ROCKY MOUNTAIN FESTIVALS v. Parsons Corp.
242 P.3d 1067
| Colo. | 2010Background
- Town of Larkspur sought ~1.6 million in tap fees from Rocky Mountain Festivals based on Parsons' flawed report.
- Festival sued Parsons for damages under the wrong-of-another doctrine for litigation costs/attorneys' fees incurred in the prior case.
- Trial court granted Parsons summary judgment, held festival precluded from recovering fees due to partial liability in underlying dispute.
- Court of appeals affirmed on narrow grounds, relying on festival's partial fault to bar the damages claim.
- Colorado Supreme Court granted certiorari to decide if damages may be recovered under wrong-of-another where plaintiff pursued only a subset of claims.
- Court held that damages may be recovered for segregable claims when the underlying facts/theories differ and are uniquely attributable to the defendant's wrong.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether wrong-of-another damages are available if plaintiff was partly at fault. | Festival argues no per se bar exists for partial fault under Brochner. | Parsons contends partial fault bars damages under Brochner. | Not bar by fault; damages possible for segregable claims. |
| Whether the segregability of claims allows damages for a subset of claims. | Swartz/segregation permits damages for distinct core claims. | Damages must be tied to the entire underlying dispute; no segregation. | Segregability allowed; damages may be awarded for segregable subset. |
| How Hensley-type claim segregation applies to wrong-of-another damages. | Distinct claims may be treated as discrete if based on different facts/theories. | Hensley not applicable to wrong-of-another in this context, or not support broad segregation here. | Hensley guidance used to determine when segregation is appropriate; applicable to allow segregable damages. |
| Did summary judgment improper where genuine issues of material fact on damages remained? | Undisputed facts support segregable damages; trial court erred in granting summary judgment. | Damages not cognizable under wrong-of-another and/or not properly segregated; summary judgment appropriate. | Summary judgment inappropriate on damages; genuine issues remain. |
Key Cases Cited
- Elijah v. Fender, 674 P.2d 946 (Colo. 1984) (wrong-of-another damages allowed where litigation caused by another's wrong)
- Brochner v. Western Insurance Co., 724 P.2d 1293 (Colo. 1986) (without fault in underlying action required for damages under wrong-of-another)
- Trinidad Bean & Elevator Co. v. International State Bank, 79 Colo. 286 (Colo. 1926) (litigation caused by defendant's wrong; recover damages from wrongdoing party)
- Swartz v. Bianco Family Trust, 874 P.2d 430 (Colo. App. 1994) (allowing recovery for distinct claims litigated with third-party wrongdoer)
- Hensley v. Eckerhart, 461 U.S. 424 (U.S. 1983) (separate/related claims; determine fee award in proportion to success when related claims)
- City of Wheat Ridge v. Cerveny, 913 P.2d 1110 (Colo. 1996) (adopts Hensley-style claim segregation for attorneys' fees)
- Elijah, 674 P.2d 946 (Colo. 1984) (see Elijah above)