Slarskey LLC Represents Kaktovik Inupiat Corporation in High-Stakes Damages Proceeding Following Default

March 3, 2026

Slarskey LLC recently concluded a multi-day evidentiary hearing on damages in a significant commercial dispute on behalf of its client, Kaktovik Inupiat Corporation (KIC), an Alaska Native corporation.

The matter arises from claims that KIC’s former legal advisors engaged in serious misconduct in connection with a failed acquisition transaction and a subsequent restructuring strategy involving one of KIC’s most valuable business enterprises, Marsh Creek LLC.

KIC asserted claims for violations of Alaska’s Unfair Trade Practices Act (UTPA), breach of fiduciary duty, and attorney malpractice. The complaint alleges that defendants abandoned competent transactional safeguards, concealed material valuation information and advanced misleading materials to KIC’s partner, and engineered a foreclosure strategy that stripped the joint venture partner of its interest and exposed KIC to fiduciary liability.

This course of conduct resulted in a loss of significant enterprise value, the collapse of Marsh Creek and successor entities, a judgment of more than $6 million against KIC, and tens of millions of dollars in additional damages.

Procedural Background

In November 2025, the Court struck Defendants’ answer after years of discovery abuse and multiple successful motions to compel by the Slarskey LLC team. Upon striking Defendants’ answer as a penalty for the repeated, willful discovery misconduct, the Court entered default and set the case down for a damages hearing, for KIC to present evidence establishing the full scope of damages, including enterprise value loss, statutory enhancement, and punitive damages, all as a result of defendants’ default on liability.

The Damages Hearing

The damages hearing, held in Anchorage, Alaska, spanned two days and involved detailed presentations regarding:

• KIC’s loss of its enterprise value in Marsh Creek;
• Out-of-pocket-damages stemming from failed restructuring efforts and the collapse of successor entities;
• Attorneys’ fees and related litigation expenses;
• The availability of statutory enhancements and punitive damages under Alaska law.

Audio of Day 1 and Day 2 proceedings are available in the Related Information section of this page. A damages determination is expected shortly.

The case underscores Slarskey LLC’s tenacity, insight, and persistence in pursuing complex cases involving professional misconduct and fiduciary breaches, complex business valuations and lender liability, disputes arising from failed transactions, discovery abuse, and aggressive recovery efforts for its clients.