On Monday the Colorado Supreme Court did what our state legislators couldn’t do as the Supreme Court voted 5-2 to affirm the Colorado Court of Appeals ruling “that developers can retain a right to consent to any HOA’s proposed amendments on contracted declaration regarding arbitration for construction-defects claims,” per the Denver Business Journal.
The case involved was Vallagio at Inverness Residential Condo Association v. Metro Homes Inc in which the condo association voted to change the developers By-Laws that then allowed the condo association to sue for construction defects instead of using binding arbitration that the By-Laws from the builder required. The condo association believed that the Colorado Consumer Protection Act provided them with the right to vote to switch from binding arbitration to litigation. The Colorado Supreme Court rejected this argument.