Black Canyon Citizens Coalition, Inc. v. Board of County Commissioners

80 P.3d 932, 2003 Colo. App. LEXIS 1581, 2003 WL 22309267
CourtColorado Court of Appeals
DecidedOctober 9, 2003
Docket02CA1466
StatusPublished
Cited by8 cases

This text of 80 P.3d 932 (Black Canyon Citizens Coalition, Inc. v. Board of County Commissioners) 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
Black Canyon Citizens Coalition, Inc. v. Board of County Commissioners, 80 P.3d 932, 2003 Colo. App. LEXIS 1581, 2003 WL 22309267 (Colo. Ct. App. 2003).

Opinion

Opinion by

Judge ROY.

Plaintiff, Black Canyon Citizens Coalition, Inc. (the corporation), appeals the district court’s order dismissing a C.R.C.P. 106(a)(4) complaint filed against the Board of County *933 Commissioners of Montrose County (the county). We affirm.

This is a case of first impression under C.R.C.P. 106(a)(4) with respect to the substitution of a plaintiff. It is also a case of first impression in Colorado on the effect of naming a nonexistent corporation as plaintiff.

According to the pleadings, an individual (the applicant) applied for a special use permit for a gravel mining operation on property adjacent to the Black Canyon National Park. In the fall of 2001, a group of landowners formed an unincorporated association, Black Canyon Citizens Coalition (the association), to oppose the application. The association appeared before the county planning commission and the county commissioners.

The county planning commission recommended that the application be denied, but the county commissioners ultimately approved the application on January 22, 2002.

On February 19,2002, counsel filed articles of incorporation with the Colorado Secretary of State, which the Secretary of State rejected. The articles were refiled on February 22, 2002 and accepted.

Meanwhile, on February 20, 2002, the corporation filed a complaint pursuant to C.R.C.P. 106(a)(4) seeking judicial review of the county’s decision. The jurisdictional time limit for commencing the action was thirty days from the date of the county’s decision, here February 20, 2002. See C.R.C.P. 106(a)(4); Baker v. City of Dacono, 928 P.2d 826 (Colo.App.1996).

The county answered and then moved to dismiss on the grounds that the corporation lacked capacity and failed to join the applicant. The corporation moved to amend the complaint to name the association as plaintiff and to add the applicant as a defendant. The trial court dismissed the action based on the named corporation’s lack of capacity, but indicated that it would allow amendment to add the applicant as a defendant.

The corporation now argues that although it was not incorporated when the complaint was filed, its members were organized as an unincorporated association, which had the power to participate in judicial proceedings. Accordingly, the corporation argues that it should be allowed to amend its complaint to substitute the unincorporated association as plaintiff. The county argues that because the named plaintiff did not exist, and therefore lacked capacity, when the complaint was filed, the action was not timely commenced. We agree with the county.

C.R.C.P. 106(b) expressly authorizes amendments “at any time with leave of the court, for good cause shown, to add, dismiss or substitute parties, and such amendment shall relate back to the date of filing of the original complaint.” This provision was added to remedy an existing trap for a plaintiff who named the governmental entity as defendant instead of its governing body from which the appeal is taken, or who failed to name another indispensable party, typically the applicant, and then was barred by C.R.C.P. 106(a)(4). See, e.g., Tri-State Generation & Transmission Co. v. City of Thornton, 647 P.2d 670 (Colo.1982)(city council); Tho rne v. Bd. of County Comm’rs, 638 P.2d 69 (Colo.1981)(applicant); Norby v. City of Boulder, 195 Colo. 231, 577 P.2d 277 (1978)(applicant). However, the language of C.R.C.P. 106(a)(4) is not limited to the join-der of defendants.

In Bowers Building Co. v. Altura Glass Co., 694 P.2d 876 (Colo.App.1984), a division of this court held that under the business corporation code, specifically § 7-102-103, C.R.S.2002 (formerly § 7-2-104), corporate powers are not conferred until an entity is incorporated, which does not occur in Colorado until articles of incorporation are filed with the Secretary of State. In addition, the division concluded that Colorado no longer recognizes de facto corporations or corporations by estoppel, and thus, no corporate action may be taken by the entity before it is incorporated.

We conclude that Bowers Building should also apply to nonprofit corporations. Section 7-122-103, C.R.S.2002, which is substantially identical to § 7-102-103, deals with nonprofit corporations and provides: “A nonprofit corporation is incorporated when the articles of incorporation are filed by the secretary of state.... The corporate existence begins upon incorporation.” Therefore, the corpora *934 tion had no corporate existence when this action was filed in its name.

For guidance as to the effect of naming a nonexistent corporation as plaintiff, we look to the jurisprudence developed under Fed. R.Civ.P. 25, which is identical to C.R.C.P. 25 in every material respect.

Both the state and federal rules permit the substitution of parties upon death, incompetency, or transfer of interest or upon vacancy in, and succession to, a public office. However, the rules apply to the death, incompetency, or succession occurring after the action has been properly commenced. 6 James Wm. Moore et al., Moore’s Federal Practice § 25.20(3) (3d ed.2003).

The federal court opinions limiting the application of the rule frequently state that the filing of a complaint in the name of a deceased or incompetent person is a nullity. Automated Info. Processing, Inc. v. Genesys Solutions Group, Inc., 164 F.R.D. 1 (E.D.N.Y.1995)(defunct corporation); Banakus v. United Aircraft Corp., 290 F.Supp. 259 (S.D.N.Y.1968)(named plaintiff died thirty-five minutes before action commenced); Schwartz v. Metro. Life Ins. Co., 2 F.R.D. 167 (D.Mass.1941)(guardian not permitted to substitute for ward who was incompetent when action was commenced by ward); 6 Moore, supra, § 25.20; Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1951 (2d ed.2003).

In Automated Information Processing, supra, an action was commenced in the name of Automated Information Processing, Inc. Defense counsel discovered that no such corporation existed. There had been a corporation named A.I.P., Inc., but it had been involuntarily dissolved for failure to pay franchise taxes. The principal later formed a new corporation, assigned all of his and the defunct corporation’s rights to the new corporation, and filed an amended complaint to substitute himself and the new corporation as plaintiffs and assert additional claims. The court rejected the amendment, stating:

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Bluebook (online)
80 P.3d 932, 2003 Colo. App. LEXIS 1581, 2003 WL 22309267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/black-canyon-citizens-coalition-inc-v-board-of-county-commissioners-coloctapp-2003.