Justia Civil Procedure Opinion Summaries

Plaintiff DIA Brewing Co., LLC contended that after the district court entered an order dismissing this action pursuant to C.R.C.P.12(b)(1), C.R.C.P. 15(a) gave DIA Brewing the right to amend its complaint as a matter of course and without leave of the court or the consent of defendants because no responsive pleading had been filed. Defendants MCE-DIA, LLC, Midfield Concessions Enterprises, Inc., Andrea Hachem, Noureddine “Dean” Hachem, Samir Mashni, Simrae Solutions LLC, Sudan I. Muhammad, Pangea Concessions Group LLC, Niven Patel, Rohit Patel, and Richard Schaden (collectively, “MCE-DIA”), contended that the C.R.C.P. 12(b)(1) dismissal resulted in a final judgment that cut off DIA Brewing’s right to amend as a matter of course under C.R.C.P. 15(a). Thus, MCE-DIA contended that if DIA Brewing wanted to amend, it was required to seek leave of the court or to obtain MCE-DIA’s written consent. The Colorado Supreme Court granted certiorari to resolve this dispute. Reading C.R.C.P. 15(a) harmoniously with C.R.C.P. 59 and C.R.C.P. 60, the Court concluded a final judgment cuts off a plaintiff’s right to file an amended complaint as a matter of course under C.R.C.P. 15(a). Under the facts of this case, the Court concluded, contrary to the district court, that the amended pleading was not futile but rather stated viable claims for relief. The case was remanded to the district court with instructions to accept DIA Brewing's amended complaint for filing, after which MCE-DIA could respond in the ordinary course. View "Schaden v. DIA Brewing Co." on Justia Law

The water court that issued the decision at the heart of this appeal conducted a four-day trial with thousands of pages of exhibits and testimony of experts to decide the meaning of a decree finalized in April 1933. The court "seized" upon a 1936 photograph to declare the decree ambiguous. To cure the ambiguity, the court consulted additional evidence extrinsic to the original proceedings. Ultimately, the court found the water was decreed to a ditch at issue in the appeal. The parties challenged the water court's reliance on the 1936 photograph and extrinsic evidence. After review of the water court's order, the Colorado Supreme Court reversed, finding that there existed a conflict in Colorado case law as to which materials a court could rely on to decide whether a decree of water rights was ambiguous. "While future litigation may require us to reconcile these cases . . . [e]ach method leads to the same result here: The creek water at issue is not decreed to the ditch." Since the photograph was extrinsic to the proceedings that birthed the decree, the water court erred by relying on it to characterize the decree as ambiguous. "Under any of the three interpretive approaches, evidence extrinsic to the underlying proceedings is admissible only after a finding of ambiguity, not to create the ambiguity." View "Mike & Jim Kruse P'ship v. Cotten" on Justia Law

Plaintiff DIA Brewing Co., LLC contended that after the district court entered an order dismissing this action pursuant to C.R.C.P.12(b)(1), C.R.C.P. 15(a) gave DIA Brewing the right to amend its complaint as a matter of course and without leave of the court or the consent of defendants because no responsive pleading had been filed. Defendants MCE-DIA, LLC and Richard Schaden (collectively, “MCE-DIA”), in contrast, contended that the C.R.C.P. 12(b)(1) dismissal resulted in a final judgment that cut off DIA Brewing’s right to amend as a matter of course under C.R.C.P. 15(a). Thus: if DIA Brewing wanted to amend, it was required to seek leave of the court or to obtain MCE-DIA’s written consent. The Colorado Supreme Court granted certiorari to resolve this dispute, and concluded a final judgment cuts off a plaintiff’s right to file an amended complaint as a matter of course under C.R.C.P. 15(a), and the dismissal order here was a final judgment. Therefore, DIA Brewing did not have the right to amend its complaint as a matter of course, but obligated to request the trial court for leave to amend, or indicate MCE-DIA had consented in writing to the filing of an amended complaint. In this case, the Supreme Court determined the amended pleading was not futile, stating viable claims for relief. The Court thus affirmed the appellate court, though on different grounds, and remanded this case with directions that this case be returned to the district court to accept DIA Brewing’s amended complaint for filing, after which MCE-DIA could respond in the ordinary course. View "Schaden v. DIA Brewing Co., LLC" on Justia Law

