Justia Colorado Supreme Court Opinion Summaries

The Cordells were the record owners of a tract of land in La Plata County (Tract1), and Mr. Cordell was also the record owner of an adjoining tract that had been deeded to him by his grandmother (Tract2). After the Cordells failed to pay the taxes owed on these properties for three successive years, Brenda Heller purchased tax liens for each tract and later assigned these liens to Bradley Klingsheim. Thereafter, Klingsheim requested deeds for the properties from the Treasurer. The question this case presented for the Colorado Supreme Court's review principally required the Court to determine the scope of a county treasurer’s duty of diligent inquiry, pursuant to section 39-11-128(1), C.R.S. (2015), in attempting to notify a taxpayer that his or her land may be sold to satisfy a tax lien. The Cordells contended that the deeds were void because the La Plata County Treasurer’s Office had not fulfilled its statutory duty of diligent inquiry in attempting to notify the Cordells that it would be issuing a tax deed for the Cordells’ properties. After review, the Supreme Court concluded that a county treasurer had an initial duty to serve notice of a pending tax sale on every person in actual possession or occupancy of the property at issue, as well as on the person in whose name the property was taxed or specially assessed, if upon diligent inquiry, such persons can be found in the county or if their residences outside the county are known. In addition, we hold that a treasurer owed a duty of further diligent inquiry after an initial notice has been sent only when the facts known to the treasurer show that the taxpayer could not have received the notice of the pending tax sale. The Court concluded the Treasurer satisfied its duty of diligent inquiry. In addition, the Court concluded that the notice that the Treasurer provided in this case satisfied due process requirements. View "Klingsheim v. Cordell" on Justia Law

In 2011, In 2011, Regional Transportation District (“RTD”) filed a petition in condemnation against 750 West 48th Avenue, LLC (“Landowner”) to acquire approximately the approximately 1.6 acre property a light rail project. Landowner was leasing the property to a commercial waterproofing business ("Tenant"). Over the years, Landowner made several luxury improvements to the property, including adding a steam room, fitness room, atrium, ceramic and cherry-wood flooring, and marble and granite finishes. The parties stipulated to every condemnation issue except the property's reasonable market value. Landowner elected to litigate the property's value through a commission trial. RTD established the value at $1.8 million; Landowner thought the property was worth $2.57 million. Landowner's calculations focused solely on the cost of replacement; RTD based its estimation on a "superadequacy" theory, asserting that many of the luxury improvements that Landowner made to an industrial property would not fetch a price on the open market commensurate with the cost of replacement. The issue this case presented for the Supreme Court's review centered on the interplay between the respective authorities of the supervising judge and the commission to make evidentiary rulings in eminent domain valuation hearings. Specifically, the Court considered: (1) whether a commission could alter a supervising judge's ruling in limine regarding admissibility, and (2) whether the supervising judge could instruct the commission to disregard as irrelevant evidence that the commission had previously admitted. The Supreme Court held that judicial evidentiary rulings controlled in valuation hearings. Thus, the Court affirmed the court of appeals' judgment insofar as it approved the supervising judge instructing the commission to disregard previously admitted evidence as irrelevant. The Court reversed that portion of the appellate court's opinion permitting the commission to alter the judge's evidentiary ruling in limine. View "RTD v. 750 West 48th Ave., LLC" on Justia Law

In 2011, Regional Transportation District ("RTD") filed a petition in condemnation against 750 West 48th Ave., LLC ("Landowner") to acquire the property for development of a light rail project. Landowner was leasing the property to a commercial waterproofing business. Over the years, Landowner had made several luxury improvements to the property, including adding a steam room, a fitness room, an atrium, ceramic and cherry-wood flooring, and marble and granite finishes. The parties stipulated to every condemnation issue except the property's reasonable market value. Landowner elected to litigate the property's value through a commission trial, in which a trial judge appointed three independent freeholders to determine the value of a condemned property under a judge's supervision. RTD estimated the reasonable market value of the condemned property at $1,800,000. Landowner proffered a reasonable market value of $2,570,000. While Landowner's calculations focused solely on the cost of replacement, RTD based its estimation on a "superadequacy" theory, asserting that many of the luxury improvements that Landowner had made to the industrial property would not fetch a price on the open market commensurate with their costs of replacement. To bolster its theory, RTD sought to introduce the two pieces of evidence central to this appeal: (1) testimony from expert witness Steve Serenyi regarding alternate approaches to calculating the value, including comparable property values and an income-based approach; and (2) evidence regarding the value of the property to which Landowner relocated its business. The Colorado Supreme Court surmised that the overarching issue in this case centered on the interplay between the respective authorities of the supervising judge and the commission to make evidentiary rulings in eminent domain valuation hearings. Specifically, at issue was: (1) whether a commission may alter a supervising judge's ruling in limine regarding admissibility; and (2) whether the supervising judge may instruct the commission to disregard as irrelevant evidence that the commission had previously admitted. The Court held that judicial evidentiary rulings controlled in valuation hearings. Thus, the Court affirmed the court of appeals 'judgment insofar as it approved of the supervising judge instructing the commission to disregard previously admitted evidence as irrelevant and reverse that portion of the court of appeals opinion permitting the commission to alter the judge's evidentiary ruling in limine. View "RTD v. 750 West 48th Ave., LLC" on Justia Law

