In re Marriage of Durie
Annotate this CaseHusband Steven Durie brought a dissolution of marriage action in April 2014. He and his then-wife, Wife Kelly subsequently exchanged sworn financial statements, mandatory disclosures, and supplemental disclosures. In line with C.R.C.P. 16.2(g), the parties jointly selected and retained an expert to value their businesses: Coin Toss, LLC, a holding company, and the two companies owned by Coin Toss: Rock Paper Scissors, Inc., d/b/a Secure Search, and Sandbox Sharing, LLC, d/b/a Safeguard from Abuse. The parties integrated this value into the property division of the marital estate set forth in their separation agreement, which was in turn, integrated into the decree of dissolution. Thirteen months after the court issued the decree of dissolution, Husband sold a portion of Secure Search’s assets to a Tennessee company, for an amount more than 685% higher than the value assigned to Coin Toss in the separation agreement. When Wife learned of the sale, and “[b]elieving she smelled a rat,” she filed a motion pursuant to Rule 16.2(e)(10) to set aside or reopen the property division in order to reallocate the proceeds from the post-decree sale. Husband moved to dismiss. Although Husband did not cite the rule in his motion, Wife urged the court to treat it as a Rule 12(b)(5) motion and to apply "Warne’s" plausibility standard in evaluating her 16.2(e)(10) motion. The court granted Husband’s motion to dismiss. Wife appealed, and the Colorado Supreme Court held that hold that Rule 12(b)(5) and the plausibility standard in Warne did not apply to Rule 16.2(e)(10) motions. Instead, the Court held that, consistent with C.R.C.P. 7(b), a Rule 16.2(e)(10) motion must “state with particularity” the grounds on which it is premised, but this did not preclude allegations that were based on information and belief when the moving party lacked direct knowledge about those allegations. “So long as the motion satisfies the particularity requirement in Rule 7(b)(1), it may include such allegations.” The matter was remanded back to the district court for further proceedings.
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