Between the date he was hired and June 2015, Mark Stiles had some difficulties with punctuality and managing his paid leave balance, but he was never subject to corrective or disciplinary action and his evaluations consistently rated him as a competent Department of Corrections ("DOC") employee. Stiles was fired by the DOC for using marijuana outside of work hours. After a hearing, an Administrative Law Judge (“ALJ”) acting on behalf of the Colorado State Personnel Board issued an initial decision reinstating Stiles and imposing a less severe sanction. The Board then adopted that initial decision, and a division of the court of appeals affirmed the Board’s ruling. The Colorado Supreme Court agreed to take DOC’s appeal in the hopes of shedding light on the standard of review that governed an appeal to the Board by a certified state employee following an appointing authority’s disciplinary action. The Supreme Court held that, while an ALJ conducting a hearing on behalf of the Board must afford the disciplined employee an opportunity to present evidence and must then make findings of fact, the ALJ’s review of the appointing authority’s disciplinary action was governed by the statutorily mandated “arbitrary, capricious, or contrary to rule or law” standard, not de novo review. Because the appellate division misapprehended the standard of review that controlled hearings held by or on behalf of the Board, and because the Supreme Court couldn't discern whether the ALJ applied the arbitrary, capricious, or contrary to rule or law standard or de novo review, the Court reversed the division’s judgment and remand with instructions to return the case to the ALJ for further proceedings. View "DOC v. Stiles" on Justia Law

In 2012, the Denver Health and Hospital Authority hired Brent Houchin as an Employee Relations Specialist and promoted him to Employee Relations Manager. Throughout Houchin’s time at Denver Health, his supervisor consistently rated his performance as “successful” and “exceptional.” In an employee relations matter concerning the suspected diversion of controlled substances, a former in-house lawyer for Denver Health advised that using an employee’s medical records from off-duty medical care in connection with an internal investigation would violate the privacy requirements of the Health Insurance Portability and Accountability Act (“HIPAA”). Houchin objected to this interpretation of HIPAA because he (1) felt that it prevented him from investigating suspected employee diversions of controlled substances and (2) believed that HIPAA permitted the use of such employee information to detect health care fraud and abuse. This disagreement in interpretation would come into play when Houchin's employment was terminated, based on two alleged HIPAA violations relating to an investigation. Following his termination, Houchin appeared to have commenced Denver Health’s “Concern Resolution” process to address what he believed to be the discriminatory circumstances of his termination. Houchin then filed a Charge of Discrimination with the Colorado Civil Rights Division, alleging discrimination based on his sexual orientation and retaliation for using Denver Health’s “Concern Resolution” process to address such discrimination. The Civil Rights Division ultimately issued a Notice of Right to Sue, and Houchin filed a complaint against Denver Health. The issue this case presented for the Colorado Supreme Court's review centered on the interplay between the Colorado Anti-Discrimination Act ("CADA") and the Colorado Governmental Immunity Act (CGIA"). Denver Health moved to dismiss Houchin’s complaint, arguing, among other things, that Houchin’s discrimination and retaliation claims under CADA lie in tort and were therefore barred by the CGIA. The Supreme Court concluded: (1) claims for compensatory relief under CADA were not claims for “injuries which lie in tort or could lie in tort” for purposes of the CGIA and therefore public entities were not immune from CADA claims under the CGIA; (2) “the state,” as used in subsection 24-34-405(8)(g), included political subdivisions of the state. The appellate court's judgment dismissing Houchin's claims was reversed, and the matter remanded for further proceedings. View "Denver Health v. Houchin" on Justia Law

