AK House Majority
The 27th Alaska State Legislature, 2011 - 2012  
Sponsor Statement: House Bill 168

Injunction Security: Industrial Operation

Ak Legislative MajorityAk Legislative Majority
Rep. Eric Feige R-6
Ak Legislative Majority

Rep. Eric Feige (R-6)
Ak Majority Organization

Ak Majority Organization

An Act requiring the amount of the security given by a party seeking an injunction or order vacating or staying the operation of a permit affecting an industrial operation to include an amount for the payment of wages and benefits for employees and payments to contractors and subcontractors that may be lost if the industrial operation is wrongfully enjoined.

Posted: March 27, 2012 : v27-LS0395-D
Bill Version: CSHB 168(JUD)
Status: (S) JUD : 2012-03-21

Under current law the cost to bring a public litigant lawsuit against a legally permitted project is in effect zero. There is very little risk in bringing a suit. All the risk is borne by the defendants. These actions do shutdown projects at significant costs to working Alaskans, businesses and the state treasury. CSHB 168(JUD) seeks to remedy the situation by leveling the playing field.

CSHB 168(JUD) parallels the requirements of Alaska Civil Rule 65(c). As written, 65(c) states: "no restraining order or preliminary injunction shall issue except upon the giving of security by the applicant, in such sum as the court deems proper, for the payment of such costs and damages as may be incurred or suffered by any party who enjoined or restrained is found to have been wrongfully enjoined or restrained".

At the request of the Department of Law, HB 168 was amended to more closely mirror the language of Alaska Civil Rule 65(c) in order to clarify that the proposed statute would not change the court rule. The court already has the ability to require security. CSHB 168(JUD) simply requests that part of the court's deliberation process should include payment of wages and benefits for employees, payments to contractors and subcontractors of the industrial operation that is shutdown. The amount of security and how it is calculated is totally within the hands of the court.

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2011-04-07 : 00:59 : [AUDIO] Rep. Feige Defends the Passage of HB 168 by the House Today
 Download Audio  [MP3:948KB]

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