Jahn Ex Rel. Jahn v. ORCR, INC.

92 P.3d 984, 2004 Colo. LEXIS 530, 2004 WL 1432588
CourtSupreme Court of Colorado
DecidedJune 28, 2004
Docket04SA30
StatusPublished
Cited by6 cases

This text of 92 P.3d 984 (Jahn Ex Rel. Jahn v. ORCR, INC.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jahn Ex Rel. Jahn v. ORCR, INC., 92 P.3d 984, 2004 Colo. LEXIS 530, 2004 WL 1432588 (Colo. 2004).

Opinion

Justice MARTINEZ

delivered the Opinion of the Court.

Petitioners Richard Jahn, Lori Cianfrance, Bobby Girardin, and Rachelle Rivas ("Petitioners") challenge a district court order dismissing their claims for damages against Respondents O'Hara Regional Center for Rehabilitation ("the nursing home"), Solomon Health Services, LLC, Solomon Health Management, LLC, Ari Krausz, David Seb-bag, V. Robert Salazar, and O'Hara Healthcare, LLC (collectively, "Respondents"). The district court reasoned that the doctrine of claim preclusion barred the Petitioners claims for damages because the Petitioners were unnamed members of a class seeking injunctive relief pursuant to C.R.C.P. 28(b)(2) in a prior action against the Respondents.

We issued a rule to show cause why the Petitioners' damage claims should not be reinstated. We hold that the doctrine of claim preclusion does not bar unnamed members of a class seeking injunctive relief and certified pursuant to C.R.C.P. 23(b)(2) from bringing claims for damages in subsequent litigation. Therefore, we now make the rule absolute.

I. Facts and Procedural History

Petitioners ate former residents of the nursing home, which ceased operations in December of 2000. 1 They are currently among the plaintiffs in an action for damages against the Respondents asserting claims for violations of the Colorado Consumer Protection Act ("CCPA"), third-party breach of contract, implied contract/unjust enrichment, extreme and outrageous conduct, professional negligence, and negligence. 2

*986 The Denver district court dismissed the Petitioners' claims, reasoning that their status as unnamed members of a plaintiff class seeking injunctive relief in Kilbourne v. Health Care Management Partners, Ltd., No. 99CV2232 (Denv.Dist.Ct. Apr. 2, 1999), precluded them from subsequently asserting claims for damages. We first outline the relevant facts of the underlying Kilbourne litigation, followed by details of the present action.

A. The Kilbourne Litigation

Like the present case, Kilbourne was brought by, and on behalf of, residents of the nursing home against the Respondents. The named plaintiffs in the action sought damages for claims similar to those alleged in the present litigation, including CCPA violations, third-party breach of contract, negligence, implied contract/unjust enrichment, and outrageous conduct.

The named plaintiffs also obtained class certification for eurrent and future residents of the nursing home under C.R.C.P. 28(b)(Q). See Kilbourne v. Health Care Mgmt. Partners, Ltd., No. 99CV2232 (Denv.Dist.Ct. Mar. 27, 2000) (order certifying class). In their motion for class certification, the plaintiffs stated that they only sought injunctive relief on behalf of the class under C.R.C.P. 23(b)(2). Additionally, the plaintiffs noted that because they sought certification under C.R.C.P. 28(b)(@2), notice to potential class members was not required.

While the plaintiffs' motion to certify the class was pending, plaintiffs counsel sent letters to residents of the nursing home who were not named plaintiffs. After explaining that the attorneys were attempting to represent residents of the nursing home on a class basis, the letters stated that the attorneys wished to speak with residents, their families, or their friends, and listed the attorneys' contact information. 3 The record is not clear as to how many letters were sent or to whom they were sent. 4

After the class was certified, however, the Kilbourne plaintiffs began to enter into settlement agreements regarding their individual claims. In December of 2000, the nursing home closed. In February of 2001, the Kil-bourne parties filed a stipulated motion to dismiss. Along with dismissal of the named plaintiffs' claims against the Kilbourne defendants, the motion requested dismissal of the class claim for injunctive relief The motion stated that this claim became moot once the nursing home closed. The motion concluded with the parties' request that the court dismiss these claims with prejudice. The Kilbourne court granted the motion to dismiss all claims with prejudice, as stipulated. Kilbourne v. Health Care Mgmt. Partners, Ltd., No. 99CV2232 (Denv.Dist.Ct. Feb. 12, 2001) (dismissal order).

In September of 2001, the Kilbourne plaintiffs settled the remainder of their claims. The Petitioners filed the present case less than three weeks after the Kilbourne plaintiffs entered into these agreements.

B. The Present Litigation

In this case, the Petitioners are part of a larger group of plaintiffs seeking damages against the Respondents. The district court *987 reasoned that the doctrine of claim preclusion barred the Petitioners' current claims against the Respondents because the Petitioners were unnamed members of the class in Kilbourne. 5 The district court explained that claim preclusion applied if: 1) the first judgment was final; 2) the subject matter of the two actions was identical; 3) the claims for relief were identical; and 4) the parties were identical or in privity. The district court concluded that these elements had been met.

First, the district court reasoned that the Kilbourne case reached a final judgment because it was dismissed with prejudice. Next, the district court explained that the parties were identical because the Respondents were defendants in the Kilbourne case and the Petitioners were all members of the certified class in Kilbourne. Then, the district court determined that both the subject matter and claims for relief in the two suits were identical. The district court rejected the Petitioners' contention that they could proceed with their claims because the Kilbourne action involved claims for injunctive relief and this action involved claims for damages. Thus, the district court determined that the doe-trine of claim preclusion barred the Petitioners' claims and dismissed them, while allowing the other plaintiffs to proceed with their claims. Jahn v. ORCKR, No. 01CV1098 (Denv.Dist.Ct. Oct. 17, 2008) (order of dismissal).

We issued a rule to show cause why the district court's order should not be reversed. Because we find that the district court erred by concluding that the doctrine of claim preclusion barred the Petitioners' claims, we now make this rule absolute.

II. Jurisdiction and Standard of Review

Under C.A.R. 21, we may exercise our original jurisdiction to determine "whether a trial court abused its discretion in circumstances where a remedy on appeal would prove inadequate." Morgan v. Genesee Co., 86 P.3d 388, 391 (Colo.2004) (quoting Silva v. Basin Western, Inc., 47 P.3d 1184, 1187 (Colo.2002)); see C.A.R. 21. This court has stated that the determination of whether exercise of original jurisdiction is warranted is "governed by the particular cireumstances of the case." Id.

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92 P.3d 984, 2004 Colo. LEXIS 530, 2004 WL 1432588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jahn-ex-rel-jahn-v-orcr-inc-colo-2004.