Marriage of Smith

Colorado Court of Appeals·Decided November 27, 2024·No. 23CA0837·Unpublished

Opinion

23CA0837 Marriage of Smith 11-27-2024

COLORADO COURT OF APPEALS

Court of Appeals No. 23CA0837 Boulder County District Court No. 20DR30188 Honorable Thomas F. Mulvahill, Judge

In re the Marriage of

Sarah Bland Smith,

Appellee and Cross-Appellant,

and

James F. Butterworth,

Appellant and Cross-Appellee.

ORDERS AFFIRMED, ORDER REVERSED, AND CASE REMANDED WITH DIRECTIONS

Division I Opinion by JUDGE LIPINSKY J. Jones and Sullivan, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced November 27, 2024

Caplan and Earnest, LLC, Andrew C. Littman, Craig A. Weinberg, Boulder, Colorado, for Appellee and Cross-Appellant

Cox Baker Page & Bailey, LLC, James S. Bailey, Lone Tree, Colorado, for Appellant and Cross-Appellee ¶1 James F. Butterworth (husband) appeals the district court’s

orders entering judgment against him in the amount of $177,873

and denying his motion for a declaratory judgment. Sarah Bland

Smith (wife) cross-appeals the court’s order entering judgment

against her in the amount of $44,524. We affirm the orders that

husband appeals, reverse the order that wife cross-appeals, and

remand the case for further proceedings on wife’s request for an

award of the appellate attorney fees she incurred in challenging the

$44,524 judgment.

I. Relevant Facts and Procedural History

¶2 The parties stipulated to the appointment of former district

court judge William G. Meyer as the private judge in their

dissolution of marriage case, pursuant to section 13-3-111(1),

C.R.S. 2024, and C.R.C.P. 122(a)(1). Judge Meyer presided over the

dissolution proceedings, including the hearing on permanent

orders.

¶3 Approximately five months after the permanent orders

hearing, Judge Meyer dissolved the marriage and entered

permanent orders dividing the parties’ $49.5 million marital estate.

As relevant here, Judge Meyer equally divided (1) a JP Morgan cash

1 and investment account (the JP Morgan account), with a value of

more than $17 million; and (2) the parties’ anticipated 2020 tax

refund, with an estimated value of more than $400,000. Judge

Meyer also allocated to wife (1) a Charles Schwab cash and

investment account (the Schwab account), with a value of nearly

$350,000; and (2) Rhizone Ventures, Ltd. (Rhizone), including

approximately $5 million of the private equity interests held by

Rhizone.

¶4 Husband and wife both moved for post-trial relief under

C.R.C.P. 59 and 60, asking for amendments and corrections to the

permanent orders. Among other issues, husband asserted that,

between the time of the permanent orders hearing and the entry of

the decree, the parties had spent or otherwise transferred to their

individual accounts more than $1 million from the JP Morgan

account and another joint account. He argued that Judge Meyer

should amend the permanent orders to balance their post-hearing

spending and transfers and that, based on his accounting, Judge

Meyer should direct wife to make an equalization payment to

husband in the amount of $44,524. Husband also informed Judge

Meyer that he had received the parties’ 2020 tax refund, in the

2 amount of $355,748, which he had deposited into the JP Morgan

account.

¶5 Husband further asserted that his accounting of the post-

hearing transfers reflected his transfer of $247,107 (including his

half of the 2020 tax refund) from the JP Morgan account to the

Schwab account. Husband said that the $44,524 equalization

payment he was requesting from wife was conditioned on Judge

Meyer’s amendment of the allocation of the Schwab account.

Husband requested that he be permitted to retain the $247,107.

¶6 In October 2022, Judge Meyer issued an order (the October

2022 order) resolving the parties’ C.R.C.P. 59 and 60 motions. In

the October 2022 order, Judge Meyer directed wife to pay husband

$44,524 to balance the parties’ post-hearing spending and

transfers. Judge Meyer also determined that husband was entitled

to $247,107 in the Schwab account and that he could either receive

these funds or use them to offset a portion of the $500,711 he owed

wife to equalize the allocation of the marital estate.

¶7 Husband appealed the permanent orders judgment, and a

division of this court affirmed. See In re Marriage of Smith, 2024

COA 95, ¶¶ 1, 83, ___ P.3d ___, ___. In December 2022, Judge

3 Meyer issued an order (the first December 2022 order) allocating

the right to claim the children as dependents for tax purposes. In

addition, in response to the parties’ emails following the entry of the

October 2022 order, Judge Meyer issued an order (the second

December 2022 order) declining to revisit the permanent orders.

¶8 Wife then filed a C.R.C.P. 70 motion (the C.R.C.P. 70 motion),

arguing that husband had not executed the necessary documents

to assign the Schwab account and Rhizone to her. In February

2023, Judge Meyer entered an order (the February 2023 order)

directing the clerk of court to execute those documents on

husband’s behalf.

¶9 Wife also filed a motion for entry of a judgment against

husband in the amount of $177,873, which represented her share

of the 2020 tax refund that she had not received from husband.

¶ 10 Husband later moved for entry of a declaratory judgment

determining that Judge Meyer’s appointment had ended upon his

resolution of the parties’ post-trial motions and that he lacked

jurisdiction to issue any orders, including orders for “enforcement

remedies,” following the entry of the October 2022 order.

4 ¶ 11 Six days after husband filed his declaratory judgment motion,

Judge Meyer voluntarily resigned from his appointment. An active

judge on the district court then granted wife’s motion for entry of

judgment against husband in the amount of $177,873. The court

also denied husband’s declaratory judgment motion.

¶ 12 Husband filed a motion for post-trial relief from the $177,873

judgment under C.R.C.P. 59, 60, and 121. The court denied the

motion.

¶ 13 Husband also moved for entry of a judgment against wife in

the amount of $44,524, arguing that she owed him that sum under

the October 2022 order. The court granted the motion, and it later

denied wife’s request to alter or amend the judgment.

II. Husband’s Appeal

¶ 14 Husband appeals (1) the $177,873 judgment entered against

him and (2) the denial of his motion for a declaratory judgment

regarding Judge Meyer’s jurisdiction.

A. The $177,873 Judgment Against Husband

¶ 15 Husband contends that the court misinterpreted Judge

Meyer’s amended permanent orders when it entered the $177,873

judgment against him. He specifically argues that, in the October

5 2022 order, Judge Meyer granted his request to balance the parties’

post-hearing spending and transfers, and directed wife to pay

husband $44,524. Husband claims that, by doing so, Judge Meyer

necessarily concluded that the allocation of wife’s share of the tax

refund to her had been satisfied because husband had accounted

for the allocation of the 2020 tax refund when husband determined

that wife owed him $44,524. He argues that Judge Meyer

determined that wife received her share of the tax refund and the

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