Justia Civil Procedure Opinion Summaries

This case concerned the relative priority of competing charging orders filed by 15 multiple judgment creditors against a foreign judgment debtor’s membership interests 16 in several Colorado limited liability companies. In July 2013, Chase Bank obtained an Arizona judgment of over $20 million against several defendants, including Reginald Fowler, an Arizona resident. As part of its postjudgment collection efforts, Chase obtained Arizona orders charging Fowler’s membership interests in three Colorado limited liability companies. In March 2014, respondents Douglas McClure, Nancy McClure, and Spiral Broadcasting, L.L.C. (collectively, “the McClures”), obtained a stipulated judgment for $1.5 million against Fowler, among others, in the Arizona Superior Court. In April 2014, the McClures domesticated their Arizona judgment in Colorado, and between May and July 2014, they obtained and served Colorado orders charging Fowler’s membership interests in the LLCs. Now confronted with facially competing charging orders, the LLCs paid Fowler’s then-due distributions into the Colorado District Court registry. That same day, the McClures moved for release of the distribution funds to them, and several days later, Chase sought and obtained leave to intervene and opposed the McClures’ motion. The district court ultimately ordered the distribution funds released to the McClures. Chase then domesticated its Arizona charging orders with a different Colorado District Court, and moved for reconsideration of the release order, arguing that its newly-domesticated charging orders should be deemed effective as of the date they were issued in Arizona and entitled to priority over the McClures’ charging orders. The Colorado Supreme Court concluded first that for purposes of determining the enforceability of a charging order, a membership interest of a non-Colorado citizen in a Colorado limited liability company is located in Colorado. We further conclude that when, as here, a judgment creditor obtains a foreign charging order that compels certain action by a Colorado limited liability company, the charging order is ineffective as against the limited liability company until the creditor has taken sufficient steps to obligate the company to comply with that order. Although the authorities are not uniform as to the steps to be taken, under any of the applicable scenarios, the charging orders obtained by Chase did not become effective until after the respondents had obtained and served competing charging orders. The Court thus concluded that the McClures’ charging orders were entitled to priority over Chase’s competing charging orders. View "JPMorgan Chase Bank N.A. v. McClure" on Justia Law

This case concerned the design and construction of a single-family residence in Pitkin County, Colorado. Heritage Builders, Inc. (“Heritage”) was retained as the general contractor by the original owners of the property, Karen and Courtney Lord. Pitkin County issued a certificate of occupancy for the home in September 2006. In November 2011, Richard Goodman purchased the property from the Lords. Then, sometime between March and June 2012, Goodman discovered the alleged construction defects in the home. Goodman gave Heritage informal notice of his construction defect claims in July 2013. In this original proceeding, the issue presented for the Colorado Supreme Court’s review was whether the statute of repose in section 13-80-104(1)(a), C.R.S. (2016), barred a general contractor’s third-party claims brought in response to a homeowner’s claim for construction defects discovered in the fifth or sixth year following substantial completion of an improvement to real property. The Court held that such claims are timely, irrespective of both the two-year statute of limitations in section 13-80-102, C.R.S. (2016), and the six-year statute of repose in section 13-80-104(1)(a), so long as they are brought at any time before the ninety-day timeframe outlined in section 13-80-104(1)(b)(II). View "In re Goodman v. Heritage Builders" on Justia Law

At issue in this case was whether Colorado had jurisdiction to award benefits for out-of-state work-related injuries and to impose a statutorily penalty on an employer under 8-41-204, C.R.S. (2016), when the employer was not a citizen of Colorado, and had no offices or operations in Colorado, only that the employer hired a Colorado citizen within the state. The Supreme Court held that on the facts presented here, Colorado lacked personal jurisdiction over the employer. View "Youngquist v. Miner" on Justia Law

The issue this matter presented for the Supreme Court's review centered on a discovery dispute between plaintiff Stephen Rumnock and defendant American Family Mutual Insurance Company. After being ordered to produce documents that Rumnock requested, American Family disclosed some and simultaneously moved for a protective order. The motion sought to preclude Rumnock from using or disclosing the documents (alleged to be trade secrets) outside of this litigation. The trial court granted in part and denied in part, ordering that the alleged trade secrets not be shared with American Family's competitors, but declining to further limit their use. American Family petitioned the Colorado Supreme Court to direct the trial court to enter the protective order. The Supreme Court declined to do so, finding that American Family failed to present to the trial court evidence demonstrating the documents were trade secrets or otherwise confidential commercial information. View "In re Rumnock v. Anschutz" on Justia Law

Plaintiff Christine Griffith filed a complaint against eleven entities and two individuals alleging they injured her father, who was a resident of a nursing home operated by defendant SSC Pueblo Belmont Operating Company (d/b/a Belmont Lodge Health Care Center). Plaintiff alleged that her father's injuries eventually caused his death. The individuals and four of nine entities conceded jurisdiction and answered the complaint. Five entities contested jurisdiction, arguing they were nonresident companies not subject to Colorado's jurisdiction. The issue for the Colorado Supreme Court's review centered on when a nonresident parent company could be subject to jurisdiction in Colorado based on the activities of its resident subsidiary. The Court held that trial courts had to perform a two-step analysis before concluding a nonresident parent company was subject to personal jurisdiction in Colorado. Because the trial court in this case did not perform that analysis, the case was remanded for further proceedings. View "Griffith v. SSC Pueblo Belmont Operating Co." on Justia Law

