Defended Local Contractor: $24,000 Construction Dispute Resolved for $500

• Type of Case: Contractor Defense

• Legal Issue: Residential contractor sued for breach of contract due to uncontrollable project delays brought on by extreme weather conditions.

• Applicable Statutes: Colorado CDARA (Construction Defect Action Reform Act)

• Outcome: Settled a $24,000 claim for just $500 while defending a local contractor against wrongful contract termination.

Every contractor knows residential remodeling projects can be delayed by variables they can anticipate but can’t control. While many homeowners are flexible, some will retaliate by withholding payments, leaving dedicated professionals to bear an unfair financial burden. 

In this case, the variable was the weather, and our client was the contractor hired to design and build custom landscaping, with payments structured around project milestones. When extreme weather delayed our client’s work on the project, the homeowner terminated the contract and initiated litigation, despite our client having performed work in strict accordance with the phased agreement. 

The homeowner sought $24,000 in damages, alleging both breach of contract and negligence for property damage. Our defense strategy focused on the homeowner's own failure to adhere to the contract. We established that the homeowner had committed a material breach by refusing to pay for completed phases of work. We further asserted that, to the extent the homeowner’s claims sounded in construction defect, the homeowner failed to comply with the mandatory pre-suit Notice of Claim process required under the Colorado Construction Defect Action Reform Act (CDARA). By law, homeowners must give contractors a chance to correct any perceived defects before terminating the contract. 

A critical component of our defense invoked the Economic Loss Rule, which bars tort claims arising from a contract absent an independent duty, as the basis for our motion to dismiss the homeowner’s negligence claim. We asked the court to dismiss the homeowner’s negligence claim based on the Economic Loss Rule. In cases like this one, the rule prevents a homeowner from bringing a negligence claim for financial losses when their dispute is strictly contractual.

Despite the complexities introduced by the plaintiff (who was representing themselves) and their failure to follow procedural rules, our firm aggressively pursued counterclaims for breach of contract, promissory estoppel, and unjust enrichment. Highlighting these fatal flaws in the plaintiff’s claims and asserting our own, stronger counterclaims, we negotiated a settlement of just $500. 

This outcome represented a significant victory for our client, providing a small-business owner with substantial financial relief. Our litigation attorneys help small businesses address breach-of-contract disputes. Call 303-688-0944 to schedule a consultation or book online 24/7.