2022 )


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    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
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    THE SUPREME COURT OF THE STATE OF ALASKA
    RAYMOND DAPO,                                       )
    )   Supreme Court No. S-17878
    Appellant,                    )
    )   Superior Court No. 4FA-15-01892 CI
    v.                                            )
    )   OPINION
    STATE OF ALASKA, DEPARTMENT                         )
    OF HEALTH & SOCIAL SERVICES,                        )   No. 7593 – May 13, 2022
    OFFICE OF CHILDREN’S SERVICES                       )
    and TAUN LUCAS,                                     )
    )
    Appellees.                    )
    )
    Appeal from the Superior Court of the State of Alaska,
    Fourth Judicial District, Fairbanks, Michael P. McConahy,
    Judge.
    Appearances: Michael C. Kramer and Robert John, Kramer
    and Associates, Fairbanks, for Appellant. Aisha Tinker Bray,
    Assistant Attorney General, Fairbanks, and Treg R. Taylor,
    Attorney General, Juneau, for Appellee State of Alaska. No
    appearance by Appellee Taun Lucas.
    Before: Winfree, Chief Justice, Maassen and Henderson,
    Justices. [Carney and Borghesan, Justices, not participating.]
    HENDERSON, Justice.
    I.    INTRODUCTION
    A man filed suit against his adoptive mother for sexual abuse that allegedly
    occurred 13 years earlier. He then agreed to release the adoptive mother from liability
    in exchange for her filing a third-party equitable apportionment claim against the Office
    of Children’s Services (OCS) and assigning the claim to him. OCS challenged the
    validity of this assignment. The superior court agreed with OCS that the assignment of
    the adoptive mother’s apportionment claim was void; it invalidated the assignment,
    dismissed the claim with prejudice, and awarded OCS attorney’s fees. The man appeals.
    Because a defendant prosecuting a third-party equitable apportionment claim possesses
    nothing in the claim itself that may be assigned, we hold that such claims are not
    assignable, and we affirm the superior court’s invalidation of the assignment in this case.
    But we also conclude that it was error to dismiss the apportionment claim with prejudice;
    we thus vacate the order of dismissal and remand for the court to provide the adoptive
    mother a reasonable time to decide whether to pursue the claim herself.
    II.    FACTS AND PROCEEDINGS
    A.     Facts
    Raymond Dapo was born in 1990. OCS1 assumed custody of him ten years
    later and placed him with Taun Lucas, a foster parent who later adopted him. Dapo
    claimed that Lucas then began sexually abusing him. Lucas denied that claim and
    alleged that Dapo sexually assaulted her.
    B.     Proceedings
    In May 2015, when Dapo was 24 years old, he filed a complaint against
    Lucas alleging that she had sexually abused him as a minor. During the subsequent
    1
    The responsible agency at the time was the Division of Family and Youth
    Services, OCS’s predecessor agency. We use the acronym OCS for consistency and ease
    of reference.
    -2-                                      7593
    months, Dapo and Lucas negotiated an agreement. Dapo agreed to release Lucas from
    liability for his sexual abuse claims in exchange for Lucas filing a third-party claim
    against OCS for equitable apportionment and assigning the claim to Dapo.2 In
    September 2015 Lucas followed through on the agreement and filed a third-party
    apportionment claim against OCS.3
    OCS moved to dismiss Lucas’s apportionment claim on multiple grounds,
    including that it was barred by the statute of repose4 and that it was non-assignable. The
    superior court denied the dismissal motion, reasoning that the statute of repose was
    unconstitutional as applied, but did not address OCS’s assignability argument. In State,
    Office of Children’s Services v. Dapo (Dapo I)5 we granted OCS’s petition for review
    on the statute of repose issue, vacated the superior court’s order, and “instructed the
    2
    An equitable apportionment claim permits “a defendant, as a third-party
    plaintiff, . . . to add as a third-party defendant any person whose fault may have been a
    cause of the damages claimed by the plaintiff.” Alaska R. Civ. P. 14(c). “Judgment may
    [then] be entered against [the] third-party defendant in favor of the plaintiff in
    accordance with the third-party defendant’s respective percentage [apportioned] of fault
    . . . .” Id.
