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Zab, Inc. v. Berenergy Corp.
136 P.3d 252
Colo.
2006
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*1 ZAB, INC.; Resources, Inc.; Zalman Sport Corporation;

Daven

Resources, Inc., Petitioners CORPORATION,

BERENERGY

Respondent.

No. 04SC547. Colorado,

Supreme Court of

En Banc.

June *2 P.L.L.P.,

Lindquist Charles F. & Vennum Denver, Colorado, Brega, Rodgers, T. Scott Zab, Inc.; Attorneys Zalman for Petitioner Resources, Inc.; Resources, Sport Inc. and P.C., Silver, DeBoskey, Joe L. & Silver Colorado, Moore, Denver, Attorneys T. Brian Corporation. Petitioner Daven for LLP, Horowitz/Forbes, Horowitz, Jay S. Forbes, Denver, Colorado, Attor- C. Peter neys Respondent. for Opinion MARTINEZ delivered the Justice of the Court. granted certiorari to review the court
We Zab, Berenergy Corp. v. appeals’ opinion Inc., (Colo.App.2004), and de- appropriate termine whether relief Declaratory Judgment the Colorado Uniform (CUDJL) to of an Law declare the existence any rights or duties con- oral contract and tained therein. light statutory language as

In whole, trial exercise we hold that a existence of an discretion declare the exists, if one the terms of contract, such relief would “termi- or remove uncertain- nate case, ty.” the con- relief would terminate uncertainty by troversy defining and remove any relationship between Beren- contractual Corporations. Ac- and Sons’ ergy the Beren appeals cordingly, affirm the court we court for its case to remand this Berenergy’s for de- motion consideration claratory judgment. History

I. and Procedural Facts Corpo- Berenergy Beren formed Sheldon to invest (“Berenergy”) ration drilling acquisition of oil and ventures his death Sheldon gas wells. Before president and sole sharehold- was the Beren Berenergy. er of Beren, Beren, Zev A. David I. (col- Beren, Z. Jonathan Beren Daniel J. Sons”) individually lectively each the “Beren wholly independent, owned incorporated an participating S-corporation for gas drilling acquisition ventures in oil and Berenergy.1 energy obligation four corporations These had a contractual contin- (collectively Corporations”) “Beren charging Sons’ ue Petitioners the fixed $150.00 Berenergy sought Petitioners the instant action. rate. also to recover the undercharged amount since Sheldon Beren’s Berenergy financed the Beren Cor- Sons’ death. porations’ acquisition ten-percent of a inter- *3 property acquired in all of est the thereafter. Berenergy’s The trial court dismissed Monthly joint holdings from revenue the was for a on which claim failure to state claim applied either to the loan balances owed may granted. As to be relevant this Corporations Berenergy the Beren Sons’ to appeal, alternately the trial court Beren- held equal to ten-percent or distributed them in ergy’s claim must be dismissed because the portions. Berenergy remaining kept the six- prohibits declaring a trial court from CUDJL ty-percent. the of an existence oral contract or the terms n one. of 1991, Berenergy Between 1986 and charged Corporations the Beren Sons’ varia- appeals The court of As reversed. rele here, ble rates to on appellate cover the overhead costs the vant the court reasoned first jointly Berenergy owned wells. In al- permitted that the a CUDJL declaration of per charge tered the overhead to purported a $150.00 contract. Ber month, reduced, per proportionately energy well on Corp., 94 P.8d at 1235-36. Addition properties involving all Beren ally, the Sons’ Cor- appeals the court of the concluded porations. Berenergy charged has incorrectly Berenergy’s dismissed com $150.00 per per well month since that That plaint time. for on failure state claim which charge applied retroactively acqui- was granted. the relief could be Id. at 1236. projects. sition date on all then-current Corporations Sons’ Beren seek review time, Sheldon Beren died in 1996. At appellate ruling the Berenergy his estate permits obtained his stock judgment CUDJL es- operational corporation. tablishing control the over an oral the existence terms of dispute Berenergy A arose between and the contract.2 Corporations Beren Sons’ as to Ber-

