Category Archives: Subs and Suppliers

December 24, 2008

Court of Appeals Addresses Unjust Enrichment Claims by Subcontractors and Suppliers

By Tim Gordon

Redd Iron, Inc. v. Int’l Sales and Service Corp. (Colo. App. Dec. 24, 2008).

In DCB Construction Co., Inc., v. Central City Development Co., 965 P.2d 115 (Colo. 1998), the Supreme Court of Colorado held that, in order for a property owner to be liable under a theory of unjust enrichment to a tenant’s contractor, the contractor must show some type of improper, misleading, or deceitful conduct by the owner.  Now in Redd Iron, Inc., a division of the Colorado Court of Appeals held that the requisite showing of improper, misleading, or deceitful conduct by the owner is not a required element outside the context of a claim against a landlord by a party working at the tenant’s behest, and that malfeasance need not invariably be shown to establish unjust enrichment.