Construction Law

GC's President Not Personally Liable For Excessive Lien

Posted on March 17, 2011
In JW Construction Co., Inc. v. Elliot, (Colo. App. Mar. 17, 2011), the Colorado Court of Appeals held, among other things, that a general contractor's president cannot be held personally liable when the corporation records a knowingly-excessive mechanics' lien...

Trust Fund Claims Are Assignable, But The Treble Damages Are Not

Posted on November 30, 2010
In People v. Adams (Colo. Nov. 30, 2010), the Colorado Supreme Court, in deciding a case regarding the unauthorized practice of law, held that trust fund claims can be assigned, but that the treble damages component of a trust fund...

Colorado Court of Appeals Addresses "Actual Damages" Under the Construction Defect Action Reform Act

Posted on November 19, 2010
In Hildebrand v. New Visa Homes II, LLC (Colo. App. Nov. 11, 2010), a division of the Colorado Court of Appeals addressed, among other things, what the proper measure of damages is for a construction defects claim under the Construction...

Owner may sue town's engineering consultant for being billed excessive tap fees

Posted on November 08, 2010
Rocky Mountain Festivals, Inc. v. Parsons Corporation (Colo. Nov. 8, 2010). Today, the Supreme Court cleared the way for a property owner to pursue claims against a town's consulting engineer for issuing a faulty report that resulted in the owner...

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Capital Infusions Are Now Trust Funds Too

Posted on September 03, 2010
In AC Excavating, Inc. v. Yale (Colo. App. Sept. 2, 2010), the Colorado Court of Appeals held that money loaned to an LLC by its manager qualifies as a disbursement, and can be the basis of a trust fund violation...

Fire Itself Triggers Statute Of Limitations, Not Discovery Of Cause

Posted on June 24, 2010
United Fire Group v. Powers Electric, Inc. (Colo. App. 2010) Today, the Colorado Court of Appeals, construing the statute of limitations for claims against construction professionals (C.R.S. 13-80-104), held that the statute of limitations for a claim against an electrician...

Lis Pendens Still Required, Even If Mechanics' Lien Is Bonded

Posted on June 10, 2010
Today, in Weize Company, LLC v. Martz Supply Co., 09CA1369 (Colo. App. June 10, 2010), a division of the Colorado Court of Appeals held that a subcontractor suing to enforce its rights to a mechanics' lien that has been substituted...

Repairs Won't Toll The Statute Of Limitations

Posted on May 10, 2010
Smith v. Executive Custom Homes (Colo. 2010) Reversing the Colorado Court of Appeals, the Colorado Supreme Court holds that the repair doctrine, which is an equitable tolling doctrine, is inconsistent with the Construction Defect Action Reform Act ("CDARA")...

The finality of arbitration cuts both ways

Posted on November 25, 2009
One reason that parties include arbitration provisions in their contracts is the belief that arbitration is less expensive than litigation. This is only partially true. Discovery is typically the most expensive part of any lawuit, and discovery has become common...

The Economic Loss Rule Still Bars Tort Claims By Contractors Against Design Professionals

Posted on April 30, 2009
Hamon Contractors, Inc., v. Carter & Burgess, Inc. (Colo. App. 2009) In this April 30, 2009, opinion, the Court of Appeals rejects the position that alleging fraud is enough to avoid application of the economic loss rule. Instead, the Court...

Silence by Developer in Response to Demand to Repair Might Be Enough to Toll Statute of Limitations

Posted on February 05, 2009
Smith v. Executive Custom Homes (Colo. App. 2009)In this construction defects case, the plaintiff admittedly filed the complaint beyond the statute-of-limitations period. But the plaintiff argued that the statute of limitations should be equitably tolled under the repair doctrine...

Loss-of-Bonding-Capacity Claims Are Back in Colorado

Posted on January 12, 2009
Denny Construction v. Denver (Colo. 2009)Reversing a Court of Appeals opinion, the Colorado Supreme Court holds that impaired bonding capacity claims are not speculative as a matter of law. Instead, like all claims for lost profits, they must be established...

Court of Appeals Addresses Unjust Enrichment Claims by Subcontractors and Suppliers

Posted on December 24, 2008
Redd Iron, Inc. v. Int'l Sales and Service Corp. (Colo. App. Dec. 24, 2008).In DCB Construction Co., Inc., v. Central City Development Co., 965 P.2d 115 (Colo. 1998), the Supreme Court of Colorado held that, in order for a property...

Owner Can Pursue Trust-Fund Claim Against General Without First Paying Subcontractors

Posted on December 24, 2008
Syfrett v. Pullen (Colo. App. Dec. 24, 2008).A division of the Court of Appeals held that a project owner has standing to sue a general contractor for violation of the trust fund statute due to the general contractor's failure to...

Can I Fire This Empoloyee Based On Off-Duty Conduct?

Posted on October 21, 2008
By Jim Goh, partner, Holland & Hart LLP. The Colorado Anti-Discrimination Act (CADA) prohibits employers from, among other things, firing employees for engaging in lawful, off-duty, off-premises activities. While this provision of CADA was originally passed to prevent employers from...