energy obligation Analysis had a contractual to contin- II. charging ue per per the well month $150.00 ease, In this we are to decide asked parties pro- overhead rate. The have not may whether a trial court exercise discre its evidencing duced written contract Berener- tion to the declare existence of an oral con gy’s obligation charging to continue exists, any tract if one duties obli rate. $150.00 gations contained therein under CUDJL. determination, Pursuant to a 1998 probate making order In necessarily this we court, Sheldon Beren’s attempted statutory estate consider of CUDJL, of Berenergy sell all interests. Berener- codified in sections 13-51-101 to gy alleges (2005) the estate failed sell its interest and C.R.C.P. 57. corporation uncertainty because of surrounding per per well Statutory Interpretation month $150.00 A. overhead rate. of the CUDJL clarify

To its obligations, Berenergy Whether a trial court exercise its (1) sought a court of declaration granting declaratory discretion in relief un relationship Berenergy between Ber- statutory and the der the is a matter CUDJL (2) Corporations en interpretation, Sons’ whether Ber- which review novo. we de Zab, Inc.; Specifically, incorporated granted 1. Zev Specifically, Beren we certiorari the fol- on lowing incorporated Corporation; David issue: Beren Daven Resources, incorporated Appeals Jonathan Beren Zalman Whether the Court of erred when it Inc.; incorporated Sport judgment and Daniel Beren Re- concluded that a action sources, of, may be filed determine existence Inc. under, an oral contract. Edwards, Temperance rel. Movement Colo. v. Tucker ex ter-Church See Gorman (Colo.1998); Baker, 398, 404, see also Tidwell v. 297 P.2d Denver, County City light v. & of CUDJL’s mandate rel. Tidwell ex (Colo.2003). liberally act be ad 83 P.3d that the construed and ministered, the combination these sections determination, we making suggests that trial court declare statutory in principles turn to traditional and terms of an oral contract existence interpreting mean terpretation. When such a would terminate statute, goal is to effectuate the ing controversy. Assembly. Reg’l intent of General Lopez, Transp. Dist. however, Corporations, Beren Sons’ (Colo.1996). end, must To achieve that we declaratory judgments are limited to claim statutory scheme as a whole to consider *4 argu- support contracts. To written their harmonious, consistent, and sensible give 13-51-106, ment, rely they on section C.R.S. v. to each individual section. Charnes effect (2005). argue the section’s ex- Petitioners (Colo.1988). Boom, 665, P.2d The press reference to “written contracts” legislative declaration or aids writings constituting a re- “other contract” (2005). legis § 24203(g), C.R.S. review. quires to other to us construe all references specifically declaration of the CUDJL lative in that section as written “contracts” con- liberally that be construed provides the act tracts: 13-51-102; § Colo. State and administered. will, deed, Any person interested under Dixon, Optometric Exam’rs v. Bd. of contract, writings or other consti- uiritten 287, (1968). 440 P.2d status, rights, tuting a whose contract or language plain of the CUDJL also instructs legal by a other are affected or relations interpret the act accordance with us to ordinance, contract, statute, municipal or purpose make uniform the law of “general to may any ques- franchise have determined harmonize, it and to those states which enact validity arising un- or tion construction possible, far as with federal laws” related as statute, instrument, ordinance, the der 13-51-104, § judgments. to contract, or and obtain franchise a declara- (2005). C.R.S. status, rights, legal or other rela- tion recognizes also The CUDJL tions thereunder. “power have the to declare courts broad added). § (emphasis They claim 13-51-106 status, legal rights, and other relations.” express of “written contracts” inclusion (2005). 13-51-105, By failing to § C.R.S. implies the exclusion of oral contracts. types rights legal or relations define the relief, may which a court over correctly note the first Petitioners recognizes may that the courts CUDJL portion limited written of the statute is subject adjudicate array matters. wide “Any person interested under contracts: contract, writings consti ... written or other this power The limitations of broad tuting Howev a contract....” 