Marrou Concrete v. KLR Ent
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Opinion
23CA2151 Marrou Concrete v KLR Ent 12-05-2024
COLORADO COURT OF APPEALS
Court of Appeals No. 23CA2151 Larimer County District Court No. 22CV30293 Honorable Laurie K. Dean, Judge
Marrou Concrete, Inc., a Colorado corporation,
Plaintiff-Appellee,
v.
KLR Enterprises Inc., a Colorado corporation, d/b/a Specialty Auto Body; Rowley’s Auto Collision Experts, Inc., a Colorado corporation, d/b/a Iron Mountain Collision,
Defendants-Appellants.
JUDGMENT AFFIRMED
Division I Opinion by JUDGE SULLIVAN J. Jones, J., concurs dubitante Lipinsky, J., concurs in part and dissents in part
NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced December 5, 2024
Jody N. Duvall, Fort Collins, Colorado, for Plaintiff-Appellee
Clifford L. Beem, A. Mark Isley, Danielle C. Beem, Denver, Colorado, for Defendants-Appellants ¶1 Colorado’s Motor Vehicle Repair Act (MVRA), §§ 42-9-101 to -
113, C.R.S. 2024, requires that a customer seeking to enforce the
MVRA in a civil action first “make written demand for the
customer’s damages” from the motor vehicle repair facility. § 42-9-
113. This case requires us to determine whether a customer’s
series of communications satisfied this MVRA requirement when
the customer both proposed to sell its damaged vehicle to the motor
vehicle repair facility for $70,000 and characterized the same
amount as its demanded damages.
¶2 Applying the plain and ordinary meaning of the MVRA to the
facts of this case, we conclude that plaintiff Marrou Concrete, Inc.’s
communications to defendants, Rowley’s Auto Collision Experts,
Inc., d/b/a Iron Mountain Collision (Iron Mountain), and KLR
Enterprises Inc., d/b/a Specialty Auto Body (Specialty), constituted
a written demand for its damages that satisfied the statute.
Because we also disagree with Iron Mountain and Specialty’s other
contentions, we affirm the district court’s judgment entered on jury
verdicts in favor of Marrou Concrete.
¶3 Concurring dubitante, Judge J. Jones agrees that the
judgment should be affirmed in full and joins in this opinion, except
2 for Part II.B.3, which he joins only as to the result. Concurring in
part and dissenting in part, Judge Lipinsky would reverse the
judgment entered in Marrou Concrete’s favor on its MVRA claim but
would otherwise affirm. He joins in Parts I and II.A of this opinion,
as well as the portion of Part II.C that affirms the judgment entered
against Iron Mountain on Marrou Concrete’s breach of contract
claim. Judge Lipinsky also joins in Judge J. Jones’s concurrence
dubitante, except for the first and final two paragraphs.
I. Background
¶4 Iron Mountain and Specialty are both motor vehicle repair
facilities. The two facilities share a common owner, general
manager, and bookkeeper.
¶5 In October 2021, Jordan Marrou, the owner of Marrou
Concrete, took the company’s 2021 Audi A4 to Specialty in Fort
Collins to repair minor damage to the vehicle’s rear bumper that it
sustained in an accident. Allstate Insurance Company, the insurer
of the other driver involved in the accident, agreed to pay for the
Audi’s repairs.
¶6 Although Mr. Marrou dropped off the vehicle at Specialty for
the repairs, Hollie Marrou, Mr. Marrou’s wife and a Marrou
3 Concrete employee, signed a written form authorizing Iron Mountain
to perform the repairs. The form signed by Ms. Marrou bore both
Iron Mountain’s and Specialty’s respective corporate logos, names,
addresses, and telephone numbers.
¶7 Mr. Marrou went to retrieve the Audi at Specialty’s shop
several weeks after dropping it off. According to Marrou Concrete,
Iron Mountain and Specialty failed to precisely match the bumper’s
paint to the rest of the vehicle. Mr. Marrou was “surprised” that the
paint didn’t match and requested that the bumper’s paint be
blended to match the paint on the rest of the vehicle.
¶8 Marrou Concrete alleged that, without authorization, Iron
Mountain and Specialty then disassembled portions of the vehicle
to attempt to blend the paint. The Marrous said they were
“shock[ed]” when they visited the shop several days later and
discovered the unauthorized disassembly. Mr. Marrou instructed
Specialty to stop all further work on the vehicle. Specialty
reassembled the Audi but wouldn’t release the vehicle unless it
received payment for the repairs. Marrou Concrete refused to pay
for the repairs.
4 ¶9 Through counsel, Marrou Concrete sent a written demand
letter to Iron Mountain and Specialty seeking damages and
proposing to settle the dispute by selling them the Audi, which was
still in Specialty’s possession, for $70,000. Iron Mountain and
Specialty didn’t agree to Marrou Concrete’s demand.
¶ 10 Marrou Concrete then filed suit against Iron Mountain and
Specialty, asserting claims for violations of the MVRA and breach of
contract. At trial, Ms. Marrou testified that Marrou Concrete didn’t
want the Audi returned because the repair work “wasn’t sufficient.”
She also identified different categories of damages that she alleged
Marrou Concrete had suffered, such as rental car expenses and
payments for the Audi’s insurance and registration while it was in
Iron Mountain and Specialty’s possession. Mr. Marrou also testified
that Marrou Concrete purchased a new vehicle in January 2022 for
approximately $57,000 because they didn’t want to continue paying
for rental cars for “months on end.”
¶ 11 The jury found for Marrou Concrete and against Iron
Mountain and Specialty, separately finding that both defendants
violated the MVRA and breached the repair contract with Marrou
Concrete. The jury awarded Marrou Concrete $10,500 on its MVRA
5 claim and one dollar on its breach of contract claim, resulting in a
total judgment of $31,501 after the court trebled Marrou Concrete’s
damages awarded under the MVRA. See § 42-9-113.
¶ 12 After trial, Iron Mountain and Specialty moved for judgment
notwithstanding the verdict, asserting, as relevant here, that
(1) Marrou Concrete didn’t comply with the MVRA’s requirement
that the customer make a prelitigation demand “for the customer’s
damages,” see id.; and (2) no reasonable juror could conclude that
Iron Mountain was liable to Marrou Concrete because the evidence
showed that it performed no repair work on the vehicle.
¶ 13 The court initially ruled that Marrou Concrete’s prelitigation
demand letter proposing to sell the vehicle to defendants satisfied
the MVRA’s written demand requirement but also that Iron
Mountain couldn’t be held liable because the evidence showed that
only Specialty performed the repair work. After receiving additional
briefing, however, the court reversed course and determined that
the evidence supported holding both Iron Mountain and Specialty
liable for Marrou Concrete’s damages, consistent with the jury’s
verdict.
6 ¶ 14 Iron Mountain and Specialty now appeal, maintaining that the
court erred for the same two reasons raised in their motion for
judgment notwithstanding the verdict.
II. Discussion
A. Overview of the Motor Vehicle Repair Act
¶ 15 The MVRA contains several provisions meant to “protect
consumers.” Jones v.
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23CA2151 Marrou Concrete v KLR Ent 12-05-2024
COLORADO COURT OF APPEALS
Court of Appeals No. 23CA2151 Larimer County District Court No. 22CV30293 Honorable Laurie K. Dean, Judge
Marrou Concrete, Inc., a Colorado corporation,
Plaintiff-Appellee,
v.
KLR Enterprises Inc., a Colorado corporation, d/b/a Specialty Auto Body; Rowley’s Auto Collision Experts, Inc., a Colorado corporation, d/b/a Iron Mountain Collision,
Defendants-Appellants.
JUDGMENT AFFIRMED
Division I Opinion by JUDGE SULLIVAN J. Jones, J., concurs dubitante Lipinsky, J., concurs in part and dissents in part
NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced December 5, 2024
Jody N. Duvall, Fort Collins, Colorado, for Plaintiff-Appellee
Clifford L. Beem, A. Mark Isley, Danielle C. Beem, Denver, Colorado, for Defendants-Appellants ¶1 Colorado’s Motor Vehicle Repair Act (MVRA), §§ 42-9-101 to -
113, C.R.S. 2024, requires that a customer seeking to enforce the
MVRA in a civil action first “make written demand for the
customer’s damages” from the motor vehicle repair facility. § 42-9-
113. This case requires us to determine whether a customer’s
series of communications satisfied this MVRA requirement when
the customer both proposed to sell its damaged vehicle to the motor
vehicle repair facility for $70,000 and characterized the same
amount as its demanded damages.
