Opinion
No. 00SC56
May 21, 2001
Certiorari to the Colorado Court of Appeals, Case No. 98CA0214.
JUDGMENT AFFIRMED
No. 00SC56 — Colantuno v. A. Tenenbaum Co., Inc . : Judgment — Joint Debtor — Proportionate Share — Per Capita — Percentage Interest
The supreme court affirms the court of appeals' judgment holding that a joint debtor's proportionate share of indebtedness under the Colorado Joint Rights and Obligations Act ("Act") should be calculated on a per capita basis. This appeal arose from a suit brought by a creditor against three individuals who had failed to pay on a promissory note. The individuals had been former partners. Another former partner, who had settled with the creditor, was not named in the suit.
The trial court entered judgment in favor of the creditor, on both the note debt and for attorney fees generated in pursuit of collection on the note. Subsequently, the creditor released one of the judgment debtors in exchange for a payment that debtor had made. In post-trial proceedings, the trial court awarded the creditor supplemental attorney fees, entering the judgment against the two remaining defendants without apportioning the debt between the two.
The court of appeals affirmed in part and reversed in part, holding that the judgment of attorney fees was properly awarded to the creditor but that it should have been apportioned pursuant to the Act. The court held that under the act, the creditor's release of one of the debtors obligated the two remaining debtors to only their proportionate shares of the judgment. The court determined that such proportionate shares should be calculated on a per capita basis, rather than based on the debtors' percentage interest in the former partnership. Finally, the court of appeals held that the proportionate share calculation should not consider the debtor who had settled before the suit because the judgment awarded attorney fees generated after the suit.
The supreme court affirms the court of appeals and holds that a joint debtor's proportionate share under the Act should be calculated on a per capita basis rather than on a percentage interest basis. The supreme court also holds that such a calculation should not consider a debtor who has settled prior to a suit, when the judgment at issue is for attorney fees generated after the suit.
Steve A. Miller, P.C., Denver, CO, Attorney for Petitioner.
Aronowitz Ford, LLP, Timothy C. Ford, Denver, CO, Attorneys for Respondent A. Tenenbaum Company, Inc.,
Lance P. Vanzant, Denver, CO, Attorney for Respondent John P. Dikeou.
JUSTICE RICE delivered the Opinion of the Court.