Justia Colorado Supreme Court Opinion Summaries

Jesse Lipschuetz lived next door to Open Door Ministries. Lipschuetz filed claims against the City of Denver and Open Door looking to revoke a rooming and boarding permit the City granted to Open Door. The trial court concluded the City should not have issued the permit, but stayed revocation until Open Door's cross-claims were resolved. Several months later, the trial court granted summary judgment in favor of Open Door on those cross-claims. On appeal, Lipscheutz argued Open Door's cross-claims against the City were barred by the Colorado Governmental Immunity Act because they "could lie in tort." Therefore, Lipscheutz argued, the trial court lacked jurisdiction over the cross-claims. The court of appeals agreed with that reasoning, and reversed the trial court. The Supreme Court reversed the appellate court, finding that the Colorado Governmental Immunity Act did not apply to Open Door's request for prospective relief to prevent future injury. Because Open Door had not suffered an injury before it filed its cross-claims, the Act did not bar those claims seeking prospective relief from future injury. Therefore, the trial court had jurisdiction over those cross-claims. View "Open Door Ministries v. Lipschuetz" on Justia Law

Norma Hoff owned a home she rented through a property management agency. The roof sustained hail damage, and she contracted with Alliance Construction & Restoration, Inc. (Alliance) to make the repairs. Alliance subcontracted the roof repairs to MDR Roofing, Inc. (MDR). MDR employed Hernan Hernandes as a roofer. While working on Hoff's roof, Hernandez fell from a ladder and suffered serious injuries. He filed a workers' compensation claim against MDR, but MDR's insurer, Pinnacol Assurance, denied the claim because MDR's insurance coverage had lapsed. The issue this case presented for the Supreme Court's review was whether Pinnacol had a legal obligation to notify MDR of a certificate of insurance when the policy evidenced by the certificate was cancelled. Based on the certificate at issue in this case and the applicable statute, the Colorado Supreme Court concluded that the insurer had no such obligation. Therefore, the Court reversed the appellate court's judgment to the contrary. View "Pinnacol Assurance v. Hoff" on Justia Law

A Colorado State Trooper stopped the vehicle in which Victor Zuniga was riding as a passenger. The vehicle was carrying over a pound of raw marijuana and marijuana concentrate. Zuniga was ultimately charged with two counts of possession with intent to manufacture or distribute marijuana or marijuana concentrate. Zuniga pled not guilty, and moved to suppress, arguing that the seized marijuana was the fruit of an illegal detention and search. In particular, Zuniga argued: (1) the Trooper lacked reasonable suspicion to stop the vehicle in the first place; (2) the prolonged detention was unlawful; and (3) the vehicle search was not supported by probable cause. The trial court found that because marijuana possession was legal in certain circumstances in Colorado, and drug-sniffing dogs were unable to differentiate between legal and illegal amounts of marijuana, the court concluded there was no probable cause to search the vehicle because the Trooper could only speculate about the amount of marijuana he smelled. The Supreme Court reversed, finding that after a review of the facts, noting the driver and Zuniga's divergent stories about their time in Colorado, their "extreme" nervousness, the strong odor of marijuana and the drug-dog's sniff test, there was probable cause. Therefore, the trial court erred in suppressing evidence of the marijuana. View "Colorado v. Zuniga" on Justia Law

Jeffery Freeman was convicted of third degree assault on an at-risk adult. Later, when he applied for a motor vehicle salesperson’s license, the Colorado Motor Vehicle Dealer Board (the Board) denied his application pursuant to the mandatory disqualification statute, section12-6-118(7)(a)(I), C.R.S.(2015). Under the statute, a person who has been convicted of a felony “in violation of article3, 4 or 5 of title 18, C.R.S., or any similar crime” must have his or her application for a license to sell cars denied. The question before the Supreme Court was whether Freeman’s conviction for the felony offense of third degree assault on an at-risk person was a “felony in violation of article 3” for the purpose of the mandatory disqualification statute, where the elements of the crime were contained in section 18-3-204, but the felony enhancement provision was contained in section 18-6.5-103(3)(c). Because the felony enhancement for third degree assault did not constitute a separate offense under "Colorado v. McKinney," (99 P.3d 1038, 1043 (Colo. 2004)), the Supreme Court concluded that Freeman was convicted of a felony “in violation of article 3. . . of title 18,”and therefore he was ineligible to receive a motor vehicle salesperson’s license under section 12-6-118(7)(a)(I). Accordingly, the Supreme Court reversed the court of appeals holding to the contrary, and remanded for further proceedings. View "Colorado Motor Vehicle Dealer Board v. Freeman" on Justia Law

