Perfect Place, LLC v. Semler

2018 CO 74, 426 P.3d 325
CourtSupreme Court of Colorado
DecidedSeptember 17, 2018
DocketSupreme Court Case 17SC115
StatusPublished
Cited by11 cases

This text of 2018 CO 74 (Perfect Place, LLC v. Semler) 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
Perfect Place, LLC v. Semler, 2018 CO 74, 426 P.3d 325 (Colo. 2018).

Opinion

JUSTICE MÁRQUEZ delivered the Opinion of the Court.

¶ 1 This quiet title action requires us to determine whether the owner of a garage condominium unit can validly subdivide that unit under section 38-33.3-213, C.R.S. (2018) of the Colorado Common Interest Ownership Act ("CCIOA") by merely painting or marking lines on the garage wall, and thereafter separately convey the spaces thus marked as individual condominium parking units. Petitioner Perfect Place, LLC ("Perfect Place") asserts ownership of three parking spaces (spaces "C, D, and E") in a mixed-use residential and commercial building located at 1940 Blake Street, Denver, Colorado (the "Building"). Respondent R. Parker Semler contends that he owns spaces C and D.

¶ 2 According to the declaration in the record before us, the Building consists of twelve condominium units. These condominium units consist of ten apartments and offices, and two vehicle parking units located in the Building's garage. As listed in the declaration, Unit G-C/D/E (the "Garage Unit") is a single 400-square-foot vehicle parking unit containing three parking spaces: C, D, and E. 1 The dimensions of these parking spaces *327 are not marked or otherwise discernible from the declaration or accompanying map.

¶ 3 In 2000, Quail Street Company ("Quail Street") obtained a majority of the Building's condominium units, including the Garage Unit, from the original owner. Quail Street's manager and sole shareholder, John Watson, later physically marked the boundaries of spaces C, D, and E with paint or tape, purportedly subdividing the Garage Unit into three individual units that could be separately conveyed. However, there is no evidence that Watson ever recorded any amendment to the declaration reflecting the subdivision of the Garage Unit, as required by section 38-33.3-213 of CCIOA, which governs the subdivision of units. Watson later transferred his interests in spaces C and D to different buyers; those buyers later transferred their interests to others, including Semler.

¶ 4 In June 2013, Perfect Place filed a quiet title action, asserting superior title to spaces C, D, and E based on a quitclaim deed it obtained from Watson in 2011 (the "2011 Quitclaim Deed") that purportedly conveyed the Garage Unit as a single, undivided condominium unit. Although the individual spaces C, D, and E had been conveyed to other owners, Perfect Place contended that these conveyances were invalid because Watson had never validly subdivided the Garage Unit. Perfect Place thus claimed title to all three parking spaces, contending that the 2011 Quitclaim Deed it obtained from Watson was the only valid conveyance of the Garage Unit.

¶ 5 In response, Semler asserted that the Garage Unit had been properly subdivided into separate units. Semler claimed superior title to spaces C and D based on deeds that conveyed these spaces to him as individual units. He further argued that Perfect Place obtained the 2011 Quitclaim Deed from Watson through fraudulent misrepresentations.

¶ 6 After a three-day bench trial, the trial court held that the Garage Unit was properly subdivided into three units, either because the Building's original owner had already subdivided the Garage Unit at the time it filed the declaration, or because Watson validly subdivided the Garage Unit by physically marking off the separate spaces. The court further held that the 2011 Quitclaim Deed was procured through fraud and unclean hands, and that Semler was the rightful owner of parking spaces C and D. The court ordered that the declaration be amended to reflect that the condominium was divided into fourteen units and adopted an amended map depicting the boundaries of the parking spaces C, D, and E. Relevant here, the map adopted by the court attempted to make space E more usable by enlarging it, which reduced the size of space D. The court denied Semler's request for attorney fees.

¶ 7 Perfect Place appealed the trial court's judgment as to the ownership of spaces C and D. Semler cross-appealed the trial court's enlargement of space E at the expense of space D and the trial court's denial of his request for attorney fees.

¶ 8 In a unanimous published decision, the court of appeals affirmed the trial court's conclusion that the Garage Unit was properly subdivided and that Semler owned spaces C and D. Perfect Place v. Semler , 2016 COA 152M, ¶ 2, 428 P.3d 577 , as modified on denial of reh'g (Jan. 12, 2017). Relevant here, the court of appeals held that section 38-33.3-213 of CCIOA governing the subdivision of condominium units required only substantial compliance, and that Watson substantially complied with these provisions and therefore accomplished a valid subdivision of the Garage Unit. Id. at ¶¶ 1, 22-44. The court of appeals further determined that the trial court properly declared the 2011 Quitclaim Deed void, because Perfect Place procured it by "fraud in the factum" by misrepresenting to Watson that the deed was intended merely to correct technical defects in title. Id. at ¶¶ 57-61. However, the court of appeals held that the trial court erred by enlarging the size of space E and also denying Semler's request for attorney fees. Id. at ¶¶ 2, 68, 81. We granted Perfect Place's petition for writ *328 of certiorari. 2

¶ 9 Under the plain language of section 38-33.3-213(3), "no subdivision of units shall be effected" without executing and recording the necessary amendments to the condominium declaration, plats, or maps pursuant to section 38-33.3-217(3) and (5), C.R.S. (2018) of CCIOA. Because there is no evidence that Watson caused any documents to be filed or recorded in connection with his purported subdivision, we hold that Watson did not accomplish a valid subdivision of the Garage Unit.

¶ 10 We further hold that the court of appeals erred in concluding that the 2011 Quitclaim Deed was void for fraud in the factum. Although evidence in the record suggests that Watson may have been deceived as to the purpose of the 2011 Quitclaim Deed, fraud in the factum requires more-namely, proof that the grantor was ignorant as to the nature of the instrument itself. Here, the evidence reflects that Watson understood he was signing a quitclaim deed, even if he did not appreciate the ramifications of his act. Thus, the deed is voidable, but not void.

¶ 11 In light of our holdings that Watson did not accomplish a valid subdivision of the Garage Unit and that the 2011 Quitclaim Deed was improperly declared void for fraud in the factum, remand is necessary to determine the resulting chain of title for the disputed parking spaces. We decline to consider the remaining issues on which we granted certiorari review, as these issues cannot be decided in this case without first resolving the chain of title for these spaces.

¶ 12 Accordingly, we reverse the judgment of the court of appeals and remand for further proceedings consistent with this opinion.

I. Facts and Procedural History

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Bluebook (online)
2018 CO 74, 426 P.3d 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perfect-place-llc-v-semler-colo-2018.