Mindock v. Bruff

Court of Appeals for the Tenth Circuit·Decided May 4, 2022·No. 20-1236·Unpublished

Opinion

FILED

United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit

FOR THE TENTH CIRCUIT May 4, 2022

Christopher M. Wolpert

Clerk of Court

DAVID MINDOCK; ASPEN GLADE, LTD., a Colorado limited liability company,

Plaintiffs - Appellees, and MATTHEW J. BRUFF, Involuntary-Plaintiff - Appellee,

v. No. 20-1236 (D.C. No. 1:18-CV-03240-RBJ)

CHRISTINA J. BRUFF DUMARS, (D. Colo.)

Defendant - Appellant.

ORDER AND JUDGMENT*

Before MATHESON, MORITZ, and CARSON, Circuit Judges.

Colorado law voids any conditions restraining alienation of a fee simple estate.

Cronk v. Shoup, 197 P. 756, 757 (Colo. 1921). In a series of deeds, grandparents deeded interests in a family cabin to their two grandchildren, as joint tenants with rights of survivorship, and two children, as tenants in common. In the deed

*

This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1.

Appellate Case: 20-1236 Document: 010110679526 Date Filed: 05/04/2022 Page: 2

conveying the grandchildren’s interests, the grandparents included a restrictive condition prohibiting either grandchild from alienating the property without the other’s written consent. The grandson, along with one of the tenants in common, sought a declaration that the restrictive condition is void and unenforceable. Over the granddaughter’s objections, the district court obliged. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm.

I.

In the 1960s Stephen and June Mindock (“the grantors”) bought land in Blue River, Colorado and built a family cabin. They had three children—Peter Mindock (“Peter”), David Mindock (“David”), and Stephanie Williams (“Stephanie”)—and in 1987, conveyed interests in the cabin by quitclaim deeds to Peter and David. The 1987 quitclaim deeds granted Peter and David equal 15/64 interests as tenants in common and reserved a life estate in the grantors.

In 2007, the grantors conveyed by warranty deed (“2007 deed”) their remaining 34/64 interest to Stephanie’s children—Matthew Bruff (“Matthew”) and Christina Bruff DuMars (“Christina”)—as joint tenants with right of survivorship. The 2007 deed included the following restrictive condition (“restrictive condition”):

If either Joint Tenant, without the written consent of the other, attempts to:

a) partition the property, or b) convert this joint tenancy into a tenancy in common with respect to any interest conveyed by this Warranty Deed or other interest in the Property currently owned or subsequently acquired by such Joint Tenant, then the Property shall, by operation of law, revert to the other Joint Tenant in fee simple immediately without requirement of judicial intervention or further legal conveyance.

Appellate Case: 20-1236 Document: 010110679526 Date Filed: 05/04/2022 Page: 3

After the grantors’ deaths, Matthew formed Aspen Glade Ltd., a Colorado limited liability company. Peter then transferred his 15/64 interest by quitclaim deed to Aspen Glade. Following Peter’s conveyance, the property is owned as follows: Christina and Matthew own an undivided 34/64 as joint tenants with right of survivorship; Aspen Glade owns an undivided 15/64 as a tenant in common; and David owns an undivided 15/64 as a tenant in common.

David and Aspen Glade (collectively, the “Original Plaintiffs”) sued Christina and Matthew seeking a declaration that the 2007 deed’s restrictive condition constituted an unreasonable, and thus void, restraint on alienation. Christina removed to federal court and sought to dismiss arguing that Original Plaintiffs lacked standing and the applicable statute of limitations had run. She also moved to dismiss Matthew or realign him as an involuntary plaintiff. Matthew agreed to realignment and the district court, under joint stipulation, added him as an involuntary plaintiff to the original complaint.

Christina then filed a counterclaim alleging Matthew violated the restrictive condition by acquiring Peter’s interest through Aspen Glade. So, she argued, Matthew’s joint tenancy interest reverted to her. Matthew moved to dismiss Christina’s counterclaim arguing that the restrictive condition presented an unreasonable restraint on alienation and was void at its inception. So, he argued, Christina could not enforce the restrictive condition or use it as the basis for a counterclaim.

Appellate Case: 20-1236 Document: 010110679526 Date Filed: 05/04/2022 Page: 4

With briefing on the counterclaim pending, Christina moved for summary judgment on Plaintiffs’ complaint arguing that the applicable statute of limitations barred their claim. In December 2019, the district court entered an order (“2019 order”) finding the restrictive condition to be an unreasonable restraint on alienation and granting Matthew’s motion to dismiss Christina’s counterclaim. The 2019 order also denied Christina’s motion for summary judgment, finding that neither limitations period she cited applied.