    3
    Given the time elapsed since the underlying events transpired, Dapo would
    likely have been barred from bringing his own claims against OCS by the two-year
    statute of limitations in AS 09.10.070, even allowing for tolling under AS 09.10.140(a).
    See Reasner v. State, Dep’t of Health &Soc. Servs., Off. of Child.’s Servs., 
    394 P.3d 610
    ,
    614-18 (Alaska 2017) (discussing statute of limitations and holding that legislature did
    not remove limitations period for “negligence suits against non-perpetrators” when it
    allowed suits against alleged perpetrators of specified sexual offenses to be brought “at
    any time”). Lucas’s equitable apportionment claim against OCS, however, was not
    subject to the statute of limitations in AS 09.10.070. See Alaska Gen. Alarm, Inc. v.
    Grinnell, 
    1 P.3d 98
    , 106 (Alaska 2000).
    4
    AS 09.10.055.
    5
    No. S-16339 (Alaska Supreme Court Order, July 18, 2017).
    -3-                                      7593
    superior court to first determine whether the statute of repose applied to Dapo’s claims
    before considering its constitutionality.”6
    On remand, the superior court invited the parties to file additional briefing
    to address the statute of repose. Both parties did so. OCS also renewed its argument that
    apportionment claims are not assignable. The superior court again declined to address
    OCS’s assignability argument; instead, the court held that the statute of repose barred
    Lucas’s apportionment claim and dismissed it with prejudice. Dapo appealed, and we
    reversed in Dapo v. State, Office of Children’s Services (Dapo II).7 We concluded that
    the statute of repose applied to Lucas’s apportionment claim, but potentially applicable
    exceptions precluded dismissal of the claim at that time.8 We thus remanded “to the
    superior court for further proceedings consistent with [our] opinion.”9 We did not
    address whether the apportionment claim was assignable.10
    OCS filed a motion for summary judgment on remand, contending that the
    superior court should dismiss the apportionment claim with prejudice because no
    exception to the statute of repose applied. OCS simultaneously filed a separate motion
    to invalidate the assignment of the apportionment claim. OCS again renewed its
    argument that apportionment claims are not assignable and also argued that the
    assignment in this case was void on various public policy grounds. The court granted
    OCS’s motion to declare the assignment void on public policy grounds, holding that
    6
    Dapo v. State, Off. of Child.’s Servs. (Dapo II), 
    454 P.3d 171
    , 174 (Alaska
    2019) (referring to Dapo I).
    7
    
    Id.
    8
    Id. at 177-80.
    9
    Id. at 182.
    10
    See id. at 171-82.
    -4-                                   7593
    “[t]he assignment of rights by a tortfeasor to her victim in order to pursue a time-barred
    claim against a third party is invalid and void as against public policy.” The court did
    not address the assignability of apportionment claims more generally and did not rule on
    OCS’s summary judgment motion related to the statute of repose, instead determining
    that motion to be moot. Despite its lack of ruling on that summary judgment motion, the
    court dismissed Lucas’s apportionment claim with prejudice.
    OCS then moved for attorney’s fees against Dapo. Dapo responded that
    Lucas should bear the liability for attorney’s fees because the assignment of her claim
    was void, so it was her third-party complaint, not Dapo’s, that was dismissed. The
    superior court awarded attorney’s fees against Dapo, explaining that Dapo was “the
    source of this continued litigation.”
    Dapo appeals.
    III.   STANDARDS OF REVIEW
    We review questions of law de novo, including whether a party has
    standing to sue,11 whether the superior court correctly applied our mandate on remand,12
    and whether an assignment of rights is valid.13 “The superior court’s procedural
    decisions generally are reviewed for abuse of discretion.”14
    IV.    DISCUSSION
    A.    The Superior Court Did Not Err By Allowing OCS To Challenge The
    Assignment Of Lucas’s Equitable Apportionment Claim.
