September 21, 2017

Colorado Supreme Court: Exculpatory Clauses Did Not Exculpate Property Owners Association

The Colorado Supreme Court issued its opinion in McShane v. Stirling Ranch Property Owners Association on Monday, May 1, 2017.

Exemption from Liability—Exculpatory Contracts— Corporation as Distinct Entity—Corporate Actions through Agents—Vicarious Liability.

The Colorado Supreme Court addressed whether a homeowners association may benefit from exculpatory clauses in the community’s declaration and bylaws when those clauses do not name the association as a protected party. Because the plain language of the exculpatory clauses at issue in this case does not limit the association’s liability, and the association, as an entity distinct from internal boards acting as its agents, cannot benefit from exculpatory clauses protecting those agents, the court concluded that petitioners may bring their claims against the association. Accordingly, the court of appeals’ decision was reversed and the case was remanded.

Summary provided courtesy ofThe Colorado Lawyer .

Print Friendly, PDF & Email

Speak Your Mind

*