{"id":1204,"date":"2013-01-21T08:23:07","date_gmt":"2013-01-21T15:23:07","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=1204"},"modified":"2013-01-21T08:23:58","modified_gmt":"2013-01-21T15:23:58","slug":"colorado-construction-law-developments-in-2012","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/colorado-construction-law-developments-in-2012\/","title":{"rendered":"Colorado Construction Law Developments in 2012"},"content":{"rendered":"<p>Scott C. Sandberg &#8211; December 2012<\/p>\n<p>While Colorado\u2019s General Assembly passed no significant legislation affecting construction law in 2012, the Colorado Court of Appeals handed down a number of significant rulings.<\/p>\n<p>In Melssen v. Auto-Owners Insurance Company, the Colorado Court of Appeals held that a notice of claim made under Colorado\u2019s Construction Defect Action Reform Act (CDARA) constitutes a \u201csuit\u201d such that an insurance company\u2019s duty to defend was triggered. Relying on a policy definition of suit that included \u201cany other alternative dispute resolution proceeding,\u201d the court found that the CDARA notice of claim process constitutes an alternative dispute resolution proceeding. The ruling is significant because in 2010 Colorado\u2019s General Assembly passed a statute that expressly states that a CDARA notice of claim triggers an insurer\u2019s duty to defend. However, courts routinely held that the statute did not apply retroactively, but instead only applies to policies in effect on or after the date the statute was passed.<\/p>\n<p>In TCD, Inc. v. American Family Mutual Insurance Company, the Court of Appeals held that an insurer\u2019s duty to defend was not triggered by allegations of faulty workmanship standing alone, i.e., without resulting damage to other property. This decision was consistent with the prior cases but also noted that C.R.S. \u00a7 13-20-808, a statute imposing a duty to defend, did not apply retroactively. As time passes and more policies are subject to the provisions of C.R.S. \u00a7 13-20-808, the decision in TCD will no longer be applicable.<\/p>\n<p>In Shaw Construction, LLC v. United Builder Services, the Court of Appeals considered when \u201csubstantial completion\u201d of an improvement to real property occurred for purposes of triggering Colorado\u2019s six-year statute of repose for construction defect claims. The case involved the construction of a multi-phase, multi-family residential project. The homeowners\u2019 association sued Shaw, the general contractor, arising out of defects at certain of the condominium buildings at the project. Shaw subsequently sued a number of the subcontractors involved with the construction of those specific buildings. The subcontractors were not sued within six years of the completion of those specific buildings, but were sued within six years of the completion of the entire project. Shaw argued that the statute of repose did not begin to run until the entire project was completed. The subcontractors argued that the statute of repose began running upon completion of the building on which they performed work (i.e., when the certificate of occupancy for the building was issued). The court agreed with the subcontractors, holding \u201cthat an improvement may be a discrete component of an entire project, such as the last of multiple residential buildings.\u201d The court declined to reach the subcontractors\u2019 other argument, namely that \u201c\u2018improvement\u2019 should be determined even more narrowly on a trade-by-trade basis.\u201d Consequently, in multi-unit and multi-phase projects, each building will likely be deemed to have its own statute of repose.<\/p>\n<p>via <a href=\"http:\/\/www.jdsupra.com\/legalnews\/under-construction-december-2012-53209\/\">Under Construction &#8211; December 2012 | Snell &amp; Wilmer L.L.P. &#8211; JDSupra<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Scott C. Sandberg &#8211; December 2012 While Colorado\u2019s General Assembly passed no significant legislation affecting construction law in 2012, the Colorado Court of Appeals handed down a number of significant rulings. In Melssen v. Auto-Owners Insurance Company, the Colorado Court of Appeals held that a notice of claim made under Colorado\u2019s Construction Defect Action Reform&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/colorado-construction-law-developments-in-2012\/\">Continue reading <span class=\"screen-reader-text\">Colorado Construction Law Developments in 2012<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[172],"tags":[24,267,27],"class_list":["post-1204","post","type-post","status-publish","format-standard","hentry","category-construction-law-2","tag-construction-defect","tag-construction-defect-action-reform-arm","tag-construction-law","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Colorado Construction Law Developments in 2012 - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/colorado-construction-law-developments-in-2012\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Colorado Construction Law Developments in 2012 - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Scott C. 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