MULBERRY FRONTAGE METROPOLITAN DISTRICT, a Colorado special district and political subdivision of the State of Colorado, Petitioner-Appellee, v. SUNSTATE EQUIPMENT CO., LLC, a Delaware corporation, Respondent-Appellant.
Court of Appeals No. 22CA0680
Colorado Court of Appeals, Division V.
Announced July 13, 2023
2023 COA 66, 537 P.3d 391
Opinion by JUDGE GOMEZ
Alderman Bernstein, LLC, Jody Harper Alderman, Amanda A. Bradley, Denver, Colorado, for Defendant-
Opinion by JUDGE GOMEZ
¶ 1 The General Assembly has provided that when a court rejects a condemnation petition on the ground that the petitioner isn‘t authorized to acquire the subject property, “the property owner who participated in the proceedings” is entitled to recover their reasonable attorney fees and costs.
¶ 2 We conclude, however, that the trial court erred by not addressing—and thus implicitly denying without explanation—the lessee‘s request for attorney fees under
I. Background
¶ 3 The district filed the underlying condemnation petition against the Niesje J. Van Heusden Revocable Trust (the owner), the lessee, and the Larimer County Treasurer, seeking to condemn real property in Fort Collins for public street improvements. The subject property was part of a larger parcel that the lessee rented under a long-term lease to operate an equipment rental business. The subject property is burdened by a recorded deed of covenant held by the Colorado Department of Transportation (CDOT) prohibiting any construction or improvements in anticipation of a future highway project. The district identified the covenant in its petition but didn‘t name CDOT as a respondent.
¶ 4 The lessee moved for joinder of CDOT or dismissal of the case for failure to join CDOT. The lessee also requested attorney fees and costs under
¶ 5 In an August 2021 order, the court denied the request to dismiss but granted the request for joinder and directed the district to join CDOT to the case. The court also denied the request for attorney fees and costs, reasoning that the lessee is “just a tenant” and “not the property owner” and that
¶ 6 After the district filed an amended petition joining CDOT, the owner and the lessee jointly moved for dismissal on the ground that the proposed project conflicted with CDOT‘s covenant. They also jointly requested an award of attorney fees and costs under
¶ 7 In a November 10, 2021 order, the court dismissed the amended petition, “award[ed] reasonable attorney fees and costs pursuant to [
¶ 8 Thereafter, the owner and the lessee filed documents detailing the amount of their requested attorney fees and costs. Meanwhile, the district moved for clarification of the court‘s ruling on the lessee‘s request for attorney fees.
¶ 9 On April 14, 2022, the court ruled on the district‘s motion for clarification, stating that it was “reaffirm[ing] that [the lessee] is not entitled to fees in this matter.” The court stated that its August 2021 order had found the lessee ineligible for attorney fees and costs under
¶ 11 On appeal, the lessee contends that the trial court erred by denying its request for attorney fees and costs under
II. Appellate Jurisdiction
¶ 12 We first reject the district‘s contention that we lack jurisdiction over this appeal. According to the district, the court‘s November 10, 2021 order dismissing the condemnation petition constituted a final judgment on the lessee‘s request for attorney fees and costs. Thus, the district contends, the lessee‘s notice of appeal, filed over five months later on April 26, 2022, was untimely. We disagree.
¶ 13 Under
¶ 14 Typically, a judgment is final if it disposes of the entire litigation on the merits, leaving nothing for the court to do but execute on the judgment. Grand Cnty. Custom Homebuilding, LLC v. Bell, 148 P.3d 398, 400 (Colo. App. 2006). Once a court enters a final judgment, the court‘s earlier orders merge into the judgment and generally become reviewable. Town of Monument v. State, 2018 COA 148, ¶ 6, 467 P.3d 1126, aff‘d sub nom. Forest View Co. v. Town of Monument, 2020 CO 52, 464 P.3d 774.1
¶ 15 However, “the final judgment rule has distinct contours in the context of postjudgment proceedings.” AA Wholesale Storage, LLC v. Swinyard, 2021 COA 46, ¶ 10, 488 P.3d 1213. In that context, the underlying action has already concluded with the entry of a final judgment, even as some part of the action remains “live.” Id. at ¶ 12.
