Opinion ID: 6342707
Heading Depth: 2
Heading Rank: 2

Heading: FED Proceedings

Text: In May 2018 Ahtna filed a complaint against Caswell and Alaska Limestone Company claiming that Caswell had breached the lease “by his construction and use of a residential structure on property leased for commercial purposes” and that he was unlawfully possessing the land. The complaint noted that while the lease provided for an option to extend, Caswell’s breach of the lease meant that he was prohibited from exercising the option. Ahtna argued that even if Caswell had not breached the lease, he had failed to give written notice of an intent to extend it at least 90 days before termination of the lease term, as required. In response, Caswell admitted -3- 7595 that he remained in possession of the property but disputed that he had breached the lease. He also argued that his continued possession of the property was lawful because Ahtna had received the check he had expressly denominated as payment for the “2018 annual lease.” On September 26 Ahtna moved for leave to file an amended complaint that would replace the defendant Alaska Limestone Company with the company Caswell had actually created, “Alaska Lime Company, Inc.,” and which would assert a cause of action against Caswell and Alaska Lime for “Forcible Entry and Detainer and Trespass.” The next day, September 27, Caswell and Alaska Lime received Ahtna’s notice to quit, demanding that they “immediately quit the premises.” The court granted Ahtna’s motion to amend its complaint in October. In February 2019 Ahtna moved to schedule an FED hearing. Caswell and Alaska Lime responded that FED proceedings — which are expedited and intended to decide only possession1 — were inappropriate given the need for discovery and the defendants’ intent to move for summary judgment on the interpretation of the lease, “which is generally a question of law for the Court.” The superior court disagreed and granted Ahtna’s motion for an FED hearing, finding that Ahtna had served Caswell and Alaska Lime with proper notice and that Caswell was not entitled to discovery.2 A two-day FED hearing was held in August 2019. Ahtna argued not only that the lease had expired but also that Caswell had breached it in various ways: 1 See Vinson v. Hamilton, 854 P.2d 733, 735 (Alaska 1993) (“[The FED action] is summary in nature, and traditionally the court will recognize almost no affirmative defense or counterclaim. . . . The sole issue to address is that of possession.”). 2 Caswell nevertheless propounded some requests for document production, which Ahtna answered at least partially, and deposed Ahtna’s former lawyer prior to the FED hearing. -4- 7595 allowing others to use the easement, committing waste by “treat[ing] [the property] like a junk yard,” storing dangerous and toxic materials, and using the land as his year-round residence. Caswell and Alaska Lime argued that the lease had not expired because Ahtna had waived the written-notice requirement by cashing the rent checks Alaska Lime sent for periods following the lease’s stated expiration date. Caswell and Alaska Lime also argued that Ahtna never informed Caswell how he was in breach or gave him any opportunity to cure, and that Alaska Lime was not a proper defendant in the FED action because it was not a party to the lease. Finally, Caswell and Alaska Lime argued that Ahtna’s notice to quit was ineffective because it was received after Ahtna had already asserted the FED claim in its complaint, and by statute an FED action may be filed only if the tenant continues to hold possession after receiving notice to quit.3 The superior court granted a judgment for FED, finding that the original term of the lease had expired, that Caswell had not provided the required notice of an intent to renew, and that Ahtna had not waived the notice requirement. The court also found that Ahtna had given proper notice and that it was effective as to Alaska Lime even though the company was not a party to the lease. Because Caswell had not 3 See AS 09.45.100(a) (providing that “a person entitled to the premises who seeks to recover possession of the premises may not commence and maintain an action to recover possession of premises under AS 09.45.060 – 09.45.160 unless the person first gives a notice to quit to the person in possession”); AS 09.45.110 (“An action for the recovery of the possession of the premises may be commenced on or after the date the tenant or person in possession unlawfully holds possession of the dwelling unit or rental premises by force, as determined under AS 09.45.090.”); AS 09.45.090(b)(2)(F) (defining “unlawful holding by force” to include “when, following service of a notice to quit, . . . a person in possession continues in possession of the premises . . . at the expiration of the time limited in the lease or agreement under which that person holds” (emphasis added)). -5- 7595 effectively exercised his option to extend the lease, the court found it unnecessary to address Ahtna’s argument that he was in breach. Caswell and Alaska Lime appeal the FED judgment, arguing that the superior court should not have held an FED hearing, that Ahtna’s notice to quit was ineffective, and that Alaska Lime was not a proper party to the FED proceedings.