¶2 Applying the plain and ordinary meaning of the MVRA to the
facts of this case, we conclude that plaintiff Marrou Concrete, Inc.’s
communications to defendants, Rowley’s Auto Collision Experts,
Inc., d/b/a Iron Mountain Collision (Iron Mountain), and KLR
Enterprises Inc., d/b/a Specialty Auto Body (Specialty), constituted
a written demand for its damages that satisfied the statute.
Because we also disagree with Iron Mountain and Specialty’s other
contentions, we affirm the district court’s judgment entered on jury
verdicts in favor of Marrou Concrete.
¶3 Concurring dubitante, Judge J. Jones agrees that the
judgment should be affirmed in full and joins in this opinion, except
2 for Part II.B.3, which he joins only as to the result. Concurring in
part and dissenting in part, Judge Lipinsky would reverse the
judgment entered in Marrou Concrete’s favor on its MVRA claim but
would otherwise affirm. He joins in Parts I and II.A of this opinion,
as well as the portion of Part II.C that affirms the judgment entered
against Iron Mountain on Marrou Concrete’s breach of contract
claim. Judge Lipinsky also joins in Judge J. Jones’s concurrence
dubitante, except for the first and final two paragraphs.
I. Background
¶4 Iron Mountain and Specialty are both motor vehicle repair
facilities. The two facilities share a common owner, general
manager, and bookkeeper.
¶5 In October 2021, Jordan Marrou, the owner of Marrou
Concrete, took the company’s 2021 Audi A4 to Specialty in Fort
Collins to repair minor damage to the vehicle’s rear bumper that it
sustained in an accident. Allstate Insurance Company, the insurer
of the other driver involved in the accident, agreed to pay for the
Audi’s repairs.
¶6 Although Mr. Marrou dropped off the vehicle at Specialty for
the repairs, Hollie Marrou, Mr. Marrou’s wife and a Marrou
3 Concrete employee, signed a written form authorizing Iron Mountain
to perform the repairs. The form signed by Ms. Marrou bore both
Iron Mountain’s and Specialty’s respective corporate logos, names,
addresses, and telephone numbers.
¶7 Mr. Marrou went to retrieve the Audi at Specialty’s shop
several weeks after dropping it off. According to Marrou Concrete,
Iron Mountain and Specialty failed to precisely match the bumper’s
paint to the rest of the vehicle. Mr. Marrou was “surprised” that the
paint didn’t match and requested that the bumper’s paint be
blended to match the paint on the rest of the vehicle.
¶8 Marrou Concrete alleged that, without authorization, Iron
Mountain and Specialty then disassembled portions of the vehicle
to attempt to blend the paint. The Marrous said they were
“shock[ed]” when they visited the shop several days later and
discovered the unauthorized disassembly. Mr. Marrou instructed
Specialty to stop all further work on the vehicle. Specialty
reassembled the Audi but wouldn’t release the vehicle unless it
received payment for the repairs. Marrou Concrete refused to pay
for the repairs.
4 ¶9 Through counsel, Marrou Concrete sent a written demand
letter to Iron Mountain and Specialty seeking damages and
proposing to settle the dispute by selling them the Audi, which was
still in Specialty’s possession, for $70,000. Iron Mountain and
Specialty didn’t agree to Marrou Concrete’s demand.
¶ 10 Marrou Concrete then filed suit against Iron Mountain and
Specialty, asserting claims for violations of the MVRA and breach of
contract. At trial, Ms. Marrou testified that Marrou Concrete didn’t
want the Audi returned because the repair work “wasn’t sufficient.”
She also identified different categories of damages that she alleged
Marrou Concrete had suffered, such as rental car expenses and
payments for the Audi’s insurance and registration while it was in
Iron Mountain and Specialty’s possession. Mr. Marrou also testified
that Marrou Concrete purchased a new vehicle in January 2022 for
approximately $57,000 because they didn’t want to continue paying
for rental cars for “months on end.”
¶ 11 The jury found for Marrou Concrete and against Iron
Mountain and Specialty, separately finding that both defendants
violated the MVRA and breached the repair contract with Marrou
Concrete. The jury awarded Marrou Concrete $10,500 on its MVRA
5 claim and one dollar on its breach of contract claim, resulting in a
total judgment of $31,501 after the court trebled Marrou Concrete’s
damages awarded under the MVRA. See § 42-9-113.
¶ 12 After trial, Iron Mountain and Specialty moved for judgment
notwithstanding the verdict, asserting, as relevant here, that
(1) Marrou Concrete didn’t comply with the MVRA’s requirement
that the customer make a prelitigation demand “for the customer’s
damages,” see id.; and (2) no reasonable juror could conclude that
Iron Mountain was liable to Marrou Concrete because the evidence
showed that it performed no repair work on the vehicle.
¶ 13 The court initially ruled that Marrou Concrete’s prelitigation
demand letter proposing to sell the vehicle to defendants satisfied
the MVRA’s written demand requirement but also that Iron
Mountain couldn’t be held liable because the evidence showed that
only Specialty performed the repair work. After receiving additional
briefing, however, the court reversed course and determined that
the evidence supported holding both Iron Mountain and Specialty
liable for Marrou Concrete’s damages, consistent with the jury’s
verdict.
6 ¶ 14 Iron Mountain and Specialty now appeal, maintaining that the
court erred for the same two reasons raised in their motion for
judgment notwithstanding the verdict.
II. Discussion
A. Overview of the Motor Vehicle Repair Act
¶ 15 The MVRA contains several provisions meant to “protect
consumers.” Jones v. Stevinson’s Golden Ford, 36 P.3d 129, 133
(Colo. App. 2001); see §§ 42-9-104 to -113. A motor vehicle repair
facility must, for example, obtain the customer’s written consent
before performing repairs. § 42-9-104(1)(a), C.R.S. 2024. A motor
vehicle repair facility must similarly provide the customer with an
estimate of the total cost of any repairs, including the expected
completion date, unless the customer waives, in writing, their right
to receive an estimate. § 42-9-104(2)(a)(I), (2)(b).
¶ 16 If any disassembly of the vehicle is necessary to provide the
cost estimate, the MVRA imposes specific requirements on the
motor vehicle repair facility:
In the event that it is necessary to disassemble, or partially disassemble, a motor vehicle or a motor vehicle part in order to provide the customer with an estimate for required repairs, the written estimate . . . shall
7 show the cost of reassembly in the event that the customer elects not to proceed with the repairs of the motor vehicle or motor vehicle part. The estimate shall also include the total cost of labor and parts to replace those expendable items that are normally destroyed by such disassembly. No act of disassembly that would prevent the restoration of the same unit to its former condition may be undertaken unless the motor vehicle repair facility has fully informed the customer of that fact in writing on the work order and the customer consents to the disassembly.
§ 42-9-104(2)(c)(I). A motor vehicle repair facility must also record
all repairs performed on the customer’s invoice and provide the
invoice to the customer when the vehicle is returned.
§ 42-9-108(1), C.R.S. 2024.
¶ 17 In the event of a dispute, the customer may seek to enforce the
MVRA in a civil action and, if successful, is entitled to an award of
treble damages. § 42-9-113. Section 42-9-113 states that “[t]he
customer shall first make written demand for the customer’s
damages from the motor vehicle repair facility by certified mail at
least ten days prior to the filing of any such action, exclusive of
Saturday, Sunday, and any legal holiday.” “Damages are a measure
of the loss or harm, generally in the form of pecuniary
compensation, resulting from an injury suffered by a person
8 because of the unlawful act, omission, or negligence of another.”
Wilcox v. Clark, 42 P.3d 29, 30 (Colo. App. 2001).
¶ 18 Like other notice and demand statutes, the purpose behind
section 42-9-113’s written demand requirement is to provide the
motor vehicle repair facility with notice of an impending claim and
the opportunity to resolve the dispute before it turns into litigation.
Cf. Sure-Shock Elec., Inc. v. Diamond Lofts Venture, LLC, 2014 COA
111, ¶ 13 (“The purpose of the notice requirement [for mechanics’
liens] is to allow property owners to pay their debts before a lien is
filed.”).
B. Marrou Concrete’s Demand for Damages
¶ 19 Iron Mountain and Specialty first contend that the court erred
by denying their motion for judgment notwithstanding the verdict,
arguing that Marrou Concrete’s prelitigation demand letter didn’t
constitute a “demand for . . . damages” under the MVRA, § 42-9-
113, but rather, a demand that they purchase Marrou Concrete’s
vehicle at an inflated price.
