Opinion ID: 1239050
Heading Depth: 5
Heading Rank: 1

Heading: The Trust Authority

Text: The superior court found the Trust Authority to be a fundamental and significant part of the settlement agreement. Weiss argues that the benefit of the Trust Authority is largely illusory because its power to spend money from the trust income account without appropriation by the legislature is possibly unconstitutional. Weiss also contends that the power of the Trust Authority to oversee DNR's administration of trust lands is meaningless since DNR will have the final say. In granting both preliminary and final approval, the superior court recognized that the constitutionality of the Trust Authority's power to spend trust income without legislative appropriation was uncertain. Thus, contrary to Weiss's assertion, the superior court did not just close its eyes to this issue. Indeed, it would have been improper for the trial court to attempt to resolve this unsettled legal question. See Carson v. American Brands, Inc., 450 U.S. 79, 88 n. 14, 101 S.Ct. 993, 998 n. 14, 67 L.Ed.2d 59 (1981). Furthermore, the court based its finding as to the significance of the Trust Authority on all its powers and its advocacy position, not solely on its spending power. [23] Thus the superior court, even while acknowledging Weiss's argument, came to a different conclusion as to the Trust Authority's value; this conclusion was not clearly erroneous. Weiss's second argument also fails. Again, the superior court recognized and accounted for the fact that, although the Trust Authority has the power to disapprove proposed land exchanges, DNR will ultimately decide how to manage trust land. See AS 37.14.009(a)(2). Moreover, the superior court responded to both of these arguments with the observation that, without the settlement there would be no Trust Authority. Instead, the likely result of litigation would be general directions to the State to manage the trust in the interests of the beneficiaries and under the Enabling Act. The superior court did not err in determining that management under the Trust Authority will probably be better than management with those directions.