{"id":897424,"date":"2020-05-05T10:46:15","date_gmt":"2020-05-05T16:46:15","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897424"},"modified":"2020-05-05T10:46:19","modified_gmt":"2020-05-05T16:46:19","slug":"potential-extension-colorado-construction-defect-claims","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/potential-extension-colorado-construction-defect-claims\/","title":{"rendered":"Potential Extension of the Statutes of Limitation and Repose for Colorado Construction Defect Claims"},"content":{"rendered":"\n

David McLain | Colorado Construction Litigation<\/a><\/p>\n\n\n\n

On January 27th<\/sup>,\u00a0Senator Robert Rodriguez\u00a0introduced\u00a0SB 20-138\u00a0into the Colorado Legislature.\u00a0\u00a0The bill has been assigned to the Senate Judiciary Committee and has not yet been scheduled for its first hearing in that committee.\u00a0\u00a0In short, Senate Bill 20-138, if enacted, would:<\/p>\n\n\n\n

1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Extend Colorado\u2019s statute of repose for construction defects from 6+2 years to 10+2 years;<\/p>\n\n\n\n

2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Require tolling of the statute of repose until the claimant discovers not only the physical manifestation of a construction defect, but also its cause; and<\/p>\n\n\n\n

3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Permit statutory and equitable tolling of the statute of repose.
<\/p>\n\n\n\n

Colorado\u2019s statute of repose for construction defect claims are codified at C.R.S. \u00a7 13-80-104.\u00a0\u00a0In 1986, the Colorado Legislature set the statute of repose period at 6+2 years.\u00a0\u00a0For the last 34 years, Colorado\u2019s statute of repose for owners\u2019 claims against construction professionals has been substantially the same,\u00a0to wit<\/em>:
<\/p>\n\n\n\n

(1)\u00a0\u00a0(a) Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property shall be brought within the time provided in\u00a0section 13-80-102\u00a0after the claim for relief arises, and not thereafter, but in no case shall such an action be brought more than six years after the substantial completion of the improvement to the real property, except as provided in subsection (2) of this section.
<\/p>\n\n\n\n

(2)\u00a0\u00a0In case any such cause of action arises during the fifth or sixth year after substantial completion of the improvement to real property, said action shall be brought within two years after the date upon which said cause of action arises.
<\/p>\n\n\n\n

C.R.S. \u00a7 13-80-104.
<\/p>\n\n\n\n

The language of SB 20-138 would amend these sections to read:
<\/p>\n\n\n\n

(1) (a) Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property\u00a0shall<\/s>\u00a0MUST\u00a0be brought within the time provided in section 13-80-102 after the claim for relief arises, and not\u00a0thereafter<\/s>\u00a0LATER, but in no case\u00a0shall such<\/s>\u00a0MAY\u00a0an action be brought more than\u00a0six<\/s>\u00a0TEN\u00a0years after the substantial completion of the\u00a0improvement<\/s>\u00a0IMPROVEMENTS\u00a0to the real property, except as provided in subsection (2) of this section.
<\/p>\n\n\n\n

(2)\u00a0In case<\/s>\u00a0IF\u00a0any such cause of action\u00a0DESCRIBED IN SUBSECTION (1) OF THIS SECTION\u00a0arises during the\u00a0fifth<\/s>\u00a0NINTH\u00a0or\u00a0sixth<\/s>\u00a0TENTH\u00a0year after substantial completion of the\u00a0improvement<\/s>\u00a0IMPROVEMENTS\u00a0to real property,\u00a0said<\/s>\u00a0THE\u00a0action\u00a0shall<\/s>\u00a0MUST\u00a0be brought within two years after the date upon which\u00a0said<\/s>\u00a0THE\u00a0cause of action arises.
<\/p>\n\n\n\n

It cannot be overstated what a devastating effect this would have on the ability of builders to provide affordable or attainable housing in Colorado.\u00a0\u00a0Such a shock to the system would make insurers shy away from insuring projects more than they already do.\u00a0\u00a0With the hardening of the insurance market as it is, this would certainly not help the housing crisis in Colorado.
<\/p>\n\n\n\n

With respect to the accrual of construction defect claims, Senate Bill 138 would change Colorado law as follows:
<\/p>\n\n\n\n

(b) (I) Except as otherwise provided in\u00a0subparagraph (II) of this paragraph (b)<\/s>\u00a0SUBSECTION (1)(b)(II) OF THIS SECTION, a claim for relief arises under this section at the time the claimant or the claimant’s predecessor in interest discovers or in the exercise of reasonable diligence should have discovered\u00a0BOTH\u00a0the physical manifestations\u00a0AND THE CAUSE\u00a0of a defect in the improvement\u00a0which<\/s>\u00a0THAT\u00a0ultimately causes the injury.
<\/p>\n\n\n\n