Petitioners Scot Hutchins and John Casper petitioned for review of a court of appeals’ judgment affirming the district court’s ruling in favor of La Plata Mountain Resources, Inc. (La Plata) in an action brought by La Plata to collect on certain debentures issued by Leadville Mining and foreclose on a deed of trust securing the debts. Although Leadville’s authorized agent had signed documents acknowledging its obligations for the amounts owed on other similar debentures held by Hutchins and Gasper, the applicable statute of limitations had run on any action by Hutchins and Gasper to collect on the debts or foreclose on the deed of trust, leaving La Plata as the sole secured creditor. Because the documents in question were in writing, were signed by Leadville, and contained a clear and unqualified acknowledgement of the debt owed to Hutchins and Gasper, the Supreme Court concluded they constituted a new promise to pay, establishing a new accrual date and effectively extending the limitations period on collection of the debt, according to the statutes and case law of this jurisdiction, whether or not the documents in question also successfully modified the terms of the debentures. The judgment of the court of appeals in this case was reversed and the matter remanded for further proceedings. View "Hutchins v. La Plata MountaIn re ., Inc." on Justia Law

Respondent Jennifer Hansen was injured in a motor vehicle accident in late 2007. Four months later, she presented an underinsured motorist (“UIM”) claim to petitioner American Family Mutual Insurance Company (“American Family”), insurer of her vehicle. As proof of insurance, Hansen offered lienholder statements issued to her by American Family’s local agent that identified her as the named insured at the time of the accident. American Family’s own records, however, indicated that the named insureds on the policy at the time of the accident were Hansen’s stepfather and mother, William and Joyce Davis (the “Davises”). In reliance upon the policy as reflected in its own records, American Family determined that Hansen was not insured under the policy and denied coverage. Hansen filed an action against American Family asserting claims for breach of contract, common law bad faith, and statutory bad faith for unreasonable delay or denial of benefits under sections 10-3-1115 and -1116, C.R.S. (2015). Prior to trial, American Family reformed the contract to name Hansen as the insured, and the parties settled the breach of contract claim, leaving only the common law and statutory bad faith claims for trial. The trial court ruled that the deviation in the records issued by American Family’s agent and those produced by its own underwriting department created an ambiguity in the insurance policy as to the identity of the named insured, and instructed the jury that an ambiguous contract must be construed against the insurer. The jury found in favor of Hansen on the statutory bad faith claim, indicating on a special verdict form that American Family had delayed or denied payment without a reasonable basis for its action. The trial court awarded Hansen attorney fees, court costs, and a statutory penalty. American Family appealed the judgment and award of statutory damages, arguing, among other things, that the trial court erred in finding that the lienholder statements created an ambiguity in the insurance contract as to the identity of the insured and that, at the very least, the contract was arguably unambiguous such that the company had a reasonable basis to deny coverage and could not be liable for statutory bad faith. The court of appeals affirmed, finding that the lienholder statements created an ambiguity and that, even assuming American Family’s legal position was a reasonable one, American Family could still be held liable for statutory bad faith. After its reverse, the Supreme Court reversed. Because the insurance contract unambiguously named William and Joyce Davis as the insureds at the time of the accident, the trial court and court of appeals erred in relying on extrinsic evidence to find an ambiguity in the insurance contract, "[a]n ambiguity must appear in the four corners of the document before extrinsic evidence can be considered." Accordingly, American Family’s denial of Hansen’s claim in reliance on the unambiguous insurance contract was reasonable, and American Family could not be held liable under sections 10-3-1115 and -1116 for statutory bad faith. View "Am. Family Mut. Ins. Co. v. Hansen" on Justia Law

