Opinion ID: 1242046
Heading Depth: 2
Heading Rank: 4

Heading: Attorney's Fees Awarded to Glacier State

Text: The last contention by the Douglases in this appeal is that the superior court erred in assessing attorney's fees against them in favor of Glacier State. With this argument we agree. It is an abuse of discretion to award attorney's fees against a losing party who has in good faith litigated a question of genuine public interest. Gilbert v. State, 526 P.2d 1131, 1136 (Alaska 1974). The Douglases in this class action presented at least one substantial claim, to which Glacier State was properly joined as a party, that is of genuine public importance  the constitutionality of applying a local sales tax to long-distance phone calls. Although the superior court criticized the performance of counsel representing the Douglases, the good faith of the Douglases and their attorneys in conducting the suit or in joining Glacier State was not brought into question. [34] Assessing attorney's fees against the Douglases in this case would deter other legitimate suits to protect citizens' rights against abusive taxation. No one besides those private citizens who are improperly assessed taxes can be expected to protect these rights in court. [35] The superior court's grant of partial summary judgment against the Douglases on the issue of whether the Borough tax has been validly applied to interborough and interstate phone calls under the commerce clause is Affirmed. The dismissal of the Douglases' complaint against Glacier State is also Affirmed. The dismissal of the Douglases' complaint against the Borough is Reversed and the matter remanded for further proceedings in accordance with this opinion.