1. Standard of Review
¶ 20 Appellate courts review de novo a district court’s denial of a
motion for judgment notwithstanding the verdict. Smith v. Surgery
9 Ctr. at Lone Tree, LLC, 2020 COA 145M, ¶ 8. A court may grant a
motion for judgment notwithstanding the verdict where the evidence
supporting the jury’s verdict is insufficient as a matter of law or
where no genuine issue as to any material fact exists, and the
moving party is entitled to judgment as a matter of law. C.R.C.P.
59(e); Belfor USA Grp., Inc. v. Rocky Mountain Caulking &
Waterproofing, LLC, 159 P.3d 672, 676 (Colo. App. 2006).
¶ 21 Appellate courts similarly review questions of statutory
interpretation de novo. Smith v. Exec. Custom Homes, Inc., 230 P.3d
1186, 1189 (Colo. 2010). A court’s “primary duty” when construing
a statute is to give effect to the General Assembly’s intent, looking
first to the statute’s plain language. Ferguson Enters., Inc. v.
Keybuild Sols., Inc., 275 P.3d 741, 747-48 (Colo. App. 2011). If the
statute’s meaning is clear and unambiguous, the court applies the
statute as written, unless doing so would lead to an absurd result.
E-470 Pub. Highway Auth. v. Kortum Inv. Co., LLLP, 121 P.3d 331,
333 (Colo. App. 2005).
2. Additional Background
¶ 22 On February 11, 2022, Marrou Concrete’s counsel emailed a
settlement offer to counsel for Iron Mountain and Specialty, stating
10 Marrou Concrete was willing to resolve the dispute “by selling the
Audi in your client’s possession to your client for $70,000.” Iron
Mountain and Specialty rejected Marrou Concrete’s settlement offer
and requested that Marrou Concrete instead pay for a portion of the
vehicle’s repairs.
¶ 23 On April 14, 2022, thirteen days before filing this lawsuit,
Marrou Concrete’s counsel sent a demand letter under the MVRA to
Specialty and Iron Mountain’s counsel via certified mail. The
demand letter stated as follows:
Please accept this letter as the written demand of my clients . . . pursuant to [section] 42-9- 113 with regards to their dispute with your client, [Specialty and Iron Mountain]. My clients demand payment of the damages they have suffered due to your client’s violation of the [MVRA], which amounts are included in the offer to resolve this matter that my clients made via email on February 11, 2022. My clients are still willing to accept payment of the amount offered on February 11, 2022, to resolve this matter upon the same terms and conditions as previously set forth. If your clients decline this demand or do not respond, my clients have and directed me to file the attached complaint as permitted by [section] 42-9-113.
11 Iron Mountain and Specialty didn’t agree to pay Marrou Concrete’s
demand or seek additional information, prompting Marrou Concrete
to initiate litigation.
3. Analysis
¶ 24 The district court correctly determined that Marrou Concrete’s
April 14 demand letter satisfied section 42-9-113. To satisfy the
statute, the customer must (1) make a written demand for the
customer’s damages from the motor vehicle repair facility; (2) send
the demand by certified mail; and (3) wait at least ten days before
filing a civil action under the MVRA, exclusive of Saturdays,
Sundays, and legal holidays. § 42-9-113. The parties only dispute
the first element in this case.
¶ 25 In the April 14 demand letter, Marrou Concrete’s counsel
demanded “payment of the damages” that his client had allegedly
suffered as a result of Iron Mountain’s and Specialty’s actions,
stating that the amount of its claimed damages was included in its
12 prior settlement offer of $70,000.1 By requesting $70,000 and
characterizing the amount as “damages,” counsel provided an
estimate of the measure of Marrou Concrete’s loss or harm that it
asserted resulted from Iron Mountain’s and Specialty’s unlawful
acts or omissions. Counsel’s April 14 demand letter therefore
constituted a demand for Marrou Concrete’s damages, satisfying
section 42-9-113. See Wilcox, 42 P.3d at 30.
¶ 26 Iron Mountain and Specialty nonetheless argue that they had
no way of knowing what portion of the demanded $70,000 reflected
Marrou Concrete’s damages and what portion reflected the Audi’s
purchase price. This defect, they argue, required the court to either
grant Iron Mountain and Specialty’s motion for judgment
notwithstanding the verdict or, at minimum, vacate the treble
1 Iron Mountain and Specialty argue that Marrou Concrete’s April
14 demand letter was defective because it incorporated a prior settlement offer by reference rather than restating the proposed settlement terms. But nothing in section 42-9-113, C.R.S. 2024, prohibits referencing prior communications between the parties or their counsel as part of the customer’s written demand for damages.
13 damages on Marrou Concrete’s MVRA’s claim.2 But counsel’s April
14 demand letter said that the amount of Marrou Concrete’s
damages was “included,” or enclosed, in its prior settlement offer.
See Webster’s Third New International Dictionary 1143 (2002)
(defining “included” as “enclosed, confined, [or] embraced”). The
only figure enclosed in Marrou Concrete’s prior settlement offer was
$70,000. Iron Mountain and Specialty could therefore reasonably
glean that Marrou Concrete viewed the entirety of the demanded
$70,000 as its “damages.”
¶ 27 Armed with this information, Iron Mountain and Specialty had
notice of the amount that they would have to pay Marrou Concrete
to prevent its MVRA lawsuit from moving forward. Marrou
Concrete’s demand letter therefore fulfilled the legislative purposes
2 As Iron Mountain and Specialty’s argument suggests, the MVRA
doesn’t specify the consequences when a claimant fails to send a written demand that satisfies section 42-9-113. For example, is a claimant who fails to comply with the written demand requirement barred from bringing their MVRA claim? See, e.g., § 24-10-109(1), C.R.S. 2024 (failure to comply with the Colorado Governmental Immunity Act’s notice provision “shall forever bar any such action”). Or is the claimant merely ineligible to receive the civil penalties listed in section 42-9-113? Or is the consequence something else altogether? The statute doesn’t say. This court need not resolve these questions, however, because Marrou Concrete satisfied section 42-9-113’s written demand requirement.
14 underlying section 42-9-113. Cf. Sure-Shock Elec., ¶ 13; see also
Finnie v. Jefferson Cnty. Sch. Dist. R-1, 79 P.3d 1253, 1258 (Colo.
2003) (in determining whether claimant satisfied the notice
provision of the Colorado Governmental Immunity Act, the court
“should consider whether the purposes of the statute were
satisfied”). Contrary to Iron Mountain and Specialty’s argument,
nothing in section 42-9-113 required Marrou Concrete to itemize or
explain in detail the basis of its claimed damages. See Larrieu v.
Best Buy Stores, L.P., 2013 CO 38, ¶ 19 (Courts “do not add words
to a statute.”). And notably, Iron Mountain and Specialty didn’t
express confusion over the amount of Marrou Concrete’s demanded
damages or seek additional information.
¶ 28 Even if a recipient of the April 14 demand letter might have
interpreted counsel’s use of “included” to mean that the amount of
Marrou Concrete’s claimed damages was a mere subset of some
larger whole, see Webster’s Third New International Dictionary 1143
(2002) (defining “include” in a second definition as “to place, list or
rate as a part or component of a whole or of a larger group, class, or
aggregate”), the letter still qualified as a written demand for
damages under section 42-9-113. Under such an interpretation,
15 the amount of Marrou Concrete’s claimed damages could be
understood to be enclosed in its prior settlement offer in addition to
the other terms and conditions of the offer. But the only additional
information provided in Marrou Concrete’s settlement offer was its
proposal that Iron Mountain and Specialty purchase the damaged
Audi for $70,000 — a sum that, again, Marrou Concrete’s counsel
characterized as “damages” in the demand letter. Nothing in either
the settlement offer or the demand letter suggested that Marrou
Concrete sought additional unspecified sums, above $70,000, as
either damages or compensation for selling the Audi.
¶ 29 Iron Mountain and Specialty also argue that Marrou
Concrete’s demand letter and settlement offer sought a form of
specific performance, not damages, by attempting to sell them the
Audi at an inflated price. This argument fails for two reasons.
¶ 30 First, although section 42-9-113 requires that the customer’s
written demand seek “damages” — a requirement that Marrou
Concrete’s demand letter satisfied — the statute doesn’t preclude a
customer from including additional terms or conditions in their
demand. Indeed, there is nothing unusual about a plaintiff
including in its demand letter a condition that the defendant buy
16 back or retake possession of goods that the defendant has rendered
defective. See, e.g., Alling v. Universal Mfg. Corp., 7 Cal. Rptr. 2d
718, 721-22 (Ct. App. 1992).