The Upper Black Squirrel Creek Ground Water Management District appealed a water court order that interpreted an earlier stipulated decree to which it and Cherokee Metropolitan District were parties, concerning Cherokee's rights to deliver wastewater returns back to the Upper Black Squirrel Basin for recharge of the aquafier. Upper Black Squirrel District sought a declaration that the stipulation bar Cherokee and Meridian (another metropolitan district with which Cherokee had entered into an intergovernmental agreement) from claiming credit for the wastewater returns as replacement water, for purposes of acquiring the right to additional pumping from Cherokee's wells in the basin. The water court ruled instead that nothing in the stipulation implied abandonment or forfeiture of any right Cherokee might otherwise have to claim future credits with the Ground Water Commission. The Colorado Supreme Court concluded the water court properly interpreted the stipulation, it affirmed the order. View "Up. Black Squirrel Creek Grnd Water Mgmt Dist v. Cherokee Metro. Dist." on Justia Law

This water case involving neighboring property owners in Saguache County presented an issue of first impression for the Supreme Court: may the land owner whose property is burdened by an easement across his or her property for a water ditch obtain a junior conditional water right at the headgate of that ditch for non-consumptive hydropower use of water that the neighbor is diverting from the stream under a senior water right for irrigation use through that headgate? Applying the no material injury, water availability, and maximum beneficial use principles of Colorado water law, in conjunction the decision in "Roaring Fork Club, L.P. v. St. Jude’s Co.," (36P.3d 1229 (2001)), the District Court for Water Division No. 3 issued a declaratory judgment and a conditional water right decree in the amount of 0.41 cubic feet per second ("cfs") with a 2010 priority for hydropower use to Charles and Barbara Tidd for diversion from Garner Creek at the headgate of Garner Creek Ditch No. 1. The Plaintiffs–Appellants, David L. Frees, George A. Frees, Delmer E. Frees, and Shirley A. Frees, asserted that the water court lacked authority to decree this water right over their objection. After review, the Supreme Court deferred to the water court's findings of fact and upheld its conclusions of law. Under the circumstances of this case, the Court held that the water court did not err in issuing a conditional decree for a non-consumptive hydropower use water right with a 2010 priority for 0.41 cfs diverted from Garner Creek through the headgate of Garner Creek Ditch No. 1. View "Frees v. Tidd" on Justia Law

Petitioner Barbara Jordan sued respondent Panorama Orthopedics and Spine Center, PC for negligence and premises liability. After receiving medical treatment at the Center, Jordan tripped over uneven sidewalk slabs near Panorama's main entrance. She fell and suffered a concussion and an orbital fracture. The issue this case presented for the Supreme Court's review was whether the Colorado pRemises Liability Act (PLA) applied to a commercial tenant defendant for injuries plaintiff sustained in a common area. Specifically, the case turned on whether the tenant qualified as a "landowner" under the PLA. A jury ultimately found in favor of petitioner. The clinic appealed, and the Court of Appeals reversed. After its review, the Supreme Court agreed with the appellate court, concluding that because the clinic neither was in possession of the sidewalk where petitioner fell, it was not legally responsible for the condition of the sidewalk or for the activities conducted or circumstances existing there, so it was not a landowner as defined by the PLA. View "Jordan v. Panorama Orthopedics & Spine Ctr., PC" on Justia Law

