Troelstrup v. District Court Ex Rel. City & County of Denver

712 P.2d 1010, 1986 Colo. LEXIS 486
CourtSupreme Court of Colorado
DecidedJanuary 21, 1986
Docket85SA33
StatusPublished
Cited by28 cases

This text of 712 P.2d 1010 (Troelstrup v. District Court Ex Rel. City & County of Denver) 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
Troelstrup v. District Court Ex Rel. City & County of Denver, 712 P.2d 1010, 1986 Colo. LEXIS 486 (Colo. 1986).

Opinions

ROVIRA, Justice.

In this original proceeding, petitioner Glenn Troelstrup asks us to prohibit the District Court in and for the City and County of Denver from hearing a declaratory judgment action, brought by Allstate Insurance Company (Allstate) against the petitioner, before trial of a case brought by W.M.L., a minor, against the petitioner. We issued a rule to show cause and now discharge the rule.

In December 1983, W.M.L., by and through his mother, filed a suit against the petitioner and the State of Colorado, Fort Logan Mental Health Center, in the Denver District Court, Civil Action 83CV11229, seeking money damages for negligence and outrageous conduct. The complaint alleged in part that the petitioner engaged in homosexual acts and committed a sexual assault on W.M.L., and photographed and developed nude and erotic photographs of W.M.L. The claims against Fort Logan Mental Health Center arise from the allegation that petitioner served on an advisory committee to the mental health staff.

The petitioner tendered defense of W.M. L.’s suit to Allstate under his homeowner’s [1011]*1011insurance policy. Allstate accepted defense of the suit under a reservation of rights and retained the services of independent counsel to defend the petitioner.1 It then filed a declaratory judgment action naming the petitioner; the State of Colorado, Fort Logan Mental Health Center; and W.M.L. as defendants in the Denver district court, Civil Action 84CY4292, seeking a declaration that petitioner’s acts were not covered under the homeowner’s policy. §§ 13-51-101 to -115, 6 C.R.S. (1973). Petitioner answered the declaratory complaint by denying the material allegations and counterclaimed for compensatory and punitive damages arising from the negligent, bad faith, and outrageous conduct of Allstate.

The declaratory action was assigned to Judge Warren 0. Martin, who ordered that it be set for trial. The petitioner filed a Motion for Order Delaying Setting in which he requested that the declaratory judgment case not be set for trial until after final judgment is rendered in the W.M.L. case. In support of his motion, petitioner stated that in the declaratory action Allstate alleged that his acts were intentional and therefore excluded from coverage under the policy, while in the W.M.L. case his acts were alleged to be willful and wanton; therefore, both cases involve common questions of law and fact. He further contended that should Allstate successfully prove that his actions were intentional, he would be prejudiced in his defense of the W.M.L. case because he might be precluded as a matter of law from defending against W.M. L.’s claims of outrageous, willful, and wanton misconduct pursuant to the doctrine of collateral estoppel.

The motion to delay setting was denied, and the case was set for trial on March 27, 1985. Subsequently, petitioner moved for a continuance on the grounds that the W.M.L. case had been set for trial on June 3, 1985, and the interests of justice require that the declaratory action be continued until after trial of the personal injury action. This motion was also denied.

In his petition in the nature of prohibition and mandamus, petitioner argues that the respondent judge abused his discretion in not granting petitioner’s motion to continue the declaratory judgment action so that W.M.L.’s case could be tried first. He claims that as the cases are presently postured he will be forced to defend himself in the declaratory judgment action against the “vast resources” of Allstate before defending himself in the personal injury action Further, he reasserts the arguments previously advanced in support of his Motion for Order Delaying Setting.

Allstate responds by contending that it has no obligation to defend petitioner because the alleged tortious conduct is excluded under the policy. The relevant exclusion clause provides: “We do not cover bodily injury or property damage intentionally caused by an insured person.” Allstate asserts that the declaratory action should be heard prior to the tort claim because Troelstrup’s activities were “clearly not the type of risk even remotely contemplated by the homeowner’s insurance policy.” Allstate further asserts that any prejudice suffered by Troelstrup in defending the declaratory judgment action “does not go beyond the inherent prejudice that results from losing any declaratory judgment action.”

As a preliminary matter, we note that Allstate has the right to seek a judicial determination of its obligations under Troelstrup’s homeowner’s insurance policy. [1012]*1012It is beyond dispute that an insurance company has the right to seek a declaration of its rights and duties under a policy of insurance. §§ 13-51-106, -107, 6 C.R.S. (1973); O’Herron v. State Farm Mutual Auto Insurance Co., 156 Colo. 164, 397 P.2d 227 (1964). The granting of declaratory relief is a matter resting in the sound discretion of the trial court and is not precluded even when there is another adequate remedy. C.R.C.P. 57(m). Resolution of the issue as framed in the declaratory action will result in a determination of Allstate’s duty to defend petitioner in the underlying tort action. The existence or nonexistence of this duty “is a proper and sufficient ground for invoking the jurisdiction of the courts under the declaratory judgment act, and presents a justiciable controversy.” 20 J. Appleman, Insurance Law and Practice § 11354, at 338 (1980) (footnote omitted).

In support of their respective positions both parties rely on Hartford Insurance Group v. District Court, 625 P.2d 1013 (Colo.1981). In Hartford, the insurer brought an original proceeding seeking an order prohibiting the district court from postponing the resolution of a declaratory judgment action in which the insurer sought a declaration concerning its contractual obligations of indemnification and defense to certain persons who were named defendants in a pending personal injury suit. The underlying personal injury suit arose from a collision between two trucks. The plaintiff, a driver of one of the two trucks, filed a personal injury complaint alleging negligence on the part of the other driver, the driver’s employer, and the transit company for whom the employer was an agent. The insurer, who insured the transit company, filed a complaint under the Declaratory Judgment Act seeking a declaration that it was not obligated under the policy to defend or indemnify the defendants in the personal injury action. The trial court judge disagreed, finding that the insurer’s policy with the defendant “clearly indicated a duty to defend.” Id. at 1016. Accordingly, the trial court refused to hear the declaratory action before the personal injury trial.

In the original proceeding, the insurer argued that the trial court abused its discretion in postponing the declaratory action until resolution of the personal injury action. This court disagreed, holding that it was not an abuse of discretion to hear the declaratory action after the personal injury trial. In so holding, we reasoned, in part, that the case was not one “in which the tort action against the insured is based on conduct that is patently outside the terms of the insurance contract.” Id. at 1017.

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Bluebook (online)
712 P.2d 1010, 1986 Colo. LEXIS 486, Counsel Stack Legal Research, https://law.counselstack.com/opinion/troelstrup-v-district-court-ex-rel-city-county-of-denver-colo-1986.