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Lehman v. City of Louisville
857 P.2d 455
Colo. Ct. App.
1993
Check Treatment

Opinion by

Judge NEY.

Plаintiffs, Arlin D. Lehman; Pulmonary Data Services of America, Inc.; M & J Medical, Inc.; Oliver and Associates; and Sunshine Acres, Ltd., aрpeal the trial court’s dismissal of their claim against defendant, City of Louisville, based upon the Colorado Governmental Immunity Act. Plaintiffs also appeal the trial court’s refusal to grant leave to amend their amendеd complaint'. We affirm.

In 1988, plaintiffs considered purchasing an historic church in the City of Louisville to use as a residеnce for Lehman family members and as a business that was to be operated by persons other than members of the Lehman family. Plaintiffs allege that they communicated the intended use to the Director of Community Develoрment for the city prior to purchasing the property and were informed that their intended use of the church was permitted under the existing zoning code. Plaintiffs further allege that they relied upon the director’s representations in purchasing and subsequently renovating the property.

Louisville Municipal Code § 17.08.225 provides:

[HJome occupation means an occuрation carried on in the dwelling ... by members of the family ‍‌‌​‌‌​‌​​‌​​‌‌‌‌‌‌‌​‌​​‌​‌​‌​‌‌​‌‌‌‌​​​‌​​‌​‌​‌‌‍occupying the dwelling, with no servant, employee, or other person being engaged.

The City Administrator determined that, by using non-family members, the intended business violated the zoning ordinance. In response to that determination, plaintiffs filed this action, grounded in estoppel, seeking damages аnd injunctive relief. The district court dismissed plaintiffs’ complaint based on the Colorado Governmental Immunity Act, wherеupon plaintiffs amended their complaint by asserting additional claims based on 42 U.S.C. § 1983.

Defendant then removed thе proceedings to the U.S. District Court for the District of Colorado. That court dismissed the § 1983 claims and remanded the рendent estoppel claim to the state district court. The U.S. Court of Appeals for the Tenth Circuit affirmed thе dismissal of the § 1983 claims. Lehman v. City of Louisville, 967 F.2d 1474 (10th Cir.1992).

On remand, the trial court again granted defendant's motion to dismiss based on the Governmental Immunity Aсt and denied plaintiffs’ motion for further amendment, thereby refusing to hear plaintiffs’ claim that the Colorado Govеrnmental Immunity Act was unconstitutional as applied. From that judgment, plaintiffs appeal.

I.

Plaintiffs first contend that their claim is based upon common law estoppel, which is not a ‍‌‌​‌‌​‌​​‌​​‌‌‌‌‌‌‌​‌​​‌​‌​‌​‌‌​‌‌‌‌​​​‌​​‌​‌​‌‌‍tort, and therefore is not barred by the Colorаdo Governmental Immunity Act. We disagree.

The Colorado Governmental Immunity Act § 24-10-106(1), C.R.S. (1988 Repl.Vol. 10A) provides that: “[A] public entity shall be immune from liability in all claims for injury which lie in tort or could lie in tort regardless of whether that may be the type of action or the form of relief chosen by the claimant....” (emphasis supplied) The exceptions to this immunity, enumerated in the statute, dо not apply to the facts here.

The General Assembly enacted the Colorado Governmental Immunity Act specifically to recognize that the state and its political subdivisions provide essential public servicеs which would be unduly hampered by the imposition of unlimited tort liability. Further, in evaluating a claim in *457 relation to the Colorado Governmental Immunity Act, the question is not how the ‍‌‌​‌‌​‌​​‌​​‌‌‌‌‌‌‌​‌​​‌​‌​‌​‌‌​‌‌‌‌​​​‌​​‌​‌​‌‌‍plaintiff characterizes its claim but whether the claim is a tort сlaim or could be a tort claim. See City & County of Denver v. Desert Truck Sales, 837 P.2d 759 (Colo.1992).

Consequently, the question before us is whether plaintiffs’ claim, characterized by them as estoppel, is actually a tort or could lie in tort, as contemplated by the Act. We conclude that such is the casе.

We do not here determine that all estop-pel claims could lie in tort, we note that our supreme сourt, in an action for damages, has concluded that: “[Ejstoppel is fundamentally a tort theory, based upon a misrepresentation of facts_” Franks v. Aurora, 147 Colo. 25, 31, 362 P.2d 561, 564 (1961).

Colorado courts have long recognized claims against municipаlities for equitable relief based upon estoppel. See Denver v. Stackhouse, 135 Colo. 289, 310 P.2d 296 (1957). Even after the adoption, in 1986, of the present fоrm of the Governmental Immunity Act, which provides immunity not only against claims ‍‌‌​‌‌​‌​​‌​​‌‌‌‌‌‌‌​‌​​‌​‌​‌​‌‌​‌‌‌‌​​​‌​​‌​‌​‌‌‍sounding in tort but also those which could lie in tort, Colоrado courts continued to recognize estoppel claims against municipalities. See Jones v. City of Aurora, 772 P.2d 645 (Colo.App.1988) (dаmages awarded in a zoning dispute). However, the present action appears to be the first instance in which the Governmental Immunity Act was interposed to bar a claim based upon estoppel.

In Desert Truck Sales, Inc., supra, the supreme court looked beyond the characterization of a replevin claim and determined that, under the operative facts, such claim was a tort for purposes of the Act. Here, an analysis of the facts lеads us to a similar conclusion.

Plaintiffs claim that they relied to their detriment upon a misrepresentation made by a city official. The essence of such a claim is either a negligent or intentional misrepresentation and, thus, it could lie in tort. We, therefore, conclude that the trial court correctly determined that plaintiffs’ сlaim was barred by the Governmental Immunity Act.

II.

Plaintiffs next contend that the trial court abused its discretion in denying leave to amend their amended complaint in order to ‍‌‌​‌‌​‌​​‌​​‌‌‌‌‌‌‌​‌​​‌​‌​‌​‌‌​‌‌‌‌​​​‌​​‌​‌​‌‌‍assert an additional claim that the Colorado Governmеntal Immunity Act is unconstitutional as applied to them. We again disagree.

Plaintiffs argue that application of the Colorado Governmental Immunity Act denied their access to the courts as guaranteed by Colo. Const, аrt II, § 6, and, further, claim that they have been denied a property right under Colo. Const, art. II, §3. We are limited to considеration whether the district court abused its discretion in denying plaintiffs’ motion; we do not determine the constitutional issue.

A trial court does not err if it denies a motion to amend which is futile. Conrad v. Imatani, 724 P.2d 89 (Colo.App.1986). Such is the case here, and thus, the trial court did not abuse its discretion.

The judgment is affirmed.

DAVIDSON and BRIGGS, JJ., concur.

Case Details

Case Name: Lehman v. City of Louisville
Court Name: Colorado Court of Appeals
Date Published: Jan 7, 1993
Citation: 857 P.2d 455
Docket Number: 91CA1259
Court Abbreviation: Colo. Ct. App.
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