Unfolding your future
Making things happen on a grand scale requires vision, tenacity and a great team to get you there. Let's get to work.
NEWS & UPDATES
The Economic Loss Rule and the Shifting Landscape of Construction Defect Law in Colorado
On April 21, 2025, the Colorado Supreme Court handed down its decision in Mid-Century Ins. Co. v. HIVE Construction. This case provided a further articulation of the Court’s interpretation of the economic loss rule, a legal doctrine that broadly prevents certain plaintiffs from recovering for torts, such as negligence, if their claims could also be rooted in contract law. The economic loss rule plays a particularly relevant role in the area of construction defect litigation, where the possibility of bringing a negligence claim—versus solely a claim for breach of contract—can significantly affect the availability of insurance proceeds to contribute to a defendant’s defense. The HIVE decision fits within a larger trend seen recently in construction defect law in Colorado where the courts have been narrowing the available paths for plaintiffs’ recovery. Given the recent changes to the law surrounding the economic loss rule, this alert traces the evolution of the rule’s scope with regard to construction defect actions in Colorado.