ATTORNEY FEES, CORPORATIONS, WATER – (En banc.) Appellant’s board of directors approved changes proposed by some of its stockholders, subject to conditions. After the stockholders challenged those conditions, appellant sought to have them pay the legal fees related to the defense of the challenge.
The Colorado Supreme Court held that the company’s bylaws extend liability to stockholders seeking a change of water right only for the legal and engineering expenses incurred by the board in determining whether to approve the stockholders’ requested changes, and not for additional costs and fees incurred in defending the board’s decision in subsequent legal proceedings. Affirmed. Fort Lyon Canal v. High Plains A & M