McGreevy v. Jenkins

Colorado Court of Appeals·Decided April 17, 2025·No. 23CA1666·Unpublished

Opinion

23CA1666 McGreevy v Jenkins 04-17-2025 COLORADO COURT OF APPEALS

Court of Appeals No. 23CA1666 Arapahoe County District Court No. 18CV32241 Honorable Elizabeth Beebe Volz, Judge

William McGreevy and Colleen McGreevy, Plaintiffs-Appellees and Cross-Appellants, v. Justin Tobias Jenkins, Defendant-Appellant and Cross-Appellee.

JUDGMENT REVERSED AND CASE REMANDED WITH DIRECTIONS

Division I

Opinion by JUDGE BROWN

J. Jones and Yun, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e)

Announced April 17, 2025

The Law Offices of Peter R. Bornstein, Peter R. Bornstein, Greenwood Village, Colorado, for Plaintiffs-Appellees and Cross-Appellants

Gersh & Thomaidis, LLC, James N. Thomaidis, Denver, Colorado, for Defendant-Appellant and Cross-Appellee

¶1 This is the second appeal in a dispute between Justin Tobias Jenkins; his former wife, Mary E. Jenkins; and his former parents-in-law, Colleen and William McGreevy. As relevant here, the district court determined that Justin1 breached a joint venture agreement with the McGreevys to purchase, remodel, and sell a property and that the McGreevys were entitled to damages. The McGreevys appealed, and a division of this court affirmed the judgment in part, reversed it in part, and remanded the case with specific instructions for the district court to make additional findings and conclusions on certain claims and categories of damages. See McGreevy v. Jenkins, (Colo. App. No. 21CA1249, Feb. 9, 2023) (not published pursuant to C.A.R. 35(e)) (McGreevy I). ¶2 On remand, the court reversed its original determination that a joint venture existed and instead concluded that the parties had entered into an oral contract, which rendered most of the McGreevy I division’s remand instructions inapplicable. Justin appeals, attempting to challenge parts of both the original and amended

1 Because the parties share last names, we refer to them individually by first names and mean no disrespect in doing so.

judgments,2 and the McGreevys cross-appeal, principally arguing that the district court exceeded the mandate from McGreevy I. Because we agree with the McGreevys that the district court exceeded the mandate, we reverse almost all of the amended judgment,3 reinstate the original judgment except to the extent it was reversed by McGreevy I, and again remand the case to the district court to comply with the mandate from McGreevy I.

I. Background and Procedural History A. The Joint Venture and the Divorce ¶3 The division in McGreevy I detailed the underlying facts, so we only briefly reiterate those that are relevant to our disposition of this appeal. See McGreevy I, No. 21CA1249, slip op. at ¶¶ 2-19. ¶4 In 2011, the McGreevys and the Jenkinses began working together on a fix-and-flip project in Castle Rock, Colorado. The Jenkinses purchased the property in their names for $246,000 —

2 During oral argument, Justin’s attorney said that Justin was not

attempting to challenge portions of the original judgment that were not affected by the district court’s amended judgment, but his briefs clearly contradict this, as detailed below. 3 We leave undisturbed the part of the amended judgment denying

the McGreevys attorney fees under section 13-17-102, C.R.S. 2024, because they did not appeal that issue.

they made a down payment of $61,500 and obtained a mortgage loan of $184,500. The McGreevys took out a $157,000 home equity line of credit (HELOC) on their personal residence to provide the down payment, pay off some of Justin’s debt so he could get a better interest rate on the mortgage, and fund the renovation of the house. Colleen McGreevy testified that, while the renovation was in progress, the McGreevys also used funds from the HELOC to make the monthly mortgage payments for the Jenkinses. Colleen said they used all the HELOC funds and had to put another $10,000 or more into the project. ¶5 After the renovation was completed, the Jenkinses rented out the house under a five-year lease for $2,500 a month and used the rental income to pay the monthly mortgage payments and the interest on the McGreevys’ HELOC. The renter later purchased the house for $480,000, and the net proceeds from the sale — after paying closing costs and the Jenkinses’ mortgage — were $299,223.76. By the time the house was sold, Justin and Mary were in the midst of a divorce and disagreed about how to distribute the sale proceeds.

¶6 Eventually, the domestic relations court found that Mary did not present sufficient evidence to establish that the McGreevys had an interest in the property or that the Jenkinses had to repay the McGreevys for their financial assistance. The domestic relations court found that the McGreevys’ financial assistance was a gift to the marriage and treated the proceeds from the sale of the home as marital property. Although the domestic relations court disproportionately allocated the sale proceeds between Mary and Justin — $249,763.16 to Mary and $49,236.84 to Justin — it also allocated the marital home, worth $207,870, to Justin and otherwise equitably divided the marital estate.

B. The Underlying Lawsuit ¶7 The McGreevys filed a civil suit against Justin, asserting claims for civil theft, breach of fiduciary duty, breach of a joint venture agreement, and unjust enrichment. Justin asserted claims against the McGreevys (as counterclaim defendants) and Mary (as a third-party defendant) for breach of fiduciary duty, breach of contract, and civil conspiracy. ¶8 The district court conducted a six-day bench trial and issued a written order on May 14, 2021. The court found “that there is

ample evidence from which it can conclude that there was a joint venture agreement between the McGreevys and the Jenkins[es] to purchase and remodel a home for resale, i.e. fix-n-flip, and to share equally between the two couples any losses or profits from this venture.” The court also found that no contract existed because “there was no meeting of the minds or agreement on an essential element related to complete repayment to the McGreevys for whatever amount they decided to contribute to the project.” It rejected the McGreevys’ claims for unjust enrichment and civil theft and implicitly dismissed their claim for breach of fiduciary duty as moot because that claim sought the same economic damages as the joint venture claim. It also rejected Justin’s civil conspiracy claim and implicitly rejected Justin’s breach of fiduciary duty claim. ¶9 As for damages, the court found that the McGreevys should have recovered half of the sale proceeds, totaling $149,611.88. The court allocated to the McGreevys $31,613.14 that had been deposited into the registry of the court after the divorce, leaving a balance due to the McGreevys of $117,998.74. It entered judgment against Justin for half that amount — $58,999.37 — finding that Mary would be responsible for the other half but noting that the

McGreevys had not asserted any claims against her. On August 24, 2021, the court entered default judgment against Mary and awarded Justin a sum certain in damages, resolving all remaining claims.4 C. The First Appeal

¶ 10 On August 20, 2021, the McGreevys filed an appeal with this court. They contended that the district court erred by (1) failing to assess damages for return of their contribution to the joint venture; (2) rejecting their civil theft claim; (3) declining to resolve their breach of fiduciary duty claim; (4) failing to consider their request for noneconomic damages; (5) denying their motion to add a claim for exemplary damages; (6) declining to award prejudgment interest; (7) declining to award them attorney fees for the breach of fiduciary duty claim; and (8) declining to award them attorney fees under

4 The district court also entered an order on September 24, 2021,

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