Monthly Archives: June 2006

June 15, 2006

Homebuilders Allowed To “Puff” Without Facing CCPA Liability

By Tim Gordon

Park Rise HOA v. Resource Construction (Colo. App. 2006)

The Colorado Court of Appeals addresses many construction-related issues in this case, including the following:

(1) The trial court ruled that the economic loss rule bars an HOA’s negligence claims for construction defects against the general contractor. The Court of Appeals reversed based on previous cases limiting the application of the economic loss rule in residential construction defects cases.

(2) The Court of Appeals ruled that only latent construction defects were actionable under Cosmopolitan Homes, thus the jury must have some way of deciding what defects are latent. But the Court of Appeals held that expert testimony is not needed for this, rejecting the general contractor’s argument to the contrary.

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