Justia Colorado Supreme Court Opinion Summaries

Travelers Property Casualty Company of America (Travelers) petitioned for review of a court of appeals judgment affirming the district court’s denial of its motion for directed verdict in a lawsuit brought by its insured, Stresscon Corporation. Stresscon, a subcontracting concrete company, filed suit against Travelers, alleging, among other things, that Travelers acted in bad faith, unreasonably delaying or denying its claim for covered insurance benefits; and Stresscon sought awards of two times the covered benefits along with fees and costs, as prescribed by statute. Stresscon’s claims for relief arose from a serious construction accident in July 2007, which was caused by a crane operator employed by a company that was itself a subcontractor of Stresscon. Stresscon’s general contractor, Mortenson, sought damages from Stresscon, asserting Stresson’s contractual liability for the resulting construction delays, and Stresscon in turn sought indemnification from Travelers. Although there was much dispute over the factual and legal import of Travelers’ reservation of rights and other of its communications with both Stresscon and Mortenson concerning Mortenson’s claim, there was no dispute that by December 31, 2008, Travelers had not paid the damages asserted by Mortenson. The appellate court rejected Travelers’ contention that the no-voluntary-payments clause of their insurance contract relieved it of any obligation to indemnify Stresscon for payments Stresscon had made without its consent. Instead, the court of appeals found that the Colorato Supreme Court's opinion in "Friedland v. Travelers Indemnity Co.," (105 P.3d 639 (2005)) had effectively overruled prior “no voluntary payments” jurisprudence to the contrary and given Stresscon a similar opportunity. The Supreme Court found that its adoption of a notice-prejudice rule in "Friedland" did not overrule any existing “no voluntary payments” jurisprudence in Colorado, and because the Court declined to extend notice-prejudice reasoning in Friedland to Stresscon’s voluntary payments, made in the face of the no-voluntary-payments clause of its insurance contract with Travelers, the judgment of the court of appeals was reversed. View "Travelers Prop. Cas. Co. v. Stresscon Co." on Justia Law

Petitioner Branch Banking and Trust Company (BB&T) petitioned the Colorado Supreme Court for review of whether a deed of trust securing a promissory note was a negotiable instrument under Colorado's Uniform Commercial Code (UCC). The court of appeals held that deeds of trust were not negotiable instruments within the meaning of Article 3 of the UCC, therefore BB&T was not a holder in due course with respect to the deed at issue here. The Supreme Court affirmed, but on different grounds: in this case, the deed and other documents were forged. "[E]ven assuming a deed of trust qualifies as a negotiable instrument, holder-in-due-course status does not preclude a purported maker from asserting a forgery defense." Here, the purported maker possessed a valid forgery defense, his negligence didn't contribute to the forgery, and he did not ratify the forged documents. As such, the Court did not reach the issue of negotiability under Article 3 of the UCC. View "Liberty Mortg. Corp. v. Fiscus" on Justia Law

Brian Penn was convicted by jury of unlawful sexual contact. On appeal, he argued that the county court erred in allowing an investigating officer to testify that he "had reason to arrest the defendant for a crime that had been committed." The district court agreed and reversed the conviction. The State moved for reconsideration which was denied, then appealed to the Supreme Court. Penn moved to dismiss the State's appeal, arguing it was outside the time limit set by Colorado Appellate Rule 52(a). The Supreme Court granted certiorari review and concluded that the State's petition was timely, and that the county court's admission of the officer's testimony was not reversible plain error. The Court reversed the district court and remanded for reinstatement of Penn's conviction. View "Colorado v. Penn" on Justia Law

In 2001 when he was twenty-eight years old, respondent David Corson had a sexual relationship with "K.B.," a seventeen-year-old client of the residential treatment facility where Corson worked. Two years later, he pled guilty to sexual assault on a child, position of trust. The prosecution agreed to recommend a sentence of probation and dismiss a separate charge. Approximately three years before this plea, the prosecutor in this case obtained a juvenile adjudication against K.B. for falsely reporting a sexual assault. That case had no connection except that it could have been used to impeach K.B.'s credibility at Corson's trial. This adjudication was not disclosed to Corson, and as a result, he sought to overturn his conviction. The post-conviction court denied relief, and the court of appeals reversed. The Attorney General petitioned the Supreme Court for review. Corson argued that the State's non-disclosure rendered his plea involuntary and his plea counsel ineffective. The Supreme Court reversed the court of appeals, finding no due process violation, that Corson knew of K.B.'s adjudication prior to his plea, and that the adjudication was not part of K.B.'s criminal history and therefore not subject to automatic disclosure. View "Colorado v. Corson" on Justia Law

Initiative #63 would establish a right to a healthy environment in Colorado by amending the state Constitution. Petitioners argued the text of the Initiative filed a motion to the Title Board, arguing the Initiative as written was misleading and contained multiple subjects. The Supreme Court reviewed the Title Board's action setting the title, ballot title and submission clause for the Initiative, and concluded that the Initiative contained a single subject, and that the title clearly expressed the subject and was not misleading. View "In the Matter of the Title, Ballot Title and Submission Clause for 2015" on Justia Law

As a condition of probation, the trial court ordered Carl Ruch to complete a sex offender polygraph and participate in sex offense specific treatment intervention. Ruch refused such treatment, contending that participating would have violated his Fifth Amendment privilege against self-incrimination. Due to this refusal, the trial court revoked Ruch's probation and sentenced him to a prison term. The court of appeals reversed, finding that Ruch's Fifth Amendment rights would have been violated had he complied with the trial court's order. The case was remanded to the trial court to determine whether Ruch's probation officer would have sought to revoke probation based solely on the other probation violations, and if so, whether the trial court would have revoked on other grounds. The Supreme Court reversed the court of appeals. The Supreme Court found no Fifth Amendment violation, finding Ruch's purported invocation of the Fifth was premature and amounted to a "prohibited blanket assertion of the privilege." View "Colorado v. Ruch" on Justia Law

