Jim Black v. Coleman

Colorado Court of Appeals·Decided November 26, 2025·No. 24CA0080·Unpublished

Opinion

24CA0080 Jim Black v Coleman 11-26-2025 COLORADO COURT OF APPEALS

Court of Appeals No. 24CA0080 Jefferson County District Court No. 22CV30319 Honorable Ryan P. Loewer, Judge

Jim Black Construction, Inc., Plaintiff-Appellee, v. Derek Coleman, Defendant-Appellant.

JUDGMENT AFFIRMED IN PART AND VACATED IN PART

Division I

Opinion by JUDGE J. JONES Grove and Schutz, JJ., concur

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

Announced November 26, 2025

Wilson Elser Moskowitz Edelman & Dicker LLP, Ryan A. Williams, Gabrielle Lalonde, Denver, Colorado; Mark Champoux, Daniel A. Richards, Nicholas R. Peppler, Denver, Colorado, for Plaintiff-Appellee

Thomas P. Howard, LLC, Thomas P. Howard, Scott E. Brenner, Sam Thomas, Louisville, Colorado, for Defendant-Appellant

¶1 Defendant, Derek Coleman, appeals the trial court’s judgment in favor of plaintiff, Jim Black Construction, Inc. (Jim Black), on its claims for foreclosure of a mechanic’s lien, breach of contract, unjust enrichment, and promissory estoppel. We affirm the part of the judgment on the mechanic’s lien foreclosure and breach of contract claims and vacate the part of the judgment on the unjust enrichment and promissory estoppel claims.

I. Background

¶2 Late one night, a fire broke out in Coleman’s home, causing significant damage. While firefighters were putting out the fire, representatives from Jim Black met with Coleman in his front yard. That night, Coleman and Jim Black agreed that Jim Black would stabilize Coleman’s house to mitigate further damage. Two days later, Coleman went to Jim Black’s office and engaged the company to restore Coleman’s house to its pre-fire condition. During this meeting, Coleman signed two contracts: (1) a restoration “Proposal” (Proposal), which provided that Jim Black would supply labor and materials for the project; and (2) a “Work Authorization and Direction to Pay” (Work Authorization), which, among other things, allowed Jim Black to begin the restoration process as authorized by

either Coleman or his insurance company. With the agreements signed, Jim Black started restoring the property.

¶3 Shortly thereafter, Cogdill Consulting (Cogdill), a third party working with Coleman’s insurance company, created an estimate for the project. Jim Black agreed to Cogdill’s estimate and referred to it throughout the restoration process.

¶4 Several months into the project, Coleman asked Jim Black to change parts of the house’s pre-fire architectural design, and Jim Black subsequently added those changes to its restoration plan. To comply with Coleman’s request, Jim Black had to obtain new bids from subcontractors and new estimates for the cost of repair, all of which slowed down the restoration project. As a result of the slowdown, Coleman became dissatisfied and terminated Jim Black about twenty months into the project.

¶5 After being terminated, Jim Black sent Coleman its final invoice for the project, totaling $166,857.44. The invoiced amount was based on Cogdill’s estimate, a change order sent to Coleman by Jim Black, and various invoices from Jim Black’s subcontractors. When Coleman received the invoice, he emailed Jim Black asserting that there were “a lot of things that [Jim Black] charged more than

once.” Jim Black representatives offered to meet with Coleman to discuss the alleged duplicate charges, but Coleman didn’t respond to the requests. After it didn’t hear from Coleman or receive payment, Jim Black filed a mechanic’s lien against Coleman’s property for the final invoice amount. Jim Black then filed suit against Coleman, asserting claims for foreclosure of the lien, breach of contract, unjust enrichment, and promissory estoppel. Coleman asserted counterclaims for breach of contract, promissory estoppel, fraud, negligent misrepresentation, and recording of an excessive lien.

¶6 During discovery, Jim Black found a duplicate charge of $2,160 in its initial billing, which related to engineering fees (an accounting error) and reduced the claimed lien by that amount, plus 10% profit and 10% overhead fees (for a total of $2,592), resulting in a new total of $164,265.44.

¶7 Following a bench trial, the court found in Jim Black’s favor on all of its claims and all of Coleman’s counterclaims. The court ordered Coleman to pay Jim Black $164,265.44 (the revised amount), plus interest, costs of enforcement, and attorney fees.

Coleman only appeals the portion of the judgment on Jim Black’s claims.

II. Discussion

¶8 Coleman contends the trial court erred by (1) finding that he failed to prove that Jim Black’s mechanic’s lien was excessive; (2) finding that the lien, as recorded, included only $2,592 in excess charges; (3) failing to enforce the provision in the Proposal addressing changes to the scope of the work; and (4) entering judgment in Jim Black’s favor on its unjust enrichment and promissory estoppel claims. We reject Coleman’s first three contentions but agree with the fourth.

A. Application of the Mechanic’s Lien Statute

¶9 Coleman initially contends that the trial court applied an incorrect legal standard in determining whether Jim Black’s mechanic’s lien was excessive and clearly erred by finding that Jim Black didn’t know that its lien was excessive when recorded. We disagree with both contentions.

1. Correct Legal Standard a. Standard of Review and Applicable Law

¶ 10 We review the trial court’s interpretation of the mechanic’s lien statutes de novo. Galiant Homes, LLC v. Herlik, 2025 COA 3, ¶ 22; Sure-Shock Elec., Inc. v. Diamond Lofts Venture, LLC, 2014 COA 111,

¶ 8.

¶ 11 Section 38-22-128, C.R.S. 2025, governs forfeiture of a mechanic’s lien when a claimant files a lien for an amount greater than what’s due. “The intent of section 38-22-128 is to punish and deter those who abuse the mechanic’s lien statute by knowingly and intentionally claiming excess amounts . . . .” Honnen Equip. Co. v. Never Summer Backhoe Serv., Inc., 261 P.3d 507, 510 (Colo. App. 2011). Thus, a party asserting that a mechanic’s lien is excessive within the meaning of the statute must show that (1) the lien amount exceeds what was due when the lien was recorded; (2) there was no reasonable possibility that the amount of the lien was then due; and (3) the lien claimant knew that the amount claimed was greater than the amount due. § 38-22-128; see Honnen Equip. Co., 261 P.3d at 510 (citing LSV, Inc. v. Pinnacle Creek, LLC, 996 P.2d 188, 192 (Colo. App. 1999)).

b. Analysis

¶ 12 Coleman argues that while “the court began by applying the correct legal standard,” it ultimately applied an erroneous standard by finding that Jim Black didn’t have any reason to believe that there was an accounting error in the final invoice (concerning the duplicate charge of $2,592 for engineering fees). But the court made that finding expressly in the context of determining whether Jim Black knew that the amount claimed was greater than the amount actually owed — one of three elements of an excessive lien claim. The accounting error was the basis of Coleman’s allegation that Jim Black knew that its lien was excessive. And so the court was merely addressing that allegation under the applicable element of the claim. See § 38-22-128; see also Galiant Homes, ¶¶ 23, 35 (the trial court used the terms “reasonable belief” and “knowledge” interchangeably).

¶ 13 Coleman also argues that the trial court added a new element to the test by saying that the accounting error in Jim Black’s final invoice wasn’t so “egregious to render the lien amount facially excessive.” But, again, the court made this finding in the context of

determining whether Jim Black knew that its lien was excessive when recorded.

2. Whether Jim Black Knew its Lien was Excessive a. Applicable Law and Standard of Review

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