Plaintiffs then moved for entry of judgment arguing that the district court’s order dismissing Christina’s counterclaim answered, as a matter of law, the merits question. In 2020, over Christina’s objection, the district court issued a final substantive order on pending motions (“2020 order”). In the 2020 order, the district court noted that Matthew’s standing as an involuntary plaintiff mooted Christina’s arguments that Original Plaintiffs lacked standing. It reasoned that even if the Original Plaintiffs lacked standing, “such a finding would not bar the complaint’s requested declaratory relief.” The district court also found that, because the restrictive condition was void at its inception, it had no legal effect and no statute of limitations applied. Christina appealed.

II.

Christina makes four claims on appeal: (1) Plaintiffs lack standing to sue; (2)

Matthew is an indispensable party and is not a party to this appeal; (3) the 2007 deed’s restrictive condition does not pose an unreasonable restraint on alienation; and (4) the applicable statute of limitations bars Plaintiffs’ claims. We address each

Appellate Case: 20-1236 Document: 010110679526 Date Filed: 05/04/2022 Page: 5

claim in turn and affirm the district court. Because this case arises out of diversity, we apply Colorado substantive law to the latter two issues. Barrett v. Tallon, 30 F.3d 1296, 1300 (10th Cir. 1994) (citation omitted) (“A federal court sitting in diversity applies the substantive law . . . of the forum state.”)

A.

We review de novo whether a plaintiff has standing. Collins v. Daniels, 916 F.3d 1302, 1311 (10th Cir. 2019).

Christina first claims the Original Plaintiffs lack standing. She concedes that Matthew has standing but argues that his standing does not save Plaintiffs’ request for declaratory relief.1 Analyzing the procedural posture of this case, we conclude that no standing issues precluded the district court from entering declaratory judgment and therefore affirm.

Whether the Original Plaintiffs had standing makes no difference because the district court did not reach the merits issue on Plaintiffs’ complaint—it reached the merits on Christina’s compulsory counterclaim. To best understand this distinction, we must examine the procedural posture of the case below. First, the Original Plaintiffs sued Christina and Matthew requesting that the district court declare the

Free access — add to your briefcase to read the full text and ask questions with AI

Mindock v. Bruff, (10th Cir. 2022).

Mindock v. Bruff (Mindock v. Bruff) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Moore v. Brown
52 U.S. 414 (Supreme Court, 1851)
Phelps v. Hamilton
122 F.3d 1309 (Tenth Circuit, 1997)
McBride v. Citgo Petroleum Corp.
281 F.3d 1099 (Tenth Circuit, 2002)
Vinson v. Johnson
931 So. 2d 245 (District Court of Appeal of Florida, 2006)
Atchison v. City of Englewood
463 P.2d 297 (Supreme Court of Colorado, 1970)
Perry v. Brundage
614 P.2d 362 (Supreme Court of Colorado, 1980)
Moore v. Smith-Snagg
793 So. 2d 1000 (District Court of Appeal of Florida, 2001)
Williams v. Williams
73 S.W.3d 376 (Court of Appeals of Texas, 2002)
Riverside Syndicate, Inc. v. Munroe
882 N.E.2d 875 (New York Court of Appeals, 2008)
Taylor v. Canterbury
92 P.3d 961 (Supreme Court of Colorado, 2004)
Lake Canal Reservoir Co. v. Beethe
227 P.3d 882 (Supreme Court of Colorado, 2010)
Buick v. Highland Meadow Estates at Castle Peak Ranch, Inc.
21 P.3d 860 (Supreme Court of Colorado, 2001)
Thompson v. Ebbert
160 P.3d 754 (Idaho Supreme Court, 2007)
Barnes v. United States
776 F.3d 1134 (Tenth Circuit, 2015)
Davis, Et Ux. v. Geyer
9 So. 2d 727 (Supreme Court of Florida, 1942)
Clark v. Clark
58 A. 24 (Court of Appeals of Maryland, 1904)
Walters v. Boosinger
2 Cal. App. 5th 421 (California Court of Appeal, 2016)
Collins v. Daniels
916 F.3d 1302 (Tenth Circuit, 2019)
Turbyne v. People
151 P.3d 563 (Supreme Court of Colorado, 2007)