A Bill for an Act
Page 1, Line 101Concerning the inapplicability of the economic loss rule to
Page 1, Line 102certain claims brought by a residential property
Page 1, Line 103owner against a construction professional.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill clarifies that construction professionals owe an independent tort duty of care to construct residential homes in a non-defective and reasonable manner, and that this duty is owed equally to original and subsequent residential home purchasers.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 13-20-806, add (8) as follows:
Page 2, Line 313-20-806. Limitation of damages. (8) (a) The general
Page 2, Line 4assembly finds and declares that the decision of the Colorado
Page 2, Line 5court of appeals in Appleby v. Dossey Sudik Structural Engineers
Page 2, Line 6LLC, 23CA0008 (Colo. App. 2023), does not reflect the public
Page 2, Line 7policy of the state of Colorado as it concerns the independent
Page 2, Line 8tort duties owed by construction professionals to original
Page 2, Line 9residential purchasers for purposes of determining application
Page 2, Line 10of the judicially created "economic loss rule". It is therefore
Page 2, Line 11necessary for the general assembly to clarify and confirm the
Page 2, Line 12policy of Colorado to guide pending and future legal actions interpreting the application of the economic loss rule.
Page 2, Line 13(b) For purposes of the application of the economic loss
Page 2, Line 14rule, the independent duties owed by a construction
Page 2, Line 15professional to an original residential purchaser are identical
Page 2, Line 16to the independent duties owed by a construction professional
Page 2, Line 17to a subsequent residential purchaser, as those duties are defined under Colorado judicially created law.
Page 2, Line 18SECTION 2. Act subject to petition - effective date. This act
Page 2, Line 19takes effect at 12:01 a.m. on the day following the expiration of the
Page 2, Line 20ninety-day period after final adjournment of the general assembly; except
Page 2, Line 21that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 2, Line 22of the state constitution against this act or an item, section, or part of this
Page 2, Line 23act within such period, then the act, item, section, or part will not take
Page 3, Line 1effect unless approved by the people at the general election to be held in
Page 3, Line 2November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.