¶ 16 Divisions of this court have applied a two-part test in determining the finality of postjudgment orders. First, we consider whether the order ends “the particular part of the action in which it is entered,” leaving “nothing further for the court pronouncing it to do in order to completely determine the rights of the parties as to that part of the proceeding.” Id. at ¶ 13 (quoting Luster v. Brinkman, 250 P.3d 664, 667 (Colo. App. 2010)). And second, we consider whether the order is “more than a ministerial or administrative determination,” such that it “affect[s] rights or create[s] liabilities not previously resolved by the adjudication of the merits.” Id. at ¶ 16 (quoting Luster, 250 P.3d at 667). If both elements are satisfied, we treat the order as final. See id. at ¶ 23.
¶ 17 A judgment on the merits is considered final and appealable notwithstanding unresolved issues of attorney fees and costs. L.H.M. Corp., TCD v. Martinez, 2021 CO 78, ¶ 23, 499 P.3d 1050; Laleh v. Johnson, 2016 COA 4, ¶ 50, 405 P.3d 286, aff‘d on other grounds, 2017 CO 93, 403 P.3d 207;
¶ 19 Although the trial court had denied the lessee‘s earlier request for attorney fees and costs under
¶ 20 Moreover, nothing in the November 10, 2021 order could be read as even implicitly denying the lessee‘s request for attorney fees under
¶ 21 Thus, it is clear that the attorney fee and cost issues were not entirely resolved as of November 10, 2021. Indeed, there were later pleadings and rulings on those very issues.
¶ 22 Applying Colorado‘s postjudgment finality test, then, the issues concerning the lessee‘s request for attorney fees and costs were not finally resolved until, at the earliest, April 14, 2022, when the trial court entered its order on the motion for clarification, stating that it was denying the request. Before that date, the court hadn‘t entered an order on fees and costs that ended “the particular part of the action in which it [wa]s entered,” leaving “nothing further for the court pronouncing it to do in order to completely determine the rights of the parties as to that part of the proceeding.” AA Wholesale Storage, ¶ 13 (quoting Luster, 250 P.3d at 667). And, clearly, the April 14, 2022 order was “more than a ministerial or administrative determination” because it “affect[ed] rights or create[d] liabilities not previously resolved by the adjudication of the merits.” Id. at ¶ 16 (quoting Luster, 250 P.3d at 667).
¶ 23 Thus, the lessee‘s notice of appeal, filed on April 26, 2022, was timely. We therefore have jurisdiction over the appeal. Accordingly, we now turn to the lessee‘s contentions.
III. Attorney Fees and Costs under Section 38-1-122(1)
¶ 24 The lessee contends that the trial court erred by denying its request for attorney fees and costs under
¶ 25
If the court finds that a petitioner is not authorized by law to acquire real property or interests therein sought in a condemnation proceeding, it shall award reasonable
attorney fees, in addition to any other costs assessed, to the property owner who participated in the proceedings.
The trial court concluded that this provision doesn‘t apply to lessees because lessees are not property owners.
¶ 26 We review a trial court‘s interpretation of a statute de novo. Nesbitt v. Scott, 2019 COA 154, ¶ 19, 457 P.3d 134. Our primary purpose in interpreting a statute is to ascertain and give effect to the General Assembly‘s intent. McCoy v. People, 2019 CO 44, ¶ 37, 442 P.3d 379. To do so, we start with the language of the statute, giving the statutory words and phrases their plain and ordinary meanings, id., and reading the statutory scheme as a whole so as to give all of its parts a consistent, harmonious, and sensible effect, Doubleday v. People, 2016 CO 3, ¶ 20, 364 P.3d 193. If the language is unambiguous, we look no further, McCoy, ¶ 38, but simply apply that language, presuming that the General Assembly “meant what it plainly said,” Kroesen v. Shenandoah Homeowners Ass‘n, 2020 COA 31, ¶ 40, 461 P.3d 672 (quoting Miller v. Curry, 203 P.3d 626, 629 (Colo. App. 2009)).
