A. Tenenbaum & Co., Inc. v. Colantuno

3 P.3d 456, 1999 WL 569298
CourtColorado Court of Appeals
DecidedJune 26, 2000
Docket98CA0214
StatusPublished
Cited by6 cases

This text of 3 P.3d 456 (A. Tenenbaum & Co., Inc. v. Colantuno) 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
A. Tenenbaum & Co., Inc. v. Colantuno, 3 P.3d 456, 1999 WL 569298 (Colo. Ct. App. 2000).

Opinion

Opinion by

Judge TAUBMAN.

Defendants, Joseph F. Colantuno and John P. Dikeou, appeal the judgment entered by the trial court awarding attorney fees to plaintiff, A. Tenenbaum & Co. (Tenenbaum), incurred in the pursuit of collection of a judgment debt on a promissory note. We affirm in part, reverse in part, and remand for further findings and entry of judgment in accordance with this opinion.

The judgment at issue here arose out of a complex and protracted banking and partnership dispute that resulted in judgment for Tenenbaum and against the defendants and another former partner, Robert W. Isham (now Estate of Isham), for liability on a promissory note executed by defendants' former partnership, E & A Associates (E & A). The facts of this underlying dispute are set forth in Silverberg v. Colantuno, 991 P.2d 280 (Colo.App.1998).

The trial court entered judgment against defendants and Isham on the promissory note on January 17, 1996, and determined that the note entitled Tenenbaum to recover for attorney fees incurred in pursuit of collection on the debt arising from the promissory note. On May 7, 1996, the trial court entered an order awarding attorney fees to Tenenbaum, and against defendants and Is-ham jointly and severally, for legal services rendered from February 1998 through December 1995. The court also found that, although Robert Silverberg, former managing partner of E & A, was not a defendant in the underlying lawsuit, he had satisfied his pro rata share of the note debt by making a payment to Tenenbaum. Nevertheless, he remained jointly and severally liable for the deficiency until the entire debt was paid. This finding was upheld in Silverberg v. Co-lantuno, supra.

In August 1996, Tenenbaum released Is-ham from liability on the note debt and attorney fee award in consideration for payment of $450,000. - On February 21, 1997, Tenenb-aum and defendants stipulated to the remaining amount due on the promissory note judgment after deducting the amounts paid by Isham and Silverberg and other minor credits.

On June 11, 1997, Tenenbaum filed a motion against defendants for supplemental attorney fees incurred from January 1, 1996, to March 31, 1997. In November 1997, after a hearing to determine the reasonableness of the amount sought, the trial court entered judgment in favor of Tenenbaum for attorney fees of $95,146.50 against defendants. The judgment did not apportion the fee award *458 between Colantuno and Dikeou, nor did it consider the effect of the release of Isham.

I. Jurisdiction of Trial Court

Defendants first assert that the trial court lacked jurisdiction to enter the supplemental judgment for attorney fees because it was entered after the defendants had filed a notice of appeal in the underlying case. We disagree.

A trial court has continuing jurisdiction to determine attorney fee issues after a notice of appeal is filed to review the merits , judgment. Koontz v. Rosener, 787 P.2d 192 (Colo.App.1989); see Baldwin v. Bright Mortgage Co., 757. P.2d 1072 (Colo.1988) (decision on the merits is a final judgment for appeal purposes despite any outstanding issue of attorney fees).

Here, the attorney fees were generated after the original judgment on the note was entered. Defendants do not dispute that the supplemental attorney fee award compensated Tenenbaum for fees incurred in collection on the note pursuant to its terms. Thus, the trial court retained jurisdiction to decide this issue after defendants had filed their notice of appeal on the underlymg judgment of liability on the note.

II. Apportionment of Attorney Fees

Defendants contend that the trial court erred by failing to apportion the attorney fee award, in contravention of statutes requiring such apportionment after a release of liability of one or more joint debtors.

A.

As a threshold matter, we address and reject Tenenbaum's argument that defendants failed to raise this issue before the trial court and, thus, they are now precluded from doing so on appeal. Our review of the record leads us to conclude that defendants adequately raised the issue before the trial court.

B.

Defendants assert that the trial court erred by not considering the effect on the attorney fee judgment of Isham's release from liability and Silverberg's partial payment of the note debt. Defendants assert in part that, as a result of Isham's release, the trial court should have apportioned its fee award among the remaining debtors so that each debtor is Hable only for his proportionate share of attorney fees. We agree that there should have been apportionment but disagree with defendants 'that Silverberg should have been included therein.

Our review of the court's award of attorney fees is for an abuse of discretion. However, we may review de novo elements of the court's legal analysis in reaching its decision. Fail v. Community Hospital, 946 P.2d 573 (Colo.App.1997).

A creditor of joint debtors may release one or more of such debtors without affecting the liability of the remaining debtors. Such releases are considered to be payment of the full "proportionate share" of the released debtors. See § 13-50-102, C.R.S. 1998.

If one or more joint debtors are released, each remaining debtor shall be liable for no more than his or her proportionate share of the indebtedness, unless the remaining debtors are principal and surety. See § 13-50-108, C.R.8.1998.

1.

Here, the promissory note imposed joint and several liability on the defendants for attorney fees and costs generated in pursuit of collection of the debt on the promissory note. The attorney fee award was thus a consequence of default on the note, and became part of the total promissory note debt. Because the entitlement to fees was encompassed within the note's provisions, joint and several liability attached to the debt for attorney fees and costs, as part of the total note debt, thus triggering the potential applicability of § 13-50-102 and § 18-50-1038.

Tenenbaum argues that § 18-50-102 and § 13-50-1038 should not apply to the attorney fee award to destroy joint and several liability because the award represents costs, as opposed to joint indebtedness that is subject *459 to the statutory provisions. Tenenbaum cites Smith v. Weindrop, 833 P.2d 856 (Colo.App.1992), for the proposition that only deficiency judgments are reduced proportionately after a release, and not associated attorney fees. We are not persuaded.

First, it is not clear from the court's discussion of attorney fees in Smith v. Wein-drop, supra, whether the court apportioned those fees or not. Second, the fees here are contractual and represent a portion of the overall indebtedness. There is no indication in Smith that attorney fees there were governed by contract, and as such were part of the overall promissory note debt.

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3 P.3d 456, 1999 WL 569298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-tenenbaum-co-inc-v-colantuno-coloctapp-2000.