    Dapo argues that the superior court made two fundamental errors when it
    11
    Bibi v. Elfrink, 
    408 P.3d 809
    , 814 (Alaska 2017).
    12
    Beal v. Beal, 
    209 P.3d 1012
    , 1016 (Alaska 2009).
    13
    Wichman v. Benner, 
    948 P.2d 484
    , 486-87, 487 n.2 (Alaska 1997).
    14
    Marcy v. Matanuska-Susitna Borough, 
    433 P.3d 1056
    , 1059 (Alaska 2018).
    -5-                                      7593
    allowed OCS to challenge the assignment of Lucas’s equitable apportionment claim.
    First, Dapo asserts that OCS lacked standing to challenge the assignment. Second, Dapo
    contends that our prior decision in Dapo II precludes OCS’s challenge. We disagree.
    1.     OCS has standing to challenge the assignment.
    Dapo argues that OCS lacks standing “because the assignment does not
    impact the scope or extent of OCS’s direct liability to Dapo.” According to Dapo, “the
    assignment presents no issue as to OCS’s responsibility to pay its proportionate share of
    damages.” OCS counters that it “has a substantial stake in the outcome of the
    controversy” because it “would not be a party today” without the assignment.
    Standing in Alaska courts “is a ‘rule of judicial self-restraint based on the
    principle that courts should not resolve abstract questions or issue advisory opinions.’ ”15
    “[A] basic requirement of standing is adversity of interests.”16 This requirement ensures
    “that parties will energetically pursue their opposing positions and present facts
    necessary for the fair resolution of the case.”17        A party satisfies the adversity
    requirement when the party has “a ‘sufficient personal stake’ in the outcome of the
    15
    Bibi, 408 P.3d at 816 (quoting Ruckle v. Anchorage Sch. Dist., 
    85 P.3d 1030
    , 1034 (Alaska 2004)).
    16
    
    Id.
     (alteration in original) (quoting Law Project for Psychiatric Rights, Inc.
    v. State, 
    239 P.3d 1252
    , 1255 (Alaska 2010)).
    17
    Myers v. Robertson, 
    891 P.2d 199
    , 203 (Alaska 1995).
    -6-                                       7593
    controversy and ‘an interest which is adversely affected by the complained-of
    conduct.’ ”18 “Neither the interest nor the injury asserted need be great; ‘an identifiable
    trifle is enough for standing to fight out a question of principle.’ ”19
    OCS has standing to challenge the assignment. Prior to the assignment
    agreement, Lucas had responded to Dapo’s complaint but had not filed an equitable
    apportionment claim. Dapo then agreed to release Lucas from liability contingent upon
    Lucas filing an apportionment claim against OCS and assigning the claim to Dapo. In
    other words, Lucas expressly undertook an obligation to initiate legal proceedings
    against OCS — then did so — as part of the agreement to assign her apportionment claim
    to Dapo. While Lucas could have pursued a claim against OCS absent the assignment
    agreement, she would have no obligation to do so. OCS therefore has a “sufficient
    personal stake” in this controversy and “an interest which is adversely affected by the
    complained-of conduct.”20
    2.     OCS’s challenge was not already raised and resolved.
    Dapo also contends that the “limited scope of remand” in Dapo II precludes
    OCS’s challenge to the assignment, relying on both the law of the case doctrine and his
    interpretation of our mandate. OCS disagrees, noting that Dapo II “did not decide any
    substantive issue concerning the assignment.”
    “The law of the case doctrine is ‘a doctrine of economy and of obedience
    18
    Keller v. French, 
    205 P.3d 299
    , 304 (Alaska 2009) (footnote omitted) (first
    quoting Ruckle, 85 P.3d at 1040; and then quoting Alaskans for a Common Language,
    Inc. v. Kritz, 
    3 P.3d 906
    , 915 (Alaska 2000)).
    19
    Gilbert M. v. State, 
    139 P.3d 581
    , 586 (Alaska 2006) (quoting Wagstaff v.
    Superior Ct., Fam. Ct. Div., 
    535 P.2d 1220
    , 1225 n.7 (Alaska 1975)).