¶ 27 We conclude that
¶ 28 Because the statute doesn‘t define an “owner” of property, we consider the common usage of that term. See Broomfield Senior Living Owner, LLC v. R.G. Brinkmann Co., 2017 COA 31, ¶ 18, 413 P.3d 219. Merriam-Webster Dictionary defines an “owner” as “a person who owns something,” “one who has the legal or rightful title to something,” or “one to whom property belongs.” Merriam-Webster Dictionary, https://perma.cc/JVB7-NJCN. Likewise, the Restatement (First) of Property describes an “owner” as “[a] person who has the totality of rights, powers, privileges and immunities which constitute complete property in a thing.” Restatement (First) of Prop. § 10 cmt. b (Am. L. Inst. 1936). And Black‘s Law Dictionary defines “ownership” as “[t]he bundle of rights allowing one to use, manage, and enjoy property, including the right to convey it to others.” Black‘s Law Dictionary 1332 (11th ed. 2019). Nothing in these definitions or descriptions suggests that the term “property owner” encompasses lessees.
¶ 29 The lessee‘s reliance on general property law principles is misplaced. It is true that a leasehold is a property interest. See Better Baked, LLC v. GJG Prop., LLC, 2020 COA 51, ¶ 24, 465 P.3d 84 (A “lease create[s] interests in real property for [the] tenant.“); Kunz v. Cycles W., Inc., 969 P.2d 781, 783 (Colo. App. 1998) (“A commercial lease is both a conveyance of an interest in real property and a contract.“). But that doesn‘t make a lessee a property owner. A lessee‘s interest is in the possession—not the ownership—of property. See Wilson v. Marchiondo, 124 P.3d 837, 840 (Colo. App. 2005) (recognizing a lessee‘s possessory interest in leased property); Rare Air Ltd., LLC v. Prop. Tax Adm‘r, 2019 COA 134, ¶ 25, 459 P.3d 547 (noting that “[a] possessory interest is ‘[t]he present right to control property, including the right to exclude others, by a person who is not necessarily the owner‘” (quoting Black‘s Law Dictionary 1353 (10th ed. 2014))); see also Cantina Grill, JV v. City & Cnty. of Denver Bd. of Equalization, 2012 COA 154, ¶ 7, 292 P.3d 1144 (recognizing a distinction between possessory interests and ownership interests), aff‘d on other grounds, 2015 CO 15, 344 P.3d 870; People v. Barefield, 804 P.2d 1342, 1345 (Colo. App. 1990) (same); Restatement (First) of Prop. § 7 (describing possessory interests in land).
¶ 30 It is also true that lessees are generally entitled to receive compensation for any taking of their property interest in condemnation proceedings. See Alamo Land & Cattle Co. v. Arizona, 424 U.S. 295, 303 (1976) (“[T]he holder of an unexpired leasehold interest in land is entitled, under the Fifth Amendment, to just compensation for the value of that interest when it is taken upon condemnation
¶ 31 Nonetheless, the lessee contends that our supreme court cited a state constitutional provision concerning property owners in its Fibreglas Fabricators holding that a lessee is generally entitled to compensation upon the condemnation of their property interest. See id. The supreme court cited three sources in support of that holding. Aside from our state constitution, the other two sources were Alamo Land & Cattle, 424 U.S. at 303, which addresses lessees’ rights to compensation for the taking of their leasehold interest under the Federal Constitution, and Roth v. Wilkie, 143 Colo. 519, 522, 354 P.2d 510, 512 (1960), which provides that our state constitution guarantees compensation “when some specific private property, or some right or interest therein or incident thereto, peculiar to the owner, is taken or damaged for public or private use,” (quoting Gilbert v. Greeley, Salt Lake & Pacific Ry., 13 Colo. 501, 508, 22 P. 814, 816 (1889)).
¶ 32 The cited Colorado Constitutional provision, article II, section 15, provides, in pertinent part, as follows:
Private property shall not be taken or damaged, for public or private use, without just compensation. Such compensation shall be ascertained by a board of commissioners, of not less than three freeholders, or by a jury, when required by the owner of the property, in such manner as may be prescribed by law, and until the same shall be paid to the owner, or into court for the owner, the property shall not be needlessly disturbed, or the proprietary rights of the owner therein divested ....
