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Remedies Keyed to Kovacic-Fleischer, 8th
Cedar Lane Investments v. American Roofing Supply of Colorado Springs, Inc.
Citation:
919 P.2d 879 (1996)Facts
Allan Capps, a stockholder and employee of American Roofing Supply of Colorado Springs, Inc., embezzled more than $200,000 from the company. He used approximately $50,000 of the stolen funds as a down payment on commercial real estate that he and his wife purchased from Cedar Lane Investments pursuant to an installment land contract. The contract required monthly interest payments of $750 and a balloon payment of $100,000 after two and a half years. After taking possession, the Cappses made 30 monthly payments totaling $22,500 and constructed improvements costing over $16,000, also funded with stolen money. When the Cappses defaulted by failing to make the balloon payment, Cedar Lane commenced a forcible entry and detainer action. The trial court terminated the contract and granted Cedar Lane immediate possession after determining the Cappses had no equitable interest because the funds belonged to American Roofing. Cedar Lane then filed a quiet title action, and American Roofing counterclaimed seeking recovery of the stolen funds and equitable relief.
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