O’Neals to pay some of City’s attorney fees; larger request denied

    The City of Holyoke’s request for attorney fees from Rupert and Claire O’Neal with regard to litigation that started in 2015 was heard by Judge Christopher Munch in Phillips County District Court in Holyoke Thursday, Jan. 25.
    After close to three and a half hours, Munch ruled for the City with regard to claims filed by the O’Neals on three violations of open meetings law and a trespassing claim, saying the O’Neals are responsible for those attorney fees.
    However, the larger portion of requested attorney fees was for litigation surrounding the City’s counterclaim to quiet the title on the drainage water pit area on O’Neal land southeast of Cobblestone Inn & Suites on the south end of Holyoke. It also involved easement issues and the O’Neals’ counter to the counterclaim for inverse condemnation.
    Munch ruled that the O’Neal position was a reasonable argument before a motion for summary judgment was issued in favor of the City June 21, 2016. As a result, the claim was not frivolous nor groundless, and therefore the O’Neals are not responsible for the City’s attorney fees in that portion of the litigation regarding the quiet title and other issues surrounding it.
    On the initial open meetings violations claims, Munch said they were both frivolous and groundless because the City followed correct procedures for executive session. With respect to the trespass claim, the judge cited government immunity, calling that claim frivolous and groundless, as well.
    The judge ruled that the full amount of attorney fees for that portion of the request should be paid by the O’Neals. That involved $21,940 in fees, plus $118.50 in costs for a total of $22,058.50.
    The attorney for that portion was Steven Dawes of Denver, who was assigned the case by Colorado Intergovernmental Risk Sharing Agency, a self-insurance pool that the City of Holyoke is a member of.
    Murray, Dahl & Kuechenmeister LLP represented the City in the quiet title dispute, which the City filed after being threatened with trespass violations. The dispute also included the inverse condemnation claim by the O’Neals. Those attorney fees (around $75,000) were not deemed by Judge Munch to be O’Neal responsibility.
    Steven Taffet represented the O’Neals in last week’s hearing. Presenting the City’s requests for attorney fees were Dawes and Joseph Rivera of Murray, Dahl & Kuechenmeister LLP.
    Malcolm Murray has been the primary attorney for the City in the litigation involving the O’Neals and was called as a witness in Thursday’s hearing.
    Afterward, Murray said it’s very hard to get attorney fees, even on frivolous and groundless claims, and they were pleased the judge ruled for the City with regard to rewarding the full request for fees for the open meetings law violations and trespass claims.
    While the request for payment of attorney fees by the O’Neals was not granted in the litigation for quieting the title in an easement right, Murray said, “It is satisfying to know that you brought something before the court that the court took very seriously.”
    He commented that the result of the hearing was very fair.
    While Taffet represented the O’Neals last Thursday, Russell Sprague of Cline Williams (formerly Colver, Killin & Sprague) of Holyoke commented on the outcome.
    Sprague has represented the O’Neals in their development attempts in the City of Holyoke.
    He said the dispute dates back to 2013 when the O’Neals tried multiple times to develop their property east of Highway 385 and south of Johnson Street. The City’s wastewater pit on O’Neal land that has been used since 1986 became an issue.
    Sprague said that the O’Neals emphasize the point, “Where are we now?” They still want to develop that area and in fact currently have two subdivision exemption requests in front of the city council.
    The O’Neals contend that the city is now five years further behind on development and at least $75,000 of taxpayer money has gone toward a lawsuit rather than good, positive development and progress for the city.
    A June 21, 2016, summary judgment by Judge Douglas R. Vannoy agreed with the City’s counterclaim to quiet the title of the “pit” property and to maintain and use the pit as had been done for close to 30 years. After a Feb. 24, 2017, evidentiary hearing, on July 18, 2017, Judge Charles Hobbs ruled with the City in defining the easement boundary for the pit area.
    On Sept. 20, 2017, the O’Neals filed an appeal with the Colorado Court of Appeals with regard to the lawsuit with the City of Holyoke. No decision has been reached in the appeal.
    In addition to the issues already on appeal in the case, the recent granting of attorney fees may be added by the O’Neals to that appeal, noted Sprague.