Baumberger v. McCulliss

Colorado Court of Appeals·Decided October 23, 2025·No. 24CA1987·Unpublished

Opinion

24CA1987 Baumberger v McCulliss 10-23-2025 COLORADO COURT OF APPEALS

Court of Appeals No. 24CA1987 Grand County District Court No. 23CV30028 Honorable Mary C. Hoak, Judge

Kathie Baumberger, individually and in her capacity as successor trustee of the Mary Digor Baumberger Revocable Life Trust,

Plaintiff-Appellant, v.

McCulliss Oil & Gas, Inc.; C.O.T.A. Resources, Inc.; and W.D. Real Estate Investments LLC,

Defendants-Appellees.

JUDGMENT AFFIRMED IN PART AND REVERSED IN PART, AND CASE REMANDED WITH DIRECTIONS

Division V

Opinion by JUDGE YUN

Freyre and Pawar, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e)

Announced October 23, 2025

Gray Bugos & Schroeder LLC, Joshua F. Bugos, Littleton, Colorado, for Plaintiff-Appellant

Taft Stettinius & Hollister LLP, Tamir Goldstein, Ryan T. Shaffer, Denver, Colorado, for Defendants-Appellees

¶1 In this quiet title case, the plaintiff, Kathie Baumberger, appeals the district court’s grant of summary judgment in favor of the defendants, McCulliss Oil & Gas, Inc.; C.O.T.A. Resources, Inc.; and W.D. Real Estate Investments LLC (together, the defendants).1 Baumberger contends the district court erred by (1) finding that no evidence supported her constructive trust claim; (2) finding that no dispute of material fact existed as to whether the defendants were bona fide purchasers for value; (3) finding that she could not prove the hostility or good faith elements of her adverse possession claim; (5) granting summary judgment on her unjust enrichment claim; and (6) ruling against her on two evidentiary issues.

¶2 We agree with Baumberger’s first two contentions. Accordingly, we affirm in part, reverse in part, and remand the case to the district court for further proceedings consistent with this opinion.

I. Background

¶3 The dispute in this case involves the ownership of a 26.90-acre parcel of land in Grand County, Colorado (the property). The

1 Two additional defendants, Big Ray’s Enterprises LLC and Teresa P. Flores, defaulted.

property was originally granted in 1938 by the United States to Baumberger’s grandfather, Stephan Digor, after he homesteaded it. In 1994, Baumberger’s mother, Mary Baumberger, transferred her interest in the property to Audra and Paul Coffey, who had adopted her as an adult.2 Paul Coffey passed away, and in 2000, Audra Coffey conveyed her interest in the property, at Mary Baumberger’s direction, to Big Ray’s Enterprises LLC, a company owned by Mary Baumberger’s friend, Raymond Flores.

¶4 Mary Baumberger paid taxes on the property until her death in 2016. After her mother passed away, Baumberger lived on the property and attempted to obtain record title by allowing the taxes to go unpaid and purchasing the resulting tax lien at a public sale in 2018. The tax lien gave Baumberger the right to receive a treasurer’s deed for the property on December 19, 2022, if the lien was not redeemed before that date.

¶5 In November 2022, Travis Besant, owner of the defendant C.O.T.A. Resources, saw the public notice of Baumberger’s

2 The property consists of a 1.12-acre eastern tract and a 25.78-

acre western tract. At the time of this transfer, a third party owned a one-sixth interest in the eastern tract. This appeal concerns only the ownership of the remainder of the property.

application for a treasurer’s deed. After researching the property, Besant contacted Raymond Flores’s widow, Teresa Flores. On December 14, 2022, C.O.T.A. Resources and McCulliss Oil & Gas purchased Big Ray’s interest in the property from Teresa Flores for $5,000 and redeemed the tax lien for $2,741.57. Five days later, C.O.T.A. Resources and McCulliss Oil & Gas transferred their interest in the property to W.D. Real Estate.

¶6 In March 2023, Baumberger filed a lawsuit against the defendants, asserting claims for quiet title, declaratory judgment, adverse possession, constructive trust, and unjust enrichment. In her complaint, she requested that the court void the December 14, 2022, sale of Big Ray’s interest in the property (the December 14 sale) and declare her the rightful owner of the property based on either adverse possession or the imposition of a constructive trust. Alternatively, if the court determined that the December 14 sale was valid, she sought damages for unjust enrichment. The defendants answered the complaint, and W.D. Real Estate asserted counterclaims for quiet title, declaratory judgment, and eviction.

¶7 The defendants then moved for summary judgment on Baumberger’s claims and W.D. Real Estate’s counterclaims. The

district court sua sponte dismissed W.D. Real Estate’s eviction counterclaim and granted summary judgment for the defendants on all the other claims and counterclaims.

¶8 Baumberger now appeals.

II. Standard of Review

¶9 We review de novo a district court’s order granting summary judgment. Rocky Mountain Planned Parenthood, Inc. v. Wagner, 2020 CO 51, ¶ 19.

¶ 10 Summary judgment is proper only when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” C.R.C.P. 56(c). “In considering whether summary judgment is appropriate, a court grants the nonmoving party the benefit of all favorable inferences that may reasonably be drawn from the undisputed facts and resolves all doubts against the moving party.” Rocky Mountain, ¶ 20.

¶ 11 “Summary judgment is a drastic remedy, and it should only be granted when it is clear that the applicable legal standards have been met.” Id. at ¶ 21. “At the summary judgment stage, the trial

judge’s function is not to weigh the evidence and decide what occurred, but to determine whether or not a genuine issue exists for the jury.” Andersen v. Lindenbaum, 160 P.3d 237, 239 (Colo. 2007).

III. Constructive Trust

¶ 12 Baumberger contends that the district court erred by granting summary judgment on her constructive trust claim. We agree.

A. Relevant Law

¶ 13 “[A] constructive trust is a ‘remedial device designed to prevent unjust enrichment.’” Sandstead-Corona v. Sandstead, 2018 CO 26,

¶ 45 (quoting Mancuso v. United Bank of Pueblo, 818 P.2d 732, 737 (Colo. 1991)). “Constructive trusts ‘are raised by equity in respect of property which has been acquired by fraud, or where, though acquired originally without fraud, it is against equity that it should be retained by him who holds it.’” Id. (quoting Page v. Clark, 592 P.2d 792, 798 (Colo. 1979)).

¶ 14 “[A] constructive trust can arise when two parties have a ‘confidential relationship’ that caused one party to act less vigilantly than [they] would have . . . had [they] been dealing with a stranger.” Id. at ¶ 46 (quoting Page, 592 P.2d at 798). Our supreme court has

recognized that “confidential relationships often arise between close family members.” Id. The court has also noted that “a confidential relationship may arise when one party has justifiably reposed confidence in another, but for such a relationship to arise from a transfer of property, the transferor must be justified in his or her belief that the transferee will act in the transferor’s interests.” Id.

¶ 15 “Once a party demonstrates that a confidential relationship exists, a transaction may be set aside if that relationship has been abused.” Id. at ¶ 47. “A party can demonstrate an abuse of the confidential relationship by showing, for example, that the party who possesses the property at issue refused to act in accordance with the parties’ mutual intent.” Id.

B. Additional Background

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