ARTICLE 17

JurisdictionColorado
ARTICLE 17 Attorney Fees

Law reviews: For article, "Attorneys' Fees Against Parties and Attorneys", see 13 Colo. Law. 1202 (1984); for article, "Attorney Fees: The English Rule in Colorado", see 13 Colo. Law. 1642 (1984); for comment, "Attorney Fee Assessments for Frivolous Litigation in Colorado", see 56 U. Colo. L. Rev. 663 (1985); for article, "Civil Rights", which discusses Tenth Circuit decisions dealing with attorney fees in civil rights litigation, see 62 Den. U. L. Rev. 71 (1985); for article, "Federal Practice and Procedure", which discusses a Tenth Circuit decision dealing with attorney fees under the Equal Access to Justice Act, see 62 Den. U. L. Rev. 215 (1985); for article, "Managing and Streamlining the Small Lawsuit", see 15 Colo. Law. 1389 (1986); for article, "Revisiting the Recovery of Attorney Fees and Costs in Colorado", see 33 Colo. Law 11 (April 2004); for article, "The 'Finality' of an Order When a Request for Attorney Fees Remains Outstanding", see 43 Colo. Law. 41 (May 2014).

PART 1 FRIVOLOUS, GROUNDLESS, OR VEXATIOUS ACTIONS

13-17-101. Legislative declaration.

13-17-102. Attorney fees - definitions.

13-17-103. Procedure for determining reasonable fee - judicial discretion.

13-17-104. Fee arrangements between attorney and client.

13-17-105. Stipulation as to fees.

13-17-106. Applicability.

PART 2 ATTORNEY FEES IN CIVIL ACTIONS IN GENERAL

13-17-201. Award of reasonable attorney fees in certain cases.

13-17-202. Award of actual costs and fees when offer of settlement was made.

13-17-203. Limitation on attorney fees in class action litigation against public entities.

PART 3 RETENTION OF ATTORNEYS BY GOVERNMENTAL ENTITIES - LIMITATION ON CONTINGENT FEE CONTRACTS

13-17-301. Short title.

13-17-302. Legislative declaration.

13-17-303. Definitions.

13-17-304. Limitation on contingent fees - applicability.

PART 1 FRIVOLOUS, GROUNDLESS, OR VEXATIOUS ACTIONS

■ 13-17-101. Legislative declaration. The general assembly recognizes that courts of record of this state have become increasingly burdened with litigation which is straining the judicial system and interfering with the effective administration of civil justice. In response to this problem, the general assembly hereby sets forth provisions for the recovery of attorney fees in courts of record when the bringing or defense of an action, or part thereof (including any claim for exemplary damages), is determined to have been substantially frivolous, substantially groundless, or substantially vexatious. All courts shall liberally construe the provisions of this article to effectuate substantial justice and comply with the intent set forth in this section.

Source: L. 77: Entire article added, p. 796, § 2, effective July 1. L. 84: Entire section R&RE, p. 460, § 1, effective July 1.

ANNOTATION

Law reviews. For article, "Recovery of Attorney Fees and Costs in Colorado", see 23 Colo. Law. 2041 (1994). For comment, "Dazed and Confused in Colorado: The Relationship Among Malicious Prosecution, Abuse of Process, and the Noerr-Pennington Doctrine", see 67 U. Colo. L. Rev. 675 (1996).

Suit involving money damages. Although the primary relief sought by the plaintiff was for specific performance of a contract of purchase, the defendant's counterclaim sought damages for breach of contract. Thus, even though the plaintiff's claim alone would not have supported an award for attorney fees, the defendant's counterclaim for damages clearly brought the suit within the ambit of the statute. Ault Aerial Applicators, Inc. v. Irvine, 684 P.2d 949 (Colo. App. 1984).

Post-dissolution decree proceedings were groundless for lack of jurisdiction. It would be inequitable to require divorced husband to pay wife's fees for legal services when such services should not have been performed for lack of jurisdiction over the defendants against whom relief was sought. In re Noon, 735 P.2d 884 (Colo. App. 1986).

A trial court retains jurisdiction over a motion for sanctions, even if jurisdiction has not been reserved in a stipulated motion for dismissal, because such jurisdiction is incorporated by statute in this section. Buckhannon v. U.S. West Commc'ns, 928 P.2d 1331 (Colo. App. 1996).

A good faith presentation of a legal theory which is arguably meritorious is sufficient to avoid an award of attorney fees. SaBell's, Inc. v. City of Golden, 832 P.2d 974 (Colo. App. 1991), cert. denied, 846 P.2d 189 (Colo. 1993).

Applied in Am. Web Press, Inc. v. Harris Corp., 596 F. Supp. 1089 (D. Colo. 1983); Cooper v. Peoples Bank and Trust Co., 725 P.2d 78 (Colo. App. 1986); In re Custody of C.J.S., 37 P.3d 479 (Colo. App. 2001).