¶ 31 Second, the parties’ repair contract didn’t authorize the sale of
the vehicle to Iron Mountain and Specialty as a possible remedy for
the customer, rendering such a sale unavailable as a form of
specific performance. See Air Sols., Inc. v. Spivey, 2023 COA 14,
¶ 48 (specific performance serves as an alternative to an award of
damages as a means of enforcing a contract and is intended to
produce, as nearly as is practicable, the same effect that the
performance due under a contract would have produced). And
while Marrou Concrete alleged in its complaint that Iron Mountain
and Specialty breached the repair contract, nothing in its demand
letter or settlement offer suggested that its offer to sell the vehicle
constituted an attempt to enforce that contract.
¶ 32 Iron Mountain and Specialty also appear to argue that Marrou
Concrete’s evidence of damages at trial fell far lower than the
$70,000 that it requested in its April 14 demand letter. But just as
section 42-9-113 doesn’t prohibit the customer from including
additional terms or conditions in its written demand beyond its
17 damages, nothing in the statute requires that the customer’s
evidence on damages at trial conform to the amount in their written
demand. See Dubois v. Abrahamson, 214 P.3d 586, 588
(Colo. App. 2009) (“[W]e may not read additional terms into, or
modify, the plain language of a statute . . . .”). A plaintiff who is
approaching trial may sensibly choose to forgo presenting evidence
on certain categories of questionable damages in favor of pursuing
only those sums that discovery proved were supported by strong
evidence.
¶ 33 Accordingly, because Marrou Concrete’s demand letter
satisfied section 42-9-113’s requirements, the district court didn’t
err by denying Iron Mountain and Specialty’s motion for judgment
notwithstanding the verdict.
C. Iron Mountain’s Liability
¶ 34 Iron Mountain and Specialty also contend that the court erred
by entering judgment against Iron Mountain, arguing that the
undisputed evidence showed that Iron Mountain, a separate entity
from Specialty, performed no services on Marrou Concrete’s Audi.
We disagree.
18 ¶ 35 Iron Mountain and Specialty raised the issue of Iron
Mountain’s liability in their post-trial motion for judgment
notwithstanding the verdict. The court initially agreed with Iron
Mountain and Specialty and entered judgment against only
Specialty notwithstanding the jury’s verdict against both entities.
The court reversed course, however, after receiving additional
briefing from the parties and entered judgment, jointly and
severally, against both Iron Mountain and Specialty.
1. Standard of Review and Applicable Law
¶ 36 Both sides argue, and we agree, that we review de novo the
court’s ruling on Iron Mountain and Specialty’s motion for
judgment notwithstanding the verdict.3 See Surgery Ctr., ¶ 8. “A
3 We note that the court reversed course and entered judgment
against both Iron Mountain and Specialty after Marrou Concrete moved to amend the judgment under C.R.C.P. 59(a)(3) and (4). We normally review the court’s ruling on such a motion for an abuse of discretion, not de novo. See In re Marriage of Bochner, 2023 COA 63, ¶ 12; Skyland Metro. Dist. v. Mountain W. Enter., LLC, 184 P.3d 106, 115 (Colo. App. 2007). But the parties urge us to apply a de novo standard of review, pointing out that Iron Mountain’s liability was first raised in Iron Mountain and Specialty’s motion for judgment notwithstanding the verdict. Given this posture and the parties’ agreement, we choose to review the court’s ruling de novo, although we would reach the same result even if we applied the more deferential abuse-of-discretion standard.
19 judgment notwithstanding the verdict may be entered only if, when
viewing the evidence in the light most favorable to the party against
whom the motion is directed, reasonable persons could not reach
the same conclusion as the jury.” Alzado v. Blinder, Robinson &
Co., 752 P.2d 544, 552 (Colo. 1988).
2. Analysis
¶ 37 The jury heard the following evidence from which it could
reasonably infer that Iron Mountain was involved in the repairs of
Marrou Concrete’s Audi:
• An Allstate representative discussed the Audi’s repairs in
emails with the companies’ general manager, whose
signature block included logos for both Iron Mountain
and Specialty. The signature block, however, showed a
Loveland address, where Iron Mountain’s shop was
located. The general manager also sent his emails from
an Iron Mountain email address.
• Iron Mountain and Specialty’s owner testified that the
general manager spent “most of his time with Iron
Mountain.”
20 • Allstate sent a check for the Audi’s repairs to Iron
Mountain (albeit to an address associated with a different
business also called Iron Mountain, which eventually
returned the check to Allstate).
• The form that Ms. Marrou executed authorized Iron
Mountain, not Specialty, to make repairs to the Audi.
• The general manager testified that Specialty is now
merely a “remote hub” in Fort Collins. Customers
visiting Specialty are “redirect[ed]” to Iron Mountain’s
shop in Loveland, and the general manager will “send a
tow truck” or “transport their vehicle for them from Fort
Collins to Loveland to do the repairs.” Iron Mountain
also completes all paperwork for both entities.
• Mr. Marrou previously took a company truck to Specialty
for repairs; Specialty then transferred the vehicle to Iron
Mountain for the repairs.
¶ 38 Viewing this evidence in the light most favorable to Marrou
Concrete, as we must, we conclude that a reasonable juror could
infer that Iron Mountain was involved in the repairs to the Audi,
thus providing a basis for holding it jointly and severally liable
21 alongside Specialty. While Iron Mountain and Specialty presented
other evidence suggesting that only Specialty performed repairs on
the Audi, the jury was free to reject their evidence and resolve
inconsistencies in the evidence against Iron Mountain and
Specialty. See Margenau v. Bowlin, 12 P.3d 1214, 1219 (Colo. App.
2000) (“It is for the jury to determine the weight of, and to resolve
conflicts and inconsistencies in, the evidence.”).
¶ 39 We also disagree with Iron Mountain and Specialty’s argument
that “the veil of both corporations would have to be pierced” before
Iron Mountain could be held liable. In a veil-piercing analysis, a
court evaluates, among other things, whether the corporate entity is
the “alter ego” of another person or entity. Dill v. Rembrandt Grp.,
Inc., 2020 COA 69, ¶ 28. But here, the jury found both Iron
Mountain and Specialty separately liable to Marrou Concrete on its
MVRA and breach of contract claims, as shown by the separate
verdict forms the jury filled out for each entity. And as discussed,
the evidence supported the jury’s verdicts. Given this, the jury
didn’t find, nor did it need to find, that Iron Mountain and Specialty
were each other’s alter ego.
22 ¶ 40 We also aren’t persuaded by Iron Mountain and Specialty’s
reliance on Alzado, 752 P.2d 544. In Alzado, the supreme court
determined that a limited partner in a partnership couldn’t be held
liable as a general partner because, on the record presented, it
hadn’t assumed sufficient control over the partnership’s business.
Id. at 551-53; see also § 7-61-108, C.R.S. 2024 (limited partner may
become liable as a general partner if it “takes part in the control of
the business”). But the court’s fact-specific analysis in Alzado was
governed by a provision of the Colorado Uniform Limited
Partnership Act of 1981, section 7-62-303, C.R.S. 2024, which
doesn’t apply here. Moreover, unlike Alzado, whether Iron
Mountain assumed control over Specialty is immaterial because the
jury found, with record support, that both entities were separately
liable to Marrou Concrete based on their own conduct.
¶ 41 Accordingly, we conclude the record supports the court’s
decision to enter judgment against Iron Mountain, consistent with
the jury’s verdicts.
D. Appellate Attorney Fees and Costs
¶ 42 Marrou Concrete requests an award of its appellate attorney
fees and costs under the MVRA, section 42-9-113, which provides
23 that the court “may award reasonable attorney fees and costs to the
prevailing party.” (Emphasis added.) A statute that uses “may”
generally connotes permissive rather than mandatory action.
Sinclair Mktg. Inc. v. City of Commerce City, 226 P.3d 1239, 1246
(Colo. App. 2009). Marrou Concrete also cites C.A.R. 28(b), 39, and
39.1 in support of its request.
¶ 43 Because we affirm the judgment, we grant Marrou Concrete’s
request for appellate costs. See C.A.R. 39(a)(2) (“[I]f a judgment is
affirmed, costs are taxed against the appellant.”); C.A.R. 39(c)(2)
(the party seeking costs must file an itemized and verified bill
of costs in the trial court within fourteen days of entry of the
appellate mandate).
