Supreme Court Affirms Declarant Consent Required for Removal of Arbitration Provision for Construction Defect Claims

On June 5, 2017, the Colorado Supreme Court issued its ruling in Vallagio at Inverness Residential Condominium Ass’n, Inc. v. Metropolitan Homes, Inc. et al. (Supreme Court Case No. 15SC508).  The Supreme Court affirmed the court of appeals and ruled:

  1. The Colorado Common Interest Ownership Act (“CCIOA”) permits a declarant to reserve the unlimited right to approve any declaration amendment altering the mandatory arbitration provision for construction defect claims; and
  2. The Colorado Consumer Protection Act (“CCPA”) does not prohibit arbitration of construction defect claims.

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