In re Goodman v. Heritage Builders
2017 CO 13
| Colo. | 2017Background
- Colorado Supreme Court addresses timeliness of third-party construction-defect claims.
- Heritage Builders was the general contractor for a Pitkin County home, completed in 2006.
- Goodman discovered defects in 2012; informal notice in 2013; formal notice in October 2013.
- Goodman filed suit December 20, 2013; Heritage asserted third-party claims against subcontractors Studio B and Bluegreen.
- Trial court granted summary judgment for Studio B and Bluegreen, invoking the six-year statute of repose.
- Supreme Court holds third-party claims are timely under 13-80-104(1)(b)(II) if brought during litigation or within 90 days after judgment/settlement, making the repose irrelevant.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 13-80-104(1)(b)(II) toll third-party claims despite repose? | Heritage argues the six-year repose bars third-party claims. | 13-80-104(1)(b)(II) tolls and allows timely third-party claims. | Yes; third-party claims timely under (b)(II). |
| When do third-party claims arise under 13-80-104(1)(b)(II)? | Arise at settlement or judgment against the claimant. | May be brought during construction litigation as well as after settlement/judgment. | Arise at settlement or judgment, but may be brought during litigation or within 90 days after judgment/settlement. |
| Does prior line of cases interpreting the tolling effect control here? | Earlier cases toll only the 2-year limitations, not the 6-year repose. | Thermo/Shaw/Sierra provide controlling guidance. | Those cases are overruled to the extent inconsistent; (b)(II) precludes reposing third-party claims. |
Key Cases Cited
- CLPF-Parkridge One, L.P. v. Harwell Invs., Inc., 105 P.3d 658 (Colo. 2005) (notwithstanding clause excludes other statutes in timing for third-party claims)
- Shaw Constr., LLC v. United Builder Servs., Inc., 296 P.3d 145 (Colo. App. 2012) (tolls limitations but not repose for contractor-subcontractor claims)
- Thermo Dev., Inc. v. Cent. Masonry Corp., 195 P.3d 1166 (Colo. App. 2008) (construction defect tolling impact on third-party claims)