Stansberry v. Elkerton

CourtColorado Court of Appeals
DecidedMay 22, 2025
Docket24CA0864
StatusUnpublished

This text of Stansberry v. Elkerton (Stansberry v. Elkerton) 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
Stansberry v. Elkerton, (Colo. Ct. App. 2025).

Opinion

24CA0864 Stansberry v Elkerton 05-22-2025

COLORADO COURT OF APPEALS

Court of Appeals No. 24CA0864 Weld County District Court No. 20CV30844 Honorable Todd Taylor, Judge

Christopher Stansberry and Cheryl Stansberry,

Plaintiffs-Appellants,

v.

Blyth Elkerton,

Defendant-Appellee.

JUDGMENT AFFIRMED

Division IV Opinion by JUDGE PAWAR Grove, J., concurs Berger*, J., dissents

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced May 22, 2025

Leventhal Puga Braley P.C., Jim Leventhal, Bruce L. Braley, Julia T. Thompson, Nathaniel E. Deakins, Denver, Colorado, for Plaintiffs-Appellants

Ross-Shannon & Proctor, P.C., Bradley Ross-Shannon, Gregory F. Szydlowski, Lakewood, 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, Christopher and Cheryl Stansberry, appeal the

district court’s judgment in favor of defendant, Blyth Elkerton.

Specifically, the Stansberrys challenge the court’s ruling that,

before the Stansberrys filed suit against Elkerton, the parties

entered into an enforceable settlement agreement that barred the

Stansberrys’ claims. We affirm.

I. Background

¶2 Elkerton and the Stansberrys were involved in a motor vehicle

accident that injured Christopher Stansberry. Elkerton was

insured by State Farm Mutual Automobile Insurance Company

(State Farm) under a liability policy with limits of $100,000.

¶3 After the accident, the Stansberrys’ lawyer engaged in

settlement negotiations with a State Farm claims representative.

The lawyer made a policy-limits demand to State Farm.

¶4 The claims representative responded in two emails, sent an

hour apart on the same day. Attached to the first email was a

release that constituted a settlement offer. The release provided

that State Farm would pay $100,000 in exchange for releasing,

discharging, and precluding any claims arising out of the accident.

About an hour later, with no intervening communications, the

1 claims representative sent another email to the lawyer with further

details about a potential settlement. This second email addressed

liens held by Christopher Stansberry’s medical providers and how

these and any other liens would be satisfied.

¶5 The Stansberrys’ lawyer responded two days later. She

informed State Farm that there were no liens, just a subrogation

interest, and that the Stansberrys would “take care of” that interest.

The email then asked State Farm to make the settlement check

payable to her law firm and Christopher Stansberry, and included a

W9 tax form (which allowed State Farm to report to the Internal

Revenue Service that it had paid the settlement funds to the law

firm). The lawyer did not sign or send the release.

¶6 Two months later, with no signed release and no settlement

check issued, the Stansberrys sued Elkerton for damages arising

out of the accident. Elkerton answered that an enforceable

settlement agreement barred the Stansberrys’ claims. Elkerton

then moved to enforce the agreement, and the district court granted

the motion and dismissed the Stansberrys’ claims.

¶7 The Stansberrys appealed, arguing that the emails described

above did not establish an enforceable settlement agreement. A

2 division of this court reversed. Stansberry v. Elkerton, (Colo. App.

No. 22CA1715, Oct. 12, 2023) (not published pursuant to C.A.R.

35(e)). The division explained that the emails contained conflicting

evidence about whether an enforceable settlement agreement

existed. Id. The division therefore remanded to the district court

with directions to conduct an evidentiary hearing and determine

whether there was an enforceable agreement. Id.

¶8 At the evidentiary hearing, the Stansberrys’ lawyer and the

claims representative were the only witnesses. The district court

placed “little weight” on the witnesses’ respective opinion testimony

about whether the parties had entered into an enforceable

agreement. But the court did not expressly discount other

testimony the witnesses gave.

¶9 Ultimately, based on its assessment of the evidence, the court

held that there was an enforceable settlement agreement and again

dismissed the Stansberrys’ claims. The Stansberrys appeal that

ruling, arguing that the court erred by ruling that there was an

enforceable settlement agreement.

3 II. We Cannot Disturb the District Court’s Ruling

A. Standard of Review

¶ 10 The parties disagree on what standard of review applies here.

Elkerton urges us to review for clear error. The Stansberrys argue

that, even though the district court based its ruling on its weighing

of the evidence after an evidentiary hearing, we should review de

novo. We agree with Elkerton.

¶ 11 Whether an enforceable contract exists is a question of fact.

Yaekle v. Andrews, 195 P.3d 1101, 1111 (Colo. 2008). And we

review questions of fact for clear error. See, e.g., Black v. Black,

2018 COA 7, ¶ 87. This standard of review recognizes that, unlike

us, the trier of fact is in the best position to resolve disputed factual

issues, determine witness credibility, assign weight to testimony,

and draw inferences from the evidence. See Target Corp. v. Prestige

Maint. USA, Ltd., 2013 COA 12, ¶ 24.

¶ 12 The Stansberrys recognize that whether a contract exists is

ordinarily a question of fact and that we review questions of fact for

clear error. Nevertheless, they assert de novo review is appropriate

here under the exception articulated in Sumerel v. Goodyear Tire &

Rubber Co., 232 P.3d 128 (Colo. App. 2009).

4 ¶ 13 In Sumerel, the trial court ruled on the enforceability of a

settlement agreement based only on affidavits and emails the

parties exchanged. Id. at 132. The trial court did not hold an

evidentiary hearing. Id.

¶ 14 On appeal, a division of this court reviewed de novo. Id. The

division explained that this was appropriate because the facts were

undisputed and the pertinent documents were before it. Id.

Effectively, the Sumerel division was in the exact same position as

the trial court to review the relevant evidence and determine

whether an agreement existed. We cannot say the same here.

¶ 15 Unlike Sumerel, the facts here were disputed and the district

court held an evidentiary hearing to resolve them. After hearing the

evidence, the court made credibility determinations, weighed the

evidence, and determined that there was an enforceable agreement

based on those assessments. Consequently, unlike the Sumerel

division, we are not just as well positioned as the district court to

assess the evidence.

¶ 16 The Stansberrys argue otherwise, urging us to follow Sumerel

nevertheless because the district court “rejected all of the witness

testimony at the evidentiary hearing and based its decision solely

5 on the emails and documentary evidence that was previously

available . . . prior to the hearing.” We disagree with this

assessment of the record.

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