Kuretich v. Alaska Trustee, LLC
287 P.3d 87
Alaska2012Background
- Kuretich defaulted on his Alaska mortgage and Alaska Trustee began non-judicial foreclosure
- Reinstatement quotes included foreclosure fees and costs beyond just missed payments
- Kuretich later obtained a loan modification terminating foreclosure but suit for declaratory relief continued
- Superior Court granted summary judgment for Alaska Trustee; decision affirmed on appeal
- Statutory interpretation centered on AS 34.20.070(b) and the definition of 'sum in default'
- Deed of trust terms expressly delineate reinstatement to include foreclosure costs beyond attorney fees
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Scope of 'sum in default' under AS 34.20.070(b) | Kuretich argues only principal plus late payments reflect default debt | Alaska Trustee contends costs of foreclosure are part of the sum in default per deed | Costs may be included; reinstatement may encompass foreclosure costs |
| Effect of deed of trust terms on reinstatement | Terms do not authorize non-attorney costs in reinstatement | Deed controls; costs of foreclosure are recoverable under contract | Deed terms govern non-judicial foreclosure costs in reinstatement |
| Statutory interpretation of AS 34.20.070(b) as to 'attorney fees or court costs' | Only attorney fees or court costs permitted | Costs incidental to foreclosure are recoverable in the sum in default | Statute contemplates broader recovery to preserve rights and status quo |
| Impact of Hagberg on current interpretation | Hagberg restricts costs to attorney fees and court costs | Hagberg supports inclusion of foreclosure costs as part of 'sum in default' | Hagberg supports inclusion of foreclosure costs in sum in default |
| UTPCPA applicability to non-judicial foreclosures | UTPCPA applies to foreclosures and provides damages | UTPCPA does not apply to non-judicial foreclosures | UTPCPA does not apply to non-judicial foreclosures |
Key Cases Cited
- Hagberg v. Alaska National Bank, 585 P.2d 559 (Alaska 1978) (recognizes reinstatement preserves lender's rights and includes certain costs)
- Young v. Embley, 143 P.3d 936 (Alaska 2006) (interprets AS 34.20.070(b) related to cure rights and costs)
- Moran v. Holman, 501 P.2d 769 (Alaska 1972) (principles of statutory interpretation and equity considerations)