Chapter 4 - § 4.1 TIME TO FILE LAWSUIT TO FORECLOSE

• Jurisdiction: Colorado

§ 4.1 TIME TO FILE LAWSUIT TO FORECLOSE

An action to enforce a mechanics' lien must be brought within six months after the last work or labor is performed, or materials furnished, or after the completion of the building, structure, or improvement.¹ The later of the three dates applies. Thus, a lien claimant must bring a foreclosure action within six months after the later of the following: (1) the last date that work was performed; (2) the last date that materials were furnished; or (3) the date that the building or improvement on the property was completed.² "The bur den is on the lien claimant to show that its claim was filed within the statutory period."³

Unlike the deadline for recording a lien, which is based solely on when the lien claimant last performed labor or furnished materials, the six-month deadline for filing the foreclosure action can be based on when the entire project was completed. So even if the lien claimant had not performed labor or furnished materials for the project within six months of bringing the foreclosure action, the lawsuit will still be timely if anyone had performed labor or furnished materials for the project within six months of when the lawsuit is filed.⁴

Trivial imperfections or omissions in the work will not result in the work being deemed incomplete for purposes of this deadline.⁵ Also, "abandonment," which is defined as the "discontinuance of all labor, work, services, and furnishing of laborers or materials for a three-month period," is the equivalent of "completion" of the improvement.⁶ The "abandonment" occurs at the end of the three-month period, which then starts the six month clock for filing the foreclosure lawsuit.⁷

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Notes:

^[1] C.R.S. § 38-22-110.

^[2] Mountain Ranch Corp. v. Amalgam Enters., Inc., 143 P.3d 1065, 1067 (Colo. App. 2005).

^[3] Id. at 1068.

^[4] Meurer, Serafini & Meurer, Inc. v. Skiland Corp., 551 P.2d 1089 (Colo. App. 1976).

^[5] C.R.S. § 38-22-109(7); Merrick & Co. v. Estate of Verzuh, 987 P.2d 950, 953 (Colo. App. 1999) (noting that § 38-22-109(7) clarifies the meaning of "completion" as used in § 38-22- 110).

^[6] Id.

^[7] Merrick & Co., 987 P.2d at 953.