James C. Mason, a/k/a Jim Mason v. Farm Credit of Southern Colorado, ACA, and Farm Credit of Southern Colorado, FLCA
No. 17SC346
The Supreme Court of the State of Colorado
June 4, 2018
2018 CO 46
Certiorari to the Colorado Court of Appeals, Court of Appeals Case No. 15CA852
ADVANCE SHEET HEADNOTE
June 4, 2018
2018 CO 46
No. 17SC346, Mason v. Farm Credit S. Colo., ACA —
This case concerns the right to a jury trial in a civil case. The supreme court considers whether trial courts must review the claims in a plaintiff‘s amended complaint, as opposed to those in its original complaint, to determine whether a party is entitled to a jury trial under
en banc
June 4, 2018
Attorneys for Petitioner:
James M. Croshal
Pueblo, Colorado
Mullans Piersel and Reed, PC
Shannon Reed
Pueblo, Colorado
Attorneys for Respondents:
Spencer Fane LLP
Scott C. Sandberg
John O‘Brien
Denver, Colorado
CHIEF JUSTICE RICE delivered the Opinion of the Court.
I. Facts and Procedural History
¶2 Between 2008 and 2011, Zachary Mason (“Zach“) farmed several properties in Otero County, Colorado. During this time, Zach executed several loan agreements with Farm Credit of Southern Colorado, ACA, and Farm Credit of Southern Colorado, FLCA (collectively, “Farm Credit“). As part of the loan agreements, Farm Credit owned a perfected security interest in some of Zach‘s crops, farm equipment, and other items of personal property. In May 2012, Zach defaulted on his loans. As a result, Farm Credit sued Zach for judgment on his notes, foreclosure of real property collateral, replevin of personal property collateral, conversion of insurance proceeds, civil theft, breach of contract, and fraud.
¶3 In March 2013, Farm Credit amended its complaint to add Zach‘s father, James Mason (“Mason“), as a defendant. Mason also farmed in Otero County, but his farming operations were separate from Zach‘s, and he did not cosign any of Zach‘s loans. In its amended complaint, Farm Credit brought claims against Mason for replevin and conversion, and it also requested an accounting. To support its replevin claim, Farm Credit alleged that Mason harvested and then sold, transferred, used, or stored crops that it held as collateral. Farm Credit sought the return of its crop collateral, plus any proceeds from the sale or use of it. To support its conversion claim, Farm Credit alleged that Mason used or disposed of crops, farm products, and machinery that Farm Credit
¶4 In his answer, Mason demanded a jury trial. Farm Credit moved to strike Mason‘s jury demand. In its motion, Farm Credit argued that the claims in a plaintiff‘s initial complaint are the sole determinant of a defendant‘s right to a jury trial under
¶5 Mason appealed the trial court‘s decision to strike his request for a jury trial. The court of appeals affirmed. Mason, ¶ 1. As relevant here, the court of appeals concluded that Farm Credit‘s original complaint “mainly [sought] judgment on promissory notes and the foreclosure and disposition of collateral,” id. at ¶ 18, meaning it was an
¶6 We granted certiorari to decide whether a trial court must consider the claims in a plaintiff‘s amended complaint to determine whether a party is entitled to a jury trial under
II. Standard of Review
¶7 We interpret the Colorado Rules of Civil Procedure de novo. DCP Midstream, LP v. Anadarko Petroleum Corp., 2013 CO 36, ¶ 24, 303 P.3d 1187, 1193. “Rules of procedure are interpreted according to their ‘commonly understood and accepted meaning.‘” Garcia v. Schneider Energy Servs., Inc., 2012 CO 62, ¶ 7, 287 P.3d 112, 114 (quoting Leaffer v. Zarlengo, 44 P.3d 1072, 1078 (Colo. 2002)). We construe them liberally to effectuate their objective “to secure the just, speedy, and inexpensive determination of every action.”