    20
    Keller, 205 P.3d at 304 (first quoting Ruckle, 85 P.3d at 1040; and then
    quoting Alaskans for a Common Language, Inc., 3 P.3d at 915).
    -7-                                      7593
    to the judicial hierarchy’ ”21 that “is ‘grounded in the principle of stare decisis’ and ‘akin
    to the doctrine of res judicata.’ ”22 It “generally ‘prohibits the reconsideration of issues
    which have been adjudicated in a previous appeal in the same case.’ ”23 “Even issues not
    explicitly discussed in the first appellate opinion, but directly involved with or
    necessarily inhering in the decision will be considered the law of the case.”24 And “when
    a party appeals some aspects of a trial court decision but not others, the trial court’s
    rulings on the non-appealed issues may become the law of the case following the
    appellate decision.”25 “Previous decisions on such issues . . . should not be reconsidered
    on remand or in a subsequent appeal except ‘where there exist “exceptional
    circumstances” presenting a “clear error constituting a manifest injustice.” ’ ”26
    No court had adjudicated the validity of the assignment until the decision
    underlying this appeal. Although OCS consistently argued to the superior court that the
    assignment was void, that court previously declined to address OCS’s argument. Until
    now, there was no superior court decision on the validity of the assignment to appeal.
    21
    Beal v. Beal, 
    209 P.3d 1012
    , 1017 (Alaska 2009) (quoting Dieringer v.
    Martin, 
    187 P.3d 468
    , 473-74 (Alaska 2008)).
    22
    Id. at 1016 (first quoting Alaska R.R. Corp. v. Native Vill. of Eklutna, 
    142 P.3d 1192
    , 1201 (Alaska 2006); and then quoting State, Com. Fisheries Entry Comm’n
    v. Carlson, 
    65 P.3d 851
    , 859 n.52 (Alaska 2003)).
    23
    
    Id.
     (quoting Carlson, 65 P.3d at 859 n.52).
    24
    Native Vill. of Eklutna, 142 P.3d at 1201(quoting Bowers Off. Prods., Inc.
    v. Fairbanks N. Star Borough Sch. Dist., 
    918 P.2d 1012
    , 1014 (Alaska 1996)).
    25
    Beal, 209 P.3d at 1017.
    26
    Id. at 1016-17 (quoting Carlson, 65 P.3d at 859).
    -8-                                        7593
    And we did not analyze the assignment in Dapo II,27 so its validity was not “directly
    involved” or “necessarily inhering” in our decision.28 The law of the case doctrine thus
    does not preclude OCS’s challenge to the assignment.
    Our mandate in Dapo II also does not prevent OCS from challenging the
    assignment. Dapo misreads our prior mandate. In Dapo II we remanded to the superior
    court “for further proceedings consistent with this opinion,”29 without providing any
    specific instructions to the court.30 Contrary to Dapo’s assertions, we did not remand
    specifically “for the parties to engage in litigation of the merits of Dapo’s claims.” Nor
    did we decide any substantive issues concerning the validity of the assignment.31 OCS’s
    motion to invalidate the assignment was thus consistent with our opinion, and the
    superior court did not err by reaching the merits of OCS’s challenge to the assignment.
    B.     The Superior Court Did Not Err By Declaring The Assignment Of
    Lucas’s Equitable Apportionment Claim Void And Invalidating The
    Agreement Between Lucas And Dapo.
    On the merits Dapo argues that the superior court erred by declaring the
    assignment void. He contends that “the assignment of causes of action between
    otherwise-adverse parties to a transaction is routinely upheld” and analogizes equitable
    apportionment to other claims like contribution, indemnity, and subrogation. OCS
    responds that an equitable apportionment claim is not assignable because the defendant
    27
    See 
    454 P.3d 171
    , 171-82 (Alaska 2019).
    28
    Beal, 209 P.3d at 1017 (quoting Carlson, 65 P.3d at 859 n.52).
    29
    Dapo II, 454 P.3d at 182.