¶ 44 We deny, however, Marrou Concrete’s request for its appellate
attorney fees. Other than citing the above authorities, Marrou
Concrete fails to develop any argument supporting the exercise of
our discretion to award attorney fees on appeal. See C.A.R. 39.1 (“If
attorney fees are recoverable for the appeal, the principal brief of
the party claiming attorney fees must include a specific request,
and explain the legal and factual basis, for an award of attorney
fees.”); Andres Trucking Co. v. United Fire & Cas. Co., 2018 COA
24 144, ¶ 63 (denying party’s undeveloped request for appellate
attorney fees).
III. Disposition
¶ 45 We affirm the judgment.
JUDGE J. JONES concurs dubitante.
JUDGE LIPINSKY concurs in part and dissents in part.
25 JUDGE J. JONES, concurring dubitante.
¶ 46 Judge Sullivan and I agree that the court’s judgment should
be affirmed in total. I write separately because while I agree with
Judge Lipinsky that the written demand requirement of section
42-9-113, C.R.S. 2024, of the Motor Vehicle Repair Act (MVRA),
requires the customer to state an amount of damages claimed, I’m
not quite convinced that Marrou Concrete failed to comply with that
requirement. At the same time, I’m not as sure as Judge Sullivan is
that Marrou Concrete did so. So I join sections I, II.A, II.B.1 and 2,
II.C, II.D, and III of Judge Sullivan’s opinion in full and II.B.3 as to
the result.4
Section 42-9-113 provides in full as follows:
Civil penalties. In any civil action for the enforcement of this article, the court may award reasonable attorney fees and costs to the prevailing party, and a customer shall be entitled to treble damages for failure of any motor vehicle repair facility or any employee of such facility to comply with this article, except
4 The potential bases for a dubitante opinion are covered in Jason
J. Czarnezki, The Dubitante Opinion, 39 Akron L. Rev. 1 (2006); see also People v. Carter, 2021 COA 29, ¶ 60 n.1 (J. Jones, J., concurring dubitante). One such basis is that “the judge is unhappy about some aspect of the decision rendered but cannot quite bring himself to record an open dissent.” Lon L. Fuller, Anatomy of the Law 147 (Penguin 1971) (1968).
26 for clerical errors or omissions; but in no event shall such damages be less than two hundred fifty dollars. The customer shall first make written demand for the customer’s damages from the motor vehicle repair facility by certified mail at least ten days prior to the filing of any such action, exclusive of Saturday, Sunday, and any legal holiday. Such action shall be brought within the time period prescribed in section 13-80-103, C.R.S. [2024]
¶ 47 No reported case interprets this provision. And the MVRA
doesn’t expressly indicate the purposes it seeks to serve. But I
think it’s safe to assume, as a logical matter, that the written
demand requirement is intended to, at the least, facilitate resolution
of a dispute between a customer and a motor vehicle repair facility
before the customer files suit. Colorado appellate courts have
construed analogous notice and demand provisions as serving that
purpose. See, e.g., City & Cnty. of Denver v. Crandall, 161 P.3d
627, 632 (Colo. 2007) (one purpose of the notice requirement of
section 24-10-109, C.R.S. 2024, of the Colorado Governmental
Immunity Act is to enable the public entity to settle meritorious
claims);5 Shaw Constr., LLC v. United Builder Servs., Inc., 2012 COA
5 The notice required by section 24-10-109, C.R.S. 2024, must
include “[a] statement of the amount of monetary damages that is being requested.” § 24-10-109(2)(e).
27 24, ¶ 25 (construing the notice of claim procedure in section
13-20-802.5, C.R.S. 2024, of the Construction Defect Action Reform
Act as intended to “facilitate out-of-court resolution of construction
defect claims”), overruled on other grounds by Goodman v. Heritage
Builders, Inc., 2017 CO 13; Sure-Shock Elec., Inc. v. Diamond Lofts
Venture, LLC, 2014 COA 111, ¶ 13 (the purpose of the notice of
intent to lien provision of section 38-22-109(3), C.R.S. 2024 — a
part of the statutes governing mechanics’ liens — “is to allow
property owners to pay their debts before a lien is filed”).6
¶ 48 It is with that purpose in mind that we must determine
whether Marrou Concrete’s February 11, 2022, email and April 14,
2022, letter — considered in tandem — constituted a “written
demand for the customer’s damages from the motor vehicle repair
facility” under section 42-9-113. See People v. Laeke, 2012 CO
13M, ¶ 17 (“Our fundamental responsibility when we interpret a
6 As I read the statute, when it says the customer “shall first make
written demand . . . prior to the filing of any such action,” it means that such a written demand is a prerequisite to filing “any civil action for the enforcement of” the MVRA. § 42-9-113, C.R.S. 2024. Thus, I agree with Judge Lipinsky that the failure to comply with the written demand requirement is a bar to suit.
28 statute is to give effect to the General Assembly’s purpose or intent
in enacting the statute.”). This is a very close question, in my view.
¶ 49 As I see it, a written demand for the customer’s damages must
include, at a minimum, a statement of the amount of damages
allegedly caused by the motor vehicle repair facility’s failure to
comply with the MVRA. Contrary to Marrou Concrete’s assertion,
construing the statute in this way doesn’t add words to the statute.
This is so because the commonly understood meaning of the word
“damages” is “the measure of the loss or harm, generally in the form
of pecuniary compensation, resulting from an injury suffered by a
person because of the unlawful act, omission, or negligence of
another.” Artery v. Allstate Ins. Co., 984 P.2d 1187, 1191 (Colo.
App. 1999) (emphasis added) (citing dictionary definitions),
abrogated on other grounds by Clementi v. Nationwide Mut. Fire Ins.
Co., 16 P.3d 223, 224, 228-30 (Colo. 2001), and Friedland v.
Travelers Indem. Co., 105 P.3d 639, 645 (Colo. 2005); see Colo.
Milling & Elevator Co. v. Mitchell, 58 P. 28, 29 (Colo. 1899) (noting
that the “technical sense” of “damages” is “the amount which the
injured party is entitled to recover”); see also Godinez v. Williams,
2024 CO 14, ¶ 20 (in construing words in a statute, we apply their
29 plain and ordinary meanings in accordance with common usage).
And allowing a customer to satisfy the demand requirement merely
by demanding that a motor vehicle repair facility “pay damages,”
without stating an amount, would do little, if anything, to facilitate
resolution of the dispute before the filing of a lawsuit.
¶ 50 Marrou Concrete argues that, if it was required to include an
amount of damages in its demand, it did so. I have my doubts.
Recall, the February 11 email said, “After speaking with my clients,
they would be willing to resolve this matter by selling the Audi in
your client’s possession for $70,000.” And the April 14 letter said,
in relevant part, “My clients demand payment of the damages they
have suffered due to your client’s violations of the [MVRA], which
amounts are included in the offer to resolve this matter that my
clients made via email on February 11, 2022.” Below are a few
observations about these communications:
• An offer to settle a dispute for a particular amount —
which is how both missives characterized the February
11 email — isn’t necessarily a statement of the amount of
damages caused by the alleged wrongdoer’s unlawful
conduct. Such an offer may equate to such damages,
30 but that is probably the case only rarely. More often, it is
simply an amount that takes into account potentially
recoverable damages, attorney fees, costs, and the risks
of litigation, among other things.
• It isn’t at all clear what value Marrou Concrete attached
to the Audi it offered to sell to defendants for $70,000. It
never communicated that sum to defendants before filing
suit, much less in the purported demand. So even if the
$70,000 less the Audi’s value represented Marrou
Concrete’s damages, defendants were left only to guess at
what the net figure — that is, the damages claimed by
Marrou Concrete — was. How were defendants supposed
to know the amount of the check they could write Marrou
Concrete to cover its actual damages?
• The April 14 letter said that the damages were “included
in the offer in the February 11 email.” This phrasing
would have led defendants to believe that Marrou
Concrete’s claimed damages were part of a larger sum.
See Webster’s Third New International Dictionary 1143
(2002) (defining “include”). But, again, how were
31 defendants to know how much of the larger sum
constituted to Marrou Concrete’s actual damages?
¶ 51 Against all this, Marrou Concrete now says that its damages
were $70,000.7 But there are serious problems with this assertion.
