Metropolitan Homes v. Vallagio at Inverness Residential (Colorado)
CAI previously filed an amicus brief in this same case back in October 2014. The case has now been directed to the Colorado Supreme Court and a follow up brief has been filed on behalf of the association. The Vallagio at Inverness development is a 197-unit condominium community in Arapahoe County, Colorado. It is suffering from serious construction defects, which it lacks the financial means to repair, and which it has attempted to address by filing a construction defect lawsuit against its developer. The developer filed a motion to compel arbitration in the trial court, arguing that the purported declaration amendment removing its arbitration provisions was invalid because the developer did not consent to the amendment.
The Association argued that, as a matter of law, the developers consent was not required to effect the declaration amendment because Colorado’s Common Interest Ownership Act prohibits any declaration provision purporting to give a declarant a unilateral right to control the Association over turnover. The Association also argued, because it is not a party to the individual unit owner purchase agreements, it cannot be bound by arbitration provisions in such agreements.
The trial court agreed with the association’s arguments, but the appeals court overturned that ruling and sided with the developer. The association has appealed to the Colorado Supreme Court. The developer makes the same arguments in the Supreme Court as in the appeals and trial court. The association’s arguments on appeal are also the same arguments made in the prior courts.
Brief
Prior Ruling: Lower Court Decision
Status:Brief
CAI Amicus Brief Author: Jeffrey P. Kerrane, Esquire
CAI Amicus Brief Review Committee: Robert Diamond, Esq; Stephen Marcus, Esq; Jennifer Loheac, Esq; Damien Bielli, Esq; Steven Sugarman, Esq; Gary Kessler, Esq.