Winslow v. Williams Group

134 B.R. 949, 1990 U.S. Dist. LEXIS 19403, 1990 WL 320392
CourtDistrict Court, D. Colorado
DecidedMay 8, 1990
DocketCiv. A. No. 89-M-1811, Bankruptcy No. 89-B-247-E
StatusPublished
Cited by2 cases

This text of 134 B.R. 949 (Winslow v. Williams Group) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winslow v. Williams Group, 134 B.R. 949, 1990 U.S. Dist. LEXIS 19403, 1990 WL 320392 (D. Colo. 1990).

Opinion

MEMORANDUM OPINION AND ORDER

MATSCH, Judge.

This is a bankruptcy appeal in which extensive briefs have been filed. Some of the matters raised on this appeal relate to orders that were not final. Because of the nature of the controversy, the court has considered these interlocutory issues under Bankruptcy Rule 8003(c). Pursuant to Bankruptcy Rule 8012, the court has determined that oral argument will not assist determination of the issues on this appeal.

The root of this litigation is Civil Action No. 79-CV-97, a class action filed in 1979 in the District Court for Morgan County, Colorado. That case originally was filed against debtors-appellants Rainsford J. Winslow and Winifred W. Winslow and creditor-appellee Morgan County (the County). The plaintiffs in the class action, “the Williams Group,” were the owners of lots in Morgan Heights, a residential subdivision in Fort Morgan, Colorado established by Winslow. The Williams Group claimed that Winslow had sold them lots and breached a number of commitments relating to roads, water and sewer service, the dedication of park lands, and the enforcement of restrictive covenants. The complaint also sought damages for fraud and misrepresentation. The County filed a cross claim against Winslow, alleging a breach of an obligation to construct certain roads.

The case proceeded in two stages. After a trial to the court on the “road issues,” Morgan County District Judge James R. Leh entered a judgment requiring Winslow to build certain roads in Morgan Heights, which the County was obliged to accept and maintain. The court ordered Winslow to post a performance bond of $150,000, to be forfeited if he did not complete the road construction within six months. The court also imposed an equitable lien on Winslow’s property in Morgan Heights to enforce the order for specific performance. Winslow appealed that judgment to the Colorado Court of Appeals as Case No. 81-CA-0297. The Court of Appeals dismissed the appeal without prejudice for failure to comply with C.R.Civ.P. 54, permitting interlocutory appeals.

The “non-road issues” were tried to Judge Leh in three stages between March, 1981 and January, 1982. On October 5, 1982, Judge Leh entered an order and judgment upon findings that Winslow had breached a promise to transfer the Morgan Heights water system to a non-profit, com *952 munity-owned corporation, and had misrepresented or failed to disclose facts regarding water and sewer service in the development. The court awarded the plaintiffs damages on claims of promissory estoppel, fraud, and misrepresentation. The court also imposed a constructive trust in favor of the class plaintiffs on certain assets of the water and sewer utilities serving Morgan Heights, owned by the Winslows, and declared valid and enforceable certain utilities-related restrictive covenants contained in the subdivision’s recorded plat. The court dismissed all claims against Morgan County and its county commissioners.

Winslow had moved to disqualify Judge Leh before the road issue trial, based on the judge’s statements at a September 9, 1980 motions hearing. Winslow claimed that Judge Leh’s experience as a Morgan County Commissioner, and the knowledge of county practices he gained from it, influenced his handling of the road issues and showed bias against Winslow. Judge Leh denied the motion to disqualify on November 28, 1980. On November 7, 1981, he denied another motion to disqualify.

In January, 1982, during the non-road issues trial, Winslow filed a petition for writ of mandamus in the Colorado Supreme Court, alleging that Judge Leh had denied two separate motions sufficient to disqualify him. The court denied the petition without comment.

Winslow appealed the October, 1982 judgment to the Colorado Court of Appeals. This appeal, case number 83-CA-0211, was a consolidation of all of Win-slow’s objections to the judgment entered in Civil Action No. 79-CV-97, and was based primarily on his contention that he had been denied a fair trial before an impartial judge. On several occasions the Court of Appeals ordered Winslow to provide a complete copy of the trial transcript. However, because of the cost of the transcript and several alleged omissions claimed to be critical to his arguments, Winslow did not file a trial transcript. In January, 1983, the Court of Appeals dismissed the appeal with prejudice. The Supreme Court of Colorado and the United States Supreme Court denied Winslow’s subsequent petitions for writs of certiorari.

In the years since his appeal was dismissed, Winslow has filed many lawsuits and motions for relief from the judgments in Civil Action No. 79-CV-97. With one exception; those efforts have failed because the direct appeal from the judgments in that case was dismissed with prejudice.

The exception was a ruling by Judge George M. Gibson in the District Court for Washington County, Colorado, in Civil Action No. 84-CV-30. The defendants in that action were the plaintiff class members in Civil Action No. 79-CV-97, their attorneys, several Morgan County officials, and their attorneys. In a Judgment and Decree dated September 26, 1985, Judge Gibson held that the judgments were void because Judge Leh lost jurisdiction in Civil Action No. 79-CV-97 by failing to disqualify himself. More specifically, Judge Gibson concluded that the motion to disqualify Judge Leh was sufficient under C.R.Civ.P. 97, that Judge Leh lost jurisdiction over the case when he denied the motion, and that, therefore, the judgment he later entered in the case was void and thus subject to collateral attack.

On appeal, the Colorado Court of Appeals reversed and remanded the case with instructions to dismiss Winslow’s complaint with prejudice. The court held that the judgments were not void but voidable, and that when a trial judge abuses his discretion by denying a sufficient motion to disqualify, the judgment remains binding on the parties unless it is vacated by the trial court or reversed on direct appeal. Winslow v. Williams, 749 P.2d 433 (Colo.App. 1987). Accordingly, the Court of Appeals concluded that Judge Gibson acted contrary to Colorado law in permitting a collateral attack on the judgments in an independent action. That decision is binding on the Bankruptcy Court and this court.

On this appeal, Winslow contends that the bankruptcy judge and the County should have abstained from involvement in the bankruptcy case pending the outcome of certain state court litigation. The question whether the bankruptcy judge or *953 County was required to abstain in this case is a matter of law and is therefore reviewable de novo. Bartmann v. Maverick Tube Corp., 853 F.2d 1540, 1543 (10th Cir.1988). Winslow’s abstention arguments are based on 28 U.S.C. § 1334(c)(2), which provides in pertinent part that:

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Related

In Re Winslow
186 B.R. 716 (D. Colorado, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
134 B.R. 949, 1990 U.S. Dist. LEXIS 19403, 1990 WL 320392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winslow-v-williams-group-cod-1990.