The Colorado Supreme Court issued its opinion in Town of Minturn v. Sensible Housing Co. on April 9, 2012.
Priority of Jurisdiction—Annexation—CRS § 31-12-116—Judicial Review of Annexation Proceedings.
The Supreme Court reversed the judgment of the court of appeals, holding that the priority rule may not be applied to municipal annexation proceedings because those proceedings are a legislative function. The priority rule states that, where two courts may exercise jurisdiction over the same parties and subject matter, the second action should be stayed until the first action has been determined.
In 2008, the Town of Minturn annexed nine parcels of property for which the parties petitioning for annexation claimed 100% ownership. Sensible Housing Co., Inc. (Sensible) petitioned for judicial review of the annexation proceedings under CRS § 31-12-116, claiming that, due to an ongoing quiet title dispute regarding two of the annexed parcels, Minturn’s annexation was improper. The court of appeals reversed a district court order dismissing Sensible’s judicial review action and voided the annexation, reasoning that Minturn should not have adopted its annexation ordinances pending the outcome of the quiet title litigation.
The Court concluded that the priority rule may not be applied to void Minturn’s annexation ordinances because annexations are legislative in nature. Such application is inconsistent with the purpose of the priority rule and the proper judicial and legislative roles in annexation proceedings. Because judicial review of the annexation proceedings commenced after the quiet title litigation and both actions involved the same parties and subject matter, the Court held that the proper remedy here was to stay judicial review of the annexation proceedings pending the outcome of the quiet title litigation. The case is remanded to the district court.
Summary and full case available here.
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Sensibly, one cannot determine if the annexation is void for lack of appropriate ownership behind the annexation petition until the quiet title matter has been resolved. It’s not ripe for challenge until that point.