Applicants-appellants Tom McKenna and McKenna Ranch challenged a water court decision regarding the abandonment list of three of its water rights. The Division Engineer placed applicants' three Sanchez Ditch water rights on the decennial abandonment list because the ditch had not diverted water for several decades. After a hearing in 2013, the water court determined that the Sanchez Ditch water rights had not been applied to beneficial use for the statutory abandonment period, and found applicants had failed to rebut the resultant presumption of intent to abandon the rights. Applicants argued on appeal to the Supreme Court that the water court's judgment was improper because the Division Engineer missed the statutory deadline to prepare the abandonment list by several days, which they claim divested the water court of jurisdiction. The Supreme Court disagreed: the deadline to prepare the list under 37-92-401(1)(a), C.R.S. (2014), was directional and not a jurisdictional mandate. Thus the Division Engineer's failure to prepare the list by the statutory deadline did not divest the water court of jurisdiction. Furthermore, because the record supported the water court's conclusion that applicants intended to permanently discontinue using the Sanchez Ditch water rights, the Supreme Court affirmed the water court's judgment of abandonment. View "McKenna v. Witte" on Justia Law

The Tip Jackwater right was originally decreed to service the Tip Jack Ditch, which is part of a 4,000-acre ranch now owned and operated by the Jim Hutton Educational Foundation. The State and Division 1 Engineers added the Tip Jack water right to the 2010 Revised Decennial Abandonment List for Water Division One because they found that the Foundation had abandoned the right. The Foundation challenged the listing. After trial, the water court concluded that the Engineers had not established by a preponderance that Jim Hutton or the Foundation had failed to use the Tip Jack water right, and even if they had, the Foundation had rebutted the presumption of abandonment. The Engineers appealed. The issue this case presented on appeal for the Supreme Court's review was one of first impression: how the presumption of abandonment applied when the water right holder continued to put decreed water to the use for which it was decreed, but nevertheless failed to divert water from the decreed diversion point for a period of ten years or more. The Supreme Court held that hold that when the Engineers prove that the water right holder has not used the decreed point of diversion for ten years or more, the Engineers trigger the rebuttable presumption of abandonment under C.R.S. section 37-92-402(11).Once triggered, the burden shifts to the water right holder to demonstrate a lack of intent to abandon. Because the water court erroneously believed that proof of nonuse at the decreed point of diversion was insufficient to raise the presumption, it failed to require evidence excusing such nonuse in order to rebut the presumption. The Court therefore reverse the water court’s judgment and remand for reconsideration of whether the Foundation met its burden of rebutting the presumption of abandonment. View "Wolfe v. Jim Hutton Educational Foundation" on Justia Law

This case stemmed from a series of contracts surrounding the construction of a custom home. Petitioners are soil engineering corporations that subcontracted with developer Sun Mountain Enterprises, LLC to perform soil analysis and soil engineering related to the construction of the home. SK Peightal Engineers, LTD entered an oral contract with general contractor Shannon Custom Homes. Petitioner Hepworth-Pawlak Geotechnical, Inc. entered into a written contract with Sun Mountain containing a duty of care provision. It was unclear whether SK Peightal's oral contact contained the same duty of care requirement. Sun Mountain planned on selling the completed home on the open market, but due to the economic downturn, the house sat until the construction loan contract matured and came due, at which point Sun Mountain and its lender entered into an "Agreement for Deed-in-Lieu of Foreclosure. Sun Mountain was thereby absolved of personal liability for the loan, and the bank took ownership of the house. After the lender took possession, large cracks formed in the walls of the home due to a settling of the soil beneath the home's foundation. The lender sued petitioner soils engineers for negligence. Petitioners moved for summary judgment under the economic loss rule, asserting that the lender was contractually interrelated through the deed-in-lieu and the loan contract to the duty provisions contained in petitioners' contracts with Sun Mountain, and thus the lender was barred from asserting a negligence claim for economic loss. The trial court rejected petitioners' motion. Petitioners then appealed. After review, the Colorado Supreme Court reversed and remanded, finding the appellate court misinterpreted the case law authority pertaining to this case. View "S K Peightal Engineers, LTD v. Mid Valley Real Estate Solutions V" on Justia Law

In an interlocutory appeal, applicants sought to change their use of an absolute water right. Applicants conducted a historical consumptive use (HCU) analysis to determine the amount of water previously used in accordance with its decreed right. Applicants performed the analysis on acreage not contemplated by the original appropriation nor any subsequent decree. The water court rejected the HCU. The issue this case presented for the Colorado Supreme Court's review centered on whether applicant could conduct an HCU on acreage not associated with the relevant water right. After review of the parties' arguments in this case, the Supreme Court concluded that a HCU on acreage beyond its associated water right is impermissible. The Court affirmed the water court's judgment and remanded this case for further proceedings. View "Widefield Water v. Witte" on Justia Law