August 17, 2018

Colorado Supreme Court: One-year Statute of Limitations Does Not Apply to Bad Faith Actions Under C.R.S. § 10-3-1116(1)

The Colorado Supreme Court issued its opinion in Rooftop Restoration, Inc. v. American Family Mutual Insurance Co. on Tuesday, May 29, 2018.

Unreasonable Delay and Denial of Insurance Benefits—Statute of Limitations—Statutory Interpretation.

The supreme court considered a certified question from the U.S. District Court for the District of Colorado. Specifically, the court determined whether the one-year statute of limitations in C.R.S. § 13-80-103(1)(d) governs actions under C.R.S. § 10-3-1116(1), which creates a cause of action to address the unreasonable delay or denial of insurance benefits. The court concluded that the one-year statute of limitations does not apply to actions brought under C.R.S. § 10-3-1116(1) because the legislature did not intend C.R.S. § 10-3-1116(1) to operate as a penalty within the context of the statutory scheme.

The certified question was answered in the negative and the case was returned to the district court for further proceedings.

Summary provided courtesy of Colorado Lawyer.

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