Golden Run Estates, LLC v. Town of Erie
2016 COA 145
| Colo. Ct. App. | 2016Background
- Aaron Harber and Golden Run Estates entered a 2013 pre-annexation agreement with the Town of Erie for annexing 320 acres and negotiating a later annexation agreement; section 4A allowed the landowner to “retroactively withdraw the Annexation Petition” on or after August 1, 2013.
- Erie adopted an annexation ordinance effective November 15, 2013; plaintiffs continued negotiations, sought changes, and intermittently asked to withdraw/"retroactively nullify" the petition and later requested disconnection.
- Plaintiffs sued (Sept. 2014) after Erie declined to process a de-annexation: claims for breach of contract, breach of the implied covenant of good faith and fair dealing, declaratory relief, and judicial disconnection; the court granted judicial disconnection and a jury awarded $362,500 on the contract claims.
- Erie moved for directed verdict arguing the Annexation Act (the Act) bars collateral attacks unless filed within statutory time limits; trial court denied directed verdict and entered judgment for plaintiffs on contract claims.
- On appeal, the Colorado Court of Appeals held the trial court lacked subject matter jurisdiction over the contract claims because plaintiffs failed to meet the Act’s jurisdictional filing deadlines, vacated the contract judgment and damage award, directed entry of a directed verdict for Erie, and remanded for determination of appellate attorney fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court had jurisdiction over contract claims implicating annexation | Plaintiffs: claims enforce pre-annexation agreement/disconnection rights and do not challenge annexation | Erie: claims effectively challenge annexation decision and fall within the Act’s exclusive review scheme | Held: Plaintiffs' contract claims challenged the annexation decision and were barred by the Act; court lacked jurisdiction |
| Whether § 31-12-116’s 10-/60-day filing requirements applied | Plaintiffs: pre-annexation agreement control; § 31-12-116 inapplicable to contract enforcement/disconnection under contract | Erie: Act provides exclusive remedy and jurisdictional timing; plaintiffs missed deadlines | Held: § 31-12-116 is jurisdictional (a nonclaim statute); plaintiffs failed to timely seek reconsideration or judicial review, so claims are forever barred |
| Whether the pre-annexation agreement’s “retroactive withdrawal” could toll/override statutory deadlines | Plaintiffs: contract language allows retroactive withdrawal and disconnection despite ordinance timing | Erie: parties cannot contract away jurisdictional, nonclaim statutory periods | Held: Parties cannot waive or extend the Act’s jurisdictional time limits by contract; section 4A could only operate within the statutory timeframe |
| Entitlement to attorney fees on appeal | Plaintiffs: sought fees under pre-annexation agreement if prevailing | Erie: sought fees under § 31-12-116 and contract if it prevailed | Held: Erie awarded reasonable appellate attorney fees under both the pre-annexation agreement and § 31-12-116; amount remanded to trial court |
Key Cases Cited
- Tulips Invs., LLC v. State ex rel. Suthers, 340 P.3d 1126 (Colo. 2015) (standard of review for subject matter jurisdiction and statutory interpretation)
- Town of Superior v. Midcities Co., 933 P.2d 596 (Colo. 1997) (Annexation Act governs annexation proceedings and related agreements)
- Bd. of Cty. Comm’rs v. City of Woodland Park, 333 P.3d 55 (Colo. 2014) (§ 31-12-116 provides the only procedure for judicial review of municipal annexations under the Act)
- Fort Collins-Loveland Water Dist. v. City of Fort Collins, 482 P.2d 986 (Colo. 1971) (predecessor statute interpreted to make timing jurisdictional, untollable)
- First Interstate Bank of Denver, N.A. v. Cent. Bank & Tr. Co. of Denver, 937 P.2d 855 (Colo. App. 1996) (parties cannot waive jurisdictional requirements)
- Grandote Golf & Country Club, LLC v. Town of La Veta, 252 P.3d 1196 (Colo. App. 2011) (discussion distinguishing annexation and subsequent disconnection remedies)