■ 13-17-102. Attorney fees - definitions. (1) Subject to the provisions of this section, in any civil action of any nature commenced or appealed in any court of record in this state, the court may award, except as this article otherwise provides, as part of its judgment and in addition to any costs otherwise assessed, reasonable attorney fees.

(2) Subject to the limitations set forth elsewhere in this article, in any civil action of any nature commenced or appealed in any court of record in this state, the court shall award, by way of judgment or separate order, reasonable attorney fees against any attorney or party who has brought or defended a civil action, either in whole or in part, that the court determines lacked substantial justification.

(2.1) Notwithstanding any other provision of this part 1, the filing of a certificate of review pursuant to section 13-20-602 related to any licensed health-care professional shall create a rebuttable presumption that the claim or action is not frivolous or groundless, but it shall not relieve the plaintiff or his attorney from ongoing obligations under rule 11 of Colorado rules of civil procedure.

(3) When a court determines that reasonable attorney fees should be assessed, it shall allocate the payment thereof among the offending attorneys and parties, jointly or severally, as it deems most just, and may charge such amount, or portion thereof, to any offending attorney or party.

(4) The court shall assess attorney fees if, upon the motion of any party or the court itself, it finds that an attorney or party brought or defended an action, or any part thereof, that lacked substantial justification or that the action, or any part thereof, was interposed for delay or harassment or if it finds that an attorney or party unnecessarily expanded the proceeding by other improper conduct, including, but not limited to, abuses of discovery procedures available under the Colorado rules of civil procedure or a designation by a defending party under section 13-21-111.5 (3) that lacked substantial justification. As used in this article, "lacked substantial justification" means substantially frivolous, substantially groundless, or substantially vexatious.

(5) No attorney fees shall be assessed if, after filing suit, a voluntary dismissal is filed as to any claim or action within a reasonable time after the attorney or party filing the dismissal knew, or reasonably should have known, that he would not prevail on said claim or action.

(6) No party who is appearing without an attorney shall be assessed attorney fees unless the court finds that the party clearly knew or reasonably should have known that his action or defense, or any part thereof, was substantially frivolous, substantially groundless, or substantially vexatious; except that this subsection (6) shall not apply to situations in which an attorney licensed to practice law in this state is appearing without an attorney, in which case, he shall be held to the standards established for attorneys elsewhere in this article.

(7) No attorney or party shall be assessed attorney fees as to any claim or defense which the court determines was asserted by said attorney or party in a good faith attempt to establish a new theory of law in Colorado.

(8) This section shall not apply to traffic offenses, matters brought under the provisions of the "Colorado Children's Code", title 19, C.R.S., or related juvenile matters, or matters involving violations of municipal ordinances.

Source: L. 77: Entire article added, p. 797, § 2, effective July 1. L. 84: Entire section R&RE, p. 460, § 2, effective July 1. L. 86: (4) amended, p. 681, § 4, effective July 1. L. 90: (2.1) added, p. 862, § 1, effective July 1. L. 2006: (8) amended, p. 237, § 6, effective July 1. L. 2009: (8) amended, (HB 09-1248), ch. 252, p. 1136, § 24, effective May 14.

Cross references: For award of attorney fees and other costs in actions involving garnishees, see § 13-16-123.

ANNOTATION

Law reviews. For article, "Malicious Prosecution of Civil Proceedings", see 11 Colo. Law. 2388 (1982). For article, "Attorneys' Fees Awarded to the Prevailing Party: The Ghost of S.B. 258 Revisited", see 11 Colo. Law 3003 (1982). For article, "Rule 11, C.R.C.P. as a Litigation Tool", see 12 Colo. Law. 1242 (1983). For article, "Lawyers' Liability for Attorney's Fees Awarded Against Clients", see 12 Colo. Law. 1638 (1983). For article "Attorney Fees: The English Rule in Colorado", see 13 Colo. Law. 1642 (1984). For article, "Civil Rights", which discusses the attorney fees in Ramos v. Lamm, see 62 Den. U. L. Rev. 71 (1985). For article, "1986 Colorado Tort Reform Legislation", see 15 Colo. Law. 1363 (1986). For article, "New Role for Nonparties in Tort Actions — The Empty Chair", see 15 Colo. Law. 1650 (1986). For article, "A Trial Lawyer's View of Attorney's Fees Awards", see 17 Colo. Law. 465 (1988). For article, "1988 Update on Colorado Tort Reform Legislation — Part I", see 17 Colo. Law. 1790 (1988). For article, "The Final Judgement Rule And Attorney Fees", see 17 Colo. Law. 2139 (1988). For a discussion of Tenth Circuit decisions dealing with attorney fees, see 66 Den. U. L. Rev. 677 (1989). For a discussion of Tenth Circuit decisions dealing with attorney fees, see 67 Den. U. L. Rev. 625 (1990). For article, "1990 Update on Colorado Tort Reform...

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