Wine v. Weiman

Colorado Court of Appeals·Decided May 1, 2025·No. 24CA0680·Unpublished

Opinion

24CA0680 Wine v Weiman 05-01-2025 COLORADO COURT OF APPEALS

Court of Appeals No. 24CA0680 Arapahoe County District Court No. 19CV30266 Honorable Don J. Toussaint, Judge

Alyn D. Wine and Wine Properties, LLC, Plaintiffs-Appellees, v. Julie A. Weiman, Defendant-Appellant.

JUDGMENT AFFIRMED

Division I

Opinion by JUDGE YUN

Román, C.J., and Berger*, J., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e)

Announced May 1, 2025

Fennemore Craig, P.C., David A. Laird, Allison M. Hester, Denver, Colorado, for Plaintiffs-Appellees

Van Remortel LLC, Fred Van Remortel, Littleton, Colorado, for Defendant- Appellant

*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 Defendant, Julie A. Weiman, appeals the district court’s judgment in favor of plaintiffs, Alyn D. Wine and Wine Properties, LLC, finding Weiman liable for breach of contract, fraud, and civil conspiracy. She contends that the court erred by (1) finding that certain deeds of trust were invalid because they were part of a fraudulent scheme; (2) finding that Weiman fraudulently induced Wine to enter into a settlement agreement; (3) granting partial summary judgment to Wine on his breach of contract claim; (4) excluding certain evidence; and (5) finding that Weiman participated in a conspiracy that caused Wine to suffer damages. We disagree with these contentions and therefore affirm the judgment.

I. Background

¶2 Weiman’s husband, Antheiaus Conquest, entered into an informal real estate investment partnership with Wine. Conquest located, and Wine put up most of the money to purchase, six rental properties. The properties were purchased in Weiman’s name because she “worked at a bank and was able to get financing relatively simply.”

¶3 Then, without consulting Wine, Conquest and Weiman sold two of the rental properties and used the proceeds to purchase a house for themselves, which we will refer to as Arapahoe. At that point, feeling that Conquest was “running very, very loose and wild,” Wine sought to formalize their business relationship. Weiman and Conquest gave Wine a promissory note for $570,000, which represented the money Wine had invested in the partnership. The promissory note was secured in June 2017 by a deed of trust (the Wine DOT) encumbering Arapahoe and the four remaining rentals, which we will refer to as Joliet, Elkhart, Lansing, and Kramer (together, the rentals).

¶4 Weiman and Conquest eventually defaulted on the promissory note. Wine sued, Weiman and Conquest countersued, and the following events took place.

A. The Street Investments, LLC, Deeds of Trust

¶5 Conquest told his extramarital girlfriend that he needed money for attorney fees and persuaded her to lend him $86,000. He drafted two promissory notes in which his business entity, Conglomeride, promised to repay the $86,000 to Street Investments, LLC (SIL), an entity that did not exist at the time. To

secure the promissory notes, Weiman granted SIL deeds of trust encumbering Joliet and Elkhart (the SIL DOTs). The two SIL DOTs were signed by Weiman and executed on August 6 and September 8, 2018. They did not contain legal descriptions of the properties they purported to encumber and were not recorded.

B. The Settlement Agreement

¶6 On September 10, 2018, two days after the second SIL DOT was executed, Weiman was deposed. During her deposition, she said that the rentals were encumbered only by bank loans and the Wine DOT. Despite being explicitly questioned about “encumbrances that you’re aware of,” she did not mention the SIL DOTs.

¶7 Nine days later, on September 19, 2018, the parties settled. The settlement agreement provided:

• Wine would pay Weiman and Conquest a total of $40,000.

• Wine would use his best efforts to take out new loans to resolve the mortgages on the rentals.

• Wine would make the mortgage payments on the rentals until replacement financing was secured.

• Weiman and Conquest would transfer title to the rentals to Wine by quitclaim deed, effective October 1, 2018.

• Wine would release the Wine DOT encumbering Arapahoe and the rentals and deem the $570,000 promissory note paid in full.

• Weiman and Conquest would transfer the leases and deposits on the rentals to Wine.

• Wine would be entitled to all rental income from the rentals, effective October 1, 2018.

C. The Foreclosure

¶8 On September 24, 2018, Conquest’s girlfriend formed SIL as a limited liability company with the Colorado Secretary of State. On September 29, ten days after the settlement agreement was signed and two days before the transfer of title to Wine became effective, the SIL DOTs were recorded.

¶9 After Wine took title to the rentals, SIL, under Conquest’s direction and at his expense, hired a lawyer to foreclose on the SIL DOTs. Wine learned of the SIL DOTs in January 2019 when he received a notice of sale on Elkhart.

¶ 10 Wine filed suit against Weiman and Conquest, asserting claims including fraud, conspiracy, and breach of the settlement agreement. Weiman and Conquest countersued, alleging that Wine had breached the settlement agreement first.

D. The Home Invasion

¶ 11 In the early morning hours of December 11, 2019, Conquest and his son entered Wine’s home armed with guns. Conquest woke up Wine and his caretaker, threatened them with his firearm, and struck Wine in the body and face. Conquest demanded another $40,000 check, demanded that Wine sign a quitclaim deed transferring title of the rentals to Conquest, and stole $3,000 in cash, all while holding Wine at gunpoint. Conquest fired his weapon, but no one was hit.

¶ 12 Conquest was later arrested at his girlfriend’s home. While detained, he called Weiman and directed her to go to the girlfriend’s house to recover his personal items and delete information from his phone. Following Conquest’s instructions, Weiman went to the girlfriend’s house in the middle of the night.

E. The District Court’s Rulings

¶ 13 In March 2020, the district court granted partial summary judgment to Wine on his breach of contract claim, finding that Weiman and Conquest had breached the settlement agreement when they “collected rents for the [rentals] for October 2018 and did not remit those rents to Wine.” The court dismissed Weiman and Conquest’s breach of contract counterclaim with prejudice.

¶ 14 The remaining claims proceeded to a three-day bench trial in November 2023. After trial, the court entered judgment in favor of Wine and Wine Properties, LLC.1 As relevant here, the court found:

• The SIL DOTs were invalid, did not encumber Joliet or Elkart, and could not be used to foreclose on those properties.

• Conquest and Weiman fraudulently induced Wine to enter into the settlement agreement.

• In addition to withholding the October 2018 rent payments, Conquest and Weiman also breached the settlement agreement by retaining the security deposits

1 Wine Properties, LLC, was joined as a plaintiff after the summary judgment.

for the rentals and redirecting Wine’s mortgage payments on the rentals to Arapahoe.

• Conquest, Weiman, Conglomeride, and SIL “were parties to a conspiracy to fraudulently induce [Wine] into the [s]ettlement [a]greement and thereafter unlawfully regain from [him] much of the consideration given for the [s]ettlement [a]greement.”

¶ 15 Weiman now appeals.2 II. Validity of the SIL DOTs

¶ 16 Weiman contends that the district court erred by finding that the SIL DOTs are invalid because they were part of a fraudulent scheme. We are not persuaded.

A. Governing Law and Standard of Review

¶ 17 “An agreement to perpetrate a fraud on a third person is illegal and void.” Armstrong v. Gresham, 213 P. 114, 115-16 (Colo. 1923); see HMLL LLC v. MJM Holdings Ltd., 2024 COA 85, ¶ 43

2 Initially, Conquest, SIL, and Weiman all filed separate appeals.

Conquest’s and SIL’s appeals have been dismissed. Weiman’s appeal is the only one remaining.

(promissory note was “void as against public policy” because of “its integral role in the perpetration of [an] illegal scheme”).

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