III. Analysis
¶8 This case requires us to decide whether trial courts must consider the claims in a plaintiff‘s amended complaint to determine whether a party is entitled to a jury trial under
A. Colorado‘s Civil Jury Trial Right
¶9 “In Colorado there is no constitutional right to a trial by jury in a civil action.” Kaitz v. Dist. Court, 650 P.2d 553, 554 (Colo. 1982). Instead, the right to a jury trial in civil cases is derived from
Upon the filing of a demand and the simultaneous payment of the requisite jury fee by any party in actions wherein a trial by jury is provided by constitution or by statute, including actions for the recovery of specific real or personal property, with or without damages, or for money claimed as due on contract, or as damages for breach of contract, or for injuries to person or property, all issues of fact shall be tried by a jury.
¶10 We have established two rules to help courts determine whether the Colorado constitution or statutes provide for a jury trial in a given case. First, we have interpreted
¶11 Second, we have held that whether an action is legal or equitable is dictated only by the claims in a plaintiff‘s complaint. See Selfridge, 117 P. at 159. By contrast, the claims in a defendant‘s answer are irrelevant to determining the nature of a cause of action. Id. Thus, if a plaintiff pleads only legal claims, the case will be tried to a jury upon proper demand and payment of the jury fee. Id.;
¶12 Those two rules explain the process that trial courts should follow to determine whether a lawsuit is legal or equitable when the plaintiff‘s claims appear in a single complaint. See, e.g., Neikirk, 127 P. at 138. Today, however, we must decide for the first time how trial courts should treat the claims in a plaintiff‘s amended complaint, as compared with those in an initial complaint, when analyzing a party‘s entitlement to a jury trial under
B. Colorado Rules of Civil Procedure
¶13 Our holding that trial courts must consider the claims in a plaintiff‘s amended complaint when determining the availability of a jury trial in a civil case effectuates the
¶14 Read together,
¶15 Second,
¶16 Third,
¶17 Finally, the rule that a plaintiff‘s amended complaint controls the nature of an action for purposes of the jury trial right makes practical sense and avoids absurdity.
¶18 The purpose of
C. Colorado Supreme Court Precedents
¶19 Farm Credit concedes that the plain language of
¶20 We first articulated the rule that the plaintiff‘s complaint dictates the nature of a lawsuit for purposes of the jury trial right in Selfridge. We held that the defendant was not entitled to a jury trial because the plaintiff‘s action to foreclose a mechanic‘s lien on a mill site was equitable, and the fact that the defendant sought legal damages in a counterclaim4 did not change “the cause of action as set forth in, and determined by, the complaint.” Selfridge, 117 P. at 159. Since then, we have applied the Selfridge rule consistently to exclude claims brought by defendants from our jury trial right analysis. See Miller, 388 P.2d at 765-66 (ignoring the claims in the defendant‘s counterclaim); Tiger Placers Co. v. Fisher, 54 P.2d 891, 892 (Colo. 1936) (same, but the counterclaim was titled “cross-complaint“); Neikirk, 127 P. at 139 (same). In each of these cases, we emphasized that only claims brought by plaintiffs affect the status of a case as legal or equitable for purposes of the civil jury trial right.