This case centered on whether a father could use the doctrine of laches to defend against a mother's claim for interest on his child support debt. In the precedential case "Hauck v. Schuck," (353 P.3d 79 (1960)), the Colorado Supreme Court decided laches did not apply to a claim for unpaid child support that accrued within the statutory limitations period. The court of appeals determined in the present case, that laches could not apply to bar one parent's right to collect interest on arrearages owed by the other parent. The Supreme Court granted certiorari review in this matter to address whether laches was an appropriate defense in an interest-collection action, and also to resolve "the arguable tension" in "Hauck." The Court concluded that laches could be asserted as a defense to a claim for interest on child support arrearages, and therefore reversed the court of appeals. View "In re Marriage of Johnson" on Justia Law

The facts of this case were similar to those in "Griffith v. SSC Pueblo Belmont Operating Co.," (2016 CO 60 (2016)). The Supreme Court remanded this case back to the trial court for reconsideration under the test it announced in that case. Here, the Court held that the "Griffith" test applied when an issue arose of whether nonresident parent companies were subject to personal jurisdiction in Colorado courts based on the actions of their resident subsidiaries. Plaintiff Khalid Meeks sued ten entities and one individual alleging that the parties injured his mother, a resident of Colonial Columns Nursing Center. Four of ten entities conceded jurisdiction in Colorado; the others argued they were not subject to personal jurisdiction in Colorado. The nonresident defendants were upstream parent companies of the resident nursing center and the four that conceded jurisdiction. On remand, the Supreme Court mandated the trial court hold a hearing to resolve the disputed jurisdictional facts, and apply the "Griffith" framework. View "Meeks v. SSC Colorado Springs Colonial Columns Operating Co." on Justia Law

Plaintiff Christine Griffith sued nine entities and two individuals, alleging that they injured her father, who was a resident of a nursing home in Colorado. She alleged her father's injuries eventually caused his death. The individuals and four of the nine entities conceded jurisdiction and answered the complaint. The remaining five entities contested jurisdiction, arguing they were nonresident companies who were not subject to personal jurisdiction in Colorado. The issue this case presented for the Supreme Court's review was the circumstance under which nonresident parent companies could be haled into Colorado courts based on the activities of their resident subsidiaries. The Colorado Supreme Court held that in order for a Colorado court to exercise jurisdiction over a nonresident parent company, the trial court will analyze: (1) whether it may pierce the corporate veil and impute the resident subsidiary's contacts to the parent; and if the veil was pierced, the trial court will analyze (2) all of the subsidiary's contacts to determine whether jurisdiction comports with due process. If the trial court cannot pierce the corporate veil, then it shall treat each entity separately and analyze only the contacts that the parent company has with the state. Because the trial court did not perform this two-step analysis when it determined petitioners were subject to personal jurisdiction in Colorado, the Supreme Court remanded for the trial court to perform that analysis. View "Griffith v. SSC Pueblo Belmont Operating Co." on Justia Law

The issue this case presented for the Colorado Supreme Court's review centered on whether the trial court erred in concluding that defendant Ford Motor Company was subject to general personal jurisdiction in Colorado, despite the U.S. Supreme Court's recent decision in "Daimler A.G. v. Bauman," (134 S. CT. 746 (2014)). This case arose out of a 2013 accident in Colorado in which plaintiff John Magill's 2007 Ford Fusion collided with a vehicle driven by defendant Mark Polunci. Magill (and his wife) alleged that Ford, as manufacturer of the Fusion, was liable for Mr. Magill's serious injuries based on three causes of action sounding in tort. Ford moved to dismiss for lack of personal jurisdiction. After review, the Colorado Court determined that the record did not support a finding that Ford was "essentially at home" in Colorado, and therefore not subject to general personal jurisdiction here, "maintaining a registered agent in the state does not convert a foreign corporation to a resident." Because none of the parties resided in Denver and the accident did not occur there, the Supreme Court concluded venue was not appropriate where the action was originally filed, in Denver County. The Supreme Court remanded this case for the trial court to transfer this case to an appropriate venue. The proper venue would then determine whether Ford was subject to specific jurisdiction. View "Magill v. Ford Motor Co." on Justia Law

Petitioner Donald Johnson was convicted of careless driving-no injury, and the county court ordered him to pay $23,435.20 in restitution for pecuniary losses suffered by, among others: (1) a woman whose vehicle he struck with his vehicle; and (2) the woman’s seven medical providers. Initially, the restitution payments were disbursed to the woman, who was obliged to pay her medical providers. After the State learned that the woman had not paid the providers, it moved to change the restitution payee, so that the restitution payments would be disbursed directly to the providers. The court granted that motion. Johnson moved for reconsideration, arguing the State's request to change the restitution payee was effectively a new restitution request and was untimely. The county court rejected this argument and denied Johnson’s motion. Finding no reversible error in the district court's judgment, the Supreme Court affirmed. View "Johnson v. Colorado" on Justia Law