Denver Chapter No. 145 v. Mile Hi City Chapter No. 360

469 P.2d 740, 171 Colo. 541, 1970 Colo. LEXIS 734
CourtSupreme Court of Colorado
DecidedMay 11, 1970
DocketNo. 22533
StatusPublished

This text of 469 P.2d 740 (Denver Chapter No. 145 v. Mile Hi City Chapter No. 360) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denver Chapter No. 145 v. Mile Hi City Chapter No. 360, 469 P.2d 740, 171 Colo. 541, 1970 Colo. LEXIS 734 (Colo. 1970).

Opinions

Mr. Justice Kelley

delivered the opinion of the Court.

Plaintiff in error, Denver Chapter No. 145, Order of Ahepa (Denver Chapter), was the unsuccessful plaintiff in the trial court. The defendant in error, Mile Hi Chapter 360, Order of Ahepa (Mile Hi Chapter), was the defendant. Both parties are unincorporated fraternal associations.

An old mansion situated on nine lots, located at 808 Grant Street, Denver, Colorado, record title to which is in Denver Chapter, which is used for lodge purposes, is the subject of the litigation.

Initially, there were five additional defendants, all affiliates of the international fraternal Order of Ahepa, as are the two remaining parties. The five which dropped by the wayside either disclaimed or defaulted.

[543]*543The present litigation is the progeny of various and sundry lawsuits between the several Ahepa organizations or members against members thereof individually. The immediate antecedent was Civil Action No. A-91304, American Hellenic Educational Progressive Association Temple, Inc. v. Denver Chapter No. 145, Order of Ahepa and Hellenic Corporation of Denver, final decree in which was entered April 27, 1955.

In this action the plaintiff sought (A) a declaratory judgment that Denver Chapter is the owner in fee simple of the property, with the right to sell or lease it without the prior consent or permission of the defendant, and (B) to quiet title in itself, asserting that the defendant had abandoned its “right of user.”

The defendant, by counterclaim, asserted that the decrees in A-91304 established rights of user in Mile Hi Chapter “and effectively constituted the Plaintiff a trustee in perpetuity in said property.”

The decree in A-91304 (the decree) was the result of a stipulation of the parties to that lawsuit. The decree appears to have followed to the letter the terms of the stipulation. The decree ordered an election to be conducted under the supervision of the court, with only those members of the various Hellenic organizations being allowed to vote who had made contributions (1) to the purchase of the property; or (2) toward the payment of the mortgage debts; or (3) to the building fund. The question to be resolved was whether Hellenic Corporation of Denver, the then title holder, would convey its title to American Hellenic Educational Progressive Association Temple, Inc. (Ahepa Temple), or to Denver Chapter. The election resulted in a 3-1 vote in favor of Denver Chapter.

Following the election, the trial court, by supplemental decree, ordered Hellenic Corporation of Denver to convey title to the property to Denver Chapter.

“* * * subject to the conditions contained in the decree of the District Court for the City and County of Denver, [544]*544State of Colorado, dated April 27, 1955 in Civil Action No. A-91304.”

The decree ordered Denver Chapter to permit the various chapters of the Order of Ahepa in Denver (and their .auxiliaries) to have full, complete and unrestricted use of the facilities of the building at 808 Grant Street, subject to certain priorities in the scheduling of meetings. The decree next provided that,

“If the building shall be hereinafter sold or conveyed by the grantee [Denver Chapter No. 145] then and in that event the rights herein shall be protected in perpetuity.”

Mile Hi Chapter was not a party to any of the lawsuits which culminated in the stipulation and the resulting decree and supplemental decree, but it was a member of the class given permission “to have full, complete and unrestricted use of the facilities of the building at 808 Grant Street.”

The present litigation, according to the complaint filed by the plaintiff, was instituted to resolve a dispute which developed “with respect to the right, title and interest of the plaintiff in” the property. The plaintiff claimed that,

“* * * it may for a valuable consideration either sell or enter into a long-term lease agreement involving third parties,”

without the consent of the defendant, “but reserving rights to the plaintiff and defendants to use of a portion of said new improvements.” The plaintiff concedes that the defendants, by virtue of the decree, have a “right of user” or a “license.”

The defendant argues that the plaintiff holds title to the property as a trustee, and that as such trustee it cannot lease nor sell the property without the express consent of the defendant. Further, the defendant asserts “that those rights are rights in specific property; that they exist in perpetuity; that they are charitable, eleemosynary, in nature, and cannot be disturbed.”

The only evidence introduced at the trial, other than [545]*545documentary evidence relating to the prior lawsuits, the stipulation, the decree, and the supplemental decree, was testimony relative to plaintiff’s claim that the defendant by non-user had abandoned or waived its rights in the property, of whatever nature they might have been. The court found that there had been no abandonment. Our disposition of the principal issue does not require us to discuss or disturb this finding.

The trial court, on motion of the defendant, dismissed the complaint and entered judgment on the counterclaim. The court found that there was no substantial dispute as to factual questions and disposed of those issues with which we are concerned in this opinion as matters of law.

The portions of its decree which are of primary concern on this appeal are set out in full:

“5.2 The Court finds and concludes that under the Decree and Supplemental Decree and the said D'eed, Exhibit A, and by virtue of the rights of user mentioned, and particularly including such rights of the Defendant, Mile Hi City Chapter No. 360, the Plaintiff took title, has held title, and now holds title only as a Trustee, and subject to the terms and provisions of the Decree, Supplemental Decree, and deed, and the rights of the Defendant, Mile Hi City Chapter No. 360.
“5.3 The Court further finds and decrees that the plaintiff could and can convey by sale or lease only with the consent and approval of those same Defendants given the right of user by the Decree and Supplemental Decree and can so convey by sale or lease only with the consent of the Defendant Mile Hi City Chapter No. 360.”

It is significant to note that there is no mention of trust in either the stipulation or the decree or supplemental decree. Nor is there any language in these instruments from which it can be reasonably inferred that a trustee-beneficiary relationship was contemplated by the parties to that litigation. In this connection it should be pointed out that the stipulation was drafted by lawyers competent to have so worded the stipulation that it would [546]*546have created such a relationship, if that had been the intent of the parties.

The language and the intent of the stipulation carried over into the decree and the supplemental decree. No mention was made of a trust.

A warranty deed form was used to convey the property from Hellenic Corporation of Denver to Denver Chapter. It recited that the first party (grantor)

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Bluebook (online)
469 P.2d 740, 171 Colo. 541, 1970 Colo. LEXIS 734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denver-chapter-no-145-v-mile-hi-city-chapter-no-360-colo-1970.