13-51-106. 13-51-110, recognized in section er, separates word “or” the next clause: That section states: “The court status, rights, or other rela “or whose or enter refuse render contract_” are affected a ... Id. tions judgment such or or decree where added). Generally, presume (emphasis we entered, decree, if not rendered would disjunctive word marks use of the “or” uncertainty categories legislative unless distinctive (empha giving proceeding.” rise to the Id. added). clearly contrary. v. to the Carlson intent Together, sis those sections indi Ferris, (Colo.App.2002); cate that a trial court exercise its dis People, status, see Armintrout cretion “declare (Colo.1993). relations,” expressed 13-51-105, In the absence long so arguable contrary, intent declaratory judgment “termi intent to as the would sepa- instance was to controversy,” legislature nate the from the second clause. People rel. In- rate the first clause generally 13-51-110. See ex only The second clause refers to “contracts” 1. Other States and not to “written contracts” or “other writ- A considérable number of the states to ings contract,” constituting a suggesting the adopt Declaratory Judgment the Uniform second clause is qualifier not limited (“Uniform Act”) Act consider oral contract “written.” disputes within the discretion of the trial Church, court. See Lorenze v. 172 W.Va. reasons, For the aforementioned the sec- (1983) (listing S.E.2d states ond clause of section 13-51-106 could be read “allowing arising declaration of only open include written contracts or be contracts”). many under oral While to a group broader of contracts. it is accept proposition state courts without unclear whether the of section 13- see, analysis, e.g., Barnett Chevrolet Co. v. prohibits 51-106 declaration of and Collins, 275 S.W.2d (Tex.Civ.App. arising duties under oral contracts. 1955), reasoning Supreme of the Missouri Virginia Supreme Court and West Court is Recognizing ambiguity the inherent in sec persuasive here. The Missouri court con alone, standing proceed tion we powers cluded that the broad of the trial consider the other sections of the statute to courts were not limited section 2 determine ap relief is therefore, declaratory judgments per were propriate under the generally CUDJL. See missible in oral disputes. Temm v. *5 Charnes, (Colo. 378, Allen v. 674 P.2d 381 Temm, 354 Mo. 191 S.W.2d 1984). legislature expressly directed (1945). The Virginia similarly West that the act be construed to make uniform declaratory determined that relief was not the laws of possible, the states where limited to written contracts because of the judiciary. § the federal 13-51-104. we purpose remedial of the act and the substan first harmony the substantial among review among jurisdictions tial accord in affording judiciary states and the federal in allow relief. We analyses. review both states’ ing declaratory relief over oral contract dis To aid in analyses our review of the used putes. We then statutory consider states, by different we specific refer to sec- Chames, scheme aas whole. 766 P.2d at tions of the Uniform Act under the labels 667. and of the act originally proposed by the uniform commis- permit also the declaration of the existence pertinent discussion, sion. As to our section and terms of an oral contract. 1 of corresponds the Uniform Act to section 13-51-105 of the CUDJL. Section of the B. Other Jurisdictions Uniform Act matches section 13-51-106 of the CUDJL. The CUDJL labels section 5 of requires The CUDJL interpret us to and the Uniform Act section construe the law general “as to effectuate its (2005). Section 12 of the Uniform Act corre- purpose to make uniform the law of those sponds with section 13-51-102 of harmonize, states which enact it and to far as CUDJL. possible, as regulations with federal laws and subject on the declaratory of judgments and In determining that the trial courts have added). (emphasis decrees.” 