Chapter 3 - § 3.10 • TORT AND CONTRACT LIABILITY

• Jurisdiction: Colorado

§ 3.10 • TORT AND CONTRACT LIABILITY

Under the CCIOA, neither the association nor any unit owner, except the declarant, is liable for any cause of action based on that declarant's acts or omissions in connection with any part of the community that the declarant has the responsibility to maintain.²⁸⁰ Also, if an act or omission occurred during any period of declarant control and the association gives the declarant reasonable notice of, and an opportunity to, defend against the action, the declarant who controlled the association is liable to it or to any unit owner for all tort losses not covered by insurance that are suffered by the association or that unit owner and all costs that the association would not have incurred but for the act or omission. Whenever the declarant is liable to the association under this requirement, the declarant is also liable for all expenses of litigation, including reasonable attorney fees, incurred by the association. Any statute of limitation that affects the association's right of action is tolled until the period of declarant control terminates.²⁸¹ The CCIOA also states that declarants are liable to an association for all association funds collected during the period of declarant control that were not properly expended.²⁸²

Note that under the CCIOA, the association must maintain, to the extent reasonably available, commercial general liability insurance against claims and liabilities arising in connection with the ownership, existence, use, or management of the common elements, and, in cooperatives, also of all units.²⁸³ The insured parties are to be the governing board, the association, the management agent, and their respective employees, agents, and all...