Major Developments in Colorado Insurance Coverage Law

Posted on October 06, 2008
By Joe Ramirez Insurance coverage litigation and construction defects seem to go hand in hand in Colorado. And this summer has produced some of the most significant changes in insurance coverage litigation in Colorado in decades. First, the State Legislature...

Court of Appeals Delivers A Blow To Pay And Chase In Colorado

Posted on September 18, 2008
Thermo Development, Inc. v. Central Masonry Corp. (Colo. App. Sept. 18, 2008) The Colorado Court of Appeals rules that statute allowing the maintenance of an indemnification action within 90 days of settling an underlying lawsuit does not toll the six-year...

Keeping Your Green Project Out of the Red

Posted on August 20, 2008
By Melissa A. Orien and David W. Zimmerman* With the buzz of ?going green? as the latest trend, public and private owners alike are seeking environmentally friendly construction projects. The trend comes with an increased risk of liability for designers...

Who is that worker? (Government Contractors and Forthcoming E-Verify Requirements)

Posted on July 11, 2008
By John ScorsineJuly 11, 2008 All employers have various requirements placed upon them when hiring new employees. Companies doing business with the Government have additional requirements for reporting and compliance in the realm of employment law. This last month the...

Contractor only required to repair, not replace, defective windows

Posted on June 27, 2008
Ranta Construction, Inc. v. Anderson (Colo. App. 2008) In a 34-page opinion regarding defective windows, the Court of Appeals explains at length why the homeowners' refusal to allow the contractor and window vendor to repair admittedly-defective windows justifies the trial...

Subcontractor not required to perform its paving work at midnight using teaspoons

Posted on June 26, 2008
New Design Construction Company, Inc. v. Hamon Contractors, Inc. (Colo. App. 2008) The Court of Appeals holds that the duty of good faith and fair dealing applies to a prime contractor's right to schedule and sequence the work. Additionally, the...

Cert. granted on whether subrogation waiver applies only to the "Work"

Posted on June 09, 2008
Copper Mountain, Inc. v. Industrial Systems, Inc. (Colo. 2008) Today, the Supreme Court of Colorado granted cert. on the following issue: Whether the court of appeals erred in ruling a waiver of subrogation provision in an American Institute of Architects...

Indemnification statute of limitations does not apply to claims by developer against subcontractors for recovery of costs incurred in performing warranty work

Posted on May 29, 2008
Richmond American Homes of Colorado, Inc. v. Steel Floors, LLC, et al. (Colo. App. 2008) In a construction defects lawsuit, the Court of Appeals reversed the trial court's ruling that Richmond's claims against its subcontractors were time barred to the...

Free Legal Seminar on the New Ethical Rules for Government Contractors

Posted on May 19, 2008
Between a Rock and a Hard Place: New Ethics Rules for Government Contractors A COMPLIMENTARY LEGAL SEMINAR FOR THE CONSTRUCTION INDUSTRY* 6/11/2008 Wednesday, June 11, 2008 7:30 a.m. - 10:00 a.m. Holland & Hart's Denver Office 555 17th Street, 32nd...

Plaintiff does not have to plead or prove compliance with CDARA

Posted on May 15, 2008
Land-Wells v. Rain Way Sprinkler and Landscape, LLC (Colo. App. 2008) Within the context of a personal injury action, the Colorado Court of Appeals holds that the Construction Defect Action Reform Act (CDARA) does not require the plaintiff to plead...

Colorado adopts the "active interference" exception to no-damages-for-delay clauses

Posted on May 01, 2008
Tricon Kent Co. v. Lafarge North America, Inc. (Colo. App. 2008) The Colorado Court of Appeals holds that no-damage-for-delay clauses are enforceable in Colorado, but that the "active interference" doctrine is a recognized exception to the enforceability of such clauses.

Owner's Claim Asserting Faulty Construction Insufficient To Trigger Subcontractor's Duty To Indemnify General

Posted on April 17, 2008
Boulder Plaza Residential, LLC v. Summit Flooring, LLC (Colo. App. 2008) The Colorado Court of Appeals holds that an owner's claim of alleged defective workmanship is not sufficient, under the particular subcontract at issue, to trigger the subcontractor's duty to...

Court Of Appeals Gives Lengthy Analysis Of Changed-Conditions Claims

Posted on February 07, 2008
URS Group, Inc. v. Tetra Tech FW, Inc. (Colo. App. 2008) The Colorado Court of Appeals addresses in detail the elements of, and defenses against, a Type-I differing site conditions claim.

Subrogation Waiver Covers The Entire Loss, Not Just "The Work"

Posted on November 29, 2007
Copper Mountain, Inc. v. Industrial Systems, Inc. (Colo. App. 2007) Creating a split in the Colorado Court of Appeals, a division of the Court held that the subrogation waiver in AIA A201 covers any damage to the building, not just...

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

Posted on November 26, 2007
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.

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