ROCKY MOUNTAIN FESTIVALS v. Parsons Corp.

242 P.3d 1067, 2010 WL 4398072
CourtSupreme Court of Colorado
DecidedDecember 13, 2010
Docket09SC451
StatusPublished
Cited by2 cases

This text of 242 P.3d 1067 (ROCKY MOUNTAIN FESTIVALS v. Parsons Corp.) 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
ROCKY MOUNTAIN FESTIVALS v. Parsons Corp., 242 P.3d 1067, 2010 WL 4398072 (Colo. 2010).

Opinions

Justice MARTINEZ

delivered the Opinion of the Court.

1. Introduction

This dispute arises out of a prior action between the Town of Larkspur, Colorado (the "town") and Rocky Mountain Festivals, Inc. (the "festival") concerning allegedly unpaid water and wastewater tap fees. The town had based its demand for roughly $1.6 million in unpaid tap fees on a report prepared by Parsons Corporation and Jim Miller (collectively "Parsons"). In that prior action the trial court determined that Parsons' report had been substantially flawed, and that the festival in fact owed only a small fraction of the demanded fees. Subsequent ly, the festival brought the present action against Parsons, arguing that Parsons' wrongful conduct caused it to incur unnecessary litigation costs and attorneys' fees, which should be compensable as damages under the so-called "wrong-of-another doctrine." The trial court granted Parsons' motion for summary judgment, and the court of appeals affirmed that decision in an unpublished opinion, Rocky Mountain Festivals, Inc. v. Parsons Corp., No. 08CA349, 2009 WL 712885 (Colo.App. Mar. 19, 2009). Both courts reasoned that the festival's partial liability in the underlying dispute precluded it from pursuing attorneys' fees under the wrong-of-another doctrine and therefore from proving damages. Because this issue arose in the limited context of summary judgment, neither court otherwise addressed the viability of the festival's negligence claim.

Due the limited seope of the trial court and court of appeals' decisions, we granted certio-rari to address the narrow issue of whether litigation costs and attorneys' fees should be recoverable under the wrong-of-another doe-trine where a plaintiff has not been entirely successful on all its claims in the underlying litigation.1 We conclude that a plaintiff can seek damages under the doctrine for a subset of the claims litigated against another party where the trial court, in its discretion, determines that the claims for which litigation costs are sought were premised on different facts and pursued under different legal theories than those comprising the remainder of the underlying dispute.

Having concluded that the festival is not barred from its pursuit of fees as a matter of law, we reverse the court of appeals' judgment.

II. Facts and Procedure

The festival operates a renaissance fair on summer weekends in the town. The town has a year-round population of around 250 people, while the festival attracts roughly 10,000 people per day when open. As such, the festival is a prominent figure in the town's tax revenues and its water systems.

In 2008, the town hired Parsons to diagnose and resolve problems with its water and wastewater systems. After assessing the festival's water and wastewater services usage, Parsons concluded that the festival had been using substantially more of both than it had been paying for. Parsons' analysis was apparently substantially flawed. Based on Parsons' analysis, however, the town issued a letter to the festival demanding roughly $1.6 million in tap fees to defray the cost of the festival's alleged increases in water and wastewater usage. Of that, roughly $1 million was related to the festival's wastewater use, while the remaining $600,000 was for water usage. At the conclusion of the letter, the town informed the festival that, if it had not received payment on this special billing within 45 days, water service to the property might be disconnected.

[1070]*1070In response, the festival sought injunctive relief from having to pay the tap fees in an action separate from the one at issue here, Rocky Mtn. Festivals, Inc. v. Town of Larkspur, No. 08CV393, slip op. (Colo.Dist.Ct., Mar. 14, 2006). Among other things, the festival argued that the tap fees assessed by Parsons for the town were contrary to certain town ordinances, and that the festival was being asked to fund maintenance and improvements to the town's water infrastrue-ture that would benefit the town at large. The town cross-claimed seeking to recover the full amount set out in the letter. The trial court concluded that it was "without significant dispute" that the festival owed at least some unpaid water tap fees, though it ultimately ordered the festival to pay only $100,000 of the town's $600,000 bill for water usage. As to the wastewater claim, however, the trial court concluded that Parsons' analysis had been deficient on numerous points. The trial court determined that Parsons' wastewater assessment relied on faulty assumptions, used "incredible" data, and stated that its inaccuracy was made "abundantly clear by other evidence introduced." The court concluded that the festival had, if anything, overpaid the town for wastewater usage and so granted the festival an injunction against that portion of the town's billing. Concluding its order, the trial court in that case noted that, because both parties had prevailed to some extent on their claims, an award of attorneys' fees would be inappropriate.

