Third Judicial Judge Grants Partial Summary Judgment to City of Trinidad

Third Judicial Judge Grants Partial Summary Judgment to City of Trinidad

Court rules first claim for Relief for the City of Trinidad after ARPA’s breach of obligation.

Trinidad, Colorado——-Late Tuesday afternoon Third Judicial District Judge Leslie Gerbracht in a decision that helped bring an end to the long litigation between the City of Trinidad and Arkansas River Power Authority (ARPA).  Gerbracht granted a partial summary judgment on the City of Trinidad’s first claim for relief resulting from ARPA’s breach of obligation to obtain member-municipality approval prior to issuing the 2010 Series Bonds.

Trinidad City Council Woman Michelle Miles told the council Tuesday night about the ruling just hours after it occured. “This is an important part of our lawsuit against ARPA, this leaves us (The City of Trinidad) in a good place.” Miles told Around SoCO on Tuesday. “Our lawyers are still digesting this. This seems to be very good news for us.”

The City of Trinidad filed the breach of contract rescission, and impracticability of performance back in 2010.  The City of Trinidad claimed that ARPA did not file a written notice to Trinidad or other Member Municipalities of ARPA’s intent to commit funds for the LRP for the Series 2010 Bonds in the principal amount of $17, 260,000. The judgment states that, “It is undisputed that ARPA did not file the written notice under section 2.4 of the Organic Contract which requires approval prior to the issuance of “any bonds”, in connection with the Project.

This was just a judgment not an award according to city officials.

ARPA argued that under section 2.44(a) if the contract APRA is authorized to fully provide funds for that project through the issuance of bonds without seeking additional Member Municipality approval. ARPA also states that if there was a breach of the organic contract that it was not a material breach, also APRA claimed that Trinidad did approve the 2010 Series Bonds and Trinidad should equally be estopped from arguing that ARPA failed to obtain additional approvals. Finally ARPA’s argument states that Trinidad’s first claim for relief is barred by the statute of limitations C.R.S. 11-57-212.

Gerbracht ruled that indeed ARPA was in breach of its obligations to the City of Trinidad thus granting the Partial Summary Judgment for Trinidad’s first claim for relief.

Miles also informed the Trinidad City Council Tuesday night that a Global Mediation will be held on Friday November 22, 2013 in Denver bringing all of the parties together, The City of Trinidad, ARPA, the Boiler Manufacturer, and the securer of the bonds. The hope is that a solution will be reached that works for all involved to bring this to a conclusion.