The State challenged a district court order denying the probation department's complaint to revoke Bryan Roberson's sex offender intensive supervision probation (SOISP). The State sought to revoke probation because Roberson (among other thins) allegedly failed to participate in a sex offender evaluation and treatment program, allegedly refusing to answer during a polygraph test. Roberson refused to answer on advice of counsel, fearing that the answers would be used against him in future criminal proceedings (he had a direct appeal of his conviction pending at the time of the polygraph test). The district court denied the State's revocation complaint, concluding that answering the questions would have violated Roberson's Fifth Amendment rights to self-incrimination. After review, the Supreme Court agreed with the district court and affirmed. View "Colorado v. Roberson" on Justia Law

The Colorado Supreme Court accepted this case from the court of appeals because it had granted certiorari in two other cases involving similar issues ("City of Littleton v. Industrial Claim Appeals Office," 2016 CO 25, ___ P.3d ___, and "Industrial Claim Appeals Office v. Town of Castle Rock," 2016 CO 26, ___ P.3d ___). In these cases, the Court interpreted section 8-41-209, C.R.S. (2015), of the Workers’ Compensation Act of Colorado, which provided workers’ compensation overage, under certain conditions, for occupational diseases affecting firefighters. An employer can show, by a preponderance of the medical evidence, either: (1) that a firefighter’s known or typical occupational exposures are not capable of causing the type of cancer at issue, or (2) that the firefighter’s employment did not cause the firefighter’s particular cancer where, for example, the claimant firefighter was not exposed to the cancer-causing agent, or where the medical evidence renders it more probable that the cause of the claimant’s cancer was not job-related. Englewood firefighter Delvin Harrell was diagnosed with melanoma, underwent surgery to remove it, and sought workers' compensation benefits. Englewood sought to overcome the statutory presumption. Because the ALJ and the Panel in this case did not have the benefit of the Supreme Court's analysis in City of Littleton and Town of Castle Rock, it set aside the Panel’s order affirming the ALJ and remanded this case to the Panel with directions to return the matter to the ALJ for reconsideration in light of the "Littleton" and "Castle Rock" decisions. View "City of Englewood v. Harrell" on Justia Law

Littleton firefighter Jeffrey Christ was diagnosed with glioblastoma multiforme (“GBM,” a type of brain cancer). After undergoing surgery, chemotherapy, and radiation, he returned to work, but ultimately died as a result of the disease. He (and later his widow and child) sought workers’ compensation benefits to cover his cancer treatment, asserting that his brain cancer qualified as a compensable occupational disease under the “firefighter statute” of the Workers’ Compensation Act of Colorado. .At issue here was whether Christ’s employer, the City of Littleton, and Littleton’s insurer, Cannon Cochran Management Services, Inc. (collectively “Littleton”), successfully overcame a statutory presumption that Christ’s condition resulted from his employment as a firefighter. After review, the Supreme Court held that the employer, through a preponderance of the evidence, could meet its burden to show the firefighter's cancer "did not occur on the job" by establishing the absence of specific causation. Here, the ALJ applied the statutory presumption and found that Littleton established by a preponderance that Christ's GBM condition was not caused by his occupational exposures. A panel of the Industrial Claim Appeals Office (“Panel”) reversed, concluding that Littleton’s medical evidence was insufficient to overcome the presumption. In a split decision, a division of the court of appeals affirmed the Panel. Because the Supreme Court disagreed with the court of appeals’ interpretation of the breadth of the statutory presumption and of the employer’s burden to overcome the presumption, the Court concluded that the court of appeals erroneously evaluated the medical evidence presented by Littleton and erroneously failed to defer to the ALJ’s findings of fact, which are supported by substantial evidence. The court of appeals' judgment was therefore reversed and the case remanded back to the Panel for reinstatement of the ALJ’s original findings of fact, conclusions of law, and order. View "City of Littleton v. Indus. Claim Appeals Office" on Justia Law

Castle Rock firefighter Mike Zukowski was diagnosed with melanoma. He had three surgeries to remove the melanoma and was then released to return to work on full duty. He sought both medical benefits and temporary total disability benefits under the "firefighter statute" of the Workers’ Compensation Act of Colorado, asserting that his melanoma qualified as a compensable occupational disease. At issue here was whether Zukowski’s employer, the Town of Castle Rock, and Castle Rock’s insurer, the Colorado Intergovernmental Risk Sharing Agency (collectively, “Castle Rock”), could overcome a statutory presumption that Zukowski’s condition resulted from his employment as a firefighter by presenting evidence indicating that Zukowski’s risk of melanoma from other sources was greater than his risk of melanoma from firefighting. After review, the Supreme Court held that the employer, through a preponderance of the evidence, could meet its burden to show the firefighter's cancer "did not occur on the job" by establishing the absence of specific causation. Here, Castle Rock sought to establish the absence of specific causation by presenting evidence indicated that Zukowski's particular risk of developing melanoma from other, non-job-related sources outweighed his risk of developing it from on-the-job, and that an employer could rely on such evidence to overcome the statutory presumption. The Court affirmed the court of appeals and remanded this case back to the ALJ for reconsideration. View "Indus. Claim Appeals Office v. Town of Castle Rock" on Justia Law