13-51-104 the discretion to in relief Although jurisdictions other have not univer- disputes, Missouri considered sally accepted may that courts alongside declare section 2 sections and 5. Section arising under an oral previously quoted, contract in all situa- as recognizes that trial tions, a substantial number of the courts have “power states the broad to declare subsection, status, In rights, have. legal we recount and other relations.” majority minority reasoning explains Section 5 employed power that this broad is by not states and conclude that limited section 2: majority reasoning persuasive. is more We then turn The enumeration in sections does J to the federal courts for guidance more in not limit or restrict the exercise understanding plain meaning of the general poivers in section in conferred CUDJL. any proceeding relief is “liberally therein be construed and ad- judgment in or decree mil tained sought, which a any Id. This indicates that ambi- controversy or an ministered.” in guity granting be favor of should resolved uncertainty. Id.; see re Dahl’s relief. added.) Supreme The Missouri (Emphasis Estate, adjudi- (allowing at 1 of the Uni explained Court that: “Section property title to on an oral cation of based Act, general power form which confers part because itself “[a]ct legal other rela ‘rights, status and declare to be remedial mandates lib- declared tion[s]’, provides that the and section 5 which administration.”). eral construction and Sec- 3,2, and 4 not sections does enumeration ond, the Lorenze Court turned to the sub- general of the limit or restrict the exercise ” harmony among jurisdictions other stantial Temm, powers 1.... conferred allowing a in oral con- declaration Estate, 632; In re Dahl’s S.W.2d see Alabama, Alaska, disputes, including: tract (1952) (“[Sec Or. Arkansas, California, Florida, Indiana, Iowa, or to 4 not limit restrict do] tions [2 Louisiana, Missouri, Montana, Michigan, general powers conferred exercise York, Dakota, Texas, Ohio, New South 1], any proceedings where declar [section Lorenze, light 328. Utah. 305 S.E.2d sought, atory in which considerations, two Court these Lorenze re terminate the decree will any person rights, “whose status concluded power uncertainty.”). Because the move an legal or other relations affected rights, status and the courts declare obtain declaration not limited other relations is status, those relations” to make it clear that oral this “would seem under section Id. Temm, passed upon.” be contracts only S.W.2d at 632. Missouri limits a minority drastically lim- A states either controversy by ability pass upon an oral persons it affected can when seek declara- justiciable requiring the of a con existence *6 rights arising under oral contracts or tion of Keiser troversy ripe for v. Wied decision. a prohibit altogether. them Montana takes mer, 63, (Mo.App.1954). Re 66 263 S.W.2d Although approach. the Montana limited on section 5 n lying language, Oregon, which nothing in Supreme Court determined Missouri, requires reasoning to uses similar any legislative 2 “shows intent to ex- only proceeding that the “terminate the con “a clude oral contracts” when uncertainty.” troversy In re or remove declaratory judgment in a action will decree Estate, 248 at 702. Dahl’s P.2d controversy un- an Free, 552, Carpenter certainty,” 138 Mont. Virginia a Supreme Court took The West 882, (1960), only trial courts Lorenze, 357 P.2d at approach related in 305 S.E.2d to hear oral contract dis- have the discretion The Lorenze first found section 328. Court of an putes and terms when existence ambiguous. The reasoned that the sec- court by par- of the oral contract are admitted all ability originally speaks tion of the court’s to v. Dist. ex rel. Indus. Indem. Co. ties. State contract” and declare under a “written 438, Court, 10, 544 169 Mont. P.2d “rights arising duties un- then turns Hardland, 78, (1975); Mahan v. 147 Mont. ‘contract,’ employing in this der a without “ 156, (1966). 410 P.2d qualifier ‘written.’ Id. second context the limited its by Supreme Court ambiguity created The Montana To resolve deny declar- language, Virginia holding because the state courts differing the West Su- a deter- atory requires act when the action preme of the relief Court turned to “ordinarily a in facts: disputed case law mination of and the “substantial accord ” First, declaratory judgment jurisdictions.... Id. court will refuse a from other only judicial a inves- can be after purpose of the act which made Lorenze Court noted the ” remedial, i.e., disputed .... ex rel. tigation of facts State is “to settle and afford relief Co., (citing at insecurity respect with Indus. Indem. from 81). relations,” p. Declaratory Judgments status and other C.J.S. of an Determining and terms act that the con- the existence and the mandates requires contract trial court to “where the declaration will neither terminate oral make judicial investigation uncertainty, disputed controversy nor remove an disfavored Accordingly, prohibits 5].” facts. Montana de- a limitation on Id. [section is] [section Id.; claratory Thus, relief in situations. such Ma- at 697. a declaration ter- when would han, 410 at controversy P.2d uncer- minate a remove an tainty, necessarily section 2 does not act as a disagree reasoning We discretion, limitation on the Proceedings court. under Montana may disputes. a trial hear oral court may factual include determinations. CUDJL Carpenter, (interpreting See 357 P.2d at 884 specifically provides: The CUDJL “When Any Superior similarly). Dairy, Inc. proceeding under this article involves the Superior interpretation Dairy, Inc. would fact, determination of an issue such an premature specifically be because the court may be and determined in the tried declaratory judgment found a would “[c]er- of fact [sic] same manner as issues are tried tainly or re- not” terminate the and determined in other civil actions in the uncertainty in move that case. at 698. Id. pending.” in proceeding court which the is § 13-51-113. See v. State Farm O’Herron interpretation supported This Gem Co., Auto. Ins. Mut. Assoc., City Eng’g George Co. v. M. Caruana factual issues (Ohio Inc., 6087, 1979 *34 No. WL declaratory pursu- be in decided actions 1979) opinion). App. April (unpublished to the ant mechanism outlined City, Gem a different division of the court Supreme CUDJL. Montana Court’s appeals that trial courts cannot refuse held reasoning inapplicable here because the to issue relief in oral contract recognizes that factual determina- CUDJL disputes when relief would terminate con appropriate tions are actions troversy uncertainty. or remove the trial when otherwise issue among harmony There is substantial relief. affording declaratory states oral Additionally, Superior Petitioners read Lorenze, disputes. See 305 S.E.2d Dairy, County Inc. v. Stark Milk Producers’ appear support 328. Cases Ass’n, App. 89 Ohio 100 N.E.2d 695 contrary unpersua conclusion limited or (1950), prohibit judgments inquiry. sive The Ohio case cited arising eases all contracts. See necessarily not prohibit Petitioners does de Judgments 22A Am.Jur.2d claratory disputes judgments Declarator (2005) (also interpreting Superior *7 § 121 controversy where relief would terminate the Dairy, prohibit declaratory Inc. to in relief uncertainty. Superior or eliminate an case, disputes). oral contract that Inc., 26, 100 695; Dairy, App. 89 Ohio N.E.2d sought plaintiff a declaration of Co., City Eng’g at Gem 1979 WL *34. cf. implied an contract to milk deliver after permit declaratory to Montana’s refusal re dispute acquiesced in plaintiff which the disputes lief in certain is not oral defendants’ that stop demands he dis- persuasive to because Montana de us denies counting milk to A certain customers. divi- claratory judge relief whenever the trial appeals of sion the Ohio court of declined engage inquiry. must in a fact-intensive declaratory in relief the oral contract Co., State ex Indem. rel. Indus. 544 P.2d at Inc., Dairy, dispute. Superior 100 N.E.2d at inquiry 440. for a The need fact-intensive suggest grant 698. Petitioners the refusal to declaratory prohibit does not in Colora Colo, declaratory relief in that instance illustrates O’Herron, 171, do. 156 397 P.2d at in that Ohio denies relief all controversies 230. involving disputes. Approach 2. Federal The interpretation findWe Petitioners’ of Su- Dairy, perior unpersuasive. opin- Inc. The CUDJL also directs us to harmonize act, interpretation possi- ion does not conclude that oral contract of dis- as far as ble, uniformly putes purview approach outside the of taken the federal Instead, judicia- judiciary. § act. the court reasoned: 13-51-104. The federal

