Court Gives A Boost to Builders in Construction Defects Battle
Industry now could begin to meet pent-up demand In a ruling that could stir near-dormant condo construction in Colorado, the state Supreme Court on Monday ruled that a homeowners association was wrong to sue a builder after disregarding bylaws that require binding arbitration to settle claims of construction defects. The association's key misstep, the court said in a 5-2 ruling, involved its bid to change the rules to allow litigation without getting the consent of the development's builder. "Because the unit owners did not obtain the Declarant's written consent to remove the declaration's arbitration provision, the attempted amendment was ineffective," the court majority ruled. "Consequently, the Association remains bound by the arbitration agreement..." The ruling in the case Vallagio at Iverness Residential Condo Association vs. Metropolitan Homes Inc. has potentially far-reachinf implications for both homeowners and builders. Advocates of...