Justia Government & Administrative Law Opinion Summaries

With the approval of the Public Utilities Commission (PUC), in 2005 the Public Service Company of Colorado (Xcel) began constructing a coal-fired electric power unit known as "Comanche 3." When Xcel sought to recover a portion of its construction costs nearly four years later in a rate proceeding, Petitioner Leslie Glustrom intervened. Petitioner sought to introduce testimony that Xcel acted improperly and, consequently, should not recover its costs. The PUC excluded most of her testimony, a ruling that Petitioner challenged. Petitioner separately challenged the depreciation rate and the possibility that Comanche 3 might not be "used and useful" at the time rates went into effect. The PUC denied her challenges, and the district court affirmed. Upon review, the Supreme Court held that the PUC did not abuse its discretion when it struck substantial portions of Petitioner's testimony pursuant to the Colorado Rules of Evidence. Further, the depreciation rate approved by the PUC was established pursuant to law and in accordance with the evidence. Lastly, the PUC was free to exercise its discretion in departing from a strict application of the "used and useful" principle. Petitioner failed to meet her burden in showing why such a departure here would result in a rate that is unjust and unreasonable in its consequences.

In 2006,Jefferson County purchased securities through Capital Securities, Inc., Jerry Manning, and Adam Alves a purchase later determined unlawful under section 24-75-601.1, C.R.S. (2008). The county sued Capital Securities and, among other things, sought to disgorge the commissions earned by Capital Securities under a theory of common law restitution. Both the trial court and the court of appeals concluded that restitution was appropriate and ordered Capital Securities to disgorge their commissions. The Supreme Court granted certiorari to examine whether restitution is an appropriate remedy in this context. Upon review, the Court held that it was not, and reversed the court of appeals: "The statutory scheme adopted by the General Assembly expressly sets forth a number of remedies available to a public entity against a seller when . . .the public entity unlawfully purchases securities under section 24-75-601.1. These remedies include forcing the seller to repurchase the securities 'for the greater of the original purchase principal amount or the original face value, plus any and all accrued interest, within one business day of the demand.' . . . Further, the securities commissioner may, inter alia, suspend or revoke a seller's license or license exemption if he 'knew or should have known' the securities were unlawful under section 24-75-601.1. sec. 11-51-410(k), C.R.S. (2011); sec. 11-51-402(4)(a), C.R.S. (2011)."

The issue before the Supreme Court was whether section 38-5-105 C.R.S. (2011) granted condemnation authority to a company for the construction of a petroleum pipeline. Upon review, the Court concluded that the General Assembly did not grant expressly or implication, the power of eminent domain to companies for the construction of pipelines conveying petroleum. Therefore, section 38-5-105 did not grant that authority to Respondent Sinclair Transportation Company for its proposed pipeline project. The Court reversed the court of appeals' opinion that upheld the trial court's order granting Sinclair immediate possession of the property belonging to Petitioners Ivar and Donna Larson and Lauren and Kay Sandberg.

The two appeals consolidated for resolution in this case both arose from an attempt by John C. Harrison, acting as personal representative for the estate of Nolan G. Thorsteinson and trustee of The Margie (Dotts) M. Thorsteinson Trust, to avoid an order declaring abandoned a disputed 1.04 c.f.s. interest in the Mexican Ditch. Harrison appealed directly to the Supreme Court adverse rulings of the Water Court in the two cases. With regard to Harrison's Application for a Change of Water Right, the water court granted the Engineers' motion to dismiss at the close of Harrison's case, finding that he was required but failed, to establish the historic use of the right as to which he sought a change in the point of diversion. With regard to Harrison's protest to the inclusion of the interests he claimed in the Mexican Ditch on the Division Engineer's decennial abandonment list, the water court granted the Engineer's motion for abandonment, as a stipulated remedy for Harrison's failure to succeed in his change application. Upon review, the Supreme Court concluded that because Harrison neither proved historic use of the right for which he sought a change nor was excepted from the requirement that he do so as a precondition of changing its point of diversion; and because denying a change of water right for failing to prove the historic use of the right did not amount to an unconstitutional taking of property, the water court's dismissal of Harrison's application was affirmed. But because, Harrison did not stipulate to an order of abandonment as the consequence of failing to succeed in his change application, only as the consequence of failing to timely file an application reflecting historic use, the water court's order granting the Engineers' motion for abandonment was reversed.

