The Colorado Court of Appeals affirmed a trial court’s judgment in favor of the Cuerna Verde Association in a dispute with homeowner Alva Adams. The central issues revolved around Adams’ refusal to pay membership dues and his challenges to the association’s corporate existence and authority.
The court found that despite being administratively dissolved in 1977 for failing to file paperwork, Cuerna Verde continued to operate and was therefore considered an unincorporated nonprofit association. The court also rejected Adams’ argument that the association lacked authority due to a purported “reorganization” in 1993, stating that the original 1913 incorporation remained valid.
Furthermore, the court upheld the trial court’s finding that the Cuerna Verde bylaws constituted an enforceable contract requiring Adams to pay dues. Adams’ argument that the bylaws were not a valid contract was deemed unpreserved as he had used the same bylaws to assert counterclaims. The court also determined that the Colorado Common Interest Ownership Act (CCIOA) did not apply to Cuerna Verde as it was established before CCIOA’s effective date and never recorded a declaration as required by the Act.
Finally, the court found that the amended bylaws, which included a provision for attorney fees, were applicable and provided a contractual basis for awarding fees to Cuerna Verde as the prevailing party. The court rejected Adams’ arguments that the amendment was an ex-post facto law. Cuerna Verde’s request for appellate attorney fees was denied.
