Vickery v. Evelyn V. Trumble Living Trust

277 P.3d 864, 2011 WL 3612245, 2011 Colo. App. LEXIS 1399
CourtColorado Court of Appeals
DecidedAugust 18, 2011
DocketNo. 10CA1362
StatusPublished
Cited by13 cases

This text of 277 P.3d 864 (Vickery v. Evelyn V. Trumble Living Trust) 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
Vickery v. Evelyn V. Trumble Living Trust, 277 P.3d 864, 2011 WL 3612245, 2011 Colo. App. LEXIS 1399 (Colo. Ct. App. 2011).

Opinions

Opinion by

Judge MILLER.

Plaintiff, Monica David Vickery, appeals the district court's dismissal of her claims against defendants, the Evelyn V. Trumble Living Trust; Kerry Vickery, individually and as trustee of the trust; and Merry Gayle Vickery, as well as its denial of plaintiff's motion for postjudgment relief, We agree with the district court that the complaint fails to state a claim; therefore, we affirm both orders and remand the case with directions.

I. Background

The principal question presented is whether the amendment of a revocable trust to change the contingent beneficiary from a judgment debtor to the debtor's daughter constitutes a violation of the Colorado Uniform Fraudulent Transfer Act (CUFTA), §§ 38-8-101 to -112, C.R.S.2010. We hold that under the cireumstances presented there is no CUFTA violation.

This is the third case involving the Vicker-ys, to each of whom we refer by first name.1 Evelyn was the mother of Donald, who was married to Monica, and Merry Gayle, who is the mother of Kerry. Evelyn created her revocable trust, designating herself as set-tlor, trustee, and beneficiary, and Merry [867]*867Gayle as the successor trustee and sole beneficiary upon Evelyn's death.

In the first case, Evelyn and Merry Gayle challenged Monica's administration of Donald's estate in probate court. Evelyn and Merry Gayle lost.

In the second case, Monica sued Evelyn and Merry Gayle for malicious prosecution and defamation. During discovery, Monica obtained a copy of the trust instrument. Monica investigated the assets held in the trust and learned that they were considerable. Monica prevailed at trial and obtained a $141,389 judgment against Evelyn, a $282,071 judgment against Merry Gayle, and an order awarding $48,574 in costs against Evelyn and Merry Gayle, jointly and severally.

After the jury returned its verdict but before judgment was entered in the second case, Evelyn amended the trust instrument, designating her granddaughter, Kerry, as the successor trustee and sole beneficiary upon Evelyn's death. The court entered judgment for Monica, and Evelyn appealed. Evelyn died the following month.

Two days later, Evelyn's counsel in the second case offered to settle Monica's claims against Evelyn on the following terms: in exchange for dismissal of Evelyn's pending appeal, Monica would accept payment of the amount of the judgment against Evelyn and half the amount of the costs awarded jointly and severally against her and Merry Gayle, plus post-judgment interest. Evelyn's counsel did not advise Monica's counsel of the amendment to the trust instrument, and the complaint does not allege that Monica's counsel inquired regarding the status of the trust. Monica accepted the offer, received payment in the amount of about $168,000, and filed a satisfaction of judgment with respect to her claims against Evelyn in that case. The appeal was withdrawn and dismissed.

In the third and instant case, Monica asserted three claims: (1) that the amendment of the trust instrument constituted a fraudulent transfer under the CUFTA; (2) that Merry Gayle and Kerry committed fraudulent concealment by failing to disclose the amendment to the trust instrument before Monica entered the settlement agreement; and (8) that "two or more of the defendants" engaged in a civil conspiracy to defraud ered-itors. The complaint requests, among other things, damages and orders "vacating" the amended trust and allowing Monica to levy execution on the trust's assets.

Defendants moved to dismiss the complaint under C.R.C.P. 12(b)(1) and 12(b)(5). The district court ruled that Monica failed to state a claim upon which relief could be granted, dismissed the action under C.R.C.P. 12(b)(5), and denied her C.R.C.P. 59 motion for post-judgment relief.

II. Issues on Appeél

The parties dispute whether the district court dismissed the case under C.R.C.P. 12(b)(1) (lack of subject matter jurisdiction) or 12(b)(5) (failure to state a claim). The order of dismissal explicitly refers to and relies upon C.R.C.P. 12(b)(5), cites extensively to authorities construing that rule, and makes no mention of C.R.C.P. 12(b)(1) or the terms "jurisdiction" or "standing." Defendants stress, however, that the order concludes that "there has been no injury to a legally protected interest of Monica's." The district court's language parallels the second prong for the test of standing—whether the plaintiff suffered harm "to a legally protected interest." Ainscough v. Owens, 90 P.3d 851, 855 (Colo.2004).

Defendants therefore argue that (1) because their motions to dismiss were brought under both C.R.C.P. 12(b)(1) and 12(b)(5), the district court's use of that language indicates that it intended to dismiss for lack of standing and subject matter jurisdiction (notwithstanding its use of a different label) or at least effectively did so; and (2) because Monica did not argue in her opening brief that the court erred in granting a CRCP. 12(b)(1) dismissal, she waived her right to appeal standing and therefore is foreclosed from even appealing the C.R.C.P. 12(b)(5) ruling.

While we recognize possible merit to the first contention, we are not persuaded by the second. Monica's opening brief acknowledges that the district court may have dismissed under C.R.C.P. 12(b)(1) and argues [868]*868that she did have a legally protected interest-the very issue that defendants contend makes the court's order a C.R.C.P. 12(b)(1) dismissal. If the label used by the district court is not determinative for purposes of its order, the label used by Monica should not be determinative for purposes of her opening appeal brief. See Plains Metro. Dist. v. KenCaryl Ranch Metro. Dist., 250 P.3d 697, 701 (Colo.App.2010) (courts look to essence of claim rather than how it is denominated).

Nonetheless, since defendants have raised the issue of standing both in the district court and here, we must address it as a subject matter jurisdictional issue before we may consider the merits Ainscough, 90 P.3d at 855.

A. Standing

The test for standing in Colorado has traditionally been "relatively easy to satisfy." Id. at 856. To establish standing, a plaintiff must demonstrate that (1) he or she was injured in fact and (2) the injury was to a legally protected right. Id. at 855; HealthONE v. Rodriguez, 50 P.3d 879, 892 (Colo.2002). "A civil plaintiff claiming to have been injured by a defendant's actions has standing to sue even if a court, upon reaching the merits, ultimately determines the defendant committed no wrong." Grand Valley Citizens' Alliance v. Colo. Oil & Gas Conservation Comm'n, — P.3d —, — (Colo.App.2010) (cert. granted Mar. 21, 2011). When a plaintiff brings a claim under a statute, the standing inquiry turns on whether the statutory provision "can properly be understood as granting persons in the plaintiff's position a right to judicial relief." Pomerantz v. Microsoft Corp., 50 P.3d 929, 932 (Colo.App.2002).

Here, the complaint alleges, and it is undisputed, that Monica was a judgment creditor of both Merry Gayle and Evelyn at the time of the alleged fraudulent transfer.

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Cite This Page — Counsel Stack

Bluebook (online)
277 P.3d 864, 2011 WL 3612245, 2011 Colo. App. LEXIS 1399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vickery-v-evelyn-v-trumble-living-trust-coloctapp-2011.