Lindsay v. District Court ex rel. City & County of Denver

694 P.2d 843, 1985 Colo. LEXIS 365
CourtSupreme Court of Colorado
DecidedJanuary 14, 1985
DocketNo. 84SA83
StatusPublished
Cited by1 cases

This text of 694 P.2d 843 (Lindsay v. District Court ex rel. City & County of Denver) 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
Lindsay v. District Court ex rel. City & County of Denver, 694 P.2d 843, 1985 Colo. LEXIS 365 (Colo. 1985).

Opinions

ROVIRA, Justice.

We issued a rule to show cause why the respondent district court should not be prohibited from entering an order authorizing the issuance of a writ of restitution. We now make the rule absolute.

I.

From the abbreviated record available to us, the petition for prohibition, and the response to the petition, we glean the following facts which provide the background and basis for this opinion.

The petitioners purchased a home in the 1970’s. In 1980 they were unable to meet their mortgage payments and respondent, Westmor Investment Corporation (West-mor), offered them a Homeowner’s Assistance Program. Petitioners claim that as a result of their accepting this program, Westmor ended up with title to their home, their monthly “rental” payment to West-mor was twice the amount of their preexisting mortgage payments, and they could repurchase their home only if they reas-sumed the preexisting mortgage payments and paid a substantial sum of money to Westmor.

On August 4, 1982, Westmor filed an unlawful detainer action in the Denver County Court alleging that: it was the' owner of the subject property; it had elected to terminate the petitioners’ month-to-month tenancy on July 31, 1982; petitioners had failed to leave the premises, and such failure constituted an unlawful detention. On August 23, 1982, the day of the trial of the unlawful detainer action in the county court, the petitioners filed a complaint in the Denver District Court challenging the validity of their agreement with Westmor. In November of 1983, the unlawful detainer proceeding in the county court was terminated. Subsequently, Westmor answered the complaint and filed a counterclaim for possession of the premises.1

On September 3, 1982, Westmor filed a motion in the district court to set bond pursuant to section 13-40-114, 6 C.R.S. (1973) (Forcible Entry and Detainer).2 Westmor alleges that it had requested the county court to require the petitioners to post a bond in an amount equal to the August rent and for rent due in September before transferring the case to the district court. It further alleges that the county court conditioned transfer to the district court on the posting by the petitioners of a cash bond in the amount of the September rent by September 1, or else trial would proceed in the county court on September 2. Westmor also alleges that the petitioners had posted a bond in the amount of $414, that the trial date in the county court was vacated, and that the matter was transferred to the district court.3 Westmor claims that since no trial date had been set in the district court it would suffer irreparable damage if the petitioners failed to pay rent and that it was entitled to a bond “for the payment of such sums which [845]*845Westmor may be damaged due to the delay in the trial date.”

At a hearing on Westmor’s motion on September 23, 1982, no evidence was introduced. Westmor requested that the rental payment of $414 per month be continued until trial and that a writ of restitution enter on the premises if the payments were not made. Petitioners’ counsel advised the court that there was a dispute as to whether the payments were rent or payments on the loan and stated: “What our concern is Mr. Allen [counsel for Westmor] is trying to condition the payment on some kind of issuance of a writ of restitution for which for all practical purposes — .” The trial court responded, “No. I am not going to do that. If the case will have to be tried, it will have to wait the outcome of the trial, obviously.” The trial court then stated, “So really, it is a stipulation that the plaintiffs will continue to make the monthly payments of $414 per month ... directly to the Defendants.... ”

Over a year later, in November 1983, Westmor filed a motion for entry of a writ of restitution pursuant to section 13-40-115, 6 C.R.S. (1973).4 It alleged that pursuant to the trial court’s order of September 23, 1982, petitioners were required to make monthly payments in order to remain in possession and they had failed to make two monthly payments. The motion was heard by the respondent trial court on February 15, 1984. After an off the record in camera hearing, the respondent trial court granted Westmor’s motion. The court’s ruling consisted of an abbreviated entry on the computerized case file, as follows:

“ORD: MOTN FOR WRIT OF RESTITUTION— GRNTD, WORD TO FOLLOW”5

Two days later, without a written order by the respondent court, the Clerk of the District Court signed a Writ of Restitution which had been submitted by Westmor. The writ referred to an order of possession obtained by Westmor and commanded the sheriff to dispossess the petitioners.

The petitioners immediately filed a Petition for Writ of Prohibition pursuant to C.A.R. 21. We issued a rule to show cause why the respondent trial court should not be prohibited from authorizing the issuance of a writ of restitution, and stayed all proceedings pending resolution of the issue.

II.

The petitioners contend that the respondent court did not have jurisdiction to order a writ of restitution because there was no forcible entry and detainer (FED) action pending in the district court. Westmor contends that the proceeding in the district court was simply a continuation of the FED action.

[846]*846While the genesis of the district court case was an unlawful detainer action, the complaint expanded the issues and challenged the entire transaction on a number of grounds. Petitioners contend that the transaction is not a sale and leaseback, but is a secured loan under the equitable mortgage doctrine. Westmor characterizes the petitioners’ complaint as a quiet title action to the premises. Thus, both parties recognize the petitioners’ suit as one in equity. See Empire Ranch & Cattle Co. v. Chapin, 22 Colo.App. 538, 126 P. 1107 (1912) (quiet title action is distinctly equitable in nature); 74 C.J.S. Quieting Title § 1 (1951) (quiet title actions are equitable in nature).

We agree with the petitioners that the action pending in the district court places in issue the entire transaction between them and Westmor. The complaint and counterclaim call for resolution of the basic question of who is the owner of the property and whether the transaction was fraudulent in character. The court’s resolution of this action will in the final analysis decide whether the petitioners are tenants subject to being evicted, or owners subject to foreclosure proceedings. Under these circumstances, the respondent court should have tried petitioners’ claims first and resolved Westmor’s claim to possession in the context of that suit. Reitze v. Humphreys, 53 Colo. 171, 125 P. 522 (1912).

The facts in Reitze6 are similar to the facts in the present case. Reitze had encountered financial difficulties and borrowed money from Humphreys to save his home from pending foreclosure proceedings. Pursuant to the loan, a certificate of sale was assigned to Humphreys and he received a sheriff’s deed. Reitze signed a lease and received an option to repurchase the property. Reitze failed to make payments and Humphreys filed an action of unlawful detainer.

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20 P.3d 610 (Supreme Court of Colorado, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
694 P.2d 843, 1985 Colo. LEXIS 365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindsay-v-district-court-ex-rel-city-county-of-denver-colo-1985.