RAYMOND DAPO v. STATE OF ALASKA, DEPARTMENT OF HEALTH & SOCIAL SERVICES, OFFICE OF CHILDREN‘S SERVICES аnd TAUN LUCAS
Supreme Court No. S-17878
THE SUPREME COURT OF THE STATE OF ALASKA
May 13, 2022
No. 7593
Superior Court No. 4FA-15-01892 CI
OPINION
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
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
OCS moved to dismiss Lucas‘s apportionment claim on multiple grounds, including that it was barred by thе 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
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 superiоr 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
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
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 thаt 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 fаir resolution of the case.”17 A party satisfies the adversity requirement when the party has “a ‘sufficient personal stake’ in the outcome of the
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
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.
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
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 damagеs apportioned in accordance with their fault, but the commensurate duty of responsible third parties to pay plaintiffs.”34
When an assignor assigns a legal claim to an assignee, what is assigned is
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
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 apportiоnment claim is inextricably intertwined with the role of the defendant. Under
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
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’ performancеs] 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
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 nоt 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 surе 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
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 desirеs. 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 vаcate 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
V. CONCLUSION
We AFFIRM the superior court‘s order invalidating the assignment
