312 P.3d 1098
Alaska2013Background
- Cynthia and David Fernandez married in 1979 and had two children; they dissolved the marriage in 1986 but cohabited for years thereafter.
- CSSD informed David in 2010 that he owed child support of $450/month based on the 1986 dissolution order.
- In May 2011, at a settlement conference, the parties purportedly reached an agreement: Cynthia would attempt to obtain a $33,000 second mortgage to fund a settlement payable to David; if not possible, they would negotiate in good faith on a payment plan.
- Cynthia could not obtain the second mortgage; negotiations continued, with the court outlining further negotiation steps and ultimately conditioning a binding result on a payment plan.
- In March 2012 the superior court entered a judgment requiring Cynthia to pay $250/month and turn over her PFD to satisfy a $33,000 debt, which Cynthia challenged on Rule 60(b) grounds.
- The Alaska Supreme Court reversed, holding there was no binding agreement to bind Cynthia to a specific settlement path and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there a binding settlement after the settlement conference? | Cynthia: agreement was an 'agreement to negotiate' and did not bind to specific terms if mortgage funding failed. | David: the agreement bound Cynthia to settle and to negotiate in good faith within specified terms. | No binding settlement; square-one rights preserved for Cynthia. |
| Did the court err in refusing to let Cynthia return to square one after failed funding? | Cynthia: upon failure of funding, she was entitled to return to square one under the original agreement. | David: the court could enforce a narrowed good-faith framework and impose terms if negotiations failed. | The court erred by not allowing a return to square one and by improperly narrowing the original agreement. |
| Was Cynthia entitled to Rule 60(b) relief from judgment based on settlement conference conduct? | Cynthia: various biases and misapplication of guidelines; relief warranted. | David: the court did not abuse discretion; conference conduct and guidelines were properly applied. | Rule 60(b) relief denied; issues on the settlement were remanded for further proceedings. |
| Should the case be reassigned on remand? | Cynthia: request for reassignment to a different judge when remanded. | David: reassignment should be considered on remand; premature now. | Reassignment on remand premature; proper avenue is AS 22.20.020 remand procedure. |
Key Cases Cited
- Brady v. State, 965 P.2d 1 (Alaska 1998) (duty to negotiate good faith limited by scope of agreement; enforceability of 'agreement to negotiate' depends on specifics)
- Sea Hawk Seafoods, Inc. v. City of Valdez, 282 P.3d 359 (Alaska 2012) (agreement to negotiate unenforceable when no specific process or dispute-resolution method is provided)
- Davis v. Dykman, 938 P.2d 1002 (Alaska 1997) (enforceability of agreements to negotiate; need for a defined process)
- Valdez Fisheries Dev. Ass’n Inc. v. Alyeska Pipeline Serv. Co., 45 P.3d 657 (Alaska 2002) (enforceability of settlement-related terms; limits on agree-to-negotiate concepts)
- Colton v. Colton, 244 P.3d 1121 (Alaska 2010) (clarifies enforceability and breach concepts in settlement agreements)
- Mullins v. Oates, 179 P.3d 930 (Alaska 2008) (interpretation of settlement or negotiation-related questions in Alaska)
