Murphy Creek v. Matise

CourtColorado Court of Appeals
DecidedNovember 14, 2024
Docket24CA0230
StatusUnpublished

This text of Murphy Creek v. Matise (Murphy Creek v. Matise) 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
Murphy Creek v. Matise, (Colo. Ct. App. 2024).

Opinion

24CA0230 Murphy Creek v Matise 11-14-2024

COLORADO COURT OF APPEALS

Court of Appeals No. 24CA0230 Arapahoe County District Court No. 23CV31209 Honorable Elizabeth Beebe Volz, Judge

Murphy Creek Development, Inc., a Colorado corporation and Murphy Creek, LLC, a Wyoming limited liability company,

Plaintiffs-Appellants,

v.

Brian K. Matise,

Defendant-Appellee.

ORDER AFFIRMED AND CASE REMANDED WITH DIRECTIONS

Division III Opinion by JUDGE NAVARRO Gomez and Richman*, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced November 14, 2024

Seter, Vander Wall & Mielke, P.C., Kim J. Seter, Elizabeth A. Dauer, Russell Newton, Greenwood Village, Colorado, for Plaintiffs-Appellants

Winget, Spadafora & Schwartzberg, LLP, Derek C. Anderson, Jennifer R. O’Shea, Boulder, Colorado, for Defendant-Appellee

*Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2024. ¶1 Plaintiffs, Murphy Creek Development, Inc. and Murphy

Creek, LLC (collectively, Murphy Creek), appeal the district court’s

dismissal of the claims against defendant, Brian K. Matise, under

section 13-20-1101, C.R.S. 2024, commonly known as the anti-

SLAPP statute. (“SLAPP” stands for strategic lawsuit against public

participation.) We affirm the order and remand with directions.

I. Factual and Procedural History

¶2 Murphy Creek Metropolitan District No. 3 (the District) is

organized under the Special District Act. See § 32-1-101 to -113,

C.R.S. 2024. Under the control of its board of directors, the District

has the authority to provide services for properties within its

boundaries, such as security, landscaping, and snow removal.

Murphy Creek Dev., Inc. v. Murphy Creek Metro. Dist. No. 3, slip op.

at ¶ 4 (Colo. App. No. 20CA2106, Apr. 28, 2022) (not published

pursuant to C.A.R. 35(e)). To pay for these services, the District

may impose fees on owners and developers of the properties. Id.

¶3 Murphy Creek owns property within the District’s boundaries

as well as bordering property. Much of the land owned by Murphy

Creek was vacant at the times relevant to this case.

1 ¶4 In 2018, the District, through its board, hired Matise as

general counsel. The District asked Matise if it could impose fees

that would be allocated differently between occupied property and

vacant property. Matise informed the board that the fees could be

allocated differently between occupied and vacant lots if the

allocation was based on a rational relationship between either the

cost of the services provided to the property or the degree that each

property benefited from the services. The District proposed and

adopted a fee structure allocating fees based on the use of the

property (the 2018 Resolution).

¶5 In 2019, Murphy Creek filed suit to challenge the fees imposed

on its property, and Matise acted as counsel for the District in that

litigation. A district court found the fees to be unreasonable based

on the costs of servicing the property; thus, the court invalidated

those fees. The court dismissed Murphy Creek’s other claims as

well as the District’s counterclaims. Both parties appealed, and a

division of this court affirmed the judgment. Id. at ¶¶ 1-2.

¶6 In 2021, the District adopted another fee resolution, which set

forth new fees and provided that, until paid, the fees would

constitute a statutory lien on the property served (2021 Resolution).

2 Murphy Creek paid the fees under protest and again sued the

District along with some individuals, including Matise. In addition

to challenging the 2021 Resolution, Murphy Creek alleged that

some of the District’s board members and Matise engaged in fraud,

a civil conspiracy, and a deprivation of Murphy Creek’s

constitutional rights in violation of 42 U.S.C. § 1983. Specifically,

Murphy Creek alleged that the various fees imposed were improper

and that the board and Matise had engaged in misconduct when

implementing the fees and defending them in court.

¶7 Matise filed a special motion to dismiss the claims against him

and a supporting affidavit under section 13-20-1101(3)(a). Murphy

Creek responded to the motion but did not submit any opposing

affidavits. Instead, Murphy Creek relied on its allegations in the

complaint and submitted five exhibits.

¶8 The district court held a hearing on the special motion and

concluded that Matise had met his initial burden to prove that the

anti-SLAPP statute applied to his conduct at the heart of Murphy

Creek’s claims. The court permitted Murphy Creek to file a

supplemental brief on whether the litigation privilege applied to

Matise’s statements and conduct and whether Murphy Creek had

3 established a reasonable likelihood that it could prevail on its

claims at trial. The court then granted Matise’s special motion to

dismiss the claims against him, in part because the court found

that the litigation privilege shielded some of Matise’s conduct.

¶9 Murphy Creek moved for reconsideration and for permission to

file an amended complaint. The district court denied both motions.

¶ 10 On appeal, Murphy Creek contends that the district court

erred by concluding that (1) the anti-SLAPP statute applied to

Matise’s conduct, and (2) Murphy Creek did not establish a

reasonable likelihood of success on its claims against him.

II. Anti-SLAPP statute

A. General Principles

¶ 11 The General Assembly enacted section 13-20-1101 “to address

lawsuits aimed at stifling or punishing the exercise of the First

Amendment rights to free speech and to petition the government.”

L.S.S. v. S.A.P., 2022 COA 123, ¶ 1. The statute’s purpose is to

“encourage and safeguard” the exercise of those constitutional

rights “to the maximum extent permitted by law and, at the same

time, to protect the rights of persons to file meritorious lawsuits for

demonstrable injury.” § 13-20-1101(1)(b). The statute seeks to

4 balance competing interests by creating a mechanism for “weeding

out, at an early stage, nonmeritorious lawsuits brought in response

to a defendant’s petitioning or speech activity.” Tender Care

Veterinary Ctr., Inc. v. Lind-Barnett, 2023 COA 114, ¶ 12 (cert.

granted Sept. 3, 2024). If the plaintiff’s claim arises from the

defendant’s conduct falling within the statute’s purview, a district

court may grant a “special motion to dismiss” the plaintiff’s claim.

§ 13-20-1101(3)(a).

¶ 12 A special motion to dismiss initiates a two-step process. First,

the defendant bears the burden to show that their conduct

underlying the plaintiff’s claim falls within the statute. L.S.S., ¶ 21.

Second, if the defendant shows that their conduct falls within the

statute’s scope, the burden shifts to the plaintiff to establish a

reasonable likelihood that they will prevail on the claim. Id. at ¶ 22;

¶ 13 We review de novo an order granting or denying a special

motion to dismiss, applying the same two-step analysis as the

district court. Salazar v. Pub. Tr. Inst., 2022 COA 109M, ¶ 21.

5 B.

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