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Denver Business and Commercial Law Blog

Legal tactics change in dispute over Colorado trail easement

Denver-area readers may recall a previous post discussing construction litigation over easement rights between the town of Silverthorne and landowners along the Blue River. In a recent development, the court appears ready to issue summary judgment in eminent domain proceedings affecting three of the properties in dispute.

In February, the court ruled that the terms of an easement dedicating an area along the river for use as "public walkways" prohibited the town from using the easement for a multi-purpose recreational trail. The ongoing eminent domain proceedings seek to acquire property rights on land unencumbered by the original walkway easement. Among the issues in dispute is the fairness of the town's offers of compensation to affected landowners.

Property owners headed for construction defect trial in Colorado

Denver-area condominium residents may be accustomed to hearing sounds from adjoining units, but a lawsuit over alleged construction defects in a Durango residential and commercial real estate development gives new meaning to the idea of noisy neighbors.

The construction litigation, initiated by the development's association of property owners, seeks compensation and cures for defects ranging from foundation flaws to interior concrete walls that seem to transmit sound. A dentist with an office in the development says the sound of something being dropped in one unit can be heard in every unit nearby.

Construction defect suit over Vail ski resort nears conclusion

Denver-area skiing enthusiasts may be happy to learn that construction litigation surrounding one of Vail's newest luxury resorts may be near its end. The question of responsibility for construction defects and cost overruns lies at the center of the lawsuit between an investment firm and the construction company responsible for overseeing the resort project. The resolution of the case may determine the fate of tens of millions of dollars.

The construction company claims that the investment firm still owes money for payment to subcontractors. The construction firm blames project designers and architects for plan changes that led to cost overruns, and argues that the investment firm acted in bad faith by putting the company and subcontractors in the position of having to finance portions of the project.

Homeowners association wants natural gas company to repair roads

Colorado has some of the largest natural gas deposits in the nation, so Denver residents may be familiar with some of the disputes centering on gas extraction operations. A novel twist on unintended consequences of gas extraction has recently threatened to devolve into real estate litigation between a gas company and a homeowners association in the city of Rifle.

In 2003, the homeowners association adopted a resolution to impose a cash bond against any property owner traveling across association roads with vehicles weighing more than 75,000 pounds. Citing road failures and damage to culverts, the HOA now wants to enforce the bond requirement against an oil and gas company. The oil and gas company owns five lots in the association subdivision.

Sylvester Stallone sues over construction defects

Denver residents know Sylvester Stallone as the star of blockbuster action films, but not many people would think of him as a litigant in a construction defect lawsuit. The action star recently filed a construction litigation claim against a contractor who allegedly lied about being professionally licensed, used substandard materials and violated building codes.

Stallone says he hired the contractor to remodel the actor's kitchen by adding 1,200 square feet, plus new cabinets, appliances, hardware and other enhancements. But Stallone was apparently not made aware that the contactor wasn't licensed to carry out the work. The lawsuit also claims that Stallone was overcharged for labor and material while the contractor performed "seriously substandard, defective and unsafe construction."

Colorado homeowners and contractors jilted by loan theft

Denver-based builders may find some relief in a criminal court ruling against a principal of a construction company who misappropriated construction loans in a Grand Lake development project. The judgment ordered the principal to serve 30 days in jail and pay $300,000 in restitution to homeowners and subcontractors.

However, the verdict also paves the way for a potential spate of construction litigation. The contractor's misuse of funds leaves homeowners with outstanding liens against incomplete houses, and that situation has effectively crippled at least one family-owned business.

Mortgage fraud lawsuit settled in Denver court

Colorado homeowners may find satisfaction in the conclusion of a mortgage fraud lawsuit prosecuted by the state's attorney general in Denver's federal courthouse. The lawsuit claimed that a real estate investment company duped troubled homeowners into signing over their homes with promises that the company would cover mortgage, property tax, and insurance payments in exchange for rental payments from the homeowners.

The company claimed it would work to stop foreclosure proceedings against these homes and eventually resell the home back to the original owner with new lower mortgage payments. But according to the complaint filed in federal court, the owners of the company instead used the rent money for personal gain.

Aspen condo covenants keep club quiet

Denver area ski buffs may take an interest in the recent clash between a boutique Aspen night club and the owners of a neighboring condominium unit. The real estate litigation, centered on the question of whether the business activities of the night club violate the condominium's restrictive covenants, came to a temporary standstill when the district court issued a preliminary injunction against the night club owner.

Owners of a residential condominium unit initiated the suit against the night club owner and a landlord company that manages the commercial real estate. The unit owners claimed that the volume of music coming from the night club, along with the annoyance of club patrons knocking on doors and smoking in common areas, violates the building's restrictive covenants and the terms of the night club's lease.

Colorado collapsed roof litigation comes to an end

Denver readers may remember a 2006 incident in Larimer County that ultimately resulted in litigation over construction defects. Part of the roof of the First National Bank Exhibition Hall, on Larimer County's fairgrounds complex known as The Ranch, collapsed when heavy snow accumulated during two blizzards that season. The construction litigation concerned metal buildings at The Ranch, and a settlement was finally reached earlier this month.

An investigation following the roof collapse revealed that the structure had both design and construction defects. Other buildings on The Ranch -- including livestock pavilions, the Ranch-Way Feeds Indoor Arena and a maintenance facility -- were also affected by the construction defects.

Broomfield bridge negotiations fuel frustration

Residents of the Denver area may be looking forward to the end of construction at the 120th Avenue Connection Bridge in nearby Broomfield, but outdated federal law threatens to stall the project in a traffic jam of real estate litigation. A federal act passed in 1970 limits the amount the state of Colorado can pay for relocation expenses when it annexes commercial real estate for public use. At least two Colorado business owners are weighing litigation over what they view as unfair compensation for the costs associated with moving out of the state's way.

A roofing business owner purchased a property in anticipation of the construction project only to learn that his forward thinking had disqualified him from payment for hundreds of thousands of dollars in renovation and equipment-moving expenses.