Ranta Construction, Inc. v. Anderson

190 P.3d 835, 66 U.C.C. Rep. Serv. 2d (West) 200, 2008 Colo. App. LEXIS 1074, 2008 WL 2522237
CourtColorado Court of Appeals
DecidedJune 26, 2008
Docket07CA0032
StatusPublished
Cited by11 cases

This text of 190 P.3d 835 (Ranta Construction, Inc. v. Anderson) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ranta Construction, Inc. v. Anderson, 190 P.3d 835, 66 U.C.C. Rep. Serv. 2d (West) 200, 2008 Colo. App. LEXIS 1074, 2008 WL 2522237 (Colo. Ct. App. 2008).

Opinion

Opinion by

Judge ROY.

Seott and Maggie Anderson (the owners) appeal the trial court's decree of foreclosure and judgment in favor of Ranta Construction, Inc. (the contractor), and the trial court's judgment and award of attorney fees to Tel-luride Window & Doors (the vendor). We affirm, and remand the case for further proceedings.

The owners and the contractor signed an agreement to build a custom home in Telluride, Colorado. The contract price was approximately $1,500,000. The owners elected to manage the construction contract in lieu of the architect. They selected custom windows manufactured by Heritage Woodwork Company (the manufacturer), purchased them from or through the vendor, and paid the vendor directly. No defects were observed by the contractor or an owner who was present upon delivery. However, shortly after installation, defects began appearing including bowing, breaking, and leaking.

After an extended investigation, the defects were determined to be the result of defective glass and the sealing system. However, before the contractor and vendor could complete repairs, one of the owners, apparently frustrated by the delay and apparent lack of an acceptable manufacturer's express written warranty, and distrustful of the field repair proposed by the manufacturer, the vendor, and the contractor, sprayed the windows with water, which made the scheduled repairs impossible. Shortly thereafter, the owners barred the vendor and the contractor from the property and withheld all progress payments due to the contractor.

Subsequent settlement negotiations failed when the parties could not agree on whether the owners should immediately release the progress payments or extend the contract time. After the owners discharged their counsel, the contractor informed them it was initiating foreclosure on its previously recorded mechanic's lien. The owners then terminated the construction contract and asserted counterclaims against the contractor including breach of contract, breach of warranties, and excessive lien. They also asserted third-party claims against the vendor, the manufacturer, the glass manufacturer, and a purported window distributor, including negligent misrepresentation; violations of the *839 Colorado Consumer Protection Act (CCPA), §§ 6-1-101, -115, C.R.8.2007; negligent design, manufacture, and distribution; indemnification; contribution; and negligence.

Prior to trial, the window distributor, which provided information on the windows to the vendor, informed the trial court that it had gone out of business well before the window selection process began and it was dismissed from the suit. In addition, the manufacturer declared bankruptey prior to trial and discontinued participation in the case.

Following an extended bench trial, the trial court found and concluded that the owners interfered with the contractor's right to repair the windows, wrongfully withheld progress payments, and thereby breached the contract, exeusing further performance of the contractor. The trial court also found that the windows were defective and that the vendor was liable to the owners for breach of warranty. The trial court dismissed the remaining claims.

The vendor then moved for a judgment notwithstanding the verdict, arguing that under a breach of warranty claim it had a right to repair the windows with which the owners interfered. The trial court agreed, reversed its judgment against the vendor, and granted it attorney fees and costs pursuant to section 13-17-102, C.R.S.2007., This appeal followed.

1.

The owners first contend that the trial court erred in concluding that the contractor had a right to repair the defective windows rather than a duty to replace them. We disagree.

The owners argue that the trial court erred in ignoring contract terms that required the contractor to detect the defects on delivery, to replace defective windows rather than repair them, and to deliver evidence that the manufacturer would countersign a reinstated and acceptable express warranty if the windows were repaired. They imply that because the contractor failed to fulfill those contract terms, its breach preceded theirs and exeused any subsequent breach on their part.

"In reviewing a breach of contract case, we defer to the trial court's findings of fact if the record supports them, and we review its conclusions of law de novo." Albright v. McDermond, 14 P.3d 318, 322 (Colo.2000). "The interpretation of language in a contract is a question of law that an appellate court reviews de novo." Roberts v. Adams, 47 P.3d 690, 694 (Colo.App.2001). A court is guided by general rules of contract construction and should give effect to all provisions such that none is rendered meaningless. Id.

Here, the contract consists of an agreement drafted by the contractor (the contract), which incorporates the architect's specifications (Specifications), which, in turn, incorporate the standard American Institute of Architects General Conditions (AIA Conditions).

Specification 01600 § 1.5.¢A.4 requires the contractor to inspect all products delivered to the jobsite to ensure compliance with the contract documents. - Specification 01210 § 3.14 requires the contractor to inspect on delivery all allowance items, such as windows, for damage or defects and to return all defective products to the manufacturer for replacement.

Contract § 18.2 requires the contractor to "correct any [wlork that fails to conform to the requirements of the contract ... where such failure to conform appears during the progress of the [wlork." AIA Condition 12.2.1.1 requires the contractor to promptly correct, at its own expense, work that fails to conform to the contract documents. AIA Condition 1.1.3 defines "[wlork" as including "all other labor, materials, equipment and services provided or to be provided by the [clontractor to fulfill the [eJontractor's obligations." Contract § 10.1 also gives the contractor sole responsibility "for all construction means, methods, techniques, sequences and procedures and for coordinating all portions of the [wJork."

Specification 01740 § 1.1 E also requires the contractor, "[when [wlork covered by a warranty has failed and been corrected by replacement or rebuilding," to "reinstate the *840 warranty by written endorsement." Specification 01740 § 1.1 B defines "special warranties" as warranties modified "either to extend time limits provided by the standard warranties or to provide greater rights for the [owners]." Although the warranty for wood windows is entitled "Special Warranty" in Specification 08550 § 1.5, the text of the provision discusses a standard express warranty for the standard number of years from the date of substantial completion. Where a special warranty is involved, Specification 01740 § 1.1.6.2 reserves to the owners "the right to refuse to accept the [wJork until the [contractor] presents evidence that entities required to countersign such commitments are willing to do so." In general, however, the contractor is required to deliver all warranties to the owners prior to the final payment, pursuant to Contract § 7.5.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Our Lady v. Martinez Keystone
Colorado Court of Appeals, 2025
v. Camel Point Ranch
2019 COA 108 (Colorado Court of Appeals, 2019)
Fisher v. Rondo Pools
Court of Appeals of Arizona, 2019
Equistar Chemicals, LP v. Clydeunion DB, Limited
579 S.W.3d 505 (Court of Appeals of Texas, 2019)
State of Colorado v. Robert J. Hopp & Associates, LLC
2018 COA 71 (Colorado Court of Appeals, 2018)
Oster v. Baack
2015 COA 39 (Colorado Court of Appeals, 2015)
Amos v. Aspen Alps 123, LLC
2012 CO 46 (Supreme Court of Colorado, 2012)
Hamon Contractors, Inc. v. Carter & Burgess, Inc.
229 P.3d 282 (Colorado Court of Appeals, 2009)
Ahluwalia v. QFA ROYALTIES, LLC
226 P.3d 1093 (Colorado Court of Appeals, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
190 P.3d 835, 66 U.C.C. Rep. Serv. 2d (West) 200, 2008 Colo. App. LEXIS 1074, 2008 WL 2522237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ranta-construction-inc-v-anderson-coloctapp-2008.