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CSHB 203(JUD): "An Act relating to actions for unlawful trade practices."

00CS FOR HOUSE BILL NO. 203(JUD) 01 "An Act relating to actions for unlawful trade practices." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 09.60.015 is amended by adding a new subsection to read: 04  (c) This section is subject to AS 45.50.537. 05 * Sec. 2. AS 45.50.473(c) is amended to read: 06  (c) A violation of this section constitutes an unfair or deceptive act or practice 07 under AS 45.50.471. It [NOTWITHSTANDING AS 45.50.531(a), IT] is presumed 08 that actual damages to the consumer under AS 45.50.531(a) are equal to the cost of 09 the service provided plus $200. Additional damages must be proved. 10 * Sec. 3. AS 45.50.531(a) is amended to read: 11  (a) A person who suffers an ascertainable loss of money or property as a result 12 of another person's act or practice declared unlawful by AS 45.50.471 may bring a 13 civil action to recover for each unlawful act or practice three times the actual 14 damages or $500 [$200], whichever is greater. [THE COURT MAY, IN CASES OF

01 WILFUL VIOLATION, AWARD UP TO THREE TIMES THE ACTUAL DAMAGES 02 SUSTAINED.] The court may provide other relief it considers necessary and proper. 03 Nothing in this subsection prevents a person who brings an action under this 04 subsection from pursuing other remedies available under other law, including 05 common law. 06 * Sec. 4. AS 45.50.531 is amended by adding new subsections to read: 07  (i) If a person receives an award of punitive damages under (a) of this section, 08 the court shall require that 50 percent of the award be deposited into the general fund 09 of the state under AS 09.17.020(j). This subsection does not grant the state the right 10 to file or join a civil action to recover punitive damages. 11  (j) The commissioner of administration shall separately account for money 12 received under (i) of this section that is deposited in the general fund. The annual 13 estimated balance in the account may be appropriated by the legislature for the 14 expenses of the fair business practices section of the Department of Law. 15 * Sec. 5. AS 45.50 is amended by adding new sections to read: 16  Sec. 45.50.535. Private injunctive relief. (a) Subject to (b) of this section 17 and in addition to any right to bring an action under AS 45.50.531 or other law, any 18 person who was the victim of the unlawful act, whether or not the person suffered 19 actual damages, may bring an action to obtain an injunction prohibiting a seller or 20 lessor from continuing to engage in an act or practice declared unlawful under 21 AS 45.50.471. 22  (b) A person may not bring an action under (a) of this section unless 23  (1) the person first provides written notice to the seller or lessor who 24 engaged in the unlawful act or practice that the person will seek an injunction against 25 the seller or lessor if the seller or lessor fails to promptly stop the unlawful act or 26 practice; and 27  (2) the seller or lessor fails to promptly stop the unlawful act or 28 practice after receiving the notice. 29  Sec. 45.50.536. Mediation. Notwithstanding the other provisions of 30 AS 45.50.471 - 45.50.561, a civil action under AS 45.50.531 or 45.50.535 may be 31 submitted to mediation under the Alaska Rules of Civil Procedure. The mediation

01 must begin within 30 days after the court's order for mediation. During mediation, the 02 court may, if it is determined appropriate by the court, enjoin the defendant from 03 engaging in the act or practice that is the subject of the civil action. 04  Sec. 45.50.537. Attorney fees, costs, and damages. (a) In an action brought 05 by a private person under AS 45.50.471 - 45.50.561, a prevailing plaintiff shall be 06 awarded costs as provided by court rule and full reasonable attorney fees at the 07 prevailing reasonable rate. 08  (b) Unless the action is found to be frivolous, in an action brought by a private 09 person under AS 45.50.471 - 45.50.561, a prevailing defendant shall be awarded 10 attorney fees and costs as provided by court rule. If the action is found to be 11 frivolous, the attorney fees to be awarded to the defendant shall be full reasonable 12 attorney fees at the prevailing reasonable rate. 13  (c) Notwithstanding the other provisions of this section, in an action brought 14 by a private person under AS 45.50.471 - 45.50.561, if the plaintiff is not the 15 prevailing party and if the court finds that the action was brought by the plaintiff to 16 obtain a competitive business advantage, the court shall award a prevailing defendant 17 costs as provided by court rule, full reasonable attorney fees at the prevailing 18 reasonable rate, and any damages suffered by the prevailing defendant as a result of 19 the plaintiff's allegations. 20  (d) In this section, "frivolous" means 21  (1) not reasonably based on evidence or on existing law or a reasonable 22 extension, modification, or reversal of existing law; or 23  (2) brought to harass the defendant or to cause unnecessary delay or 24 needless expense. 25 * Sec. 6. AS 45.50.531(g) is repealed. 26 * Sec. 7. AS 45.50.536, enacted by sec. 5 of this Act, only applies to causes of action that 27 accrue on or after the effective date of this Act.