Opinion ID: 2519890
Heading Depth: 3
Heading Rank: 3

Heading: The Superior Court Lawsuit

Text: In October 1998 Tru-Line filed suit against USF & E in superior court in Anchorage alleging fraud, negligent misrepresentation, and conversion. USF & E moved for summary judgment based on res judicata. Tru-Line opposed the motion, alleging that the merits of Tru-Line's federal claim were never reached as Tru-Line's complaint was dismissed because it was not a registered Alaska contractor. The state complaint concerned fraud and conversion claims that, according to Tru-Line, could not have been part of its federal complaint as it had no indication that it had been purposefully misled and defrauded by USF & E. The superior court granted USF & E's motion for summary judgment. USF & E then filed a motion for attorney's fees and sanctions against Tru-Line and its legal counsel, pursuant to Alaska Rules of Civil Procedure 11, 68, 82, and 95. The court, finding that Tru-Line had no reasonable basis in fact to file a complaint on an action deemed by the federal court to be baseless and frivolous, granted USF & E's motion for attorney's fees and sanctions. For violations of Alaska Rules 11 and 95, the court granted USF & E three times its actual costs and attorney's fees to be paid by Tru-Line and its counsel, Jody Sutherland and Craig Holley, jointly and severally. A motion for reconsideration by Tru-Line and its counsels was denied and those parties now appeal to this court.