Molina v. Cahill

CourtColorado Court of Appeals
DecidedNovember 21, 2024
Docket23CA2060
StatusUnknown

This text of Molina v. Cahill (Molina v. Cahill) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Molina v. Cahill, (Colo. Ct. App. 2024).

Opinion

23CA2060 Molina v Cahill 11-21-2024

COLORADO COURT OF APPEALS

Court of Appeals No. 23CA2060 Fremont County District Court No. 23CV1025 Honorable Lynette M. Wenner, Judge

Daniel Emilio Molina,

Plaintiff-Appellant,

v.

William Cahill,

Defendant-Appellee.

APPEAL DISMISSED IN PART, JUDGMENT AFFIRMED IN PART, REVERSED IN PART, AND CASE REMANDED WITH DIRECTIONS

Division V Opinion by JUDGE GROVE Freyre and Lum, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced November 21, 2024

Daniel Emilio Molina, Pro Se

William Cahill, Pro Se ¶1 Plaintiff, Daniel Emilio Molina, appeals the district court’s

judgment granting the motion to dismiss filed by defendant, William

Cahill, and awarding Cahill attorney fees under section 13-17-

201(1), C.R.S. 2024. We affirm the district court’s dismissal of four

of Molina’s claims — breach of contract, unjust enrichment,

tortious interference with contractual relations, and declaratory

judgment — based on a lack of subject matter jurisdiction,

although we conclude that those claims should not have been

dismissed with prejudice. With respect to Molina’s fifth claim —

intentional infliction of emotional distress (IIED) — we affirm the

district court’s dismissal with prejudice. And because it is

premature in the absence of a final appealable order, we dismiss

Molina’s appeal of the district court’s order granting Cahill’s request

for a fee award.

I. Background

¶2 We draw the following factual background from the record on

appeal, including the allegations in Molina’s complaint.

¶3 In December 2016, Cahill agreed to sell a parcel of land to

Hotwire H. Ranch, LLC (Hotwire) via an installment land contract.

The parties to the contract, which had a ten-year payment schedule

1 and a sale price of $95,000, were Cahill and Hotwire. Hotwire is a

limited liability company (LLC) solely owned by Molina, who is also

the LLC’s only member. Separately, Molina Management LTD

(Molina Management) — which is also an LLC — reached

agreements to receive monthly rent from tenants residing on the

parcel of land. As is true for Hotwire, Molina is the sole owner and

only member of Molina Management.

¶4 In February 2023, Cahill told Molina that his health was

deteriorating and that he might die before Molina finished making

installment payments under the contract. Cahill also told Molina

that his family had “pushed back when [he] mentioned to them”

that he planned on sending Molina a quitclaim deed to the property

when the payments were complete. Negotiations ensued, with

Cahill offering to buy out Molina’s interest in the land (for far less

than the amount Molina had already paid under the contract) and

Molina offering to pay off the contract’s remaining balance in

exchange for a warranty deed. In April 2023, Cahill informed

Molina that he believed the “contract [was] broken” and that he was

unwilling “to provide a bill of sale or a warranty deed.” Cahill

indicated they may need to “go before a judge.”

2 ¶5 Molina, acting in his personal capacity, filed suit against

Cahill and asserted the following claims for relief: (1) breach of the

installment land contract; (2) failure to comply with requirements

for escrow agent designation and written notice filing under section

38-35-126(3), C.R.S. 2024; (3) unjust enrichment; (4) tortious

interference with the contract between Molina Management and its

tenants; and (5) IIED.

¶6 Cahill moved to dismiss Molina’s first four claims under

C.R.C.P. 12(b)(1), arguing that Molina lacked standing in his

personal capacity to sue Cahill for Cahill’s alleged conduct against

the interests of Hotwire and Molina Management. Cahill

emphasized that Molina “was never a party to either the [c]ontract

or the [l]ease in his individual capacity.” Additionally, Cahill moved

to dismiss Molina’s claim for IIED under C.R.C.P. 12(b)(5) because

Molina failed to state a claim upon which relief could be granted.

Specifically, Cahill argued that “the mere fact that [Cahill] informed

[Molina] that he would not agree to [Molina]’s request to pay the

remaining balance of the contract price in exchange for the

warranty deed . . . in no conceivable way rises to the level of

outrageousness and intolerableness [required] to sustain” the IIED

3 claim. Moreover, Cahill argued that Molina’s IIED claim was

precluded by the economic loss rule (which we describe below).

¶7 The district court granted the motion to dismiss. Regarding

Molina’s first four claims, the court explained that Hotwire and

Molina Management, not Molina, were the parties to the relevant

contracts, that Molina’s interest in the contracts was limited to his

share of profits and losses and the right to receive distributions of

company assets, and that he had no right to demand and receive

distributions from the companies in any form other than cash. In

addition, because both entities are LLCs, the court concluded that

they could not “function . . . as extensions of [Molina] in his

personal capacity” and that, as a result, they needed to be

represented by counsel “unless the necessary statutory

requirements are satisfied.” See § 13-1-127(1)(a), (2), C.R.S. 2024.

The court also considered and rejected Molina’s argument that he

should be permitted to proceed in his individual capacity by relying

on agreements that purported to assign Hotwire’s installment land

contract and Molina Management’s lease to Molina. The court

specifically found that the agreements were invalid and failed to

transfer to Molina either entity’s right to proceed in the litigation.

4 ¶8 Turning to Molina’s IIED claim, the district court reasoned

that the claim was precluded by the economic loss rule because

Molina failed to “establish[] that [Cahill] had any independent duty

to [Molina].” And because Cahill “had no duty to prevent [Molina]

from experiencing emotional distress or [physical symptoms] as the

result of bad news or uncertainty,” it followed that Molina’s IIED

claim was “intertwined inextricably with his claim that [Cahill]

breached the [c]ontract.” In any event, the district court found,

nothing in the pleadings showed that “the alleged conduct [wa]s so

outrageous and extreme in degree as to support the claim as a

matter of law.”

¶9 The district court dismissed Molina’s complaint “in its entirety

with prejudice” and awarded attorney fees pursuant to section 13-

17-201(1). The court did not, however, reduce its fee award to a

sum certain before Molina filed his notice of appeal.

¶ 10 Molina filed a motion to reconsider, citing C.R.C.P. 121,

section 1-15(11). In the motion, he argued for the first time that

(1) amendments he made to the assignment agreements and to the

LLCs’ operating agreements following the district court’s dismissal

order resolved the agreements’ previous shortcomings; and (2) in

5 order to remedy his lack of standing to personally sue under

contracts to which he was not a party, the district court should

“pierc[e] the corporate veil of his LLCs and tak[e] the stance that

[Molina] is the alter ego of the LLCs.”

¶ 11 The district court denied Molina’s motion to reconsider. It

noted at the outset that, because its dismissal order was not

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