    30
    Cf. Dieringer v. Martin, 
    187 P.3d 468
    , 474 (Alaska 2008) (discussing prior
    decision remanding to superior court “for reconsideration of attorney’s fees and fees of
    the personal representative in light of the conclusions expressed herein”).
    31
    See Dapo II, 454 P.3d at 171-82.
    -9-                                      7593
    possesses nothing to convey. We agree with OCS and conclude that equitable
    apportionment claims are not assignable.32 Furthermore, because the assignment was an
    essential part of the exchange, the agreement between Lucas and Dapo is unenforceable.
    1.     Equitable apportionment claims are not assignable because the
    defendant possesses nothing to convey.
    Equitable apportionment is a mechanism for defendants “to mitigate their
    damages by filing third-party claims against other potentially responsible persons.”33
    This “vindicat[es] not just the right of defendants to have damages apportioned in
    accordance with their fault, but the commensurate duty of responsible third parties to pay
    plaintiffs.”34 Alaska Civil Rule 14 defines the procedure for equitable apportionment,
    permitting “a defendant, as a third-party plaintiff, [to] join any party whose fault may
    have been a cause of the damages claimed by the plaintiff.”35 If the defendant’s third-
    party claim succeeds, the court can enter judgment in favor of the plaintiff against the
    third-party defendant according to the percentage of apportioned fault.36
    When an assignor assigns a legal claim to an assignee, what is assigned is
    32
    Dapo also faults the superior court for ostensibly relying on “the perceived
    moral character of the assignor” to invalidate the assignment on public policy grounds,
    and he challenges one of the court’s factual findings. We do not address these arguments
    because we conclude that equitable apportionment claims are not assignable for other
    reasons, and the challenged factual finding is irrelevant.
    33
    Alaska Gen. Alarm, Inc. v. Grinnell, 
    1 P.3d 98
    , 101 (Alaska 2000).
    34
    Id. at 102.
    35
    Id. at 101 (citing Alaska R. Civ. P. 14(c)).
    36
    Pagenkopf v. Chatham Elec., Inc., 
    165 P.3d 634
    , 642 (Alaska 2007) (citing
    Alaska R. Civ. P. 14(c)).
    -10-                                      7593
    called a “chose in action.”37 A chose in action is a proprietary right to a debt, money, or
    thing that can be recovered through a lawsuit.38 Examples include “debts of all kinds,
    tort claims, rights to recover possession or ownership of real or personal property,
    various kinds of instruments and documents which embody property rights, and rights
    to intangible property.”39 The right must be “part of a person’s estate, assets, or property,
    as opposed to a right arising from the person’s legal status.”40
    Dapo is correct that, as a general rule, most legal claims can be assigned.41
    We have previously held, for example, that claims for contribution, indemnity, and
    37
    See 9 JOHN E. MURRAY, JR., CORBIN ON CONTRACTS § 47.2 (rev. ed. 2007);
    PADRM Gold Mine, LLC v. Perkumpulan Inv. Crisis Ctr. Dressel - WBG, 
    498 P.3d 1073
    , 1076-77 (Alaska 2021) (discussing involuntary assignment of legal malpractice
    claims).
    38
    See Chose In Action, BLACK’S LAW DICTIONARY (9th ed. 2009), quoted
    with approval in McDonnell v. State Farm Mut. Auto. Ins. Co., 
    299 P.3d 715
    , 720 n.15
    (Alaska 2013) (defining “chose in action” as “1. A proprietary right in personam, such
    as a debt owed by another person, a share in a joint-stock company, or a claim for
    damages in tort. . . . 2. The right to bring an action to recover a debt, money, or thing.
    3. Personal property that one person owns but another person possesses, the owner being
    able to regain possession through a lawsuit.”).
    39
    9 MURRAY, JR., supra note 37, § 47.2 (citing RESTATEMENT (SECOND) OF
    CONTRACTS § 316 cmt. a. (AM. L. INST. 1981)).
    40
    Right, Proprietary Right, BLACK’S LAW DICTIONARY (11th ed. 2019).