First, in the district court, Marrou Concrete said, in responding to
defendants’ motion for summary judgment and defendants’
post-trial motion, that the amount it demanded from defendants
included, among other sums, an unspecified amount for attorney
fees. And on appeal, they say it also included treble damages. But
neither attorney fees nor treble damages are actual damages caused
by the wrongdoer: They are penalties imposed if the customer
prevails by proving a violation of the MVRA and resulting damages.8
¶ 52 Second, in the district court, Marrou Concrete said that
$70,000 was an amount defendants needed to pay “to resolve this
7 This implies that Marrou Concrete thought the Audi had no value. 8 When the MVRA was enacted in 1977, section 42-11-109(3),
C.R.S. 1977, the precursor to section 42-9-113, said, “In any civil action, a customer shall be entitled to his damages, including attorney’s fees and costs . . . .” But two years later, the General Assembly amended the statute to take attorney fees and costs out of the category of damages and make them awardable, in the court’s discretion, to “the prevailing party.” Ch. 419, sec. 1, § 42-11-109(3), 1979 Colo. Sess. Laws 1589.
32 dispute without litigation.” Again, a settlement demand and a
demand for damages usually aren’t the same thing.
¶ 53 Third, Marrou Concrete argues, as it did below, that it wasn’t
possible for it to calculate its damages before it filed suit. But if
calculating its damages wasn’t possible, how can Marrou Concrete
claim that the amount it demanded constituted its actual
damages?9 This seems to be a tacit — albeit unintended —
admission that the $70,000 amount (less the Audi’s unstated value)
didn’t represent its actual damages.
¶ 54 Despite my concerns, however, I would affirm because the
statute — enacted in 1977 — doesn’t clearly spell out how much
information the required written demand should include, and
Marrou Concrete did, after all, include a figure in the demand
(albeit an ambiguous one).
¶ 55 I respectfully suggest that it is time for the General Assembly
to amend the statute to create more clarity. Does the demand have
to state a good faith estimate of the customer’s actual damages
9 Under the statute, Marrou Concrete had one year to file suit. That would seem to be plenty of time to come up with a good faith estimate of damages.
33 caused by the motor vehicle repair facility, as I believe it does?
Does the demand need to include an itemization of the sums
making up the damages by category or type of injury? Does the
failure to comply with the demand requirement mean the
customer’s suit is barred, as I believe it does, or does it mean only
that the customer may not recover the penalties provided for in the
statute? Clarification of these issues would benefit customers,
motor vehicle repair facilities, attorneys, and the courts.10
10 I agree with my colleagues as to defendants’ separate challenge to
the award against Iron Mountain Collision.
34 JUDGE LIPINSKY, concurring in part and dissenting in part.
¶ 56 Settlement demands do not necessarily reveal the amount of
the demanding party’s damages. A number may be included in a
demand for tactical or psychological purposes. A lawyer may insert
a high number in a demand to convince the client of the lawyer’s
toughness or to instill fear in the heart of the opposing party. Or
the demand may represent the starting point of negotiations that
the demander hopes will eventually lead to a settlement for a sum
close to that party’s actual damages.
¶ 57 The plain language of the Motor Vehicle Repair Act (the Act),
§§ 42-9-101 to -113, C.R.S. 2024, demonstrates that the General
Assembly understood the material distinction between a settlement
demand and the measure of a party’s damages when it enacted the
Act’s civil penalty section. § 42-9-113. That section of the Act
specifies a condition precedent with which a customer must comply
before the customer has the right to bring a civil action under the
Act. Id.
¶ 58 Section 42-9-113 says that a customer may only file such an
action if the customer made “written demand for the customer’s
damages from the motor vehicle repair facility by certified mail at
35 least ten days prior to the filing of any such action, exclusive of
Saturday, Sunday, and any legal holiday.” Because in my view,
plaintiff, Marrou Concrete, Inc. (Marrou Concrete), did not comply
with this condition precedent, I would reverse the judgment entered
in favor of Marrou Concrete on its claims arising under the Act.
¶ 59 My dissent is a partial one because I join Parts I and II.A of
Judge Sullivan’s opinion. Defendants, KLR Enterprises Inc., d/b/a
Specialty Auto Body (Specialty), and Rowley’s Auto Collision
Experts, Inc., d/b/a Iron Mountain Collision (Iron Mountain), do
not appear to challenge the judgment entered in favor of Marrou
Concrete on its breach of contract claim against Specialty.
Accordingly, I agree with Part II.C of Judge Sullivan’s opinion to the
extent it affirms the breach of contract judgment entered against
Iron Mountain.
¶ 60 For the reasons I discuss below, I also agree with Judge
Jones’s persuasive analysis of section 42-9-113 in his concurrence
dubitante. I join his opinion except for the first, penultimate, and
ultimate paragraphs, in which Judge Jones explains his reasons for
agreeing with Judge Sullivan’s affirmance of the judgment for
Marrou Concrete on its claims under the Act. I respectfully
36 disagree with Judge Jones’s conclusion that section 42-9-113 fails
to provide sufficient guidance regarding the information a customer
must include in the written demand specified in section 42-9-113. I
believe the statute is sufficiently clear to support a holding that
Marrou Concrete’s settlement demand failed to comply with section
42-9-113.
I. The Meaning of Section 42-9-113
¶ 61 I believe that section 42-9-113, while not a paragon of
legislative clarity, is sufficiently clear to compel reversal of the
judgment entered in favor of Marrou Concrete on its claims
premised on the Act. I next turn to the structure and meaning of
that statute.
¶ 62 The Act regulates the motor vehicle repair industry. Section
42-9-101 sets forth the Act’s short title; section 42-9-102, C.R.S.
2024, contains definitions (but not a definition of “damages”);
sections 42-9-103 through -109.5, C.R.S. 2024, address specific
industry practices; and section 42-9-110, C.R.S. 2024, exempts
antique motor vehicles from the Act. Section 42-9-111, C.R.S.
2024, prohibits certain acts by motor vehicle repair facilities, their
employees, or their contract laborers. The next section identifies
37 criminal penalties for violating the Act. See § 42-9-112, C.R.S.
2024. The Act culminates in the “[c]ivil penalties” section.
§ 42-9-113.
¶ 63 Section 42-9-113 says,
In any civil action for the enforcement of this article, the court may award reasonable attorney fees and costs to the prevailing party, and a customer shall be entitled to treble damages for failure of any motor vehicle repair facility or any employee of such facility to comply with this article, except for clerical errors or omissions; but in no event shall such damages be less than two hundred fifty dollars. The customer shall first make written demand for the customer’s damages from the motor vehicle repair facility by certified mail at least ten days prior to the filing of any such action, exclusive of Saturday, Sunday, and any legal holiday. Such action shall be brought within the time period prescribed in section 13-80-103, C.R.S. [2024].
Id. (emphases added).
¶ 64 The first sentence of section 42-9-113 sets forth the monetary
relief that a customer may obtain in a civil action under the Act.
The second sentence of the statute is central to this appeal. It
mandates a particular type of written demand and says a customer
must make such demand “at least ten days prior to the filing of any
such action,” exclusive of Saturdays, Sundays, and legal holidays.
38 Id. (emphasis added). The third sentence notes the statute of
limitations that governs civil actions brought under the Act.
¶ 65 The statute could have said that a customer “shall first make
written demand by certified mail at least ten days prior to the filing
of any such action,” without prescribing the content of the written
demand. But that is not what the statute says. The General
Assembly added a critical qualifier to the written demand
requirement: Only a written demand “for the customer’s damages”
can trigger the right to “fil[e] . . . any such action.” Id. In
interpreting a statute, “we aim to give effect to every word and
presume that the legislature did not use language idly.” Nieto v.
Clark’s Mkt., Inc., 2021 CO 48, ¶ 21, 488 P.3d 1140, 1145.
¶ 66 Marrou Concrete contests this reasonable reading of section
42-9-113 and instead asserts that the purpose of the written
demand is merely to “provid[e] notice that a customer seeks
damages for an alleged violation of the [Act].” This argument,
however, would require us to ignore the reference to “the customer’s
damages” in the statute. “[J]ust as we may not add words to a
statute, neither may we ignore the words selected by the General
39 Assembly.” Hobbs v. City of Salida, 2024 COA 25, ¶ 35, 550 P.3d
193, 200 (cert. granted on other grounds Sept. 30, 2024).
¶ 67 The qualifier makes sense. The statute requires the customer
to inform the facility of the dollar amount that the customer
reasonably believes it could recover if the customer prevailed in a
civil action under the Act. As Iron Mountain and Specialty note,
this demand requirement allows prospective defendants to
understand their potential exposure if the dispute with the
customer proceeds to litigation. Disclosure of the customer’s
damages allows the prospective defendants to assess the economics
of a possible settlement and whether they should instead take on
the risk of litigation. Thus, I read section 42-9-113 to mean that a
customer who failed to disclose the amount of his or her damages
in the written demand did not comply with the written demand
requirement.
