Grand Junction v. City of Grand Junction

Colorado Court of Appeals·Decided May 7, 2026·No. 25CA1325·Unpublished

Opinion

25CA1325 Grand Junction v City of Grand Junction 05-07-2026 COLORADO COURT OF APPEALS

Court of Appeals No. 25CA1325 Mesa County District Court No. 21CV30108 Honorable JenniLynn Everett Lawrence, Judge

Grand Junction Peace Officers’ Association, a/k/a Grand Junction Police Officers’ FOP Lodge 68, on behalf of its members and on behalf of all others similarly situated,

Plaintiff-Appellee, v.

The City of Grand Junction; Claudia Hazelhurst; Jodilyn Romero, n/k/a Jodilyn “Jodi” Welch; and Gregory Caton,

Defendants-Appellants.

ORDERS REVERSED AND CASE

REMANDED WITH DIRECTIONS

Division II

Opinion by JUDGE SULLIVAN Fox and Kuhn, JJ., concur

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

Announced May 7, 2026

Wegener Lane & Evans, PC, Benjamin Wegener, Meaghan Fischer, Grand Junction, Colorado, for Plaintiff-Appellee

Nathan Dumm & Mayer P.C., J. Andrew Nathan, Daniel A. Jacobs, Jeffrey E. Miller, Denver, Colorado, for Defendants-Appellants

¶1 Defendants, the City of Grand Junction (the City) and three of its employees, Claudia Hazelhurst; Jodilyn Welch, f/k/a Jodilyn Romero; and Gregory Caton (collectively, the individual defendants), appeal the district court’s orders denying their (1) requests to dismiss a claim for an accounting asserted by plaintiff, Grand Junction Peace Officers’ Association, a/k/a Grand Junction Police Officers’ FOP Lodge 68 (the Association); and (2) motion for attorney fees and costs. We reverse and remand the case to the district court with directions.

I. Background and Procedural History

¶2 In 1998, the City created the Retiree Health Program (RHP) to pay the health insurance premiums for certain retired City employees. The City initially required that all City employees enrolled in the City’s health insurance plan participate in the RHP, which was funded through biweekly deductions from participating employees’ paychecks. Under the RHP, participating employees’ contributions were nonrefundable.

¶3 Due to concerns about the RHP’s financial stability, the City later made substantial changes to the program that included

changing the funding structure, enrollment and eligibility requirements, and available benefits.

¶4 In April 2021, the Association filed a class action complaint against the City and the individual defendants; the individual defendants were each City employees at the times relevant to this appeal and were named in their individual and official capacities. In its amended complaint, the Association alleged that the RHP “may no longer be financially viable” due to defendants’ mismanagement. It asserted that RHP participants “may lose all of their contributions, and the earnings that should have been made had the funds been invested and managed properly.” The Association added that defendants’ actions make it “virtually impossible for anyone other than [the City] to make an entirely accurate calculation of the contributions paid into the RHP and the additional premiums and benefits due and owing under the RHP.”

¶5 Based on these allegations, the Association brought three claims against the City (breach of contract, unjust enrichment, and a request for an accounting) and seven claims against the individual defendants (civil theft, breach of fiduciary duty, fraudulent misrepresentation, negligent misrepresentation of a

material fact, conversion of property, civil conspiracy to commit fraud, and interference with performance of a contract).

¶6 Defendants filed a motion to dismiss under C.R.C.P. 12(b)(1), asserting that the district court lacked subject matter jurisdiction under the Colorado Governmental Immunity Act (CGIA), sections 24-10-101 to -120, C.R.S. 2025, because the Association’s claims lie in tort or could lie in tort. In response, the Association agreed to voluntarily withdraw its claims for civil theft, fraudulent misrepresentation, conversion of property, and civil conspiracy to commit fraud claims. But as to the remaining six claims, it requested a Trinity hearing to resolve factual issues. See Trinity Broad. of Denv., Inc. v. City of Westminster, 848 P.2d 916 (Colo. 1993).

¶7 The district court issued a detailed written order granting defendants’ motion to dismiss in part (dismissal order). It dismissed the breach of contract claim, reasoning it could lie in tort and was therefore barred under the CGIA. It also dismissed the negligent misrepresentation and interference with the performance of a contract claims based upon the Association’s untimely notice of those claims. But the court denied the motion in part and

scheduled a Trinity hearing to determine factual issues related to the breach of fiduciary duty and unjust enrichment claims. Finally, the court concluded that the Association’s request for an accounting couldn’t lie in tort and therefore wasn’t barred under the CGIA.

¶8 After holding a Trinity hearing, the district court issued a written order dismissing the unjust enrichment claim against the City because it could lie in tort, rendering it barred under the CGIA (Trinity order). It also dismissed the breach of fiduciary duty claim against the individual defendants as untimely. As to the accounting claim, although the court listed a “request for [an] accounting” as one of the Association’s claims, it didn’t substantively analyze the claim under the CGIA.

¶9 In summarizing its conclusions in the Trinity order, the district court determined that the Association had failed to prove that the court had subject matter jurisdiction or that the City had waived sovereign immunity under the CGIA. The court therefore dismissed the complaint for lack of subject matter jurisdiction. It further concluded that defendants were entitled to recover their reasonable attorney fees and costs.

¶ 10 The Association then moved for clarification, pointing out that the Trinity order didn’t address its accounting claim. For their part, defendants filed a motion for attorney fees and costs, arguing that the court had dismissed the Association’s amended complaint “in its entirety.” See § 13-17-201(1), C.R.S. 2025; C.R.C.P. 54(d).

¶ 11 Before the court ruled on either motion, the Association filed an interlocutory appeal under section 24-10-108, C.R.S. 2025. A division of this court affirmed the dismissal of the breach of contract and unjust enrichment claims against the City and the breach of fiduciary duty claim against the individual defendants. See Grand Junction Peace Officers’ Ass’n v. City of Grand Junction, 2024 COA 89, ¶ 30 (Grand Junction I). But the division agreed with the Association that “the record [wa]s unclear whether the court intended to dismiss the Association’s accounting claim, together with the Association’s other claims.” Id. at ¶ 85. The division, therefore, remanded the case to the district court “to rule on the motion for clarification, and to enter final orders on . . . defendants’ pending motion for an award of attorney fees and costs.” Id. at

¶ 89.

¶ 12 On remand, the district court resolved the Association’s motion for clarification by concluding that the accounting claim “may proceed in this court as an equitable claim, independent and distinct from a claim for damages” (clarification order). And because the accounting claim remained pending, the court denied defendants’ request for attorney fees but didn’t mention their related request for costs.

¶ 13 The City moved for reconsideration, arguing that the court erred by permitting the accounting claim to proceed and requesting that the court amend its judgment to dismiss the Association’s complaint. The district court denied the City’s motion, reasoning that “an accounting can be a stand-alone claim to secure the equitable relief of a clear and verifiable record of the financial activity of the retirement accounts” (reconsideration order).

II. Discussion

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