    41
    See PADRM Gold Mine, LLC, 498 P.3d at 1077 (“We have recognized as
    a general rule that ‘a cause of action can be assigned if it survives’ the death of the
    prospective plaintiff. And the Alaska legislature has specified that all claims besides
    defamation survive.” (footnote omitted) (first quoting Andersen v. Edwards, 
    625 P.2d 282
    , 290 (Alaska 1981); and then citing AS 09.55.570)).
    -11-                                       7593
    subrogation are assignable.42 These claims fall squarely within the definition of “chose
    in action” because they vindicate the assignor’s right to recover something owed
    independent from the assignor’s legal status.43 After an assignment of one of these
    claims, the assignee receives the assignor’s right to recover and can vindicate this right
    through a lawsuit.
    Equitable apportionment claims are fundamentally different because they
    arise directly from a person’s legal status as a defendant and do not vindicate the right
    to recover something owed. The role of the third-party plaintiff in an equitable
    apportionment claim is inextricably intertwined with the role of the defendant. Under
    Civil Rule 14(c), “a defendant, as a third-party plaintiff, may” join other potentially
    responsible third parties.44 The third-party plaintiff has no independent right to recover
    from the apportionment claim; instead, the defendant benefits from the claim prevailing
    in the form of reduced damages, and “the plaintiff [then benefits] in the form of a third-
    party judgment ensuring full payment.”45 OCS correctly notes that the third-party
    plaintiff, Lucas, “seeks solely to shift some or all of the liability for [Dapo’s] damages”
    from herself to the third-party defendant, OCS.
    To understand the issue with Lucas’s assignment, it is helpful to consider
    how a hypothetical assignment of an equitable apportionment claim to a non-party
    assignee would function. Once the defendant assigns the claim, the non-party assignee
    would become the third-party plaintiff and undertake the burden of prosecuting the claim
    42
    Deal v. Kearney, 
    851 P.2d 1353
    , 1355-56 (Alaska 1993).
    43
    See id. at 1356 (noting that “the injury would be an incurrence of a
    monetary obligation to [another] party”).
    44
    Alaska R. Civ. P. 14(c) (emphasis added).
    45
    Pagenkopf v. Chatham Elec., Inc., 
    165 P.3d 634
    , 642 (Alaska 2007).
    -12-                                      7593
    against the third-party defendant. Yet were the assignee to prevail, the assignee would
    recover nothing: the result would only reduce the defendant-assignor’s apportioned fault
    and allow the plaintiff to recover proportionately from the third-party defendant. Despite
    having been purportedly assigned a claim, the assignee would have no right to recover
    on the claim, as only the plaintiff would be entitled to those funds. The fact that here
    Dapo is both the plaintiff and the assignee does not defeat the fallacy of this assignment.
    Given that third-party equitable apportionment claims arise from a person’s
    legal status as a defendant and could not provide an assignee a right to recover, we
    conclude that they fall outside the definition of “chose in action” and are not assignable.
    We therefore affirm the superior court’s decision invalidating the assignment of Lucas’s
    apportionment claim to Dapo.
    2.     The agreement between Dapo and Lucas is unenforceable
    without the assignment.
    When a provision of an agreement is found to be unenforceable, a court
    may enforce the rest of the agreement if the provision “is not an essential part of the
    agreed exchange.”46 If the unenforceable provision is essential to the exchange, “the
    inequality [between the parties’ performances] will be so great as to make the entire
    agreement unenforceable.”47 Likewise, “courts try to give effect to agreements the
    parties have made, not to agreements the parties have not made but that the courts think
    would have been just.”48 A court thus cannot enforce an agreement without an essential
    provision because “the court cannot be sure that in that provision’s absence the parties
    46
    Zerbetz v. Alaska Energy Ctr., 
    708 P.2d 1270
    , 1282 (Alaska 1985) (quoting
    RESTATEMENT (SECOND) OF CONTRACTS § 184(1) (AM. L. INST. 1981)).
    47
    Id. (quoting RESTATEMENT (SECOND) OF CONTRACTS § 184 cmt. a).
    48
    Id.