Respondent Colorado Public Utilities Commission challenged the subject matter jurisdiction of the district court of Routt County to consider changing the venue in regard to a petition for judicial review, arguing that the petitioner failed to meet the requirements of section 40-6-115(1) and (5), C.R.S. (2011). Holding that section 40-6-115(5) pertained to venue, not jurisdiction, the Routt County District Court allowed a transfer of the case to the District Court for the City and County of Denver. The Supreme Court issued a rule to show cause why the case should not be dismissed. Upon review, the Court agreed with the district court: section 40-6-115(5) mandated venue and did not limit jurisdiction. Accordingly, the Court discharged the rule. On remand, the Routt County District Court could transfer this case to the Denver District Court.

Qwest Corporation and the Colorado Public Utilities Commission (PUC) appealed a district court's judgment in favor of the Colorado Office of Consumer Counsel (OCC) that reversed the PUC's decision setting the maximum rate for certain telephone services. Upon review, the Supreme Court concluded that the PUC regularly pursued its authority because it considered all of the statutorily-mandated factors and its decision is supported by substantial evidence. The Court therefore reversed the judgment of the district court.

Respondent Colorado Public Utilities Commission challenged the subject matter jurisdiction of the district court of Routt County to consider changing the venue in regard to a petition for judicial review, arguing that Petitioner Associated Governments of Northwestern Colorado failed to meet the requirements of section 40-6-115(1) and (5), C.R.S. (2011). Holding that section 40-6-115(5) pertained to venue and not jurisdiction, the Routt County District Court allowed a transfer of the case to the District Court for the City and County of Denver. Upon review, the Court agreed with the district court, and held that section 40-6-115(5) mandated venue and did not limit jurisdiction. Accordingly, the Court discharged the rule. On remand, the Routt County District Court may transfer this case to the Denver District Court.

Plaintiff Jesse Reynolds and the owners of several other ditches that divert water from La Jara Creek appealed an order of the Water Court that denied their claim for declaratory relief. Plaintiffs sought a declaration that their appropriative rights to creek water were not limited to water flowing into the creek from the San Luis Valley Drain Ditch. Without directly addressing the merits of their claim, the water court granted summary judgment in favor of the State and Division Engineers (as well as other defendants) on the grounds that substantially the same issue had been litigated and decided against Plaintiffs in a prior declaratory action. The court concluded that all of the water rights of the parties in La Jara Creek were not only at issue, but were finally determined in that prior litigation, and therefore Plaintiffs’ claims were precluded. Upon review, the Supreme Court concluded that Plaintiffs' claims had not been determined in the prior litigation (either expressly or by implication), and that the grant of summary judgment was inappropriate. The Court reversed the water court's judgment and remanded the case for further proceedings.

In an original proceeding, the Supreme Court reviewed the Ballot Title Setting Board's findings that proposed Initiative 2011-2012 No. 45, its title, and its ballot title and submission clause contained a single subject. Upon review, the Court held that the Title Board was correct: Initiative 45 and its Titles stated a single subject: "public control of waters." The Court concluded this title complied with article V section 1(5.5) of the Colorado Constitution and section 1-40-106.5, C.R.S. (2011).

In an original proceeding, the Supreme Court reviewed the Ballot Title Setting Board's findings that proposed Initiative 2011-2012 No. 3, its title, and its ballot title and submission clause contained a single subject. Upon review, the Court held that the Title Board was correct: Initiative 3 and its Titles stated a single subject: "the public's rights in the waters of natural streams." The Court concluded this title complied with article V section 1(5.5) of the Colorado Constitution and section 1-40-106.5, C.R.S. (2011).