White Paper

Statute of Limitations Can Bar Indemnification Claims If Brought Too Soon

 
Piecemeal appellate-court decisions have put developers and contractors in a catch-22 with respect to the timing of indemnification claims against their subcontractors. Their indemnification claims against subcontractors might be barred by the two-year statute of limitations unless they wait until after the underlying construction defects litigation is resolved in order to take advantage of the 90-day tolling period. But waiting until the underlying construction defects litigation is resolved might result in their indemnification claims being barred by the six-year statute of repose.

Colorado law, at Section 13-80-104(1)(a), C.R.S., provides a two-year statute of limitations and a six-year statute of repose for construction defects actions:

Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property shall be brought within the [two-year limitations period] provided in section 13-80-102 after the claim for relief arises, and not thereafter, but in no case shall such an action be brought more than six years after the substantial completion of the improvement to the real property, except as provided in subsection (2) of this section.

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Tim Gordon helps developers, contractors, and commercial real estate clients achieve optimal outcomes when planning projects and facing complex disputes. Mr. Gordon understands the interrelationship of real estate development, project construction, and long-term property management, and uses this knowledge when representing clients in litigation and arbitration. He also assists his clients avoid disputes by drafting construction and design contracts and related project documents that appropriately apportion risk and protect his clients’ interests. In addition, Tim regularly helps his clients address and resolve disputes before they ripen into lawsuits.

Agenda

Faculty

Timothy Gordon

Holland & Hart, LLP

Tim Gordon helps developers, contractors, and commercial real estate clients achieve optimal outcomes when planning projects and facing complex disputes. Mr. Gordon understands the interrelationship of real estate development, project construction, and long-term property management, and uses this knowledge when representing clients in litigation and arbitration. He also assists his clients avoid disputes by drafting construction and design contracts and related project documents that appropriately apportion risk and protect his clients’ interests. In addition, Tim regularly helps his clients address and resolve disputes before they ripen into lawsuits.

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