Senate approves change to economic‑loss rule to expand negligence claims for first homeowners
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Summary
Senate Bill 185 passed on March 20 to clarify that residential property owners can bring certain negligence claims against construction professionals, reversing a narrower reading of the economic‑loss rule in recent case law, lawmakers said.
The Colorado Senate on March 20 passed Senate Bill 185, which changes how the economic‑loss rule applies to negligence claims in residential construction cases.
Sponsor and supporters said the bill restores or clarifies homeowners’ ability to sue construction professionals — contractors, subcontractors, architects and engineers — for negligent work when defects damage a home's structure or cause losses. Lawmakers said the bill addresses a recent split in case law that limited negligence claims for first purchasers of newly constructed homes.
Why it matters: supporters framed the bill as restoring accountability for homeowners who experience structural defects, saying existing appellate decisions had narrowed remedies for first homeowners. Several senators noted unusual cross‑sector support: home‑building industry representatives and trial attorneys testified in favor of the amended bill.
Key details: the bill was presented as correcting an imbalance created by recent state appellate and Supreme Court rulings. Senator Pelton said the measure brings both the home builders and trial lawyers into agreement, calling the moment “a day in history” to align liability responsibility for first homeowners.
Procedure and votes: the Senate adopted the committee report and then passed Senate Bill 185 by voice vote; the chair announced passage. The transcript records proponents describing the bill's intent and endorsing a yes vote.
What’s next: with Senate passage, the bill is ordered for final enrollment and transmission under legislative procedure.