¶ 68 There are significant consequences for customers who fail to
comply with the written demand requirement. In my view, under
the plain meaning of section 42-9-113, a customer who does not
comply with the requirement is barred from bringing an action
under the Act.
40 ¶ 69 Section 42-9-113 says the customer must make written
demand for his or her damages “at least ten days prior to the filing
of any such action.” The term “any such action” refers back to the
first clause of section 42-9-113: “any civil action for the
enforcement of this article.” The second sentence of the statute
means that the customer must “first” comply with the written
demand requirement within the specified number of days “prior
to . . . filing” a lawsuit under the Act. The statute therefore means
that a customer who has not provided the motor vehicle repair
facility with written demand for his or her damages, as section
42-9-113 requires, may not bring a “civil action for the enforcement
of” the Act.
¶ 70 The third sentence of section 42-9-113 confirms this reading
of the second sentence. The third sentence says that “[s]uch action
shall be brought within the time period prescribed in section
13-80-103.” “Such action” must mean “any civil action for the
enforcement of this article,” as referenced in the first sentence.
Thus, the written notice requirement in the second sentence applies
to the same category of lawsuits addressed in the third sentence —
every civil action filed under the Act. See Int’l Brotherhood of Elec.
41 Workers v. Ill. Bell Tel. Co., 496 F.2d 1, 2-3 (7th Cir. 1974)
(determining that “any such action” in 29 U.S.C. § 411(a)(4) means
“an action in any court” instituted by a member of a labor
organization, as described earlier in the statute, and, therefore,
holding that the statute did not apply to such members’ affirmative
defenses or counterclaims in actions filed against them by a labor
organization); Kirby v. Mercury Sav. & Loan Ass’n, 755 F. Supp.
445, 446-47 (D.D.C. 1990) (concluding that “any such action” in
12 U.S.C. § 1441a(l)(3) (1990) (repealed 2010) referred back to “any
civil action” in 12 U.S.C. § 1441a(l)(1) and, therefore, the Resolution
Trust Corporation had the right to remove the case from California
state court to the United States District Court for the District of
Columbia).
¶ 71 Thus, the second sentence of the statute means that a
customer cannot bring “any civil action for the enforcement” of the
Act unless the customer made “written demand for the customer’s
damages from the motor vehicle repair facility by certified mail”
within the specified time period. § 42-9-113. Accordingly, I agree
with Judge Jones that “the failure to comply with the written
demand requirement is a bar” to a civil action under section
42 24-10-109, C.R.S. 2024. Supra ¶ 47 n.3 (J. Jones, J., concurring
dubitante).
¶ 72 (This case does not present the question of whether a
customer may, as Marrou Concrete did, assert both a claim arising
under the Act and a breach of contract claim to seek legal redress
for the same problematic motor vehicle repairs. In any event, a
customer has an incentive to plead a claim under the Act because,
unlike common law breach of contract claims, claims filed under
section 42-9-113 allow a prevailing customer to recover “reasonable
attorney fees,” costs, and treble damages.)
II. Counsel for Marrou Concrete’s Communications to Iron Mountain and Specialty’s Counsel
¶ 73 I next turn to the language of the two written communications
from counsel for Marrou to Iron Mountain and Specialty’s counsel
— an email dated February 11, 2022, and a letter dated April 14,
2022 — to determine whether Marrou Concrete provided Iron
Mountain and Specialty with a “written demand for [its] damages”
as section 42-9-113 requires. Marrou Concrete’s entitlement to file
a civil action under the Act rests on whether those two written
communications complied with the statute.
43 ¶ 74 In the February 11 email, Marrou Concrete’s counsel said:
“After speaking with my clients, they would be willing to resolve this
matter by selling the Audi in your client’s possession to your client
for $70,000. Please let me know your client’s position.” In the
relevant portion of the April 14 letter, Marrou Concrete’s counsel
said: “My clients demand payment of the damages they have
suffered due to your clients’ violation of the [Act], which amounts
are included in the offer to resolve this matter that my clients made
via email on February 11, 2022.”
A. The Meaning of “Damages” and “Included”
1. The Definitions of These Words
¶ 75 A determination of whether Marrou Concrete complied with
the written demand specified in section 42-9-113 requires an
analysis of the meaning of “damages” in the statute, see Bartenders
& More v. Colo. Dep’t of Lab. & Emp., 2023 COA 123, ¶ 32, 545 P.3d
975, 982 (explaining that courts construe unambiguous statutory
language “as written and apply its words in accordance with their
plain and ordinary meaning”), and the word “included” found in the
April 14 letter, see Bradley v. Sch. Dist. No. 1, 2021 COA 140, ¶ 16,
504 P.3d 979, 983 (interpreting the plain words, clear message, and
44 obvious meaning of the notice letter that plaintiff’s counsel sent to
the defendants).
¶ 76 I do not write on a blank slate in interpreting “damages.”
Divisions of this court have defined that word. Damages are “a
measure of the loss or harm, generally in the form of pecuniary
because of the unlawful act, omission, or negligence of another.”
Wilcox v. Clark, 42 P.3d 29, 30 (Colo. App. 2001). “[T]he recitation
of damages suffered . . . describes the recovery to be sought once
the claim is established.” Artery v. Allstate Ins. Co., 984 P.2d 1187,
1192 (Colo. App. 1999), abrogated on other grounds by Clementi v.
Nationwide Mut. Fire Ins. Co., 16 P.3d 223, 224, 228-30 (Colo.
2001), and Friedland v. Travelers Indem. Co., 105 P.3d 639, 645
(Colo. 2005).
¶ 77 In addition, “included” means “to take in or comprise as a part
of a whole or group” or “to contain between or within.” Merriam-
Webster Dictionary, https://perma.cc/AP2F-KV9V. A more
complete definition is “to place, list, or rate as a part or component
of a whole or of a larger group, class, or aggregate” or “take in,
enfold, or comprise as discrete or subordinate part or item of a
45 larger aggregate, group, or principle.” Webster’s Third New
International Dictionary 1143 (2002).
2. Applying the Definition of “Damages”
¶ 78 Marrou Concrete’s argument that its lawyer communicated
Marrou Concrete’s alleged damages in the February 11 email and
the April 14 letter collapses upon close scrutiny.
¶ 79 Neither the February 11 email nor the April 14 letter discloses
the measure of Marrou Concrete’s “loss or harm . . . resulting from
an injury suffered by [Marrou Concrete] because of the unlawful
act, omission, or negligence” of Iron Mountain and Specialty. See
Wilcox, 42 P.3d at 30. Nor did those communications “describe[]
the recovery [that Marrou Concrete would seek] once [its] claim
[was] established.” Artery, 984 P.2d at 1192.
¶ 80 Marrou Concrete’s lawyer did not say, or even suggest, in the
February 11 email that $70,000 less the unspecified value of the
Audi approximated the amount of Marrou Concrete’s damages. The
email did not even include the word “damages.” Nor did it refer to
Marrou Concrete’s losses resulting from the allegedly botched
repairs to the Audi. In sum, I believe it is impossible to glean the
amount of Marrou Concrete’s damages from the email.
46 ¶ 81 I respectfully disagree with Judge Sullivan’s assertion that
Marrou Concrete’s written demand merely needed to provide Iron
Mountain and Specialty with notice of “the amount that they would
have to pay Marrou Concrete to prevent its . . . lawsuit from moving
forward.” Supra ¶ 27. In my view, this point highlights the
distinction between the amount in a settlement demand and the
amount of a party’s damages. As I explained above, only a written
demand that conveys the latter figure satisfies section 42-9-113’s
condition precedent.
¶ 82 Accordingly, the February 11 email represented an opening
salvo in settlement negotiations; the horse trading that has kept
many a mediator in business. Seasoned neutrals know that their
goal in mediations is to guide the parties in reaching agreement on
settlement terms and that the monetary component of a settlement
may bear little resemblance to the amount of damages the
demanding party could obtain at trial. This is so because parties
may decide to settle a dispute for a myriad of reasons, such as to
avoid negative publicity, to spare themselves the risk and cost of
litigation, or to avoid forcing a key executive to spend days or weeks
in a courtroom.
47 3. Applying the Definition of “Included”
¶ 83 The April 14 letter from Marrou Concrete’s counsel to Iron
Mountain and Specialty’s counsel also did not disclose the amount
of damages Marrou Concrete believed it had incurred as a result of
Iron Mountain’s and Specialty’s alleged automotive malfeasance.