    -13-                                      7593
    would have agreed at all.”49 Whether the provision is essential “depends on its relative
    importance in the light of the entire agreement between the parties.”50
    The assignment of Lucas’s apportionment claim to Dapo was essential to
    their agreed exchange. As noted above, Lucas had not filed an apportionment claim
    prior to the assignment agreement. After signing the assignment agreement and filing
    the apportionment claim, Lucas testified at an early hearing in the case that she did not
    want to participate in the lawsuit. Dapo’s attorney also explained during the hearing that
    OCS “is essentially [Dapo’s] target defendant” and that Dapo “believes OCS is
    responsible for all the damages he’s suffered.” And as OCS notes, Lucas has essentially
    “been a non-participant in this litigation” since the assignment.51 This demonstrates that
    the assignment of Lucas’s apportionment claim was of paramount interest to both parties,
    and without it we cannot be sure that the parties would have reached an agreement at
    all.52 Therefore, the entire agreement between Dapo and Lucas is unenforceable.
    C.     It Was An Abuse Of Discretion To Dismiss Lucas’s Equitable
    Apportionment Claim With Prejudice.
    After invalidating the assignment agreement, the superior court dismissed
    Lucas’s apportionment claim with prejudice. Dapo argues this was error, noting that the
    claim remains potentially viable even if the assignment of the claim is invalid. We agree.
    In Dapo II we reversed the dismissal of Lucas’s apportionment claim
    because we held that it “may fall within” an exception to the statute of repose when
    49
    Id. at 1282-83.
    50
    Id. at 1282 (quoting RESTATEMENT (SECOND) OF CONTRACTS § 184 cmt. a).
    51
    See also Dapo II, 
    454 P.3d 171
    , 174 (Alaska 2019) (“No appearance by
    Appellee Taun Lucas.”).
    52
    See Zerbetz, 708 P.2d at 1282-83.
    -14-                                      7593
    “taking all facts in the light most favorable to . . . the non-moving party.”53 We did not
    express a view on the ultimate viability of the claim, making it clear that we did “not
    mean to preclude summary judgment if the superior court determines that ‘no reasonable
    person could discern a genuine factual dispute on a material issue.’ ”54 No such
    determination has yet been made.
    It was an abuse of discretion to dismiss the apportionment claim with
    prejudice. “An involuntary dismissal with prejudice is a harsh sanction which should
    only be applied in extreme cases.”55 The conclusion that apportionment claims are not
    assignable does not impact the viability of Lucas’s apportionment claim against OCS.
    Nor does it warrant denying Lucas the opportunity to pursue her claim — if she so
    desires. We thus vacate the dismissal of Lucas’s apportionment claim. On remand, the
    superior court should allow Lucas a reasonable opportunity to decide whether to pursue
    her claim. The court should bear in mind that Lucas may want to seek advice from
    independent counsel prior to making a decision, especially given that Dapo’s agreement
    to release her from liability is no longer enforceable.
    D.     We Vacate The Award Of Attorney’s Fees To OCS.
    Because we vacate the superior court’s dismissal of Lucas’s apportionment
    claim, we also vacate the court’s attorney’s fee award. We express no view on the
    propriety of awarding attorney’s fees to OCS against Dapo under Alaska Civil Rule 82.
    V.    CONCLUSION
    We AFFIRM the superior court’s order invalidating the assignment
    53
    Dapo II, 454 P.3d at 177-80.
    54
    Id. at 180 (quoting Christensen v. Alaska Sales & Serv., Inc., 
    335 P.3d 514
    ,
    520 (Alaska 2014)).
    55
    Tenala, Ltd. v. Fowler, 
    921 P.2d 1114
    , 1124 (Alaska 1996).
    -15-                                     7593
    agreement, VACATE the court’s orders dismissing Lucas’s equitable apportionment
    claim and awarding attorney’s fees to OCS, and REMAND with instructions to provide
    Lucas a reasonable time to decide whether to pursue her apportionment claim.
    -16-                                    7593
    

Document Info

Docket Number: S17878

Filed Date: 5/13/2022

Precedential Status: Precedential

Modified Date: 5/20/2022