{"id":784601,"date":"2015-06-12T06:30:29","date_gmt":"2015-06-12T12:30:29","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=784601"},"modified":"2015-06-01T13:34:59","modified_gmt":"2015-06-01T19:34:59","slug":"colorado-court-rules-developers-in-common-interest-communities-can-require-arbitration-of-defect-claims-even-after-they-sell-last-interest","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/colorado-court-rules-developers-in-common-interest-communities-can-require-arbitration-of-defect-claims-even-after-they-sell-last-interest\/","title":{"rendered":"Colorado Court Rules Developers in Common Interest Communities can Require Arbitration of Defect Claims even after they Sell Last Interest"},"content":{"rendered":"<p>Daniel E. Evans | Gordon &amp; Rees LLP | May 28, 2015<\/p>\n<p>Condo developers in Colorado scored a victory this month in a decision from the Colorado Court of Appeals. In Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et al, the court held that a clause contained in a homeowner association\u2019s declaration requiring arbitration of construction defects claims cannot be amended without consent of the developer\/declarant if the declaration requires its consent. This is the case even if the declarant no longer owns any units, provided the declaration reserves the right to declarant after it sells its last interest in the community.<\/p>\n<p>In Vallagio, the declaration required the developer\/declarant\u2019s consent to any change in the declaration\u2019s requirement that construction defects be tried in arbitration. After the homeowner\u2019s association gained control, it amended the declaration to eliminate the arbitration requirement. It then file suit in court against the developer. The trial court held the association\u2019s vote eliminating the arbitration requirement was valid, but the Colorado Court of Appeals reversed finding the amendment invalid because it did not first obtain the developer\/declarant\u2019s consent to the change.<\/p>\n<p>The Vallagio decision is good news in the wake of the failure of state legislative efforts to encourage further condo development in Colorado. This spring, the Colorado house rejected legislation, passed by the state senate, that stated when the governing documents of a common interest community require mediation or arbitration of a construction defect claim and the requirement is later amended or removed, mediation or arbitration is still required for a construction defect claim.<\/p>\n<p>via <a href=\"http:\/\/www.lexology.com\/library\/detail.aspx?g=0d12213d-805c-4f69-a1ad-d64fd04a9c0c\">Colorado Court rules developers in common interest communities can require arbitration of defect claims even after they sell last interest &#8211; Lexology<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Daniel E. Evans | Gordon &amp; Rees LLP | May 28, 2015 Condo developers in Colorado scored a victory this month in a decision from the Colorado Court of Appeals. In Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et al, the court held that a clause contained in a homeowner association\u2019s&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/colorado-court-rules-developers-in-common-interest-communities-can-require-arbitration-of-defect-claims-even-after-they-sell-last-interest\/\">Continue reading <span class=\"screen-reader-text\">Colorado Court Rules Developers in Common Interest Communities can Require Arbitration of Defect Claims even after they Sell Last Interest<\/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":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41,4,3],"tags":[42,228,19,3],"class_list":["post-784601","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-construction-defects","category-insurance-claims","tag-arbitration-2","tag-construction-defect-claims","tag-construction-defects-2","tag-insurance-claims","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 Court Rules Developers in Common Interest Communities can Require Arbitration of Defect Claims even after they Sell Last Interest - 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-court-rules-developers-in-common-interest-communities-can-require-arbitration-of-defect-claims-even-after-they-sell-last-interest\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Colorado Court Rules Developers in Common Interest Communities can Require Arbitration of Defect Claims even after they Sell Last Interest - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Daniel E. Evans | Gordon &amp; Rees LLP | May 28, 2015 Condo developers in Colorado scored a victory this month in a decision from the Colorado Court of Appeals. In Vallagio at Inverness Residential Condominium Association, Inc. v. 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