Monthly Archives: September 2013

September 23, 2013

Everyone Can Qualify As A “Homeowner” For Purposes Of The Economic Loss Rule

By Tim Gordon

In Colorado, the economic loss rule bars torts claim in cases where the defendant’s duty arises from a contract and only economic damages are sought.  See Town of Alma v. AZCO Constr., Inc., 10 P.3d 1256, 1264 (Colo. 2000).  There is one notable exception:  The economic loss rule does not bar negligence claims brought by homeowners regarding the construction of residential properties.  See Park Rise Homeowners Ass’n v. Res. Constr. Co., 155 P.3d 427, 430 (Colo. App. 2006).  This is because home builders have an obligation to act without negligence in the construction of a home, independent of contractual obligations.  Cosmopolitan Homes, Inc. v. Weller, 663 P.2d 1041, 1042 (Colo. 1983).