Frydendall v. Colorado Springs

Colorado Court of Appeals·Decided May 28, 2026·No. 25CA0992·Unpublished

Opinion

25CA0992 Frydendall v Colorado Springs 05-28-2026 COLORADO COURT OF APPEALS

Court of Appeals No. 25CA0992 El Paso County District Court No. 24CV32207 Honorable William Bain, Judge

Patrick Frydendall and Laurie Frydendall, Plaintiffs-Appellants and Cross-Appellees, v.

City of Colorado Springs, a Home Rule City and Colorado Springs Utilities, a wholly owned enterprise of the City of Colorado Springs,

Defendants-Appellees and Cross-Appellants.

JUDGMENT AFFIRMED

Division IV

Opinion by JUDGE BROWN

Freyre and Schutz, JJ., concur

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

Announced May 28, 2026

J. Gregory Walta, Colorado Springs, Colorado, for Plaintiffs-Appellants and Cross-Appellees

Marc Smith, Acting City Attorney, Brian Stewart, Senior City Attorney, Colorado Springs, Colorado, for Defendants-Appellees and Cross-Appellants

¶1 Plaintiffs, Laurie and Patrick Frydendall, appeal the district court’s judgment dismissing their amended complaint against defendants, the City of Colorado Springs and Colorado Springs Utilities (collectively, the City). In response, the City cross-appeals that portion of the court’s judgment denying its motion to dismiss for lack of subject matter jurisdiction. We affirm.

I. Background

¶2 The Frydendalls have lived in Colorado Springs at the same address for twenty-five years. Historically, the Frydendalls’ home was serviced by the City’s water main located in the alley behind their home. The water main was connected to the Frydendalls’ water meter using a fifteen-foot, 0.75-inch service line (the old system). In 2024, the City announced plans to upgrade the old system by replacing the old water main with a new water main that would run under the street in front of the Frydendalls’ home. The new water main would connect to the Frydendalls’ home via a new, 180-foot service line (the new system).

¶3 Beginning in May 2024, the Frydendalls had several meetings with officials from the City to share their objections to the new system. Primarily, the Frydendalls argued that the volume of water

delivered to their home would be substantially reduced under the new system due to the much longer service line that had to make a sharp turn to reach the Frydendalls’ home. The City stated that the volume of water delivered to the Frydendalls’ home would not decrease under the new system, but the Frydendalls maintained their objection. The Frydendalls alleged that the City informed them that if they refused to withdraw their objection to the new system, the City would not connect their home to the new main, leaving them with no water service when the old water main was taken out of service.

¶4 The Frydendalls later learned that the City was planning to use a one-and-a-half-inch service line to connect their home to the new system. In August, the Frydendalls expressed their concerns about the size of the new line to the City. The Frydendalls alleged that, in response to these concerns, the City’s project manager agreed to use a two-inch service line instead of the one-and-a-half-inch line originally planned. The Frydendalls alleged that, in exchange for the City’s promise to use a two-inch line and to deliver equal water volume to their home, the

Frydendalls withdrew their objection and agreed to the City’s alteration of the water delivery system.

¶5 After the City completed its work, the Frydendalls alleged that they “immediately” noticed “a drastic drop in the water volume” at their home. They also discovered that, counter to its promise, the City had installed a one-and-a-half-inch service line connecting their home to the water main. In response to the Frydendalls’ concerns, employees from the City conducted several tests to assess the volume of water delivered to the Frydendalls’ home under both the old and new systems.

¶6 Because the old system remained charged and connected to the Frydendalls’ home, the City had to manipulate conditions within the old water main to conduct a test of the water volume produced by the old system. The Frydendalls alleged that during the test of the new system, a City engineer “took a video of the water volume inside [the Frydendalls’] shower while flushing the toilet” and recorded a drop in water pressure. According to the Frydendalls, the City engineer “verbally confirmed the video showed that the water volume in the house under the new system was ‘insufficient.’” Mr. Frydendall took a photo of the engineer’s

handwritten report, which indicated that a video had been taken of the engineer’s test at their home. The Frydendalls alleged that the City engineer confirmed that the City would “take steps to correct the problem,” but the City took no further action to address the Frydendalls’ concerns.

¶7 In November, the Frydendalls filed a complaint against the City, asserting a claim for breach of contract and a claim for “bad faith breach of contract and claim handling.” The City moved to dismiss, arguing primarily that it was immune from liability under the Colorado Governmental Immunity Act (CGIA) and, alternatively, that the Frydendalls failed to state a claim upon which relief could be granted. The district court determined that the CGIA did not preclude the Frydendalls’ claims because they alleged injuries arising from the City’s maintenance and operation of a public water facility and the CGIA excludes that class of claims from its scope. But it found that the allegations in the Frydendalls’ complaint were conclusory and ordered them to file an amended complaint.

¶8 The Frydendalls filed an amended complaint, asserting a claim for “intentional breach of contract” and a claim for “bad faith breach of contract and bad faith claim handling,” which included more

specific allegations. Specifically, the Frydendalls alleged that the City entered into a contract with the Frydendalls to (1) “maintain the same level of water volume and pressure in the [Frydendalls’] home”; (2) “cause no negative impact on the level of water volume and pressure in the [Frydendalls’] home”; and (3) “use [two]-inch piping for the new [service] line.” The Frydendalls alleged that, in exchange for the City’s promise, they “agreed to [the City’s] plan to deliver water to their home through” the new system. Finally, they alleged that the City “intentionally and surreptitiously breached [its] contract and [its] duty of good faith and fair dealing by using [one-and-a-half-inch] piping instead of the agreed upon [two]-inch piping which, combined with the 180-foot water line, resulted in a drastic reduction of water volume in [the Frydendalls’] home.”

¶9 The City again moved to dismiss the Frydendalls’ complaint, reasserting its arguments that it was immune from liability under the CGIA and that the Frydendalls’ complaint failed to state a claim upon which relief could be granted. Concerning the breach of contract claim specifically, the City argued that the Frydendalls’ amended complaint failed to “describe the terms of any agreement with enough specificity to plausibly show that a contract existed”;

“allege facts that show the parties agreed to, or even discussed, a specific volume of water or other terms necessary to create a binding contract”; or “allege that either party made a specific offer to the other that was supported by consideration and accepted prior to the new water system’s installation.” The City acknowledged that the Frydendalls had alleged “that [the City] agreed to install a larger service line, presumably to address their concerns,” but it argued that they failed to “allege that there was any discussion of or bargaining for consideration to support the alleged agreement.”

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