12 CAW Equities v. City of Greenwood Village

2018 COA 42, 425 P.3d 1197
CourtColorado Court of Appeals
DecidedMarch 22, 2018
Docket2017CA02
StatusPublished
Cited by1 cases

This text of 2018 COA 42 (12 CAW Equities v. City of Greenwood Village) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
12 CAW Equities v. City of Greenwood Village, 2018 COA 42, 425 P.3d 1197 (Colo. Ct. App. 2018).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY March 22, 2018

2018COA42

No. 2017CA0212 CAW Equities v. City of Greenwood Village — Eminent Domain — Private Condemnation — Prior Public Use Doctrine

In this private condemnation action, a division of the court of

appeals concludes, as a matter of first impression, that the prior

public use doctrine applies to Colorado Constitution article XVI,

section 7, to preclude a private condemnation that would entirely

eliminate an existing public use on the property. The division

further concludes that Colorado’s eminent domain statutes properly

clarify and regulate the constitutional right of private

condemnation. Finally, the division awards attorney fees to the City

of Greenwood Village under section 38-1-122(1), C.R.S. 2017 COLORADO COURT OF APPEALS 2018COA42

Court of Appeals No. 17CA0212 Arapahoe County District Court No. 15CV31946 Honorable Charles M. Pratt, Judge

CAW Equities, L.L.C., a Colorado limited liability company,

Plaintiff-Appellant,

v.

City of Greenwood Village, Colorado, a home rule municipality,

Defendant-Appellee.

JUDGMENT AFFIRMED

Division VII Opinion by JUDGE FREYRE Bernard and Berger, JJ., concur

Announced March 22, 2018

Waas Campbell Rivera Johnson & Velasquez LLP, Darrell G. Waas, Patricia C. Campbell, Denver, Colorado, for Plaintiff-Appellant

Otten, Johnson, Robinson, Neff & Ragonetti, P.C., Thomas J. Ragonetti, Bill E. Kyriagis, Brian J. Connolly, Denver, Colorado; Tonya Haas Davidson, City Attorney, Greenwood Village, Colorado, for Defendant-Appellee ¶1 In this private condemnation action under Colorado

Constitution article XVI, section 7 (Section 7), we address a novel

question — Does the “prior public use” doctrine of eminent domain

law apply to private condemnations under Section 7? We answer

that question “yes” and affirm the district court’s judgment related

to that doctrine. We also conclude that while Section 7 is

self-executing, it is not limitless. Consistent with numerous

Colorado cases, we conclude that this constitutional right, as

others, is subject to reasonable legislative regulation.

¶2 Petitioner, CAW Equities, L.L.C. (CAW), appeals from the

district court’s judgment denying its private condemnation of a

public trail belonging to respondent, the City of Greenwood Village.

CAW contends that the district court erred when it: (1) placed

statutory limitations on the constitutional right to private

condemnation for water use; (2) determined that CAW needed to

make a showing of necessity for the condemned property without

first addressing the bad faith issue; (3) required CAW to make a

showing of “absolute” necessity; (4) admitted testimony regarding

the feasibility of CAW’s water plan; and (5) awarded the City

attorney fees. Because we conclude that Section 7 may be limited

1 by statute, and that the prior public use doctrine provides an

alternate basis to affirm the district court’s judgment, we do not

address the necessity issue, the bad faith issue, or the admissibility

of the feasibility evidence. Moreover, because we affirm the district

court’s judgment, we also affirm its award of attorney fees.

I. Background

¶3 CAW is a Colorado limited liability company managed by

Robert Lembke and owned and controlled by the Lembke family.

CAW sought private condemnation of a public equestrian and

pedestrian trail (public trail) that bisects two of its adjacent

properties. The public trail runs between the Highline Canal to the

north and Long Road to the south. The City owns the public trail

from a plat dedication and separate dedication agreement for

equestrian and pedestrian use.

2 This diagram, based on admitted exhibits, is not to scale and is provided for illustrative purposes only.

¶4 Several years before this suit was filed, CAW proposed creating

a new trail along the southern edge of the Eastern Lembke Tract in

exchange for vacating the public trail through its property. The City

expressed interest initially, so Lembke made some improvements to

the proposed route. He offered easements to the City on CAW’s

property in exchange for the public trail. The City ultimately

3 rejected this offer, so Lembke offered to purchase the public trail for

$85,300. Without responding to this offer, the City began

construction to improve the public trail. Two days after the City

placed surveying stakes on the public trail, CAW filed this petition

in condemnation under Section 7.

¶5 CAW petitioned to condemn the entire public trail to construct

a ditch from the Highline Canal to the southern end of its

properties. The City opposed CAW’s petition in a C.R.C.P. 12(b)(1)

motion to dismiss. It argued that CAW brought the condemnation

action in bad faith, and that the rights it asserted did not comply

with the legislative authority that guided and implemented the

constitutional right of private condemnation. The district court

granted the City’s motion in part, concluding that the eminent

domain statutes clarified and implemented the rights and

responsibilities of a party seeking to condemn property under

Section 7. It deferred the bad faith argument to the hearing on the

merits.

¶6 At the hearing, CAW presented expert testimony that its

proposed water plan was the most efficient and cost-effective means

of transporting water from north to south and diverting it to the

4 eastern and western tracts for irrigation. The City presented

contrary expert testimony of numerous alternatives that did not

require condemning the entire public trail. The record reflects that

the City offered to grant CAW an easement to transport water

across the public trail consistent with these alternatives and that

CAW rejected that offer.

¶7 The district court issued a detailed written order denying

CAW’s petition. It found that (1) the eminent domain statutes were

a proper application of legislative authority to implement and

regulate Section 7; (2) CAW was required to show necessity for the

proposed condemnation; (3) the proposed water plan failed to

comply with the relevant statutes, and that CAW had failed to

establish a need to take property already in public use; and (4)

CAW’s failure to establish the necessity of constructing its proposed

ditch rendered any bad faith determination unnecessary. The court

then awarded the City attorney fees and costs.

II. Private Condemnation Under Section 7

¶8 We first address whether the district court erred in concluding

that CAW lacked the authority to condemn the public trail. CAW

contends that the court imposed unlawful restrictions on its right to

5 condemn property under Section 7. It argues that Section 7 is

self-executing and that a private condemnor need not comply with

the eminent domain statutes or show necessity before exercising his

or her condemnation right. We disagree, and conclude, consistent

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Bluebook (online)
2018 COA 42, 425 P.3d 1197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/12-caw-equities-v-city-of-greenwood-village-coloctapp-2018.