259 Act, however, disputes, long as the action meets the the Uniform so ry not enact did discretionary litigant if the al- first determine federal test. when a so we must reasoning applicable inquiry. to our in leges that a an declaration clarify dispute legal relations will determining grant declarato uncertainty, courts the federal ques relief, weigh two ry federal courts See, e.g., have afforded relief. proposed by Professor Borch- originally tions N.Y., H.R. Transit v. N.H. & Advertisers ard, Act. State the co-writer the Uniform (2d Co., Cir.1952); Walling 194 v. F.2d 907 Mhoon, 979, F.3d Co. v. 31 Farm Fire & Cas. Co., Supply F.2d Green Head Bit & 138 453 (10th Cir.1994); see v. Nat’l 983 White Union (10th Cir.1943). Pa., Pittsburgh, 913 F.2d Fire Ins. Co. of 165, (4th Cir.1990); Tempco Elec. Heater 168 interpret legislature intended that we Inc., Eng’g, F.2d Corp. Omega 819 749 v. JL “as and construe the CUD to effectuate (7th Sutton, Cir.1987); v. 783 F.2d Guerra general purpose to make the law of uniform (9th Cir.1986); Trunk Grand W. 1376 enact it to harmonize those states which F.2d Corp., R.R. Co. v. Consol. Rail regulations.” § ... with laws and 13- federal (6th Cir.1984); Prop. & Liab. Metro. Ins. harmony in afford- 51-104. The substantial (1st Kirkwood, Co. v. F.2d Cir. con- ing relief over oral contract Vance, 1984); v. F.2d President strongly troversies indicates the CUDJL (D.C.Cir.1980); Corp. n. 76 Chem. Broadview declaratory judgments in situa- permits such (2d Corp., v. Loctite F.2d Cir. tions. 1969). test, discretionary Under clarify inquire must into whether relief will C. Conclusions of Law or settle relations and terminate uncer agree reasoning We with the of our sister tainty: 13-51-109, as sec- states known under the cir- Will a declaration above, directly tion 5 addresses Petitioners’ cumstances, clarify or settle serve argument 13-51-106 limits de- that section in issue? Will it terminate or relations Temm, claratory relief to written contracts. uncertainty giving from the afford relief Estate, 632; In re 191 S.W.2d at Dahl’s If proceeding? to the an affirmative rise P.2d at 702. That section states: questions, had can be to both answer The enumeration sections 18-51-106 case; not, if it trial court should hear limit restrict 18-51-108 does not to do should decline so. powers general exercise conferred Mhoon, 31 F.3d any proceeding these trial courts also utilize dis- Colorado sought, declaratory relief cretionary determining considerations which a or decree mil tenninate See whether to issue relief. Peo- uncertainty. ple Temperance ex rel. Inter-Church Move- added). 13- (emphasis Section 13-51-109 Baker, 398, 404, 133 Colo. ment provides power 51-109 broad Accordingly, *8 status, rights, and other courts “declare grant refusal to federal court’s allowance or recognized in 13- legal relations” as judgments in contract oral dis- 51-105, by is of not limited discretionary test aids putes under the our declaratory judg- a section 13-51-106 when inquiry. controversy or ment would “terminate routinely used the The federal courts have uncertainty.” § an 13-51-109. determining grant declara- test in whether See, Thus, the abili- tory the trial court has disputes. in written contract whether Co., contract ty to declare the existence an oral e.g., v. Continental Cas. 866 F.2d Kunkel (10th Cir.1989). Yet, exists, rights obligations any if nothing in one therein, dependent on a res- is not limits contained test’s considerations ambiguity inherent or otherwise re- olution actions to written contracts Instead, fact, it de- in isolation. subject declarato- 13-51-106 read stricts the matter. dispute the re- pends on meets ry granted in all kinds of contract relief is quirements contained in permit section 13-51-109. us to trial courts rights, to “declare status, Under section relations,” trial court legal and other section 13- disputes 51-105, resolve oral contract when a decla- when a declaration would terminate status, rights, ration legal and controversy rela- insecurity. leg- eliminate tions will controversy “terminate the or re- islature further directed liberally that we uncertainty.” move an construe the act to further its pur- remedial pose granting ready speedy remedy and As Virginia noted the West Su Colo, Baker, to actual controversies. See Court, preme the remedial of the at 297 P.2d at 277. Our determination is supports CUDJL interpretation. also this bolstered interpretation the similar of the Lorenze, See 305 S.E.2d at 328. Colorado § states and federal courts. See 13-51-104. enacted the CUDJL in 1923 for a remedial precedent Our is also consistent with this purpose: “to settle and to afford relief from reading Highland of the statute.3 In Sales uncertainty insecurity and respect Robertson, Co. v. 104 Colo. P.2d status, rights, and other relations.” Ch. (1939), plaintiff sought a declaratory 26871; Colo. Sess. Laws see 13—51— judgment under the establishing CUDJL he legislature intended an had oral contract with the defendants. “provide ready the act to speedy and rem 226-27, Id. at review, at Upon P.2d 4-5. edy, in controversy, cases of actual for de this court concluded that no oral contract termining issues adjudicating and was formed. Id. at By 90 P.2d at 5. duties, rights, or status respective of the reviewing existed, whether an oral contract parties, before regard controversies with implicitly this court found that an action for repudiation thereto lead to the of obli declaratory relief appropriate was an means gations, the invasion of and the com parties’ rights resolve the obligations. Colo, Baker, missions of wrongs.” Thus, precedent supports today’s holding 404, 297 Permitting declaratory that a properly action relief in disputes furthers this encompasses the determination of whether purpose by remedial providing quick an oral contract parties’ exists and efficient potentially mechanism eliminate contained therein. expensive consuming and time controversies. Furthermore, judicial declaration of Application III. rights arising under an oral pre contract case, Berenergy seeks to unnecessary vents sell litigation, loss and while so, its stock but is unable to ostensibly do stabilizing contractual relations. due to surrounding purposes its CUDJL are furthered relationships with the Corpora Beren Sons’ permitting a trial court to exercise its dis tions. To ambiguity, alleviate this Berener- granting cretion declaratory judgments in gy looking for a declaration of oral whether an disputes. enforceable oral contract exists with the Ber previously As explained, our conclusion en Corporations. exists, Sons’ If a contract that trial courts declaratory judg- Berenergy seeking is further pronounce ments disputes when relief it, ment of its obligations would “terminate the or remove including ability to cancel the contract. uncertainty” supported by traditional principles statutory interpretation. The The trial court has discretion in plain language of the act as a whole directs determining whether to afford declaratory Corporations 3. The allege Dolan, Beren Sons' 382, 384, Toncray that our law." 197 precedent requires us to find *9 (1979) added). that oral (emphasis P.2d 957 Our disputes beyond statement, however, the discretion of the trial provide did not an exclusive previously courts because we have stated: "The list of appro- instances where relief is primary purpose See, declaratory judgment of the priate. 13-51-108(l)(b), e.g„ § C.R.S. procedure provide speedy, (2005) inexpensive, is to (permitting declaratory judgments to di- readily executors, determining administrators, accessible means of ac- rect and trustees to depend tual validity controversies which complete on the completing any particu- or refrain from interpretation act). or of some written instrument or lar

