Construction Law in Colorado

Cert. granted on whether subrogation waiver applies only to the "Work"

Copper Mountain, Inc. v. Industrial Systems, Inc. (Colo. 2008)

Today, the Supreme Court of Colorado granted cert. on the following issue: Whether the court of appeals erred in ruling a waiver of subrogation provision in an American Institute of Architects ("AIA") form contract barred all of owner-plaintiff’s claims, thereby creating a conflict with another decision of the court of appeals, Town of Silverton v. Phoenix Heat Source System, Inc., 948 P.2d 9 (Colo. App. 1997), which held the waiver provision barred only claims for damages to the "Work" required to be insured by the owner under the contract.

(Update - cert. granted) Subrogation Waiver Covers The Entire Loss, Not Just "The Work"

Copper Mountain, Inc. v. Industrial Systems, Inc. (Colo. App. 2007)

Creating a split in the Colorado Court of Appeals, a division of the Court held that the subrogation waiver in AIA A201 covers any damage to the building, not just loss to the work being performed.

On June 9, 2008, the Supreme Court of Colorado granted cert. on the following issue: Whether the court of appeals erred in ruling a waiver of subrogation provision in an American Institute of Architects ("AIA") form contract barred all of owner-plaintiff’s claims, thereby creating a conflict with another decision of the court of appeals, Town of Silverton v. Phoenix Heat Source System, Inc., 948 P.2d 9 (Colo. App. 1997), which held the waiver provision barred only claims for damages to the "Work" required to be insured by the owner under the contract.