Colorado Court of Appeals – August 28, 2014

The court published one civil decision today.

In Sure-Shock Electric v. Diamond Lofts Venture (12-CA-1655 & 12-CA-2200), the court affirmed the trial court judgment allowing Sure-Shock to foreclose on a mechanic’s lien. Sure-Shock was the primary electrical contractor on a building developed and owned by Diamond Lofts Venture (DLV). It filed a mechanic’s lien against the property in October 2007, and amended the lien the same day to add interest. The lien identified DLV as the only owner charged with the lien, even though DLV already had sold 22 of the units in the building.

After Sure-Shock filed a complaint against DLV, the parties arbitrated their dispute, and both the trial court and the court of appeals affirmed the arbitration award. The court of appeals, however, remanded the case for a determination of whether the lien was procedurally valid. On remand, the trial court determined that it was valid, apportioned the award according to the percentage of total square footage the 7 units owned by DLV occupied, and entered a decree of foreclosure allowing the 7 units to be sold to satisfy Sure-Shock’s lien. The court of appeals affirmed. It held that the notice given by Sure-Shock was sufficient, even though it amended the mechanic’s lien to change the amount without giving new notice; the property description was sufficient because it identified DLV as the owner against whom the lien would be enforced; and Sure-Shock did not act in bad faith by filing a lien for the entire amount, even though the lien would affect only the 7 units owned by DLV. The court further held that the trial court did not abuse its discretion when it apportioned the lien amount according to the degree to which each unit enjoyed the benefit of Sure-Shock’s work. Nor did it abuse its discretion when it awarded Sure-Shock costs as the prevailing party.