GaNun v. Epic

Colorado Court of Appeals·Decided January 2, 2025·No. 24CA0374·Unpublished

Opinion

24CA0374 GaNun v Epic 01-02-2025

COLORADO COURT OF APPEALS

Court of Appeals No. 24CA0374 City and County of Denver District Court No. 22CV31893 Honorable Mark T. Bailey, Judge

Jennifer GaNun and Andrew Thomas,

Plaintiffs-Appellants,

v.

Epic on the Park Homeowners Association, Inc., a Colorado non-profit corporation,

Defendant-Appellee.

ORDER AFFIRMED AND CASE REMANDED WITH DIRECTIONS

Division I Opinion by JUDGE J. JONES Lipinsky and Sullivan, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced January 2, 2025

Pat Mellen Law, LLC, Patricia Ann Mellen, Denver, Colorado, for Plaintiffs- Appellants

Orten Cavanagh Holmes & Hunt, LLC, Marcus T. Wile, Jonah G. Hunt, Denver, Colorado, for Defendant-Appellee ¶1 Plaintiffs, Jennifer GaNun and Andrew Thomas, appeal the

district court’s order granting defendant Epic on the Park

Homeowners Association, Inc.’s (Epic) motion for attorney fees. We

affirm and remand the case to the district court for a determination

of Epic’s reasonable attorney fees incurred in this appeal.

I. Background

¶2 Plaintiffs own a condominium unit in a planned unit

development for which Epic is the homeowner’s association. They

filed a complaint against Epic asserting claims for breach of

contract, breach of the covenant of good faith and fair dealing, and

negligence. The gist of their claims was that Epic failed to

adequately fix problems with their unit’s roof, in violation of duties

imposed by the development’s declaration and bylaws.

¶3 A jury found in Epic’s favor on all three claims.1

¶4 Epic filed a motion for an award of its attorney fees under

sections 38-33.3-123(1)(c) and -302(1)(k), C.R.S. 2024, of the

1 Plaintiffs appealed the district court’s judgment entered on the

jury’s verdicts. A division of this court affirmed the judgment. GaNun v. Epic on the Park Homeowners Ass’n, (Colo. App. No. 23CA1667, Aug. 15, 2024) (not published pursuant to C.A.R. 35(e)) (GaNun I).

1 Colorado Common Interest Ownership Act (CCIOA) and Article V,

Section 5.7.3 of the declaration.2 The district court concluded that

Epic was entitled to such an award under both CCIOA and the

declaration, and it entered an order awarding Epic $93,081.91.

II. Discussion

¶5 Plaintiffs’ challenge to the district court’s order is limited to a

single contention — that the court erred by awarding fees to Epic

under CCIOA on the negligence claim because Epic “relied on a

disputed separate concept, the Business Judgment Rule, as an

affirmative defense excusing performance of its duty, rather than

relying on the governing documents, and CCIOA was never

mentioned as even a concept in this litigation[.]”3 For two reasons,

we don’t see any basis to reverse the order.

2 Section 5.7.1 of the declaration provides that an owner has a right

of action against the association for any failure to comply with the “Association Documents,” which, per section 2.6, includes the bylaws. Section 5.7.3 provides that “[t]he prevailing party in any . . . civil action shall be entitled to reimbursement from the non- prevailing party for all collection costs and expenses, including attorney fees, in connection with such . . . judicial relief.” 3 Plaintiffs don’t challenge the amount of the fees the district court

awarded to Epic.

2 ¶6 First, contrary to plaintiffs’ assertion, the district court plainly

awarded Epic its attorney fees incurred in defending against all of

plaintiffs’ claims — including the negligence claim — under both

CCIOA and the declaration. Because plaintiffs don’t challenge the

award under the declaration, we must affirm. See IBC Denver II,

LLC v. City of Wheat Ridge, 183 P.3d 714, 717-18 (Colo. App. 2008)

(when a district court gives more than one reason for a decision, an

appellant must challenge all those reasons; failure to do so requires

affirmance).

¶7 Second, again contrary to plaintiffs’ assertion, their negligence

claim was expressly based on a duty allegedly created by the

bylaws. In paragraph 82 of their complaint (within the allegations

of the negligence claim), plaintiffs alleged that “[t]he HOA’s bylaws

expressly state that the Board has a ‘duty’ to make prompt and

complete repairs to the Common Elements,” and in paragraph 85

(also within the allegations of the negligence claim), they alleged

that Epic breached this “express duty.” (In paragraph 26 of the

3 complaint (within the general allegations), plaintiffs also alleged the

existence of this duty arising from the bylaws.)4

¶8 Nonetheless, plaintiffs argue that the district court “indicated

that it disagreed with [Epic’s] analysis” as to fees for defending

against the negligence claim. It didn’t. When Epic’s counsel

asserted that “[t]he entire duty . . . that the claim of negligence is

premised on is a duty that stems from the contractual relationship

between the parties,” the court asked Epic’s counsel a hypothetical

question: “If I disagree with you [that the negligence claim arises

from the contract], what effect should that have on the analysis?”

4 Indeed, in opposing Epic’s motion, plaintiffs’ counsel didn’t argue

that the court shouldn’t award fees for defending against the negligence claim because that claim wasn’t based on the association’s governing documents. She only argued that the court shouldn’t award fees on any claim because plaintiffs didn’t base their claims, and Epic didn’t base its defense, on CCIOA. Plaintiffs’ counsel’s failure to raise this argument below also means that we don’t need to consider it. Est. of Stevenson v. Hollywood Bar & Cafe, Inc., 832 P.2d 718, 721 n.5 (Colo. 1992). Even so, the argument fails on the merits.

4 The court didn’t say that it disagreed with Epic’s counsel on that

point, and its written order belies any such contention.5

¶9 Section 38-33.3-123(1)(c)(I) of CCIOA requires an award of

attorney fees to “the prevailing party” in “any civil action to enforce

. . . bylaws.” As noted above, plaintiffs’ negligence claim was

expressly based on a duty allegedly arising under the bylaws, and,

therefore, was one to enforce those bylaws and subject to section

38-33.3-123(1)(c). Plaintiffs’ position that section

38-33.3-123(1)(c)(I) doesn’t apply if either the claim or defense fails

to expressly invoke some provision of CCIOA itself is contrary to the

statute’s plain language.

5 We also observe that the division that affirmed the judgment in

this case concluded, in holding that Epic was entitled to an award of attorney fees incurred in that appeal, that “[p]laintiffs’ claims were expressly premised on the development’s declaration and bylaws.” GaNun I, slip op. at 7. That holding is the law of the case. And though we have discretion to reconsider the division’s prior ruling, Core-Mark Midcontinent, Inc. v. Sonitrol Corp., 2012 COA 120, ¶ 10, plaintiffs haven’t given us any good reason to do so.

5 ¶ 10 In sum, the district court didn’t abuse its discretion by

awarding Epic its attorney fees incurred in defending against

plaintiffs’ negligence claim.6

III. Epic’s Attorney Fees on Appeal

¶ 11 Because Epic has successfully defended the district court’s

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Related

Estate of Stevenson Ex Rel. Talovich v. Hollywood Bar & Cafe, Inc.
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IBC DENVER II, LLC. v. City of Wheat Ridge
183 P.3d 714 (Colorado Court of Appeals, 2008)
Core-Mark Midcontinent, Inc. v. Sonitrol Corp.
2012 COA 120 (Colorado Court of Appeals, 2012)