Construction Law in Colorado

Arbitrator decides amount of lien while court decides its procedural validity

In Sure-Shock Electric v. Diamond Lofts Venture (Colo. App. June 23, 2011), a division of the Court of Appeals held that, on confirmation of an arbitration award, the district court retains jurisdiction to decide the procedural validity of a mechanic's lien even after the arbitration award confirms the claimant's right to a lien under the mechanic's lien statute.

Governor signs bill remedying lis pendens problem with Weize Company, LLC v. Martz Supply Co.

Earlier this month, the Governor signed into law Senate Bill 11-264.  The purpose of SB 11-264 is to abrogate the part of Weize Company, LLC v. Martz Supply Co. holding that a lis pendens must be recorded in a claim against a lien substitution bond.  The new law amends various sections of Colorado's mechanics' lien statute to clarify that a lis pendens or a notice of commencement of action shall not be recorded in cases where a mechanics' lien has been properly bonded over.  The new law takes effect July 1, 2011.