Douglas Galipeau v. Briana Bixby and Mei-Lani Bixby

Summary

The Alaska Supreme Court held that the superior court erred by awarding restoration damages for the willful breach of subdivision covenants because the neighbors presented no evidence of diminution in property value, timber value, or another basis for calculating actual loss. It also held that punitive damages were unavailable because the covenant violation was a contractual breach and did not constitute an independent tort, and the common-interest-community statute did not apply. The court vacated the judgment and remanded for entry of nominal damages and reconsideration of prejudgment interest and attorney's fees.