In re Marriage of Durie

2018 COA 143
CourtColorado Court of Appeals
DecidedSeptember 20, 2018
Docket17CA1295
StatusPublished
Cited by1 cases

This text of 2018 COA 143 (In re Marriage of Durie) 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
In re Marriage of Durie, 2018 COA 143 (Colo. Ct. App. 2018).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY September 20, 2018

2018COA143

No. 17CA1295, In re Marriage of Durie — Civil Procedure — Court Facilitated Management of Domestic Relations Cases — Disclosures

A division of the court of appeals considers whether the

district court erred in granting husband’s motion to dismiss wife’s

motion to reopen the division of marital property under C.R.C.P.

16.2(e)(10). Following In re Marriage of Runge, 2018 COA 23M, 415

P.3d 884, the division concludes that C.R.C.P. 12(b)(5) and the

“plausibility” standard set forth in Warne v. Hall, 2016 CO 50, 373

P.3d 588, do not apply to a Rule 16.2(e)(10) motion.

The division also concludes, as matters of first impression,

that a moving party may make allegations on information and belief

in a Rule 16.2(e)(10) motion and that such party may be permitted

to undertake discovery to support his or her motion. Accordingly, the division reverses the district court’s order and

remands the case with directions. COLORADO COURT OF APPEALS 2018COA143

Court of Appeals No. 17CA1295 Douglas County District Court No. 14DR30238 Honorable Michael Spear, Judge

In re the Marriage of

Steven R. Durie,

Appellee,

and

Kelly J. Durie, n/k/a Kelly J. Simmerman,

Appellant.

ORDER REVERSED AND CASE REMANDED WITH DIRECTIONS

Division I Opinion by JUDGE TAUBMAN Welling and Kapelke*, JJ., concur

Announced September 20, 2018

Epstein Patierno, LLP, Steven B. Epstein, Wendy J. Smock, Denver, Colorado, for Appellee

Stevens, Littman, Biddison, Tharp & Weinberg, LLC, Craig A. Weinberg, Boulder, Colorado, for Appellant

*Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2018. ¶1 What happens when a spouse in a post-dissolution of

marriage proceeding believes that the other spouse failed to disclose

facts that materially impacted the valuation of a significant marital

asset — their business — during negotiations for their separation

agreement before the entry of the decree? C.R.C.P. 16.2(e)(10)

provides a mechanism for that spouse to seek to reopen the division

of marital property if the other spouse made misstatements or

omissions concerning material assets. However, the rule does not

address whether such a motion may be countered with a motion to

dismiss, whether the moving party may make allegations based on

information and belief, or whether the moving party is entitled to

undertake limited discovery in support of his or her motion.

¶2 In this case, we follow the division’s opinion in In re Marriage

of Runge, 2018 COA 23M, 415 P.3d 884, concluding that filing a

motion to dismiss under C.R.C.P. 12(b)(5) is not proper. We also

conclude, as matters of first impression, that a moving party may

make allegations on information and belief and that such party may

be permitted to undertake discovery to support his or her motion.

1 I. Overview

¶3 In this post-dissolution of marriage proceeding between Steven

R. Durie (husband) and Kelly J. Durie (wife), now known as Kelly J.

Simmerman, wife appeals the district court’s order dismissing her

motion to reopen the property division.

¶4 About three years after the district court entered a decree

incorporating a separation agreement dividing the parties’ marital

property, wife moved under Rule 16.2(e)(10) to reallocate proceeds

from husband’s post-decree sale of business assets. In response,

husband filed a motion to dismiss wife’s motion, which the district

court granted. Wife appealed.

¶5 Both parties initially focused their arguments on whether the

district court properly applied Rule 12(b)(5) and the “plausibility”

standard set forth in Warne v. Hall, 2016 CO 50, 373 P.3d 588.

After the parties submitted their briefs but before oral argument, a

division of this court decided Runge, holding that Rule 12(b)(5) and

the Warne plausibility standard do not apply to a Rule 16.2(e)(10)

motion.

¶6 Therefore, we asked the parties to address this holding of

Runge during oral argument, as well as whether wife could allege

2 facts on information and belief in her motion and whether she was

entitled to conduct discovery on her motion. Wife’s counsel

asserted at oral argument (1) that he did not agree with the Runge

division’s holding and (2) that C.R.C.P. 7(b)(1) provided an

appropriate standard for determining whether to allow a party to

proceed on a motion under Rule 16.2(e)(10) by requiring that such a

motion “state with particularity the grounds therefor, and . . . set

forth the relief or order sought.” For his part, husband’s counsel

agreed with the Runge division’s holding, but also argued that Rule

16.2(e)(10) is essentially an anti-fraud provision, and therefore a

motion under that rule must comply with C.R.C.P. 9(b), which

requires that in all pleadings “aver[ring] . . . fraud or mistake, the

circumstances constituting fraud or mistake shall be stated with

particularity.” Wife maintained that her motion set forth sufficient

facts under any standard to warrant discovery, while husband

urged us to affirm the district court’s order under any of the

asserted standards.

¶7 We now reverse the district court’s order and remand with

directions for further proceedings.

3 II. Background

¶8 Husband filed for divorce in April 2014. At the parties’

request, the district court incorporated a separation agreement

dividing the marital estate in a decree of dissolution issued in

September 2014. Under the separation agreement, husband

received the parties’ business interests with an equalization

payment due to wife for half of the value. In the separation

agreement, the parties agreed that the total business assets were

valued at $878,589. A joint appraisal expert had valued the

business assets at $855,000 investment value and $770,000 fair

market value as of August 2014. Additionally, wife hired an

independent expert, who valued the business assets at just under

$920,000.

¶9 In 2017, wife moved under Rule 16.2(e)(10) and under a

similarly worded provision of the separation agreement to set aside

or reopen the property division and reallocate the proceeds from

husband’s post-decree sale of a portion of the business interests.

¶ 10 Wife alleged in her motion that husband had failed to disclose

facts that materially impacted the value of the parties’ business

assets. Specifically, she alleged that in October 2015 — just over a

4 year after the decree was entered — husband sold a portion of the

business interests that were allocated to him under the separation

agreement to a Tennessee company for $6,900,000, over 850%

more than the parties’ joint expert had valued the total business

interests.

¶ 11 She further alleged, on information and belief, that husband

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2018 COA 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-durie-coloctapp-2018.