261 Court, Accordingly, the trial court interests. Troelstrup v. P.2d Dist. relief. failing (Colo.1986). to render de- trial abused discretion court claratory relief in this situation. in oral that con- discretion should exercise of rights, disputes where a declaration tract Conclusion IY. status, legal would “terminate relations uncertainty.” controversy or an to the trial court for its consid- the We remand 13-51-105, 13-51-109; § §§ 13-51-110. motion Berenergy’s see eration of for judgment. limited to cases Declaratory relief is not contract and existence of an oral

where the EID, specially concurs. Justice by are admitted the terms contained therein Instead, parties. a court make all of the EID, specially concurring. Justice to whether a determination as the factual majority finds that 106 is first section so, if the terms contained exists ambiguous it as to whether limits 13-51-113; § American Fami- therein. See contracts, it relief to and then em- written Bowser, P.2d ly Mut. Ins. Co. interpretive in order to ploys host of aids (courts may make fac- (Colo.App.1989) ambiguity. example, For it tra- resolve that declaratory judgment determinations tual jurisdictions the of other with verses caselaw actions). A exercise of discre- favorable eye harmonizing an toward our law (1) “the will is warranted when tion Maj. op. I think this theirs. at 256. Because clarifying purpose in and set- serve a useful case, I it plain language would not find is (2) in issue” and tling the relations necessary secondary inter- to such resort and afford relief from “when it will terminate pretive aids. uncertainty, insecurity, controversy my analysis section I would start not with Baker, proceeding.” giving rise to the does, majority rather with as the but Colo, If at 277. neither P.2d 13-51-109, the enu- section which states that accomplished, the should “result can be is not a limitation on meration in section 106 prayed to render the declaration decline authority declaratory relief a court’s to issue Id. [for].” controversy or re- that “will terminate Here, Berenergy to terminate the seeks uncertainty.” move an controversy Berenergy and the between Ber- negates the statu- Section 13-51-109 by clarifying Corporations en Sons’ tory expressio est construction maxim unius relationship exists between the contractual thing expression of one exclusio alterius-the parties of such a defining See, the terms e.g., implies the other. exclusion (2001) relationship. The court abused its dis- Mack, Beeghly v. P.3d Berenergy’s maxim); failing Taylor de- (employing cretion review v. Canter- (Colo.2004)(Coats, J., Troelstrup, claratory judgment bury, action. See P.3d (same). Declaratory dissenting) thus makes at 1012. will Section 109 illustrative, clarifying the clear that section 13-51-106 an the useful serve exclusive, relations, instances status, not an enumeration of parties rights, declaratory relief may issue which courts establishing whether a contractual relation- controversy re- that “will terminate ship It will exists. uncertainty.” doing, In so it direct- move par- between the and remove phrased ly argument, as petitioners’ refutes any by defining the such rela- terms of ties majority, express “the inclusion including establishing whether Ber- tionship, implies [in 106] of ‘written contracts’ energy obligated charging to continue Maj. op. at contracts.” the exclusion of oral per per well month overhead. $150.00 concludes, majority eventually 255. As the declaration, Berenergy can Armed with any ambiguity in section 106 is somewhat corpo- fair market value determine is not point beside because corporation attempt ration and to sell any authority in limitation on the pro- according to the issued mandate Id. event. Similarly, the Beren Sons can bate court. ambi- rest our on in We should not decisions whether to retain their interests decide case. language resolves the guity plain or sell their Corporations Beren Sons’ *10 Here, course, the result is the same under approach,