¶22 Farm Credit‘s argument that trial courts must ignore the claims in a plaintiff‘s amended complaint when conducting a jury trial right analysis stems from its misunderstanding of our holdings in Tiger Placers, Johnson v. Neel, 229 P.2d 939,
¶23 In Tiger Placers, which involved an equitable lawsuit met by a counterclaim for damages, we applied the Selfridge rule and held that while the counterclaim “presented issues determinable at law, the complaint fixed the nature of the suit and by what arm of the court it should be tried.” 54 P.2d at 892. Johnson added the word “original” to the Tiger Placers rule. 229 P.2d at 945 (“[I]n Tiger Placers, [we] recognized the rule that the original complaint filed in an action fixes ‘the nature of the suit.‘“). After Johnson, this “original complaint” language became a fixture in the articulation of the Selfridge rule both by this court and, more often, by the court of appeals. See, e.g., Miller, 388 P.2d at 765-66; DeWitt, 216 P.3d at 63; Carder, 97 P.3d at 187; Citicorp Acceptance Co. v. Sittner, 772 P.2d 655, 656 (Colo. App. 1989); In re Tr. of Malone, 658 P.2d 284, 286 (Colo. App. 1982). However, Johnson does not stand for the principle that trial courts must consider only those claims in a plaintiff‘s original complaint—as distinct from its amended complaint—when conducting a jury trial right analysis. Instead, Johnson merely reinforces the basic Selfridge rule that a court should not consider the defendant‘s counterclaims when determining the availability of a jury trial. See Johnson, 229 P.2d at 943-45. First, Johnson was about a party‘s waiver of its right to a
¶24 Finally, Miller quoted the “original complaint” language from Johnson, but Miller reinforces only that the plaintiff‘s claims, not the defendant‘s, determine the nature of an action for purposes of the jury trial right. 388 P.2d at 765-66. In that case, we applied the Selfridge rule to hold that the defendants were not entitled to a jury trial under
¶25 Thus, none of our cases should be read to support a rule that limits trial courts to considering only the claims in a plaintiff‘s initial complaint to determine the basic thrust of a plaintiff‘s cause of action, and we disapprove of the court of appeals cases that construe them that way. Instead, our cases support our holding that upon receipt of a proper jury demand under
D. Application to Farm Credit‘s Amended Complaint
¶26 After examining Farm Credit‘s amended complaint, we conclude that the basic thrust of Farm Credit‘s action against Mason was legal, meaning Mason was entitled to a jury trial.
¶27 There are two methods to determine whether an action is legal or equitable. Peterson, 99 P.3d at 597. Under the first method, courts examine the nature of the remedy sought: “Actions seeking monetary damages are considered legal while actions seeking to invoke the coercive power of the court, such as those seeking injunctions or specific performance, are deemed equitable.” Id. Under the second method, courts look to the historical nature of the right that a plaintiff is seeking to enforce. Id. at 597-98. If the plaintiff is seeking to enforce a right historically decided by equity courts, the claim is equitable. Id.. If the right was historically enforced by a court of law, the claim is legal. See id. at 598. “[W]e have generally preferred using the remedial method in deciding whether a claim is legal or equitable.” Id.. However, both methods support our conclusion that Farm Credit‘s amended complaint was primarily legal.
¶28 Farm Credit‘s amended complaint brought claims against Mason for conversion, replevin, and an accounting. We examine each claim in turn.
¶29 First, “[c]onversion is any distinct, unauthorized act of dominion or ownership exercised by one person over personal property belonging to another.” Byron v. York Inv. Co., 296 P.2d 742, 745 (Colo. 1956). Actions for conversion often, if not always, seek money damages equivalent to the value of the personal property that was converted. See Md. Cas. Co. v. Messina, 874 P.2d 1058, 1065 (Colo. 1994) (acknowledging that in a
¶30 Second, Farm Credit‘s claim for replevin is also a cause of action at law. Replevin is, and historically has been, “a possessory action in which a claimant seeks to recover both possession of personal property that has been wrongfully taken or detained and damages for its unlawful detention.” In re Marriage of Allen, 724 P.2d 651, 656 (Colo. 1986); compare Code of Civil Procedure, ch. 5, § 86 (1908), with
IV. Conclusion
¶33 For the foregoing reasons, we reverse the judgment of the court of appeals and remand the case to that court for further proceedings consistent with this opinion.
Notes
- [REFRAMED] Whether the court of appeals erred in considering only the claims in respondent‘s original complaint, ignoring its amended complaint, to determine whether petitioner, a party joined as a defendant in the amended complaint, was entitled to a jury trial under
C.R.C.P. 38(a) .
