Alaskan Adventure Tours, Inc. v. The City and Borough of Yakutat
307 P.3d 955
Alaska2013Background
- Yakutat sought to collect taxes from Adventure Tours; the company transferred assets to Kimberly Byler and then ABC Leasing to avoid tax liability.
- A fraudulent conveyance trial in 2010 found in Yakutat's favor on the conveyance and on Kimberly's testimony in a debtor examination.
- Adventure Tours alleged Chief Nichols falsely testified about a May 2007 conversation with Kimberly regarding the taxes.
- Adventure Tours moved under Civil Rule 60(b)(3) for relief from judgment based on fraud and misconduct; trial court denied relief and awarded enhanced fees to Yakutat.
- Superior Court denied motion for reconsideration and declined to reopen discovery; award of enhanced attorney’s fees affirmed on appeal.
- Appellants appeal Rule 60(b)(3) denial, discovery denial, and attorney’s fees decision; standard of review applied is abuse of discretion with de novo legal standard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was Rule 60(b)(3) properly applied? | Adventure Tours: court misapplied standard and required extra tests. | Yakutat: correct clear-and-convincing standard applied with no extra tests. | Correct standard applied; no additional tests required. |
| Did Adventure Tours prove fraud by clear and convincing evidence? | Adventure Tours: evidence shows Nichols lied and tampered with evidence. | Yakutat: evidence does not meet clear-and-convincing threshold of fraud. | No clear and convincing fraud shown; denial affirmed. |
| Did the superior court abuse its discretion in denying reopen discovery? | Discovery could uncover critical timing and witness issues; new evidence warranted. | Discovery should have occurred before trial; late motion was improper. | No abuse; court had broad discretion and discovery should have occurred pre-trial. |
| Was the enhanced attorney’s fee award appropriate? | Rule 82 factors support due consideration of complexity and lack of reasonable grounds. | Award is warranted given complexity and lack of reasonable claims. | Affirmed enhanced fees; claims found complex and not reasonable. |
Key Cases Cited
- McCall v. Coats, 777 P.2d 655 (Alaska 1989) (Rule 60(b)(3) requires proof of fraud or misconduct and that it affected trial fairness)
- Babinec v. Yabuki, 799 P.2d 1325 (Alaska 1990) (due diligence considerations and standard for Rule 60(b)(3) relief)
- Ware v. Ware, 161 P.3d 1188 (Alaska 2007) (fraud standards; consequences for Rule 60(b) motions)
- Wagner v. Wagner, 183 P.3d 1265 (Alaska 2008) (clarifies requirements for showing fraud in Rule 60(b))
- McCall v. Coats, 777 P.2d 655 (Alaska 1989) (reiterated standard for proving fraud in Rule 60(b)(3))
- Williams v. Williams, 252 P.3d 998 (Alaska 2011) (abuse-of-discretion standard for reviewing Rule 60(b) rulings)
- Prentzel v. State, Dep’t of Pub. Safety, 169 P.3d 573 (Alaska 2007) (discovery and evidence standards in Alaska courts)
- Hallam v. Alaska Airlines, Inc., 91 P.3d 279 (Alaska 2004) (discretionary review of civil rulings and fee awards)
- Walden v. Dpt. of Transp., 27 P.3d 297 (Alaska 2001) (discovery rulings and pre-trial opportunities)