The festival subsequently sought an amendment to that order, arguing that the town's claim to $1 million in wastewater tap fees was substantially frivolous because the underlying report by Parsons was without believable evidentiary support and the town had not attempted to verify the information contained in the report. After reviewing briefing on that issue, the trial court issued a minute order denying the motion.

Following that prior case, the festival brought suit against Parsons directly under several legal theories of contract and tort, essentially arguing that Parsons' faulty advice to the town had caused the festival to ineur litigation costs and attorneys' fees in the prior case that they should be entitled to recover. Among the legal theories advanced by the festival that survives for our review is whether the element of damages essential to its negligence claim may be proved by attorneys) fees based on the wrong-of-another doctrine.

Parsons moved for summary judgment. The trial court concluded that, although Parsons owed a legal duty of care to the festival, the festival was barred from its pursuit of attorneys' fees as damages because it had been partially at fault in the underlying litigation, as evidenced by the order directing it to pay $100,000 for water tap fees. The court of appeals affirmed the trial court's order relying on essentially the same reasoning. Specifically, the court of appeals concluded that because the festival owed the town almost $100,000, it was at fault in the prior case and therefore barred from relying on the wrong-of-another doctrine to pursue attorney fees as damages. The court of appeals affirmed the trial court's decision to grant the motion for summary judgment on these narrow grounds.

The festival timely petitioned for certiora-ri, arguing that its partial lability on some claims in the prior litigation should not preclude its recovery for expenses incurred in litigating other claims on which it was wholly successful. We granted certiorari to resolve this narrow issue and agree with the festival that a claim-by-claim assessment of damages is appropriate in some cireumstances. Accordingly, we reverse the court of appeals.

III - Analysis

We begin by clarifying the operation of the wrong-of-another doctrine and discussing those cireumstances in which an injured party may seek litigation costs and attorneys' fees as a measure of damages.

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

Related

Cotton v. Scholle
Colorado Court of Appeals, 2026
Pentelute v. Batenburg
Colorado Court of Appeals, 2024
Velgersdyk v. Thompson Crossing
Colorado Court of Appeals, 2024
Stuhmer v. Girdner
D. Colorado, 2024
Dep't of Nat. Res. v. 5 Star Feedlot, Inc
2021 CO 27 (Supreme Court of Colorado, 2021)
Wheeling v. Selene Finance
250 A.3d 197 (Court of Appeals of Maryland, 2021)
JH Kelly, LLC v. Quality Plus Services, Inc.
472 P.3d 280 (Court of Appeals of Oregon, 2020)
State of Colorado v. Robert J. Hopp & Associates, LLC
2018 COA 71 (Colorado Court of Appeals, 2018)
Eastern Shore Title Co. v. Ochse
Court of Appeals of Maryland, 2017
Edwards v. Bank of America, N.A.
2016 COA 121 (Colorado Court of Appeals, 2016)
Ravenstar LLC v. One Ski Hill Place LLC
2016 COA 11 (Colorado Court of Appeals, 2016)
Eclectic Investmetn, LLC v. Patterson
346 P.3d 468 (Oregon Supreme Court, 2015)
In the Interest of Delluomo v. Cedarblade
2014 COA 43 (Colorado Court of Appeals, 2014)
Payan v. Nash Finch Co.
2012 COA 135 (Colorado Court of Appeals, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
242 P.3d 1067, 2010 WL 4398072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rocky-mountain-festivals-v-parsons-corp-colo-2010.