RVM Law, LLC Prevails in Construction Defect, Contractor Fraud Jury Trial In Denver District Court

RVM Law’s clients suffered a series of construction defects and delays concerning the remodel and addition to their home in Denver, Colorado.  It turns out the general contractor tasked with remodeling their property spent their initial $30,000.00 deposit on other projects instead of keeping it in trust for the final portion of their project as required by the Colorado Contractor Trust Statute (C.R.S. § 38-22-127)

The Contractor Trust Statute requires “[a]ll funds disbursed to any contractor or subcontractor under any building, construction, or remodeling contract or on any construction project shall be held in trust for the payment of the subcontractors, laborer or material suppliers, or laborers who have furnished laborers, materials, services, or labor, who have a lien, or may have a lien, against the property, or who claim, or may claim against a principal or surety under the provisions of this article and for which such disbursement was made.”   

A contractor liable for violating or violating the trust requirement commits civil theft and is liable for treble damages and attorney’s fees, the judgment is typically not dischargeable in bankruptcy and is personal to the general contractor even if that person is operating as a limited liability company or other entity.  Here, the jury found the contractor did in fact violate the trust statute concerning the $30,000.00 deposit and RVM Law’s clients were awarded both triple damages and attorney’s fees on this claim.

In addition the jury found the general contractor and his company liable for fraud, negligence, negligent misrepresentation and breach of contract, awarding an additional $312,000.00 in damages arising out of the work performed at the property.  If you have experience construction defects, delays, or problems with your general contractor providing accurate accountant concerning funds you have disbursed for your project, contact RVM Law, LLC since we are experienced in handling these claims and prevailing through trial.

For more information, see the attached entry of judgment.