Estate of Gallegos

Colorado Court of Appeals·Decided December 12, 2024·No. 23CA1404·Unpublished

Opinion

23CA1404 & 23CA2199 Estate of Gallegos 12-12-2024 COLORADO COURT OF APPEALS

Court of Appeals Nos. 23CA1404 & 23CA2199 City and County of Denver Probate Court No. 20PR420 Honorable Elizabeth D. Leith, Judge

In the Matter of the Estate of Joseph T. Gallegos, deceased. Joanne Cdebaca, as Personal Representative, Heir and Beneficiary, Appellant, v. Richard Gallegos, Appellee.

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

Division V

Opinion by JUDGE GROVE

Freyre and Lum, JJ., concur

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

Announced December 12, 2024

Pat Mellen Law, LLC, Patricia Ann Mellen, Denver, Colorado, for Appellant Jonathan S. Willett, Boulder, Colorado, for Appellee

¶1 In this probate proceeding concerning the estate of Joseph T. Gallegos (decedent), Joanne Cdebaca1 appeals orders and the judgment from the probate court concerning her dispute with Richard Gallegos (Gallegos) over the administration of decedent’s estate. We affirm the judgment in part and reverse the judgment in part, vacate one order entered by the probate court, and remand the case with directions.

I. Background

¶2 We draw the following factual background from the record before us.2

¶3 Decedent died in October 2020 and was survived by multiple children. Decedent’s children included Cdebaca, Vogel, and Gallegos. Disputes over decedent’s estate arose following his death, with Cdebaca and Vogel at odds with Gallegos over who was entitled

1 Lisa Vogel is listed on the caption page of the opening brief but

was later dismissed from this appeal. Only Gallegos and Cdebaca (in both her role as personal representative of decedent’s estate and her individual capacity as heir and beneficiary of decedent’s estate) remain parties to this appeal. 2 Transcripts from three hearings are missing due to a malfunction

with the probate court’s FTR system.

to various assets of the estate. Those disputes were based in part on wills and deeds executed by decedent shortly before his death.

¶4 In October 2020, after decedent’s death, Cdebaca initiated the Denver probate proceedings that are now before us on appeal. The probate court in those proceedings appointed Cdebaca as the personal representative (PR) of decedent’s estate.

¶5 In April 2021, despite the ongoing probate proceedings in Denver, Cdebaca and Vogel initiated a separate action in Jefferson County seeking to quiet title to two parcels of real property owned by decedent during his lifetime. In that action, Cdebaca and Vogel alleged that two quitclaim deeds executed by decedent before his death were fraudulent. The first deed purported to transfer ownership of real property on Federal Boulevard in Denver (the Federal property) exclusively to Gallegos. The second deed purported to transfer ownership of real property located on Shirley Place in Lakewood (the Shirley property) to Gallegos and Cdebaca as tenants in common, with each owning a 50% interest. The Jefferson County District Court transferred the quiet title action to Denver for its resolution with all other probate matters concerning decedent’s estate.

¶6 As relevant to the issues before us, the Denver probate court held several hearings during which it heard evidence concerning (1) the disposition of Broncos Towing LLC (Broncos Towing), a business owned and operated by decedent during his lifetime, which Cdebaca alleged was part of the estate, and (2) the quitclaim deeds that purported to transfer the Federal property to Gallegos and the Shirley property to Gallegos and Cdebaca as tenants in common.

¶7 After the hearings concerning Broncos Towing, the probate court found that the business was not part of the estate because decedent had transferred it to Gallegos before his death. Thus, Broncos Towing “belong[ed] in totality to Richard Gallegos.”

¶8 Partway through the hearings concerning the disputed parcels of real property, Cdebaca and Vogel withdrew their quiet title claims. As a result, the court ruled that Gallegos exclusively owned the Federal property and Gallegos and Cdebaca each owned a 50% interest in the Shirley property as tenants in common.

¶9 Arguing that Cdebaca and Vogel had engaged in vexatious litigation, Gallegos moved for attorney fees and damages. The probate court granted that motion in May 2023. The following

month, the probate court denied Cdebaca and Vogel’s motion for reconsideration.

¶ 10 In November 2023, the probate court granted a motion from Gallegos to reform a July 2023 quitclaim deed in which he mistakenly conveyed to Cdebaca half of his interest in the Shirley property when he intended to convey his entire interest to three of his other sisters.

¶ 11 Cdebaca now raises several challenges to the probate court’s orders and judgment.

II. Broncos Towing

¶ 12 Cdebaca contends that the probate court erroneously resolved the dispute surrounding Broncos Towing. Specifically, she argues that the probate court lacked subject matter jurisdiction to address this matter and that it relied on inadmissible evidence to determine the existence and value of property belonging to the business. We discern no error.

A. Additional Facts

¶ 13 As PR of decedent’s estate, Cdebaca included Broncos Towing in the inventory of estate assets that she submitted to the probate court. She alleged that Broncos Towing should be considered part

of the estate because “no sale or transfer of this business was ever made,” as reflected by the fact that documents indicating Gallegos’s ownership of the company “were filed 10 days AFTER decedent[’]s death.” Cdebaca then filed a petition for the appointment of a special administrator to operate and preserve Broncos Towing as an estate asset.

¶ 14 The probate court held hearings to resolve the ownership status of Broncos Towing. At the end of an August 2022 hearing, in which Ray Baty, a former Broncos Towing employee, and Gallegos testified at length about the company’s ownership, the probate court determined that the business was not an estate asset but was instead owned by Gallegos.

¶ 15 In addition to contesting ownership of Broncos Towing, Gallegos sought damages arising from the sale and disposal by Cdebaca and Vogel of Broncos Towing property previously located in the backyard of a house belonging to decedent. Cdebaca and Vogel claimed that they gave Gallegos prior notice of a garage sale in which they sold some of this property and told him to “come and take anything he wanted” beforehand. According to Cdebaca,

Gallegos attended the garage sale but did not take the property he later claimed belonged to Broncos Towing.

¶ 16 Gallegos, meanwhile, presented evidence to establish exactly what Broncos Towing property Cdebaca and Vogel sold or otherwise discarded, as well as the value of that property. During the August 2022 hearing, Baty and Gallegos both testified extensively about this property, listing and describing, among other things, specific vehicles, a motor home, a snowmobile, scooters, trailers, wheel changers, and an air compressor. At the end of this hearing, the probate court determined that “the machinery and the vehicles and the tools that were behind the decedent’s house and in the neighboring yards belonged to [Broncos] Towing.”

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