District Court of Boulder County, Colorado
As anticipated, a state Notice and Opportunity to Repair law passed by the Colorado legislature was challenged on legal grounds. Colorado’s leading construction litigation law firm, which failed to overturn the state’s Construction Defect Action Reform Act (the state’s NOR law) at the ballot stage, attempted to overturn the Act through the courts. The firm filed more than a dozen lawsuits against builders in Colorado challenging the Act’s constitutionality. Procedurally, the plaintiffs sought a declaratory judgment that portions of the Act are unconstitutional, illegal and unenforceable. One of the targeted builders was Richmond American Homes, which vigorously defended the Act’s constitutionality.
Because of the important public policy questions raised by the plaintiffs’ attack on the NOR legislation, NAHB joined with the Colorado Association of Home Builders in filing an amicus brief in support of Richmond American Homes.
Ultimately, the trial court ruled that the CDARA does not constitute unconstitutional retrospective or special legislation, does not prevent plaintiffs from seeking non-economic damages and the limitation on treble damages does not violate equal protection. Because there are remaining claims in the lawsuit, the issue was not yet ripe for appeal. No appeal will be filed until after the other claims are resolved.