Walton v. Brooks
23CA1763
| Colo. Ct. App. | Sep 5, 2024|
Check TreatmentOpinion Summary
Facts
- Plaintiffs Kristina Foukas, Yana Kovaleva, and Oxana Soboleva brought action against defendant Ioannis Foukas for alleged violations of the Trafficking Victims Protection Act (TVPA) and other claims [lines="12-14"].
- Plaintiffs filed a motion to attach defendant's proceeds from the sale of three properties, which were held in escrow [lines="24-26"].
- Defendant sold multiple properties during the litigation, and plaintiffs alleged these were sold at below market value to conceal assets [lines="41-41"].
- The Magistrate Judge recommended partial granting of the attachment motion, allowing attachment of proceeds held in escrow while denying the request for specific property proceeds without prejudice [lines="56-57"].
- Defendant was found to have exhibited a pattern of disposing of properties to evade a potential monetary judgment against him [lines="254-276"].
Issues
- Whether the plaintiffs demonstrated sufficient grounds for the attachment of funds held in escrow [lines="292-294"].
- Whether the properties sold by the defendant were subject to attachment [lines="328-330"].
Holdings
- The court found that the attachment of defendant’s portion of proceeds held in escrow was warranted, satisfying the necessary grounds for attachment [lines="348-348"].
- The motion to attach proceeds from the specific properties was denied without prejudice, pending the identification of those proceeds [lines="340-340"].
OPINION
23CA1763 Walton v Brooks 09-05-2024
COLORADO COURT OF APPEALS
Court of Appeals No. 23CA1763
Montrose County District Court No. 23CV10
Honorable Mary E. Deganhart, Judge
Elizabeth C. Walton,
Plaintiff-Appellee,
v.
Cynthia Brooks,
Defendant-Appellant.
ORDER AFFIRMED IN PART AND REVERSED IN PART
Division VI
Opinion by JUDGE SCHUTZ
Freyre and Lipinsky, JJ., concur
NOT PUBLISHED PURSUANT TO C.A.R. 35(e)
Announced September 5, 2024
Chris Mahre & Associates, Chris Mahre, Grand Junction, Colorado, for
Plaintiff-Appellee
Cynthia Brooks, Pro Se
1
¶ 1 Cynthia Brooks appeals the district court’s order granting
Elizabeth C. Walton her attorney fees and costs incurred in a
forcible entry and detainer action (FED). We reverse the award of
attorney fees and affirm the award of costs.
I. Background
¶ 2 Walton is Brooks’s daughter. A dispute arose between them
concerning their competing rights to possess certain property
located in Naturita. Eventually, Walton initiated an FED action
against Brooks, which resulted in the district court entering a
judgment of possession in favor of Walton and against Brooks. In a
separate appeal, Walton v. Brooks, (Colo. App. No. 23CA1555, Sept.
5, 2024) (not published pursuant to C.A.R. 35(e)), we set forth the
circumstances surrounding the parties’ dispute and affirm the
district court’s judgment for possession.
¶ 3 After entering the judgment for possession, the district court
awarded Walton her costs and attorney fees incurred in the
litigation. Brooks appeals both awards, which we now address.
2
II. Analysis
A. Additional Facts and Applicable Law
¶ 4 Walton timely submitted her motion for an award of her
attorney fees and costs, which was supported by an affidavit from
her attorney. Walton claimed that she was entitled to an award of
attorney fees under section 13-40-123, C.R.S. 2024:
The prevailing party in any action brought
under the provisions of this article is entitled
to recover damages, reasonable attorney fees,
and costs of suit; except that a residential
landlord or tenant who is a prevailing party
shall not be entitled to recover reasonable
attorney fees unless the residential rental
agreement between the parties contains a
provision for either party to obtain attorney fees.
(Emphasis added.) The General Assembly added the highlighted
language to the statute in 2008. Ch. 387, sec. 2, § 13-40-123,
2008 Colo. Sess. Laws 1819-20.
¶ 5 Walton acknowledged that, as noted in the highlighted text,
the statute limits a residential landlord’s recovery of attorney fees in
an FED action to situations in which the parties’ residential rental
agreement contains a fee-shifting provision. But Walton did not
produce or allege a rental agreement between the parties that
contained a reciprocal prevailing party attorney fees provision.
