Yesterday, the Colorado Supreme Court sided with condo developers by preserving their right to compel arbitration in construction defect actions in Vallagio at Inverness Residential Con. Ass’n v. Metro. Homes, Inc.  This decision arises out of developers’ continuing effort to limit costly litigation associated with condo development in Colorado.  To that end, the developers were requiring construction defect claims to be brought in arbitration rather than the court system by way of arbitration provisions in the common interest community declarations, which could not later be amended without the developers’ consent.  The Colorado Supreme Court upheld Colorado’s policy favoring arbitration in construction defect actions by finding these provisions enforceable.

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