That letter did not contain a damages figure but, instead, merely
referenced the February 11 email. In the letter, Marrou Concrete’s
counsel said that Marrou Concrete’s damages were “included in”
the settlement demand set forth in the email.
¶ 84 Applying the definition of “included” noted above, Marrou
Concrete’s counsel in effect said in the April 14 letter that Marrou
Concrete’s damages were “a part of or [a] component” of the demand
that Iron Mountain and Specialty pay Marrou Concrete $70,000 in
exchange for the Audi. The amount of Marrou Concrete’s damages
was only a “discrete or subordinate part” of that demand. For this
reason, I respectfully disagree with Judge Sullivan’s conclusion that
the $70,000 component of the settlement demand was “the same
amount as its demanded damages.” Supra ¶ 1.
¶ 85 Even if the amount of Marrou Concrete’s damages was
“included in” the settlement demand conveyed through the
48 February 11 email, Marrou Concrete’s counsel did not provide Iron
Mountain and Specialty’s counsel with sufficient information to
deduce the amount of Marrou Concrete’s damages from the
demand. In the April 14 letter, Marrou Concrete’s counsel
essentially said that the amount of Marrou Concrete’s damages was
subsumed somewhere within the value of the settlement demand.
The letter was akin to a pirate’s treasure map that fails to disclose
where the chest of riches is buried.
¶ 86 For these reasons, I conclude that the economic value of the
demand in the February 11 email was not the amount of Marrou
Concrete’s damages. (The draft complaint that Marrou Concrete’s
counsel attached to the April 14 letter also failed to reveal the
amount of Marrou Concrete’s damages; that pleading did not
include any damages figure.) Thus, in my view, Marrou Concrete
was not entitled to assert a civil action under the Act because its
counsel did not comply with the written demand requirement in
section 42-9-113.
B. Marrou Concrete’s Concession
¶ 87 There is a further reason to reverse the judgment entered in
favor of Marrou Concrete on its claim arising under the Act: Marrou
49 Concrete’s concession in its answer brief that it did not include a
damages figure in its counsel’s prelitigation communications with
Iron Mountain and Specialty’s counsel. Marrou Concrete says that
it “had no way of knowing the total amount or full scope” of its
damages at the time its counsel sent the settlement demand to Iron
Mountain and Specialty’s counsel because “Defendants were in
possession of the Audi and refused to release it to [Marrou
Concrete] absent payment to which Defendants were ultimately
found to be not entitled.” This concession alone is fatal to Marrou
Concrete’s claim under the Act.
¶ 88 While I appreciate the difficulty of calculating the damages
attributable to allegedly improper automobile repairs while the
vehicle is still in the shop, the statute does not create an exception
for customers under these circumstances. But nothing in section
42-9-113 requires that the customer specify its damages with
precision in the mandatory written demand or that the customer
provide a breakdown of each category of damages, much less that
the demand match the customer’s evidence of damages at a
subsequent trial. The statute merely requires that a customer
include a good faith damages figure in the customer’s written
50 demand or, at the very least, provide a roadmap for finding that
figure.
¶ 89 Moreover, as noted above, the third sentence of section
42-9-113 specifies that actions under the Act “shall be brought
within the time period prescribed in section 13-80-103.” The latter
statute says that a cause of action subject to the statute “shall be
commenced within one year after the cause of action accrues, and
not thereafter.” § 13-80-103(1).
¶ 90 Based on the date Marrou Concrete dropped off the Audi for
repairs — October 27, 2021 — Marrou Concrete, conservatively,
was required to file its lawsuit no later than October 26, 2022.
Accordingly, Marrou Concrete had approximately seven months
from the date of the April 14 letter to quantify its damages. So even
if it was unable to calculate its damages when its counsel sent the
April 14 letter, Marrou Concrete had seven additional months to
conduct the due diligence necessary to determine the amount of its
damages and to include that number in a written demand that
complied with section 42-9-113.
51 C. The Gap Between the Settlement Demand and the Damage Figures that Marrou Concrete Disclosed in the Litigation
¶ 91 While the figure contained in a customer’s written demand
under section 42-9-113 need not match the damages the customer
later seeks at trial, a vast gap between those numbers can strongly
suggest, as here, that the demand did not reflect the amount of the
customer’s damages.
¶ 92 Even if I were to disregard Marrou Concrete’s concession, its
counsel’s failure to communicate Marrou Concrete’s damages in the
February 11 email and the April 14 letter is, in my view, readily
apparent upon review of Marrou Concrete’s disclosure of the
amount of its damages in its litigation against Iron Mountain and
Specialty. Those damages figures bear no resemblance to the
demand that Iron Mountain and Specialty settle for $70,000 in
exchange for the Audi, particularly in the absence of any estimate of
the vehicle’s value in the communications from Marrou Concrete’s
counsel.
¶ 93 For example, in the trial management order, Marrou Concrete
disclosed the following categories of damages:
52 Category of damages Amount of damages
The sum that Allstate Fire and $1,695.79 Casualty Insurance Company paid Specialty “and/or” Iron Mountain on November 10, 2021.
The maximum amount of $12,332.94 Marrou Concrete’s out-of-pocket expenses related to Iron Mountain’s and Specialty’s conduct.
The diminution in the value of Unspecified the vehicle due to the unauthorized repair and disassembly of the vehicle.
The amount required to restore $11,772.47 the vehicle to pre-loss condition.
Total amount of specified $25,801.20 damages.
¶ 94 Further, Jordan Marrou, the owner of Marrou Concrete,
testified at trial that, in his opinion, the vehicle’s disassembly and
the bumper’s imperfect color match reduced the Audi’s value by
approximately $3,000. He also testified that the Audi lost a further
approximately $6,000 in value while it sat in Specialty’s repair
shop. Hollie Marrou, Jordan’s spouse, testified that Marrou
Concrete incurred $1,200 in automobile registration fees while the
53 Audi was in the shop and that Marrou Concrete would have paid
approximately $17,000 to rent another vehicle during that time.
¶ 95 In addition, according to Iron Mountain and Specialty, Marrou
Concrete’s expert witness testified, consistent with his report, that
the cost of restoring the Audi to its pre-loss condition was
approximately $11,772. Marrou Concrete does not challenge Iron
Mountain and Specialty’s characterization of the expert’s testimony.
(The record does not include a transcript of the expert’s testimony,
although it includes his report. While Marrou Concrete does not
challenge Iron Mountain and Specialty’s characterization of the
expert’s opinion testimony, we generally do not consider testimony
that does not appear in the transcripts provided to us. See Till v.
People, 581 P.2d 299, 299 (Colo. 1978) (An appellant “will not be
permitted to take advantage of his own failure to designate the
pertinent portions of the transcript as part of the record on
appeal.”).)
¶ 96 As the trial drew to a close and the jury deliberated, a juror
tendered a written question: “What was the basis for the plaintiff’s
calculation of the $71,000 during mediation”? (The incomplete trial
transcripts in the record contain little information regarding the
54 parties’ mediation, much less the amount of any demands and
counteroffers they made at the mediation. The juror may have
meant to refer to the $70,000 figure in the February 11 email.)
¶ 97 The parties did not provide us with a transcript of the portion
of the trial at which the attorneys discussed that juror question.
Such colloquy might have shed light on the genesis of the $70,000
number in the February 11 email. In any event, the record shows
that the court responded, “This question cannot be answered.” At
the conclusion of the trial, the jury awarded Marrou Concrete
$10,500 in actual damages.
¶ 98 Not one of the damages numbers noted above, taken together
or separately, comes anywhere close to the value of the settlement
demand communicated in the February 11 email and referenced in
the April 14 letter. This confirms for me that the February 11 email
and the April 14 letter did not disclose Marrou Concrete’s damages
to Iron Mountain and Specialty.
III. Conclusion
¶ 99 In my view, Marrou Concrete’s counsel failed to provide Iron
Mountain and Specialty’s counsel with a written demand for his
client’s damages before Marrou Concrete filed this action. In the
55 absence of a “written demand for . . . damages,” Marrou Concrete
was not entitled to bring a civil action under the Act. Consequently,
I would reverse the court’s entry of judgment in Marrou Concrete’s
favor on its claim under the Act.
¶ 100 For these reasons, I respectfully dissent from Part II.B of
Judge Sullivan’s opinion while joining Parts I and II.A of the opinion
and Part II.C of the opinion to the extent that Judge Sullivan holds
that Iron Mountain is liable to Marrou Concrete for breach of
contract.
Related
Cite This Page — Counsel Stack
Marrou Concrete v. KLR Ent, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marrou-concrete-v-klr-ent-coloctapp-2024.