O'Donnell v. State Farm Mutual Automobile Insurance Co.

186 P.3d 46, 2008 WL 2331460
CourtSupreme Court of Colorado
DecidedJune 9, 2008
Docket07SA296
StatusPublished
Cited by12 cases

This text of 186 P.3d 46 (O'Donnell v. State Farm Mutual Automobile Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Donnell v. State Farm Mutual Automobile Insurance Co., 186 P.3d 46, 2008 WL 2331460 (Colo. 2008).

Opinion

Chief Justice MULLARKEY

delivered the Opinion of the Court.

I. Introduction

At issue in this case is whether an indigent defendant must post a judgment bond as a precondition for appealing an adverse money judgment from the county court to the district court. Petitioner Renee Bryant argues that section 13-16-108, C.R.S. (2007), allows her as an indigent party to appeal the default judgment obtained against her by Respondent State Farm Mutual Automobile Insurance Company ("State Farm") without first having to post a judgment bond. Bryant thus asks this court to overturn the district *48 court's ruling that section 13-6-311, C.R.S. (2007), and C.R.C.P. 411 require without exception that all appealing county court defendants post a judgment bond. Exercising our original jurisdiction pursuant to C.A.R. 21, we issued a rule to show cause and now make that rule absolute.

We hold that a county court party found to be indigent and allowed to proceed in forma pauperis is not required to post a judgment bond before appealing to the district court. However, as with appeals from the district court to the court of appeals, the prevailing party in the county court would be able to execute the judgment while the appeal is still pending because the judgment would not have been stayed by a judgment bond. This interpretation of section 13-6-311 and C.R.C.P. 411 properly reflects section 13-16-103's requirement that court costs be waived for indigent parties. It is also consistent with our wide range of case law in other appellate proceedings waiving appellate fees like judgment bonds for indigent parties.

II. Facts and Procedural History

This case arose from a traffic accident in which the car Kevin O'Donnell was driving struck a car insured by State Farm. Although Bryant now disputes this, the county court found that O'Donnell was driving Bryant's uninsured vehicle with Bryant's permission at the time of the accident. 1

State Farm sued O'Donnell and Bryant in county court. State Farm claimed that it served Bryant with papers, but Bryant contends that she was never served and she does not match the description of the person allegedly served. In any event, Bryant did not respond to the complaint, and the county court entered a default judgment against her and O'Donnell for $4,450.65.

When Bryant later learned of the default judgment, she moved to set it aside because she was never served with the complaint. The county court denied the motion, and Bryant filed a notice of appeal. Bryant also moved, pursuant to Chief Justice Directive 98-01 ("C.J.D. 98-01"), to proceed in forma pauperis, a request which was granted by the county court.

Bryant then attempted to appeal to the district court without first posting the required cost bond or judgment bond with the county court, 2 believing that both were waived because she was indigent. However, State Farm argued that under section 13-6-811(1)(a) and C.R.C.P. 411(a), which govern appeals from the county court, an indigent party's cost bond could be waived because the party was indigent, but the judgment bond required for all parties 3 challenging an adverse money judgment from the county court could not be waived. The county court agreed with State Farm's legal interpretation, and thus ruled that Bryant, even though indigent, must post a judgment bond, albeit for a discounted total of $1500, in order to proceed with her appeal.

Bryant then moved in the district court to proceed in forma pauperis and to have the *49 judgment bond requirement waived. The district court found that Bryant was indigent, but that State Farm and the county court were correct that section 13-6-311(1)(a) and C.R.C.P. 411(a) required all parties appealing from an adverse money judgment to post a judgment bond, even when the party was indigent.

Pursuant to C.A.R. 21, Bryant then filed a petition in this court for a rule to show cause, arguing that unless the district court's ruling is reversed, she cannot prosecute her appeal solely because she is indigent and unable to afford the judgment bond.

III. Analysis

The issue before this court is whether an indigent party challenging an adverse money judgment from the county court must post a judgment bond in order to appeal.

Bryant contends that a judgment bond is a court cost that is waived for indigent parties, citing section 13-16-103, C.J.D. 98-01, the access to courts clause in the Colorado Constitution's article II, section 6, and our decisions in Bell v. Simpson, 918 P.2d 1123 (Colo.1996), and Rodden v. Colorado State Penitentiary, 52 P.3d 223 (Colo.2002). State Farm, echoing the district court, argues that the language of both section 13-6-311 and C.R.C.P. 411 is clear that a judgment bond is mandatory, even for indigent parties, and that our prior case law in Bell and Rodden is inapposite because those cases dealt with cost bonds, not judgment bonds.

We reject State Farm's argument. We hold that judgment bonds are waived for indigent parties appealing from the county court. Although section 13-6-311 and C.R.C.P. 411 arguably contain language requiring that a judgment bond be posted for all appealing parties without exception, this statutory interpretation would not give effect to the legislative intent in enacting section 13-16-103 that instructs courts to waive certain costs for indigent parties. 4 Instead, a harmonious interpretation of sections 13-16-103 and 13-6-311 is that judgment bonds are not a third-party cost, and thus the judgment bond requirement for appealing from the county court may be waived for indigent parties. However, an indigent party whose judgment bond has been waived will as a result not have the execution of the judgment stayed for the pendency of the appeal. This interpretation is consistent with our case law in Bell and Rodden concerning county court appeals. Moreover, we have held in the past that judgment bonds and filing fees required in other Colorado appellate proceedings are waived for indigent appellants even when the statute at issue also arguably includes language mandating that all appellants pay the costs as a precondition for pursuing the appeal.

We begin our analysis by examining the statutory language and our previous case law on appeals from the county court, and conclude that judgment bonds can be waived for indigent parties. We then confirm the consistency of our conclusion here with our previous holdings permitting the waiver for indigent parties of a wide range of Colorado appellate cost requirements.

A. Statutory Analysis and Relevant Case Law Regarding Appeals from the County Court

We first consider the statutes, procedural rule, Chief Justice directive, and case law relevant to the issue of waived costs for indigent parties in county court appeals.

The goal in construing statutes is to ascertain and give effect to the General Assembly's intent. In re Crow v. Penrose-St.

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Bluebook (online)
186 P.3d 46, 2008 WL 2331460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/odonnell-v-state-farm-mutual-automobile-insurance-co-colo-2008.