Just in Case Business Lighthouse (JIC) , owned and operated by Joseph Mahoney, entered into an agreement with Pearl Development Company, whereby Pearl agreed to pay JIC a specified commission if it found a buyer for Pearl. Without JIC's knowledge, Pearl's agents, including its president, Patrick Murray, signed a letter of intent to sell Pearl with Epic Energy Resources, Inc. Before the sale was completed, Murray contacted Mahoney and convinced him to sign a termination agreement, ending their previous business arrangement. Five months later, Epic bought Pearl. Upon learning of the sale, JIC sued Pearl's officers and owners (including Murray) alleging they fraudulently misrepresented their intentions and failed to disclose that Epic was planning to purchase Pearl. The misrepresentation was used to induce Mahoney to sign the termination agreement and deprive him of his commission. In its preparation for trial, JIC hired businessman Preston Sumner as an advisor, and granted him a ten-percent interest in the case contingent on the outcome. Sumner did a variety of work related to the suit. JIC disclosed Sumner as a witness and indicated that it intended to use Sumner as an expert in the case. Murray moved to preclude Sumner from testifying, arguing that RPC 3.4(b) prohibiting compensating witnesses on a contingency fee basis. The trial court granted the motion in part and denied in part, finding that RPC 3.4(b) only prohibited Sumner from testifying as a non-expert witness. The court allowed him to testify as a law witness. Sumner testified; the jury returned its verdict in favor of JIC. Murray appealed, renewing arguments he made at the trial court challenging Sumner's testimony. The Supreme Court reversed the court of appeals' judgment to the extent that it remanded the case back to the trial court to determine whether Sumner's testimony should have been excluded. The Court affirmed the trial court in all other respects. View "Murray v. Just In Case Bus. Lighthouse, LLC" on Justia Law

Respondent Steve Taylor invested $3 million in several investment companies operated by Sean Mueller. Unbeknownst to Taylor, the companies were part of a multi-million dollar Ponzi scheme. The "Mueller Funds" received approximately $150 million in investments, and paid out a little less than $90 million to investors before collapsing. Taylor happened to receive approximately $3.4 million (a return of his invested principal plus net profit) prior to the collapse. Other investors were not as fortunate, losing a sum total of approximately $72 million. In 2010, Mueller ultimately pled guilty to securities fraud, and was sentenced to a total of 40 years in prison. In addition, he was ordered to pay over $64 million in restitution. Petitioner C. Randel Lewis was appointed as Receiver for the Mueller Funds, tasked with collecting Mueller's assets to his creditors and defrauded investors. The Receiver and Taylor signed a tolling agreement that extended the time period within which the Receiver could bring suit against Taylor in an attempt to recover assets. The eventual complaint sought to recover the net profit Taylor received. Taylor received his last payout in April 2007, and moved for summary judgment claiming the Receiver's claim was time barred due to the applicable statute of limitations. The trial court considered the tolling agreement and ruled in the Receiver's favor. Taylor appealed, and the court of appeals reversed, interpreting the term "extinguished," as used in 38-8-110(1), C.R.S. (2015), imposed a jurisdictional time limit on filing a claim, and that the parties could not toll that limit by agreement. The Supreme Court concluded that 38-8-110(1)'s time limitation could indeed be tolled by express agreement. The Court reversed the appellate court and remanded the case for further proceedings. View "Lewis v. Taylor" on Justia Law

The issue this case presented for the Colorado Supreme Court's review centered on whether a property titled in the name of a judgment debtor's co-settled revocable trust was subject to a judgment lien against the debtor. Petitioners were co-settlors and co-trustees of a revocable trust that held title to some Colorado property. Respondent obtained two judgments, and filed a quiet title action for a decree of foreclosure. Petitioner moved for judgment on the pleadings, arguing that respondent's complaint was barred by the statute of limitations in 13-80-101(1)(k), C.R.S. (2015). The trial court denied the motion. After granting certiorari review, the Colorado Supreme Court concluded that as a settlor of a revocable trust, petitioner held an ownership interest in the trust's assets. Respondent could properly seek to enforce its judgment against petitioner, and the action was not barred by the statute of limitations. View "Pandy v. Independent Bank" on Justia Law

Petitioner Salynda E. Fleury brought a negligence and wrongful death suit against respondent IntraWest Winter Park Operations Corporation (“Winter Park”) after her husband was killed in an in-bounds avalanche at its resort. Fleury claimed that, although Winter Park knew that avalanches were likely to occur in the area where her husband was skiing that day, it neither warned skiers about this risk nor closed the area. Winter Park filed a motion for a determination of law under C.R.C.P. 56(h) and for judgment on the pleadings under C.R.C.P. 12(c), arguing that in-bounds avalanches were an inherent risk of skiing as defined in the Ski Safety Act of 1979 (SSA) and that the SSA therefore precluded the lawsuit. The trial court agreed and dismissed the action pursuant to section 33-44-112. The court of appeals affirmed the dismissal in a split decision. The Colorado Supreme Court granted certiorari and affirmed: the definition of “inherent dangers and risks of skiing” in section 33-44-103(3.5), C.R.S. (2015), specifically included “snow conditions as they exist or may change.” This phrase encompassed an in-bounds avalanche, "which is, at its core, the movement, or changing condition, of snow." View "Fleury v. IntraWest Winter Park Operations Corp." on Justia Law