Opinion ID: 2575571
Heading Depth: 2
Heading Rank: 1

Heading: Statutory Interpretation of the CUDJL

Text: Whether a trial court may exercise its discretion in granting declaratory relief under the CUDJL is a matter of statutory interpretation, which we review de novo. See Gorman v. Tucker ex rel. Edwards, 961 P.2d 1126, 1128 (Colo.1998); see also Tidwell ex rel. Tidwell v. City & County of Denver, 83 P.3d 75, 81 (Colo.2003). In making this determination, we turn to traditional principles of statutory interpretation. When interpreting the meaning of a statute, our goal is to effectuate the intent of the General Assembly. Reg'l Transp. Dist. v. Lopez, 916 P.2d 1187, 1190 (Colo.1996). To achieve that end, we must consider the statutory scheme as a whole to give a consistent, harmonious, and sensible effect to each individual section. Charnes v. Boom, 766 P.2d 665, 667 (Colo.1988). The legislative declaration or purpose aids in our review. § 24203(g), C.R.S. (2005). The legislative declaration of the CUDJL specifically provides that the act be liberally construed and administered. § 13-51-102; Colo. State Bd. of Optometric Exam'rs v. Dixon, 165 Colo. 488, 493, 440 P.2d 287, 289 (1968). The plain language of the CUDJL also instructs us to interpret the act in accordance with its general purpose to make uniform the law of those states which enact it and to harmonize, as far as possible, with federal laws related to declaratory judgments. § 13-51-104, C.R.S. (2005). The CUDJL also recognizes that the courts have the broad power to declare rights, status, and other legal relations. § 13-51-105, C.R.S. (2005). By failing to define the types of rights or legal relations over which a court may issue relief, the CUDJL recognizes that the trial courts may adjudicate a wide array of subject matters. The limitations of this broad power are recognized in section 13-51-110, C.R.S. (2005). That section states: The court may refuse to render or enter a declaratory judgment or decree where such judgment or decree, if rendered or entered, would not terminate the uncertainty or controversy giving rise to the proceeding.  Id. (emphasis added). Together, those sections indicate that a trial court may exercise its discretion to declare rights, status, and other legal relations, section 13-51-105, so long as the declaratory judgment would terminate the uncertainty or controversy, section 13-51-110. See generally People ex rel. Inter-Church Temperance Movement of Colo. v. Baker, 133 Colo. 398, 404, 297 P.2d 273, 277 (1956). In light of CUDJL's mandate that the act be liberally construed and administered, the combination of these sections suggests that a trial court may declare the existence and terms of an oral contract where such a judgment would terminate an uncertainty or controversy. The Beren Sons' Corporations, however, claim declaratory judgments are limited to written contracts. To support their argument, they rely on section 13-51-106, C.R.S. (2005). Petitioners argue the section's express reference to written contracts and other writings constituting a contract requires us to construe all other references to contracts in that section as written contracts: Any person interested under a deed, will, written contract, or other writings constituting a contract or whose rights, status, or other legal relations are affected by a statute, municipal ordinance, contract, or franchise may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of rights, status, or other legal relations thereunder. § 13-51-106 (emphasis added). They claim the express inclusion of written contracts implies the exclusion of oral contracts. Petitioners correctly note the first portion of the statute is limited to written contracts: Any person interested under a. . . written contract, or other writings constituting a contract. . . . § 13-51-106. However, the word or separates the next clause:  or whose rights, status, or other legal relations are affected by a . . . contract. . . . Id. (emphasis added). Generally, we presume the disjunctive use of the word or marks distinctive categories unless the legislative intent is clearly to the contrary. Carlson v. Ferris, 58 P.3d 1055, 1057 (Colo.App.2002); see Armintrout v. People, 864 P.2d 576, 581 (Colo.1993). In the absence of expressed intent to the contrary, the arguable intent of the legislature in this instance was to separate the first clause from the second clause. The second clause refers only to contracts and not to written contracts or other writings constituting a contract, suggesting the second clause is not limited by the qualifier written. For the aforementioned reasons, the second clause of section 13-51-106 could be read to include only written contracts or be open to a broader group of contracts. Thus, it is unclear whether the language of section 13-51-106 prohibits the declaration of rights and duties arising under oral contracts. Recognizing the inherent ambiguity in section 13-51-106, standing alone, we proceed to consider the other sections of the statute to determine whether declaratory relief is appropriate under the CUDJL. See generally Allen v. Charnes, 674 P.2d 378, 381 (Colo. 1984). The legislature expressly directed that the act be construed to make uniform the laws of the states and, where possible, the federal judiciary. § 13-51-104. Thus, we first review the substantial harmony among the states and the federal judiciary in allowing declaratory relief over oral contract disputes. We then consider the statutory scheme as a whole. Charnes, 766 P.2d at 667. The language and purpose of the act also permit the declaration of the existence and terms of an oral contract.