06/07/2017
Monday’s ruling by the Colorado Supreme Court in Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, et al. (2017 CO 69) is a victory for the citizens of Colorado, developers and builders, and for all proponents of affordable housing. Diane Palumbo, the managing partner of Palumbo Lawyers LLP, the attorneys for Metropolitan Homes on appeal, said “the road is now opening up for Coloradans to see more affordable new multi-family “for sale” housing as a result of the Court’s ruling and a reduction in delays in home resales and refinancing which have been hampered by lengthy litigation disputes.” Palumbo Lawyers attorney Marisa Ala argued Metropolitan’s case to the Supreme Court, citing long standing Colorado public policy which favors arbitration because it provides for a faster resolution of disputes, allowing home builders to focus on addressing homeowner concerns rather than costly and often protracted litigation. According to Mary Ritchie, the Palumbo Lawyers attorney who co-authored the prevailing argument, Metropolitan Homes has always been committed to building quality homes. Ms. Ritchie believes this decision will enhance Metropolitan’s commitment to resolve homeowners concerns even more effectively than before.
Palumbo Lawyers congratulates Metropolitan Homes and thanks the Colorado Supreme Court for their thoughtful analysis of these highly debated issues. Ms. Palumbo said "our client Metropolitan Homes lives and works by the important fundamentals of open and honest communication, timely and responsive decision-making, and the absolutes of integrity, accountability, and ethical behavior. It is clear the Court spent a lot of time considering this issue and we believe they got it right."
Ms. Ritchie also commented "the decision aligns with strong Colorado public policy favoring arbitration and recent legislation requiring more informed decisions concerning construction defect lawsuits - it is a solid victory for affordable housing and aligns with efforts by Denver Mayor Michael Hancock, Lakewood Mayor Adam Paul, and other community leaders."
As Ms. Ala argued to the Supreme Court, “costly construction defect litigation has resulted in a near dead stop of construction of affordable “for sale” multi-family housing. This decision will help minimize delays in resale and refinancing, allow for more effective use of settlement or award monies to repair defects as opposed to paying for lawyers and experts, and open the way to spur building to give Coloradans options to avoid apartment rental situations with skyrocketing rents and no certainty as to basic living expenses."
For more information, please contact:
Diane O. Palumbo
Palumbo Lawyers LLP
CA•NV•CO•WA•AZ
Tel: 949.442.0300
Cell: 949.939.2103