Battle North, LLC v. Sensible Housing Co.

2015 COA 83, 370 P.3d 238, 2015 Colo. App. LEXIS 915
CourtColorado Court of Appeals
DecidedJune 18, 2015
DocketCourt of Appeals No. 14CA0665
StatusPublished
Cited by28 cases

This text of 2015 COA 83 (Battle North, LLC v. Sensible Housing Co.) 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
Battle North, LLC v. Sensible Housing Co., 2015 COA 83, 370 P.3d 238, 2015 Colo. App. LEXIS 915 (Colo. Ct. App. 2015).

Opinion

[242]*242Opinion by

JUDGE J. JONES

T1 Respondent, Sensible Housing Company (Sensible), appeals the district court's order determining that a stock certificate and two quitclaim deeds are spurious documents under sections 38-35-201(38) and -204, C.R.S. 2014. We conclude that because the stock certificate was "filed" only as an exhibit in a court proceeding and does not affect petitioner 'Battle North, LLC's real property, it is not a spurious document within the meaning of the applicable statutes. But we also conclude that the quitelaim deeds, which Sensible recorded in Eagle County, are. Therefore, we affirm the order in part and reverse the order in part. We also remand the case to the district court for a determination of Battle North's reasonable appellate attorney fees incurred in defending the judgment as to the quitclaim deeds.

I, Background

T2 ThlS case concerns a dlspute over .ownership of 'real property in Eagle County which the parties and the courts have referred to as the Pine Martin parcel. The history of that dispute is rather complicated.1 It essentially began, at least from a litigation perspective, in 1998, when Mortgage Investment Corporation (MIC) filed for judicial foreclosure on a. deed of trust encumbering the Pine Martin parcel and another piece of real property referred to as the Piney Lumber parcel, The foreclosure complaint named numerous defendants that. might claim ownership of the parcels, meludmg, as relevant in this case, Pine Martin Mmmg Company (PMMC) and Pmey Lumber Company (PLC). PMMC and PLC answered, claiming ownership of the Pine Martin parcel and the Piney Lumber parcel, respectively. They asserted counterclaims and cross-claims alleging fee ownership of the parcels and sought declarations that they are the fee owners of the parcels. The 1998 foreclosure case thus morphed into a quiet title action, and we will refer to it as such as we discuss the issues raised in this appeal.

18 In 2000, PMMC and PLC moved for partial summary judgment on their quiet title claims in the quiet title action. MIC filed a cross-motion for partial summary judgment. In 2004, while the cross-motions for summary judgment remained pending, MIC assigned its interest in the matter to Ginn Battle Lender, LLC (Ginn), and Ginn was substituted as a party. PMMC and PLC purported to transfer their interests in the parcels to Sensible by quitelaim deeds, which Sengible recorded in the Eagle County Clerk and Recorder's Office. (Sengible was then substituted for PMMC and PLC.) Two of those quitclaim deeds, one recorded in 2006 and the other récorded in 2008, were from PMMC to Sensible and concerned the Pine Martin parcel. They are the quitclaim deeds at issue in this case.

T4 The parties in the quiet title action stipulated to a procedure to resolve the case. The court' adopted the stipulation. In the course of identifying and briefing the outstanding issues in the quiet title action, Sensible filed as an exhibit with the district court a purported 1915 Stock Certificate certifying that 1,251,000 shares of the capital stock of PMMC had been issued to Charles Bouvier. Sensible's prinicipal, Jeff Tucker, claimed that he had obtained the shares represented by the 1915 Stock Certificate from Mr. Bouvier's heir in 1996. Claiming authority to act on PMMC's behalf by virtue of that transfer, Mr. Tucker created and recorded, or caused to be created and recorded, the 2006 and 2008 quitclaim deeds to Sensible. ~ ~

15 In 2009 the district court granted Ginn's cross—mgtlon for summary judgment and denied Sensible's motion for partial summary judgment. The court struck Sensible's pleadings, concludmg that the 1915 Stock Certificate and other documents purporting to convey the stock represented by that certificate first to Mr. Tucker and then to a

[243]*243newly-formed PMMC were incredible as a matter of law, and therefore Sensible had no interest in either parcel.

T6 Sensible appealed. A division of this court affirmed the summary judgment as to the Piney Lumber parcel, but reversed the summary judgment as to the Pine Martin parcel. Ginn Battle Lender, LLC v. Sensible Hous. Co., (Colo.App. Nos. & 10CA2158, 2011 WL 1590586, Apr. 21, 2011) (not- published pursuant to C.A.R. 85(F)). 'With respect to the Pine Martin parcel, the division concluded that, contrary to the district court's ruling, the 1915 Stock Certificate, through which Sensible purported to derive its ownership interest, was not "so incredible that no reasonable jury could be-leve it." Accordingly, the division remanded the case "for further proceedmgs as to that parcel "

1T 7 Apparently, nothing of consequence has happened in the quiet title action since. But on April 6, 2012, Battle North filed a petition for an order to show cause pursuant to seetion 88-85-204 and C.R.C.P. 105.1, instituting this case, and alleging that the 1915 Stock Certificate is a spurious document. The petition sought an order directing Sensible to show cause why the 1915 Stock Certificate should not be declared invalid, and an order following a hearing declaring the stock certificate to be invalid. Battle North subsequent, ly filed an amended petition alleging that the two quitclaim deeds also are spurious documents, which the court should declare invalid. Thé district court conductéd an eviden-tiary hearing on the amended petition It then issued a detailed written order with findmgs of fact and conclusions of law. (As now most relevant the court found:

e Mr.. Tucker created the 1915 Stock Certificate;
e Mr., Tucker's testimony as to the "reere-ation of the 1915 Stock Certificate" was "unconvincing and wholly incredible";
e "[The 1915 Stock Certificate is a sham . and not a genuine copy of anything";
® Sensible filed the 1915 Stock Certificate in Eagle County District Court on July 21, 2008, as an exhibit to a brief;
eThe quitclaim deeds were recorded in the Eagle County Clerk and Recorder's office in 2006 and 2008;
® Mr, Tucker claimed to have derived his authority to act on behalf of the newly-created PMMC (incorporated by Mr. Tucker in South Dakota in 1996) in creating and recording the quitclaim deeds from the purported 1915 Stock Certificate;
® Mr. Tucker did not have any authority to act on behalf of the original PMMC, and, consequently lacked authority to execute and record the quitclaim deeds;
e The quitclaim deeds "are not what they purport to be, to wit, legitimate quitclaim deeds executed by [PMMC]";
- ® After the priginal PMMC failed to pay takes on the property, the Pine Martin parcel was sold at a tax sale and treasurer's deeds for that parcel were issued to new owners in 1982;
® Battle North's claim of title derives from those treasurer's deeds;
® Battle North owns the Pine Martin parcel; and
® Battle North is in possession of the Pine Martin parcel. i

T8 Based on these findings (and others), the court concluded that the 1915 Stock Certificate and the quitclaim deeds are spurious documents. The court declared the 1915 Stock Certificate and the quitclaim deeds invalid and "released" them. The court also awarded Battle Mountain attorney fees and costs pursuant to section 88-85-204(2).

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Cite This Page — Counsel Stack

Bluebook (online)
2015 COA 83, 370 P.3d 238, 2015 Colo. App. LEXIS 915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/battle-north-llc-v-sensible-housing-co-coloctapp-2015.