Construction Law in Colorado

A Malicious Prosecution Claim Based On The Filing Of A Lis Pendens Requires Favorable Termination On The Merits

Hewitt v. Rice (Colo. 2007)

The Colorado Supreme Court held that a malicious prosecution action based upon the filing of a lis pendens requires favorable termination on the merits of the claim underlying the lis pendens. "Favorable termination" is a question of law requiring an action to be resolved on the merits in favor of the party claiming malicious prosecution. The concurring opinion raises the issue of whether the recording of a lis pendens can ever be the basis of a malicious prosecution claim.

Read slip opinion

CGL Policy Covered Claim By Subsequent Purchaser Of Home

Hoang v. Assurance Co. of America (Colo. 2007) and Travelers v. Village Homes (Colo. 2007)

The Supreme Court holds that the proceeds of a CGL insurance policy are available to satisfy the judgment of a subsequent purchaser of damaged property against the homebuilder when (1) the builder insured itself against liability for damage occurring during the policy period, (2) the damage to the property occurred during the policy period, (3) no exclusion to the policy rendered the insured’s policy coverage inapplicable because of a change in the property’s ownership, and (4) the builder was liable for the damage to the property. The Court also applies this holding in Travelers, decided the same day.

Read slip opinion