3
¶ 6 As she did in the district court, Walton asserts on appeal that
Schuler v. Oldervik, 143 P.3d 1197 (Colo. App. 2006), “makes clear
that this statute does not foreclose an award of fees when the court
must first determine ownership of the property prior to awarding
[the] right of possession.” As discussed more fully below, Schuler
relied on the 2005 version of section 13-40-123 to award attorney
fees to plaintiffs who successfully brought an FED action in which
their claim for possession was based on adverse possession.
Schuler, 143 P.3d at 1204.
¶ 7 Brooks timely responded to the motion for attorney fees.
Though she did not contest the reasonableness of the claimed fees,
Brooks argued, as she does on appeal, that the Schuler decision is
factually and legally distinguishable, and that an award of attorney
fees in this case was unwarranted.
¶ 8 The district court awarded Walton $10,318 for attorney fees
and $517.67 for costs after finding that Brooks failed to “state any
objection to the reasonableness or necessity of attorney fees
requested.” With respect to the legal basis for the award, the
district court reasoned: “Walton is entitled to an award of attorney
4
fees and costs incurred in this action” pursuant to “the authority
contained at” section 13-40-123 and Schuler.
B. Standard of Review
¶ 9 We review an award of attorney fees for an abuse of discretion.
In re Estate of Fritzler, 2017 COA 4, ¶ 24. An abuse of discretion
occurs when the district court’s decision is manifestly arbitrary,
unreasonable, or unfair, or misapplies the law. Id. at ¶ 6.
C. Application
¶ 10 We agree with Brooks that Schuler is factually distinguishable
from this case, and we also agree that Schuler is legally
distinguishable, albeit on somewhat different grounds than those
Brooks argued. First, as to the factual distinctions, in Schuler the
plaintiffs brought an FED action against a neighbor. 143 P.3d at
1199. The dispute centered on a strip of land along the properties’
common boundary. Id. Legal title to the disputed land was in the
defendants’ names, but the plaintiffs claimed ownership of the
property — and hence, the right of possession — by adverse
the division to first determine whether the plaintiffs had established
their adverse possession claim.
5
¶ 11 Walton and her sister, Kathryn Herland
1
, in contrast to the
plaintiffs in Schuler, had record title to the disputed property. Their
FED complaint was based on their record title and the theory that
Brooks was a tenant at will who could be evicted at any time.
Brooks asserted that she owned the property by adverse possession
and therefore could not be evicted. But because Brooks failed to
appear for the FED possession hearing, the district court was not
required to formally resolve her adverse possession claim because
she presented no evidence. Thus, unlike in Schuler, the claim of
adverse possession was not resolved incident to Walton and
Herland’s claim for possession.
¶ 12 Despite these factual differences, reasonable minds could
debate whether Schuler’s rationale extends to the present situation.
But here is where the legal distinction between the two cases
becomes critical. Recall that in 2006, when the division decided
Schuler, it applied the existing FED attorney fee provision. Id. at
1204. At that time, section 13-40-123 allowed a prevailing party in
1
Herland was a plaintiff in district court; however, the attorney fees
and costs award was made solely in favor of Walton. Thus, Herland
is not a party to this appeal.
6
an FED action to recover attorney fees without qualification. § 13-
40-123, C.R.S. 2005. In 2008, however, the General Assembly
amended the statute to add the final clause specifying that “a
residential landlord or tenant who is a prevailing party shall not be
entitled to recover reasonable attorney fees unless the residential
rental agreement between the parties contains a provision for either
party to obtain attorney fees.” Ch. 378, sec. 2, § 13-40-123, 2008
Colo. Sess. Laws 1819-20.
¶ 13 Returning to the undisputed facts of this case, Walton brought
the FED action in 2023. Her claim for attorney fees was premised
on the version of section 13-40-123 containing the language that
the General Assembly added to the statute in 2008. Walton did not
allege that the lease agreement with Brooks contained a provision
permitting the prevailing party to recover attorney fees. Absent
such a provision, section 13-40-123 precludes Walton from
recovering her attorney fees in this action. Therefore, we reverse
the district court’s award of attorney fees in favor of Walton.
However, as the prevailing party, Walton is entitled to an award of
her costs. Id.
7
III. Disposition
¶ 14 We reverse the district court’s award of attorney fees in
Walton’s favor but affirm its cost award of $517.67.
JUDGE FREYRE and JUDGE LIPINSKY concur.
