- 59 -
In Mesa Sand & Gravel Co. v. Landfill, Inc., supra at 364, the
Colorado Supreme Court stated:
The purpose of section 5-12-102 [of the Colorado Re-
vised Statutes] is to discourage a person responsible
for payment of a claim to stall and delay payment until
judgment or settlement. Section 5-12-102 recognizes
the time value of money. It represents a legislative
determination that persons suffer a loss when they are
deprived of property to which they are legally enti-
tled. [Citations omitted.]
According to the U.S. Court of Appeals for the Tenth Cir-
cuit, to which an appeal in this case would normally lie, "a
'wrongful withholding' [under the Colorado statutory interest
provision] need not involve actual fraud, or indeed be tortious
in nature". Stansbury v. Commissioner, 102 F.3d 1088, 1093 (10th
Cir. 1996), affg. 104 T.C. 486 (1995). That Court of Appeals
found a wrongful withholding under the Colorado statutory
interest provision where the Colorado fraudulent conveyance
statute applied to a transfer of property. Id.
We have found that MSSTA's transfer to Mr. Scott of $104,580
of the amount that it realized from the sale of its assets to AST
is subject to the Colorado fraudulent conveyance statute. We
further find that that amount was wrongfully withheld within the
meaning of the Colorado statutory interest provision, see Stans-
bury v. Commissioner, supra, and that Mr. Scott is liable for
interest under the Colorado statutory interest provision from
March 15, 1990, to January 10, 1995.
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