SDI, Inc. v. Pivotal Parker, LLC

The issue this case presented for the Supreme Court's review centered on whether the Special District Act (SDA) gave special districts the power to assign to a private party the right to receive development fees. Cherry Creek South Metropolitan District 1 assigned to a predecessor-in-interest of petitioner SDI, Inc. the right to receive fees the District assessed on developers within its boundaries to finance development of municipal infrastructure. The District increased the fees by about four percent each of the years prior to the assignment. SDI increased the fees it collected, but at a rate of eight percent per year. SDI sued Pivotal Parker Commercial, LLC to recover unpaid development fees, and requested a declaratory judgment that it could raise annual fees in the future. The trial court held that SDI was entitled to receive the fees as increased annually. Pivotal argued on appeal that the fee increase was an improper delegation of legislative authority. The appellate court reversed the trial court, which found that the District had no right to assign the fees. The Supreme Court reversed the court of appeals, finding that the appellate court's reasoning was contrary to the SDA itself. As such, the Supreme Court held that the District's assignment of the right to collect fees was a lawful exercise of its statutory authority. The case was remanded to the appellate court for consideration of other issues Pivotal raised on appeal. View "SDI, Inc. v. Pivotal Parker, LLC" on Justia Law