The protection conferred in the first sentence of this provision doesn‘t refer to an owner of property. Instead, it provides broadly that “[p]rivate property” cannot be taken or damaged without just compensation. And while the second sentence describes the compensation required by the first sentence and indicates that “the owner” cannot be divested of the property until that compensation is paid, it doesn‘t narrow the broad protection conferred by the first sentence so as to limit it to only property owners. Instead, fairly read, it simply sets forth how compensation must be determined (including that it must be by a jury if the owner requires one) and reiterates that an owner‘s rights cannot be divested or needlessly disturbed until just compensation is paid.
¶ 33 Thus, our supreme court‘s recognition that this provision supports a right to compensation by lessees—who would be entitled at any rate to compensation under the
¶ 34 Nor does it suggest that the General Assembly intended to adopt such an expansive meaning of a “property owner,” rather than the commonly understood meaning of the term, in the eminent domain statutory scheme. Throughout the eminent domain statutes, the General Assembly distinguished “owners” from others holding interests in a property, thus recognizing that while those with non-ownership interests have rights to compensation and participation in condemnation proceedings, they don‘t have the same rights as “owners” in those proceedings.
¶ 36 Yet other sections of the eminent domain statutory scheme, like
¶ 37 From these references, we conclude that the General Assembly applied the common meaning of the term “property owner” in the eminent domain statutes. We also conclude that when the General Assembly intended a provision in the statutes to apply only to the owner of a property, it provided specific references to an “owner“; but when it intended a provision to apply more broadly to holders of other property interests, it included references to other interested parties. Cf. City & Cnty. of Denver v. Bd. of Assessment Appeals, 947 P.2d 1373, 1378 (Colo. 1997) (“When the General Assembly wanted to limit applicability of the statute [governing real estate appraisers] to federal transactions, it did so expressly.“); Reg‘l Transp. Dist. v. Aurora Pub. Schs., 45 P.3d 781, 783 (Colo. App. 2001) (“[W]hen the General Assembly wanted [the Regional Transportation District] to be included within the scope of a particular provision of the No-Fault Act, it expressly did so.“).
¶ 38 Thus, we presume that, had the General Assembly intended to allow lessees, as non-owners holding possessory interests in property, to recover attorney fees and costs under
¶ 40 Accordingly, we affirm the trial court‘s denial of the lessee‘s request for attorney fees and costs under
IV. Attorney Fees under Section 13-17-102
¶ 41 The lessee also contends that the trial court erred by not addressing its request for attorney fees under
¶ 42
¶ 43 The trial court is in the best position to determine whether an action, defense, or part thereof satisfies these standards. See Argo v. Hemphill, 2022 COA 104, ¶ 51, 521 P.3d 1080. Therefore, we generally review a trial court‘s decision whether to award attorney fees under
¶ 44 But even when denying an award of fees under the statute, the court “must make sufficient findings such that adequate appellate review can be exercised.” Munoz v. Measner, 247 P.3d 1031, 1034 (Colo. 2011).9 In the absence of sufficient findings, we must reverse and remand the matter for the trial court to explain the basis for its decision. See id. at 1034-35; In re Marriage of Rodrick, 176 P.3d 806, 816 (Colo. App. 2007) (“[B]ecause the court did not address [a party‘s] request for an award of attorney fees under
¶ 45 In this case, the trial court didn‘t rule on the lessee‘s request for fees and costs under
¶ 46 Accordingly, we reverse the trial court‘s implicit denial of attorney fees under
V. Appellate Attorney Fees
¶ 47 The lessee requests an award of its appellate attorney fees under
VI. Disposition
¶ 48 The trial court‘s attorney fee order is affirmed to the extent that it denied the lessee‘s request for attorney fees and costs under
JUDGE BROWN and JUDGE TAUBMAN* concur.
* Sitting by assignment of the Chief Justice under provisions of
