2014 COA 55
Colo. Ct. App.2014Background
- Qwest paid use taxes owed to Thornton but mistakenly paid to Northglenn (2002–2005).
- Thornton audit in 2008 uncovered underpayment for 2002–2005; parties extended the three-year limit via tolling agreements.
- Qwest discovered the error in 2002 but corrected payments to Thornton only in 2005; Northglenn was not joined to initial actions.
- In 2010, Qwest sought a hearing under § 29-2-106.1(8) and joined Northglenn as a respondent; Department found time-bar against Northglenn and held Qwest liable to Thornton.
- District court granted summary judgment for Thornton’s claim; holding § 89-26-210 tolls only certain actions and does not excuse Qwest’s liability to Thornton.
- Court affirmed, holding Qwest remains liable to Thornton for 2002–2005 use tax deficiencies; Northglenn is not obligated to forward payments to Thornton.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §89-26-210 bar applies to Qwest’s transfer defense | Qwest relied on §29-2-106.1(5) to defense; tolling with Thornton. | Northglenn not bound; statute of limitations should bar transfer. | Yes, statute applies; Qwest remains liable to Thornton. |
| Whether §29-2-106.1(5) defense is valid against Thornton’s claim | §29-2-106.1(5) provides defense to amount owed. | Defense allows transfer but only if Northglenn can forward funds. | Defense valid; Qwest not excused due to untimely transfer. |
| Effect of tolling agreements on rights to transfer | Thornton’s tolling with Qwest should preserve right to transfer. | Tolling with Thornton cannot cure lack of timely transfer from Northglenn. | Tolling does not cure cross-jurisdiction transfer timing; Qwest liable. |
Key Cases Cited
- City of Colorado Springs v. Tipton, 910 P.2d 75 (Colo.App. 1995) (statutory limitations apply to tax actions and related proceedings)
- F.W. Woolworth Co. v. State Dep't of Revenue, 699 P.2d 1 (Colo.App. 1984) (taxing statute applies to attempts to collect taxes)
- Noble Energy, Inc. v. Colo. Dep't of Revenue, 232 P.3d 293 (Colo.App. 2010) (defer to district court findings; statutory construction principles)
- Denver Post Corp. v. Ritter, 255 P.3d 1083 (Colo. 2011) (statutory construction and harmonious reading of schemes)