Ironshore v. Pool

Colorado Court of Appeals·Decided April 24, 2025·No. 24CA0996·Unpublished

Opinion

24CA0996 Ironshore v Pool 04-24-2025 COLORADO COURT OF APPEALS

Court of Appeals No. 24CA0996 Adams County District Court No. 22CV30798 Honorable Arturo G. Hernandez, Judge

Ironshore Specialty Insurance Company, an Arizona corporation, as subrogee of Brinkman Construction, Inc.,

Plaintiff-Appellant, v. Pool and Spa Company, a Colorado limited liability company, Defendant-Appellee.

JUDGMENT AFFIRMED

Division VI

Opinion by JUDGE KUHN

Welling and Schutz, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e)

Announced April 24, 2025

Nicolaides Fink Thorpe Michaelides Sullivan, LLP, Matthew J. Fink, Denver, Colorado; Michael A. Yanof, Dallas, Texas, for Plaintiff-Appellant

Tyson & Mendes LLP, Michael D. Drews, Greenwood Village, Colorado, for Defendant-Appellee

¶1 Plaintiff, Ironshore Specialty Insurance Company, appeals the trial court’s judgment entered upon jury verdicts in favor of defendant, Pool and Spa Company (Pool & Spa), on Ironshore’s breach of contract and negligence claims. We affirm.

I. Background

¶2 We glean the following factual and procedural background from the record and evidence the jury heard at trial.

¶3 This construction defect dispute concerns the development of a hotel in Westminster, Colorado. In 2019, the hotel’s owner, Marriott International, hired Brinkman Construction, Inc., to serve as the general contractor for the project. A few months later, Pool & Spa entered into a subcontract with Brinkman, in which it agreed to design and build an outdoor swimming pool and spa in the hotel’s courtyard for $160,500. Pool & Spa began working on the project in April 2020 after obtaining all the necessary approvals from Brinkman and its architect, Worth Group Architects and Designers. In July of that year, Pool & Spa completed the installation of the pool and spa, the structures passed a final inspection, and Pool & Spa requested payment of $35,000, the outstanding contract balance.

¶4 Brinkman rejected the payment request. Instead, it informed Pool & Spa that it was terminating the contract because the structures contained numerous material defects that Pool & Spa had failed to correct. Specifically, the termination letter alleged that Pool & Spa, among other things, hadn’t properly installed the coping and handrails and had failed to install “auto fill components” and a “chemical feeder” for the pool.

¶5 Roughly two months later, in November, Brinkman sent Pool & Spa notice of claim under section 13-20-803.5, C.R.S. 2024. In addition to the previously identified defects, and as relevant on appeal, Brinkman alleged that Pool & Spa and Pool & Spa’s subcontractor had failed to design and install a leak collection system that a civil engineering company, Kumar & Associates, had recommended in a 2017 geotechnical soils report (the Kumar report). Brinkman alleged that the defects in Pool & Spa’s workmanship “ha[d] led to water leaks, potential safety issues, and surrounding soils movement.” Considering the nature of the alleged defects, Brinkman asserted that “the only workable solution [was] to demolish, remove and replace the swimming pool in its entirety.” After Pool & Spa denied liability for the claimed defects,

Brinkman paid approximately $647,000 to replace the pool, the spa, and the surrounding concrete pool deck.

¶6 In June 2022, Brinkman and its insurer, Ironshore, sued Pool & Spa. About seven months later, Ironshore paid Brinkman roughly $540,000 under its policy in exchange for a release of any claims relating to the pool project. Then, as Brinkman’s subrogee, Ironshore filed an amended complaint and asserted against Pool & Spa claims for general breach of contract, breach of the indemnity clause in article 9.1.1 of the contract, negligence, and professional negligence. In the meantime, Pool & Spa filed a third-party complaint against several entities that had participated in the project, including Worth Group and Aquatic Engineering Consultants, LLC (AEC), the subcontractor that Pool & Spa had hired to design the pool and spa. The trial court eventually dismissed the third-party defendants from the suit, and Ironshore’s claims against Pool & Spa proceeded to a six-day jury trial.1

1 Specifically, Pool & Spa stipulated to AEC’s dismissal from the

case before trial. It also settled with Worth Group, which Pool & Spa designated as a nonparty at fault shortly before trial.

¶7 The jury returned special verdicts finding that (1) Pool & Spa breached the pool contract with Brinkman, but Brinkman failed to substantially perform its obligations under that contract; (2) Pool & Spa didn’t breach the indemnification clause; (3) Brinkman and Pool & Spa were both negligent; (4) Pool & Spa was 15% at fault for Brinkman’s damages and Brinkman was 85% at fault; and (5) Ironshore wasn’t entitled to any damages on its claims. Consequently, the trial court entered judgment in favor of Pool & Spa.

II. Analysis

¶8 On appeal, Ironshore contends that the trial court reversibly erred by entering judgment on the jury’s special verdicts because the evidence was insufficient to support the jury’s findings that Brinkman (1) breached the contract with Pool & Spa and (2) was 85% negligent. Ironshore also contends that the jury erred by finding that (3) Pool & Spa didn’t breach the indemnity clause in the contract, and (4) Ironshore wasn’t entitled to recover any damages because the evidence was insufficient to support those findings and the findings were inconsistent with other aspects of the jury’s

verdicts. We set forth the applicable standard of review before addressing each of Ironshore’s contentions.

A. Standard of Review

¶9 We review sufficiency of the evidence claims de novo.2 Northstar Project Mgmt., Inc. v. DLR Grp., Inc., 2013 CO 12, ¶ 14. In doing so, “we must determine whether the evidence, viewed as a whole and in the light most favorable to the prevailing party, is sufficient to support the verdict.” Parr v. Triple L & J Corp., 107 P.3d 1104, 1106 (Colo. App. 2004). We also must “draw every reasonable inference from the evidence in favor of [the prevailing]

2 Pool & Spa contends that “[s]ufficiency of the evidence to support

a jury’s finding is not a question of law reviewed [de novo].” In support of its position, Pool & Spa appears to argue that de novo review only applies when a sufficiency of the evidence claim relates to an underlying question of law. This argument misses the mark. See Coors v. Sec. Life of Denver Ins. Co., 112 P.3d 59, 66 (Colo. 2005). Our sufficiency review doesn’t turn on whether the underlying issue is one of law or fact because we don’t review de novo the jury’s ultimate conclusion. See Mince v. Butters, 616 P.2d 127, 129 (Colo. 1980) (noting that while the sufficiency of the evidence in awarding damages is a question of law, whether to award those damages lies in the discretion of the trier of fact). Instead, as the supreme court has observed, we merely “review all of the relevant evidence de novo in the light most favorable to the verdict” to decide whether it sufficiently supported the jury’s decision. Northstar Project Mgmt., Inc. v. DLR Grp., Inc., 2013 CO 12, ¶ 14.

party.” Averyt v. Wal-Mart Stores, Inc., 2013 COA 10, ¶ 18 (quoting Harris Grp., Inc. v. Robinson, 209 P.3d 1188, 1201 (Colo. App. 2009)). It is the sole prerogative of the jury to resolve disputes of fact and to determine the weight of the evidence, the inferences to be drawn from it, and the credibility of the witnesses. Fisher v. State Farm Mut. Auto. Ins. Co., 2015 COA 57, ¶ 40, aff’d, 2018 CO 39. Accordingly, we won’t disturb a jury’s verdict if there is competent evidence in the record to support it, even if reasonable people could reach a different conclusion based on the same facts. Id.; see also People in Interest of S.G.L., 214 P.3d 580, 583 (Colo. App. 2009).

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