Construction Law

Lost Bonding-Capacity Claims Are Too Speculative (on cert.)

By Timothy Gordon

Denny Construction v. Denver (Colo. App. 2007)

The Colorado Court of Appeals held that, as a matter of law, lost bonding-capacity claims are too speculative.

The Court also addressed various provisions in a typical contract that give the owner discretion (like granting extensions), and how exercising that discretion can result in a claim for breach of the duty of good faith and fair dealing.

UPDATE: On 11/26/2007, the Colorado Supreme Court grated cert. on the following issue: "Whether Colorado law prohibits lost profits arising out of the loss of bonding capacity as a matter of law." (07SC236)

Read slip opinion

Full post as published by Colorado Construction Law on November 26, 2007 (boomark / email).