Free Reply to Response to Motion - District Court of Colorado - Colorado

Case 1:01-cv-02018-RPM-MJW

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Civil Action No. 01-M-2018 (MJW) APARTMENT INVESTMENT AND MANAGEMENT COMPANY, a/k/a AIMCO, a Maryland corporation, Plaintiff, v. NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA, a Pennsylvania corporation; SECURITY INSURANCE COMPANY OF HARTFORD, a Connecticut corporation; FIRST CAPITAL AGENCY, INC., d/b/a FIRST CAPITAL GROUP, a New York corporation; NATIONAL PROGRAM SERVICES, INC., a New Jersey corporation; VITO B. GRUPPUSO, a New Jersey resident; ROGER METZGER ASSOCIATES, a New York corporation, Defendants -andRELATED CLAIMS.

AIMCO'S JOINT REPLY IN SUPPORT OF ITS MOTIONS FOR SUMMARY JUDGMENT ON FIRST CAPITAL GROUP'S AND ROGER METZGER ASSOCIATES' COUNTERCLAIMS

Plaintiff Apartment Investment and Management Company ("AIMCO") submits this joint reply brief in support of its motions for summary judgment against defendants First Capital Group ("First Capital") and Roger Metzger Associates ("RMA") (together, the "Broker Defendants"). AIMCO submits this joint brief because of the substantial overlap of these defendants' arguments in response to AIMCO's motions. First Capital's and RMA's counterclaims are not based on a theory that AIMCO owed them a duty which it breached. Rather, the Broker Defendants argue that they should be relieved of liability because AIMCO was allegedly "the source of its own damages." First Capital

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Response, p. 11. In the guise of "counterclaims," the Broker Defendants attempt to recycle the affirmative defense of comparative negligence. See RMA Response, p. 7 ("Metzger's counterclaims speak to issues of contributory negligence. . ."). These so-called "counterclaims" are not affirmative claims; they are defenses. Defenses and counterclaims are different. "Affirmative defenses challenge the underlying liability. Counterclaims are separate claims independent of plaintiff's underlying claim. Although common practice may be to plead the same conduct as both, they are separate and distinct pleadings accomplishing different ends." FDIC v. F.S.S.S., 829 F. Supp. 317, 322 n. 11 (D. Alaska, 1993) (citing Fed. R. CIV. P. 13(c)). Affirmative defenses are governed by Fed. R. Civ. P. 12, while counterclaims are governed by Fed. R. Civ. P. 13. "A counterclaim is an independent action in which the liability may exceed the original claims brought by plaintiff. A counterclaim must, therefore, stand or fall on its own merit." GMAC Home Services, Inc. v. Gibson Bowles, et al., 2004 U.S. Dist. LEXIS 18370, *7 (Dist. Oregon, Sept. 2, 2004) (citing City of St. Paul Alaska v. Evans, 344 F.3d 1029 (9th Cir. 2003) (granting summary judgment for plaintiff on defendant's counterclaims but permitting affirmative defenses). First Capital's and RMA's counterclaims do not allege an "independent cause of action" against AIMCO. Instead, they "challenge the underlying liability," alleging that all or part of AIMCO's damages are attributable to its own conduct. The Broker Defendants do not allege damages independent of a finding that they are liable to AIMCO.1

RMA invokes a legal fiction ­ "forced litigation" ­ and asserts that its legal fees associated with this litigation should be considered "damages" as opposed to "costs." RMA Response at 10. The cases RMA cites do not refer to such a doctrine. Instead, the cases support AIMCO's position that RMA's costs associated with this lawsuit are not recoverable damages. They hold that, to be recoverable, attorney's fees must be "the substance of the lawsuit," not costs associated with defending or pursuing litigation. Chartier v. Weinland Homes, Inc., 25 P.3d 1279, 1281(Colo. App. 2001); see also Bunnett v. Smallwood, 793 P.2d 157, 160 (Colo. 1990) (quoting Taxpayers for Animas-LaPlata Referendum v. Animas-LaPlata Water Conservancy Dist., 739 F.2d 1472, 1480 (10th Cir. 1984)).

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Both First Capital and RMA have pled AIMCO's alleged negligence as an affirmative defense. Repackaging these allegations as counterclaims is improper as a matter of law. The Court should dismiss the counterclaims. Conclusion The Court should enter summary judgment for AIMCO on First Capital's and RMA's counterclaims.

