- 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.Page: Previous 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Next
Last modified: May 25, 2011