Opinion ID: 160788
Heading Depth: 1
Heading Rank: 4

Heading: Release and Contribution

Text: Defendant next claims that the court erred in granting summary judgment against him on his release from liability defense. Defendant maintains that in exchange for ratification of the Giddings Building deed, he was released from liability on the two bank notes as to both the banks and Plaintiffs. Plaintiffs point -8- out that Defendant did not also sign the mutual release on the indebtedness that they proffered to him. Nevertheless, Defendant argues that his negotiations with Plaintiffs over a mutual release in return for the Giddings ratification constituted an implied release of his obligations on the notes to both the banks and to Plaintiffs. However, Defendant fails to substantiate his inventive argument. Defendant had full opportunity to sign Plaintiffs’ proposed release and refused to do so. In addition, as the district court held, a release of his indebtedness to the banks did not relieve him of liability to his partners under the partnership and joint venture agreements. Viewing the evidence in the light most favorable to Defendant, there is no triable issue concerning Defendant’s release claim. Defendant next contests the district court’s grant of summary judgment on Plaintiffs’ contribution claim. The court found that Defendant admitted failing to make capital contribution payments in breach of the partnership and joint venture agreements. In addition, Defendant did not dispute that, pursuant to the terms of the joint venture agreement, Plaintiffs made capital contributions on his behalf until dissolution and termination of the partnership and joint venture. Nevertheless, Defendant argues that Plaintiffs did not follow the contribution procedures described in the partnership and joint venture agreements, which allow Plaintiffs to pay Defendant’s capital contributions and then buy out his interest. Defendant claims that he should have been bought out under these procedures -9- instead of held liable for his breach. However, as the district court noted, the joint venture agreement also states that “nothing in the agreement is intended to limit the rights ‘at law or by statute or otherwise’ of any party aggrieved by the agreement’s breach.” App. at 243. The court also observed that under Colorado law, a partner “shall contribute toward the losses whether of capital or otherwise sustained by the partnership according to his share in the profits.” C OLO . R EV . S TAT . § 7-60-118(1)(a). The court then held that section 118(1)(a) conferred upon Plaintiffs the right to collect the capital contributions that Defendant failed to provide. Defendant presented no genuine issue of material fact for the court to decide. In addition, Defendant identifies no error in the court’s reasoning under Colorado law, nor does he present evidence indicating a mandated hierarchy of Plaintiffs’ remedies for his breach. Thus, the court did not err in granting Plaintiffs’ motion for summary judgment on their contribution claim.