either but other eases the differ-

ence could be outcome-determinative. Even case, analysis impor- differs in an way. finding

tant After an “inherent ambi-

guity” majority in section turns to (2005), which instructs Declaratory

that the Colorado Judg- Uniform

ments Law be construed to make uniform

the laws of the states to the extent

possible, harmony with federal law. After

surveying jurisdictions, the caselaw of other 256-59,

maj. op. the court sides with

“majority reasoning.” my Id. at 256. Under contrast,

analysis, by I find the caselaw from jurisdictions

other instructive not because

there are more cases on one side of the other, question

“written contract” than the

but because other courts have looked to their

jurisdiction’s counterpart to section 109 and

come to plain the same conclusion about its See,

meaning. Temm, e.g., Temm v. 354 Mo. (1945); 191 S.W.2d 632-33 In re Estate,

Dahl’s 196 Or. (1952). Declaratory judgments permit-

ted cases such as this one not because jurisdictions them, permit but because of the statute dictates that re-

sult.

The COLORADO GENERAL AS-

SEMBLY, Petitioner/Cross-

Respondent, OWENS, capacity

William in his official Colorado;

as Governor of the State of Coffman,

Mike capacity in his official as

State Treasurer of the State of Colora-

do; Shenefelt, and Leslie in his official

capacity as State Controller for Colorado, Respondents/Cross-

State of

Petitioners.

No. 04SC816.

Supreme Colorado, Court of

En Banc.

June

Case Details

Case Name: Zab, Inc. v. Berenergy Corp.
Court Name: Supreme Court of Colorado
Date Published: Jun 5, 2006
Citation: 136 P.3d 252
Docket Number: 04SC547
Court Abbreviation: Colo.
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