Home Street v. Castle Rock Senior

CourtColorado Court of Appeals
DecidedJune 4, 2026
Docket24CA1008
StatusUnpublished

This text of Home Street v. Castle Rock Senior (Home Street v. Castle Rock Senior) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Street v. Castle Rock Senior, (Colo. Ct. App. 2026).

Opinion

24CA1008 Home Street v Castle Rock Senior 06-04-2026

COLORADO COURT OF APPEALS

Court of Appeals No. 24CA1008 Douglas County District Court No. 22CV30760 Honorable Andrew Baum, Judge

Home Street Operations, LLC; Madison Creek Partners, LLC; Home Street Holdings, LLC; and Madison Partners Holdings, LLC,

Plaintiffs-Appellees,

v.

Castle Rock Senior Living, LLC; Solterra at Castle Rock RE, LLC; Stephen Jorgenson; and Solterra Holdings LLC,

Defendants-Appellants.

JUDGMENT REVERSED AND CASE REMANDED WITH DIRECTIONS

Division I Opinion by JUDGE LUM J. Jones and Meirink, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced June 4, 2026

Womble Bond Dickinson (US) LLP, Kenneth F. Rossman, IV, Kendra N. Beckwith, Denver, Colorado, for Plaintiffs-Appellees

Spencer Fane LLP, Troy R. Rackham, Jacob F. Hollars, Denver, Colorado, for Defendants-Appellants ¶1 Plaintiff, Melissa Schwartz, sued two groups of defendants

over the sale of a medical care facility. A jury found parties from

both groups of defendants liable on all of Schwartz’s claims.

¶2 Defendants Home Street Operations, LLC (HSO); Home Street

Holdings, LLC (HSH); Madison Creek Partners, LLC (MCP); and

Madison Partners Holdings, LLC (MPH) (collectively, the Madison

parties) asserted cross-claims against defendants Stephen

Jorgenson; Solterra at Castle Rock RE, LLC (SCRRE); Castle Rock

Senior Living, LLC (CRSL); and Solterra Holdings LLC (collectively,

the Jorgenson parties). The Madison parties contended that the

Jorgenson parties had breached indemnity provisions in four

contracts, causing the Madison parties to incur damages in the

form of (1) attorney fees expended in defending against Schwartz’s

claims and (2) the judgments entered against two of the Madison

parties on those claims.

¶3 The Jorgenson parties appeal the district court’s judgment on

the cross-claims, which ordered them to partially indemnify the

Madison parties. We reverse and remand for further proceedings.

1 I. Background

¶4 Stephen Jorgenson is the owner, operator, and manager of

SCRRE, CRSL, and Solterra Holdings. CRSL operated the medical

care facility out of a building owned by SCRRE.

¶5 Because CRSL couldn’t operate the facility successfully, it

entered into an “Interim Management Agreement” with MCP under

which MCP agreed to provide operational assistance in running the

facility.

¶6 In the Interim Management Agreement, CRSL agreed to

indemnify MCP “against any and all demands, claims, causes of

action . . . losses, liabilities . . . judgments, and expenses (including,

without limitation, reasonable attorneys’ and other professionals’

fees and court costs)” stemming from the care facility.

¶7 A year later, CRSL entered into a “Consulting Agreement” with

HSO regarding the operation of the facility. In the Consulting

Agreement, CRSL agreed to indemnify HSO and its affiliates “for,

from and against any and all claims, losses, costs, damages, and

liabilities, including reasonable attorneys’ fees, incurred, caused, or

occasioned by, in connection with or arising out of the negligent or

willful acts or omissions of [CRSL].”

2 ¶8 Several months later, SCRRE leased the care facility to HSO.

The parties entered into an “Operating Lease” in which SCRRE

agreed to indemnify HSO “from and against any and all claims . . .

losses, liabilities, damages,” including “attorney’s fees, costs and

expenses” resulting from a “breach by [SCRRE] in the performance

of any of its . . . obligations.”

¶9 After HSO took over the care facility’s operations, Schwartz, as

the conservator for a patient at the care facility, filed a lawsuit

against CRSL for injuries the patient sustained while being treated

there. Schwartz obtained a judgment of approximately $5 million

against CRSL (Schwartz judgment). CRSL didn’t pay the judgment.

¶ 10 Some time later, HSO and HSH engaged in discussions with

Jorgenson to purchase the care facility. At some point during the

negotiations, HSO and HSH learned of the outstanding Schwartz

judgment. The parties entered into an “Indemnification Agreement

and First Amendment to the Purchase and Sale Agreement”

3 (indemnification agreement) to protect HSO and HSH if the

Jorgenson parties1 failed to satisfy the judgment.

¶ 11 The indemnification agreement states in relevant part as

follows:

• If HSO or HSH “is threatened to be made a party to, or is

otherwise involved in . . . any Proceeding relating to the

[Schwartz judgment], [HSO or HSH] shall be completely

and fully indemnified by [the Jorgenson parties] against

all Expenses and Liabilities incurred, suffered or paid by

[HSO or HSH] in connection with such Proceeding.”

• “[The Jorgenson parties] shall defend and hold harmless

[HSO or HSH] in any Proceeding related to the [Schwartz

judgment] and shall take no position — legal or

otherwise — in compromise or against this duty to defend

[HSO or HSH].”

• “[The Jorgenson parties] shall and hereby [do] indemnify

and hold harmless [HSO or HSH] against all Expenses,

1 The indemnification agreement includes “[CRSL], Steve Jorgenson,

and their directors, officers, Subsidiaries, affiliates, members, assigns and any Entity controlled directly or indirectly by them” as the “Debtors, Seller, or Indemnitor.”

4 judgments, penalties, fines and amounts paid in

settlement actually and reasonably incurred by [HSO or

HSH] or on [their] behalf relating to the [Schwartz

judgment].”

• “In the event that any right accrues hereunder, including

enforcement of a right under this Agreement, all

Expenses . . . shall be advanced and paid by [the

Jorgenson parties] including but not limited to retainer

fees, deposit fees, attorney’s fees, and other Expenses.”

¶ 12 In addition to these indemnification obligations, the Jorgenson

parties agreed that they “shall not enter into any settlement of any

Proceeding related to [the Schwartz judgment] unless such

settlement provides for a full and final release of all claims asserted

against” HSO and HSH (the settlement provision).

¶ 13 In September 2022, the parties closed on the sale of the care

facility. The next month, Schwartz sued the Jorgenson parties and

the Madison parties over the sale. Schwartz generally alleged that

the Jorgenson parties conspired with the Madison parties to sell the

care facility so that the Jorgenson parties could avoid paying the

Schwartz judgment.

5 ¶ 14 As relevant here, Schwartz brought claims for (1) violation of

the Colorado Uniform Fair Trade Act (CUFTA); (2) violation of the

Colorado Organized Crime Control Act (COCCA); (3) conspiracy to

violate COCCA; and (4) civil conspiracy.

¶ 15 Just before trial, Schwartz agreed to settle the claims against

Jorgenson and Solterra Holdings for $2 million and, in exchange,

dismissed those claims with prejudice.2 As part of the settlement,

SCRRE and CRSL remained parties to the lawsuit as “nominal”

defendants, but Schwartz agreed not to enforce any judgment she

might obtain against them.

¶ 16 During trial, Schwartz voluntarily dismissed the claims

against MPH and HSH. All of Schwartz’s claims were tried against

the remaining defendants — CRSL, SCRRE, MCP, and HSO.

¶ 17 The jury returned a unanimous verdict in Schwartz’s favor. As

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Home Street v. Castle Rock Senior, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-street-v-castle-rock-senior-coloctapp-2026.