July 18, 2019

Colorado Supreme Court: Summary Judgment Appropriate as a Matter of Law in Transaction Broker Negligence Case

The Colorado Supreme Court issued its opinion in Gibbons v. Ludlow on Monday, July 1, 2013.

Professional Negligence—Transactional Malpractice.

The Supreme Court held that to sustain a professional negligence claim against a transactional real estate broker, a plaintiff must show that, but for the alleged negligent acts of the broker, he or she either: (1) would have been able to obtain a better deal in the underlying transaction; or (2) would have been better off by walking away from the underlying transaction. The Court found that here, the sellers failed to present evidence of the fact of damages; they did not establish beyond mere possibility or speculation that they suffered a financial loss as a result of the transactional brokers’ professional negligence. Because no injury could be shown, the trial court properly granted summary judgment as a matter of law. Accordingly, the Court reversed the judgment of the court of appeals with respect to the summary judgment on the professional malpractice claim and reinstated the judgment of the trial court, including the attorney fees and costs associated with the claims.

Summary and full case available here.

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