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Dorsey & Whitney LLP v. RegScan, Inc

Citation: 2018 COA 21Docket: 16CA0817

Court: Colorado Court of Appeals; February 21, 2018; Colorado; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves a legal dispute between a Colorado law firm and RegScan, a Pennsylvania-based company, over unpaid legal fees. The law firm sued RegScan in Denver for breach of contract and account-stated, leading to a jury awarding the firm $373,707.43. On appeal, RegScan challenged the district court's specific personal jurisdiction, as well as procedural rulings on expert testimony, jury instructions, and evidence exclusion under CRE 408. The appellate court affirmed the district court's judgment, concluding that RegScan had sufficient contacts with Colorado, justifying personal jurisdiction. The court also found that any errors in jury instructions or expert testimony were harmless and that the exclusion of settlement-related emails was proper under CRE 408. The case underscores the application of personal jurisdiction principles and evidentiary rules in contractual disputes, emphasizing the adequacy of jurisdictional contacts and the fairness of the fee arrangement.

Legal Issues Addressed

Breach of Contract and Jury Instructions

Application: The absence of a fairness element in the jury instructions for breach of contract was deemed harmless, as the fee agreement was based on hourly billing and considered reasonable.

Reasoning: RegScan contends that the court erred by not including a fairness element in the instruction. However, the court's omission was deemed harmless, as the elements of a breach of contract claim are well-established.

Exclusion of Evidence Under CRE 408

Application: The court upheld the exclusion of emails as evidence under CRE 408, determining they were part of settlement negotiations and irrelevant to the breach of contract claim.

Reasoning: The trial court determined that the emails were indeed subject to CRE 408, as a claim or dispute existed at the time of the communications.

Expert Testimony and CRE 703

Application: The court found no reversible error in allowing expert testimony on billing records based on pro forma bills not admitted into evidence, aligning with CRE 703's allowance for expert reliance on inadmissible facts.

Reasoning: The court found no reversible error in this regard... CRE 703 allows experts to base opinions on facts they reasonably rely on, even if those facts are inadmissible.

Fairness of Fee Agreements

Application: The court concluded that the fee agreement was fair and reasonable, rejecting RegScan's arguments of exploitation and finding no evidence of undue influence.

Reasoning: Overall, RegScan's attempt to portray itself as a victim of a predatory law firm is not supported by the evidence, which strongly indicates that the fee agreement was fair and reasonable.

Specific Personal Jurisdiction

Application: The court found that specific personal jurisdiction over RegScan was appropriate due to its significant contacts with the Colorado law firm, including frequent communications and the establishment of an attorney-client relationship with Colorado-based attorneys.

Reasoning: The court determines that jurisdiction exists based on RegScan's active engagement with the Colorado law firm, including daily communications and payment of the retainer in Colorado.