Timothy Williams began working at the El Paso County, Colorado Sheriff’s Office in 2002 and, after multiple promotions over the course of his career, reached the rank of lieutenant. In March 2016, Sheriff Bill Elder ordered a mandatory survey requesting, among other things, retirement eligibility dates from all employees. Williams, who then would have been eligible for full retirement benefits June 1, 2018, completed this survey and reported that he expected to retire within the next five years. Thereafter, Williams was assigned to a team that conducted investigations into alleged misconduct by personnel in his office. Apparently, Sheriff Elder was unhappy with Williams’s investigation and the sanctions that Williams recommended, and he confronted Williams in a meeting about it. This lead to a demotion to senior deputy, which carried a significant change in rank, pay, and duties that resulted in substantial adverse retirement benefit consequences for Williams. To avoid these consequences, Williams retired the following day, ultimately to be replaced by a younger and purportedly less qualified employee. Williams thereafter filed age discrimination and retaliation charges El Paso County Sheriff’s Office with the Colorado Civil Rights Division and the Equal Employment Opportunity Commission. The issue this case presented for the Colorado Supreme Court's review centered on the interplay between the Colorado Anti-Discrimination Act ("CADA") and the Colorado Governmental Immunity Act (CGIA"). As applied to this case, the Supreme Court concluded: (1) claims for compensatory relief under CADA were not claims for “injuries which lie in tort or could lie in tort” for purposes of the CGIA and therefore public entities were not immune from CADA claims under the CGIA; (2) “the state,” as used in subsection 24-34-405(8)(g), included political subdivisions of the state and thus political subdivisions were not immune from claims for compensatory damages based on intentional unfair or discriminatory employment practices; and (3) front pay was equitable and not compensatory in nature under CADA, and age discrimination and retaliation claims seeking front pay did not lie and could not lie in tort for CGIA purposes. View "Elder v. Williams" on Justia Law

This appeal stemmed from an application for a conditional water storage right filed by United Water and Sanitation District, a special water district formed in Elbert County, Colorado, acting through the United Water Acquisition Project Water Activity Enterprise (“United”). United sought to secure various water rights in Weld County. United’s original applications were consolidated in a set of four cases. In response to a motion for determination of questions of law from opposer Farmers Reservoir and Irrigation Company (“FRICO”) in the consolidated cases, the District Court for Water Division 1 (“water court”) concluded that United’s applications failed to demonstrate non-speculative intent to appropriate water. In response to this ruling, United withdrew its applications in the consolidated cases and, a week later, filed a new application in Case No. 16CW3053 for a conditional water storage right that was the subject of this appeal. Pertinent here, United sought to appropriate water for use in a proposed residential development in another county. In support of its new application for a conditional storage right, United offered a new, purportedly binding contract with the landowners of the proposed development. United also claimed for the first time that its status as a special district qualified it for the governmental planning exception to the anti-speculation doctrine. FRICO opposed United's application, and the water court determined United's new application likewise failed to demonstrated non-speculative intent to appropriate water. The water court found that United was acting as a water broker to sell to third parties for their use, and not as a governmental agency seeking to procure water to serve its own municipal customers. Consequently, the water court held, United did not qualify for the governmental planning exception to the anti-speculation doctrine. United appealed. But concurring with the water court's judgment, the Colorado Supreme Court affirmed: United was ineligible for the governmental planning exception to the anti-speculation doctrine. View "United Water & Sanitation Dist. v. Burlington Ditch Reservoir & Land Co." on Justia Law

When Louis Rabin died, he left everything to his widow, Claudine. She was also named as the personal representative to manage his estate in probate. Louis’s former wife, Suyue Rabin, made a claim against the estate based on a couple of promissory notes. These notes totaled $200,000 and were made payable to Suyue upon Louis’s death, and were executed while Louis was married to Claudine. Claudine didn’t know the notes existed until Suyue made the claim. Claudine asked Louis’s longtime attorney, Mark Freirich, for all of Louis’s legal files, most of which had nothing to do with the notes. He refused, citing confidentiality concerns. She then subpoenaed the files. When Freirich refused, a lawsuit was filed, reaching the Colorado Supreme Court. After review, the Court held: (1) Colorado’s Probate Code did not grant a personal representative a general right to take possession of all of a decedent’s legal files as “property” of the estate; (2) a decedent’s lawyer was ordinarily prohibited from disclosing a decedent’s legal files, even to the personal representative; but (3) a decedent’s lawyer could provide the personal representative with otherwise privileged or confidential documents if such disclosure was necessary to settle the decedent’s estate. The Court of Appeals erred in reversing the district court's order quashing the subpoena. That portion of the appellate court's judgment was reversed and the matter remanded for further proceedings. View "Freirich v. Rabin" on Justia Law

