Tucco Home v. Air Pros
24CA0503
Colo. Ct. App.Mar 20, 2025Background
- Tucco Home Improvements LLC sued Air Pros One Source LLC (Air Pros) over unpaid contract amounts.
- Air Pros failed to respond, leading the district court to grant Tucco a default judgment and a writ of garnishment.
- Air Pros sought to set aside the default judgment, claiming excusable neglect under C.R.C.P. 60(b) because it failed to update its registered agent with a new email address during rapid business expansion.
- The district court denied the motion, finding no excusable neglect; Air Pros appealed.
- The Court of Appeals initially remanded for the district court to assess all three factors for excusable neglect per Goodman Associates, LLC v. WP Mountain Properties, LLC, but the district court again denied relief.
- Air Pros appealed, arguing the court erred in applying the Goodman factors and in weighing its defenses and equitable considerations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Excusable neglect for failure to respond | Air Pros’ failure to update contact was not excusable | Failing to update email during rapid growth was excusable | No excusable neglect; failure was negligent |
| Existence of meritorious defense | Air Pros did not present factual support for its defenses | Defended against all claims and alleged defenses existed | No meritorious defense shown by Air Pros |
| Equitable considerations | Relief from judgment would not be equitable | Relief warranted because disputes should be decided on merits | Conclusory; did not support equity for relief |
| Argument on mistake/inadvertence/surprise | Not raised at trial | District court failed to consider these | Not preserved for appeal; not considered |
Key Cases Cited
- Goodman Assocs., LLC v. WP Mountain Properties, LLC, 222 P.3d 310 (Colo. 2010) (establishes three-factor test for setting aside default judgment for excusable neglect)
- Tyler v. Adams County Dep’t of Soc. Servs., 697 P.2d 29 (Colo. 1985) (explains what constitutes excusable neglect)
- Craig v. Rider, 651 P.2d 397 (Colo. 1982) (describes requirements for establishing a meritorious defense)
- Buckmiller v. Safeway Stores, Inc., 727 P.2d 1112 (Colo. 1986) (addresses discretionary standard and equity considerations in setting aside default judgments)