Dated: June 21, 2005

Respectfully submitted, s/ Karma Giulianelli___________________ Karma Giulianelli Lester C. Houtz BARTLIT BECK HERMAN PALENCHAR & SCOTT LLP 1899 Wynkoop Street, 8th Floor Denver, Colorado 80202 Telephone: (303) 592-3100 Fax: (303) 592-3140 E-mail: [email protected] Attorney for Plaintiff AIMCO Jeffrey A. Hall Elizabeth A. Thompson 54 West Hubbard Street, Suite 300 Chicago, Illinois 60610 Tel: (312) 494-4400 Fax: (312) 494-4440 Thomas L. Roberts Laura E. Schwartz ROBERTS, LEVINE & PATTERSON 1660 Wynkoop Street, Suite 800 Denver, Colorado 80202 Tel: (303) 575-9390 Fax: (303) 575-9385

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CERTIFICATE OF SERVICE I hereby certify that on June 21, 2005, I electronically filed the foregoing with the Clerk of Court using the CM/ECF system which will send notification of such filing to the following email addresses: Jeffrey A. Chase, Esq. Barry A. Schwartz, Esq. JACOBS CHASE FRICK KLEINKOPF & KELLEY, LLC 1050 ­ 17th Street, Suite 1500 Denver, CO 80265 [email protected]; [email protected] Attorneys for Defendant National Union via U.S. Mail via Hand Delivery via Facsimile via Overnight Mail via CM/ECF e-mail

John D. Martin, Esq. OSTER & MARTIN, LLC 717 ­ 17th St., Suite 1475 Denver, CO 80202 [email protected] Attorneys for Defendant National Union

via U.S. Mail via Hand Delivery via Facsimile via Overnight Mail via CM/ECF e-mail

Jack A. Trigg, Esq. Melissa Collins, Esq. Julie M. Walker, Esq. Steven M. Kelso, Esq. WHEELER TRIGG & KENNEDY, P.C, 1801 California Street, Ste. 3600 Denver, CO 80202 [email protected]; [email protected]; [email protected]; [email protected] Attorneys for Defendant First Capital Group

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Todd B. Denenberg, Esq. Rozana S. Widlicka, Esq. Charles R. Tuffley, Esq. GROTEFELD & DENENBERG, L.L.C. 30800 Telegraph Road, Ste. 3858 Bingham Farms, MI 48025 [email protected]; [email protected]; [email protected] Attorneys for Defendant Security of Hartford

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Paul E. Collins, Esq. Robert J. Zavaglia, Esq. TREECE, ALFREY, MUSAT & BOSWORTH, P.C. 999 ­ 18th Street, Suite 1600 Denver, CO 80202 [email protected]; [email protected] Attorneys for Roger Metzger Associates

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John T. Wolak, Esq. GIBBONS, DEL DEO, DOLAN, GRIFFINGER & VECCHIONE, P.C. One Riverfront Plaza Newark, NJ 07102 [email protected] Attorneys for Vito Gruppuso

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James M. Miletich, Esq. MCCONNELL, SIDERIUS, FLEISCHNER, HOUGHTALING & CRAIGMILE, LLC 4700 South Syracuse Street, Suite 200 Denver, CO 80237 [email protected] Attorneys for Vito Gruppuso

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William H. Jeffress, Jr., Esq. Joe Robert Caldwell, Jr., Esq. Nicholas A. Brady, Esq. Michael Massengale, Esq. BAKER BOTTS, LLP The Warner Building 1299 Pennsylvania Ave. NW Washington, DC 20004 [email protected]; [email protected]; [email protected]; [email protected] Attorneys for Ray Baldwin and Swain & Baldwin

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Leonard B. Rose, Esq. Jed D. Reeg, Esq. LATHROP & GAGE 2345 Grand Avenue, Suite 2800 Kansas City, Missouri 64108-2684 [email protected]; [email protected] Attorneys for Lockton

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John P. Mitzner, Esq. ALLMAN & MITZNER LLC 535 16th Street, Suite 727 Denver, CO 80202 [email protected] Attorneys for Ray Baldwin and Swain & Baldwin

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s/ Karma Giulianelli___________________ Karma Giulianelli Attorney for Plaintiff AIMCO BARTLIT BECK HERMAN PALENCHAR & SCOTT LLP 1899 Wynkoop Street, 8th Floor Denver, Colorado 80202 Telephone: (303) 592-3100 Fax: (303) 592-3140 E-mail: [email protected]