Hanley v. Four Corners Vacation Properties, Inc., Civ. A. No. C-3829.

• Decision Date: 16 August 1972
• Docket Number: Civ. A. No. C-3829.
• Citation: 349 F. Supp. 229
• Parties: Patricia J. HANLEY and Judy Hanley, Plaintiffs, v. FOUR CORNERS VACATION PROPERTIES, INC., et al., Defendants.
• Court: U.S. District Court — District of Colorado

349 F. Supp. 229

Patricia J. HANLEY and Judy Hanley, Plaintiffs, v. FOUR CORNERS VACATION PROPERTIES, INC., et al., Defendants.

Civ. A. No. C-3829.

United States District Court, D. Colorado.

August 16, 1972.

Berge, Martin & Clark, Harry M. Williams, Denver, Colo., for plaintiffs.

Hamilton, Hamilton & Shand, Durango, Colo., for defendants.

OPINION AND ORDER

CHILSON, District Judge.

The subject matter of this litigation is a judgment entered on May 10, 1971, by the District Court of Archuleta County, Colorado, in three consolidated cases (C-992, C-1097 and C-1081).

That judgment determined that "Four Corners Vacation Properties, Inc." (Four Corners) was the owner and entitled to the possession of certain lands in Archuleta county and that all claims of the defendants, Patricia J. and Judy Hanley (Hanleys), to said lands "are without merit, and defendants are forever barred and enjoined from exerting any claim or title to said lands."

No appeal was taken from the judgment and time for appeal has expired.

This action is a collateral attack upon that judgment and prays a declaration by this court that the Hanleys are the owners of the property and that Four Corners holds only an equitable lien thereon.

The matter is before the court on an agreed statement of facts which we here set forth:

"In 1965 the lands which are in dispute in this action were acquired by Judy Hanley and Patricia Hanley, subject to a purchase money trust deed granted to Luther Lee. In 1967 The Federal Lumber Co. filed a mechanic's lien covering the lands for materials supplied for improvement of the property and thereafter commenced an action against G. A. Hanley, Judy Hanley and Patricia J. Hanley, in the District Court in and for Archuleta County, State of Colorado, to foreclose that lien. A judgment by default was entered in that action in pursuance of which in September of 1968, a sheriff's sale of these lands was held.

"In October of 1969, The Federal Lumber Co. obtained a sheriff's deed pursuant to its foreclosure sale. In September of 1969, the beneficiary under the purchase money trust deed commenced foreclosure of the trust deed. On April 23, 1970, the redemption period for this foreclosure would have expired.

"To protect its interests in the property, on March 13, 1970, Four Corners Vacation Properties, Inc., who had succeeded to the interests of The Federal Lumber Co., redeemed from the Luther Lee foreclosure as an owner.

"In April of 1970, Four Corners Vacation Properties, Inc. commenced two actions in Archuleta County District Court. The first asked for the possession of the lands and the second was a quiet title action asking that the title be quieted in it. These two actions were ultimately consolidated for the purpose of hearing and trial with the original mechanic's lien foreclosure.

"On June 29, 1970, the District Judge held a pre-trial conference. A copy of the pre-trial order is attached hereto.

"In the pre-trial order the District Judge required the Hanleys to tender into Court the amount of The Federal Lumber Company judgment plus the amount which Four Corners had paid to redeem from the foreclosure sale under the Luther Lee trust deed plus interest at six per cent per annum on each amount. The Court required that this deposit be made on the day of trial which was set for August 4, 1970. Thereafter, on the application of the Hanleys, the trial setting was postponed to September 2, 1970, and the time for deposit was changed to August 19, 1970.

"The money was not deposited in Court. About that time the Hanleys commenced a proceeding for real property arrangement in Bankruptcy Court in Las Vegas, Nevada, and that court issued a stay order to the Archuleta County District Court. Subsequently, when this order was vacated upon three days' notice to the

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