Kenai Chrysler Center, Inc. v. Denison

David Denison (plaintiff), a developmentally disabled adult under his parents' formal legal guardianship, bought a vehicle from Kenai Chrysler (defendant); when his mother told the dealership he had no legal authority to contract, its manager responded dismissively and refused to unwind the sale. The Denisons sued to void the contract and enjoin further payments; the trial court granted summary judgment that the contract was void as a matter of law, and a jury later awarded treble damages under Alaska law. Kenai appealed, relying on a prior case holding that a party contracting with an incompetent (but not formally guardianship-declared) individual is entitled to restitution absent actual or constructive knowledge of incompetence.