Enactment of this section would legislatively overturn a long line of Colorado Appellate Court decisions, including\u00a0Highline Village Assocs. v. Hersh Cos., 996 P.2d 250, 253 (Colo. App. 1999) (holding, \u201cunder the contractors\u2019 statute, a claim accrues when a physical manifestation of a defect appears, even though its cause is not known at that time.\u201d);\u00a0United Fire Group v. Powers Elec., Inc., 240 P.3d 569, 572 (Colo. App. 2010) (stating, \u201cwe also conclude that it was not necessary to know that the defect caused the fire for the fire to be the defect\u2019s physical manifestation.\u201d), and;\u00a0Broomfield Senior Living Owner, LLC v. R.G. Brinkmann Co., 413 P.3d 219, 226 (Colo. App. 2017)\u00a0(\u201cAccrual under CDARA, therefore, depends on the discovery of the\u00a0manifestation<\/em>\u00a0of the defect and\u00a0not its cause.\u201d) (emphasis in the original).
<\/p>\n\n\n\n

Finally, with respect to equitable tolling of the statute of repose, Senate Bill 138 inserts a section, which reads:
<\/p>\n\n\n\n

(3) The limitations provided by this section:
<\/p>\n\n\n\n

(a)\u00a0ARE SUBJECT TO BOTH STATUTORY AND EQUITABLE TOLLING;
<\/p>\n\n\n\n

There are several statutes that may toll the statute of repose, including C.R.S. 13-80-104(3), which this bill would amend to read:
<\/p>\n\n\n\n

(3) The limitations provided by this section:<\/p>\n\n\n\n

*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0*<\/p>\n\n\n\n

(b)\u00a0Shall<\/s>\u00a0MAY\u00a0not be asserted as a defense by any person in actual possession or control, as owner or tenant or in any other capacity, of\u00a0such<\/s>\u00a0an improvement at the time any deficiency in\u00a0such an<\/s>\u00a0THE\u00a0improvement constitutes the proximate cause of the injury or damage for which it is proposed to bring an action.
<\/p>\n\n\n\n

Colorado\u2019s Common Interest Ownership Act also provides for statutory tolling for claims brought under C.R.S. \u00a7 38-33.3-311(1), which states, in pertinent part: \u201cAny statute of limitation affecting the association\u2019s right of action under this section is\u00a0tolled\u00a0until the period of\u00a0declarant\u00a0control\u00a0terminates.\u201d\u00a0\u00a0While it is hard to conceive of a claim that would arise under this section arising out of a construction defect claim, it may be theoretically possible.
<\/p>\n\n\n\n

In any event, the fact that Senate Bill 138 seeks to provide for equitable tolling is a frontal assault on the Colorado Supreme Court, which previously did away with the repair doctrine, a form of equitable tolling, by stating: \u201c”equitable tolling is not permissible where it is inconsistent with the text of the relevant statute.\u201d\u00a0\u00a0Smith v. Exec. Custom Homes, Inc., 230 P.3d 1186, 1191-1192 (Colo. 2010).\u00a0\u00a0The Court concluded on this issue, stating: \u201cequitable tolling pursuant to the repair doctrine is inconsistent with the CDARA [the Construction Defect Action Reform Act, C.R.S. \u00a7 13-20-801,\u00a0et seq.<\/em>] because the CDARA already provides an adequate legal remedy in the form of statutory tolling of the limitations periods under specific and defined circumstances, including during the time in which repairs are being conducted.\u201d\u00a0\u00a0Id.
<\/p>\n\n\n\n

It remains to be seen whether this bill gets legs at the state legislature, stay tuned in that regard.\u00a0\u00a0Between this and\u00a0SB 20-093, previously discussed, it appears that after quiet session in 2019, the plaintiffs\u2019 lawyers are back at the Colorado State Capitol, with a vengeance, seeking their laundry list of legislative changes to open the tap for construction defect litigation.\u00a0\u00a0Will one-way attorneys\u2019 fees provisions and uncapping the treble damage component of the Colorado Consumer Protection Act be next?\u00a0\u00a0I hope not, but this legislative session is certainly starting off with a bang.<\/p>\n","protected":false},"excerpt":{"rendered":"

David McLain | Colorado Construction Litigation On January 27th,\u00a0Senator Robert Rodriguez\u00a0introduced\u00a0SB 20-138\u00a0into the Colorado Legislature.\u00a0\u00a0The bill has been assigned to the Senate Judiciary Committee and has not yet been scheduled for its first hearing in that committee.\u00a0\u00a0In short, Senate Bill 20-138, if enacted, would: 1)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Extend Colorado\u2019s statute of repose for construction defects from 6+2 years… Continue reading Potential Extension of the Statutes of Limitation and Repose for Colorado Construction Defect Claims<\/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":[11015,4,10707],"tags":[9895,228,187,268],"class_list":["post-897424","post","type-post","status-publish","format-standard","hentry","category-construction-claims","category-construction-defects","category-statute-of-repose","tag-advise-consult","tag-construction-defect-claims","tag-statute-of-limitations","tag-statute-of-repose","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nPotential Extension of the Statutes of Limitation and Repose for Colorado Construction Defect Claims - 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