In 1992, Shee Atika brought this action, seeking a declaration that it has a right to use rock, sand, and gravel from Sealaska’s subsurface estate without paying Sealaska. Sealaska counterclaimed, requesting a permanent injunction prohibiting Shee Atika and those harvesting its timber from taking rock, sand, and gravel without Sealaska’s consent.
Sealaska Corp. appeals the district court’s denial of its motion to enjoin Shee Atika, Inc. permanently from using Sealaska’s rock, sand, and gravel without Sealaska’s consent. Shee Atika cross appeals. We dismiss Shee Atika’s cross appeal, and affirm the district court’s order denying Sealaska’s request for an injunction.Sealaska is a regional corporation, formed pursuant to the Alaska Native Claims Settlement Act (ANCSA), 43 U.S.C. § 1606. Shee Atika is an urban corporation formed under ANCSA, 43 U.S.C. § 1613(h)(3). Shee Atika owns the surface estate in approximately 22,000 acres on Admiralty Island, much of which is forested. The subsurface estate, including rock, sand, and gravel, is owned by Sealaska. See 43 U.S.C. §§ 1611, 1613; Tyonek Native Corp. v. Cook Inlet Region, Inc., 853 F.2d 727 (9th Cir. 1988). Despite Sealaska’s repeated demands, Shee Atika has refused to pay Sealaska for the rock it uses in building roads and other facilities necessary for harvesting timber.In 1992, Shee Atika brought this action, seeking a declaration that it has a right to use rock, sand, and gravel from Sealaska’s subsurface estate without paying Sealaska. Sealaska counterclaimed, requesting a permanent injunction prohibiting Shee Atika and those harvesting its timber from taking rock, sand, and gravel without Sealaska’s consent.
Adds precedent that influences how ANCSA corporations, regulators, and shareholders interpret governance rights and remedies.