Monthly Archives: September 2008

September 18, 2008

Court of Appeals Delivers A Blow To Pay And Chase In Colorado

By Tim Gordon

NOTE: BASED ON THE SUPREME COURT’S DECISION IN GOODMAN V. HERITAGE BUILDERS, INC., 2017 CO 13, THE HOLDING OF THIS CASE IS NO LONGER GOOD LAW.  SEE HERE.

Thermo Development, Inc. v. Central Masonry Corp. (Colo. App. Sept. 18, 2008)

The Colorado Court of Appeals rules that statute allowing the maintenance of an indemnification action within 90 days of settling an underlying lawsuit does not toll the six-year statute of repose.

Section 13-80-104(1)(b)(II)(B), C.R.S., provides the following 90-day tolling provision for indemnification claims related to construction:

[A]ll claims, including, but not limited to indemnity or contribution, by a claimant against a person who is or may be liable to the claimant for all or part of the claimant’s liability to a third person . . . [a]rise at the time the third person’s claim against the claimant is settled or at the time final judgment is entered on the third person’s claim against the claimant, whichever comes first; and . . . [s]hall be brought within ninety days after the claims arise, and not thereafter.

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