The Colorado State Engineer, and the Division Engineer for Water Division 3 (the “Engineers”), brought claims against Nick Meagher for injunctive relief, civil penalties, and costs, arising from Meagher’s failure to submit Form 6.1, "Water Use Data Submittal Form," as required by Rule 6.1 of the Rules Governing the Measurement of Ground Water Diversions Located in Water Division No. 3, The Rio Grande Basin (the “Measurement Rules”). Meagher appealed the water court’s orders denying his motion to dismiss the Engineers’ claims and granting the Engineers summary judgment on those claims, contending the court erred by: (1) denying his motion to dismiss because the Engineers’ claims were mooted by his ultimate submission of Form 6.1; (2) granting summary judgment for the Engineers based on an erroneous interpretation of Rule 6.1 and section 37-92-503, C.R.S. (2019), and notwithstanding the existence of genuine issues of material fact as to his culpable mental state and the amount of the civil penalties to be imposed; (3) enjoining future violations of Rule 6.1; and (4) awarding costs and fees to the Engineers. Finding no reversible error, the Colorado Supreme Court affirmed the water court's judgment. View "Colorado v. Meagher" on Justia Law

A driver for Colorado Cab Company LLC (“Colorado Cab”) picked up an intoxicated Curt Glinton and one of Glinton’s friends. After stopping at their destination, the driver told Glinton the total fare. Glinton became upset, started yelling at the driver, and eventually grabbed and punched the driver from behind. Meanwhile, Jose Garcia had called a cab from a house nearby. When he saw the cab occupied by Glinton drive by, he thought that it might be the cab he had called, and he began to follow it. When he was roughly a block away from the cab, he heard the driver screaming for help. Garcia ran to the cab and, through the cab’s open driver’s-side door, told Glinton to stop. Glinton shifted his aggression to Garcia, telling him to “mind his own business.” This gave the driver the chance to exit the vehicle. Glinton also exited the vehicle, escalated his aggression toward Garcia, and began to throw punches at Garcia. Garcia was then hit over the head, causing him to fall to the ground. Glinton then entered the driver’s seat of the still-running cab and started driving. He hit the still-down Garcia once with the cab, then backed up and again ran Garcia over. As a result, Garcia suffered several severe injuries. Garcia filed a negligence action against Colorado Cab, arguing that Colorado Cab had knowledge of forty-four passenger attacks on its drivers in the previous three years but had failed to install partitions or security cameras in its cabs. In asserting his claim, Garcia relied on the rescue doctrine. Colorado Cab countered that it owed no duty to Garcia to prevent intentional criminal acts, and that even if it was negligent, Garcia was comparatively negligent because he “[made] a decision to get involved in the situation.” The jury found for Garcia and awarded him $1.6 million in total damages. It allocated 45% of the fault to Colorado Cab (for a sum of roughly $720,000), 55% to Glinton, and 0% to Garcia. The trial court denied Colorado Cab's motion for judgment notwithstanding the verdict. The Colorado Supreme Court held that for a person to qualify as a rescuer under the rescue doctrine, he must satisfy a three-pronged test: plaintiff must have (1) intended to aid or rescue a person whom he, (2) reasonably believed was in imminent peril, and (3) acted in such a way that could have reasonably succeeded or did succeed in preventing or alleviating such peril. The Supreme Court concluded that, on the facts of this case, Garcia satisfied this test at trial. View "Garcia v. Colorado Cab Co." on Justia Law