§ 4-2.5-108 — Unconscionability

Colorado § 4-2.5-108

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Leases

Text

(1) If the court as a matter of law finds a lease
contract or any clause of a lease contract to have been unconscionable at the time
it was made the court may refuse to enforce the lease contract, or it may enforce
the remainder of the lease contract without the unconscionable clause, or it may so
limit the application of any unconscionable clause as to avoid any unconscionable
result.

(2) With respect to a consumer lease, if the court as a matter of law finds
that a lease contract or any clause of a lease contract has been induced by
unconscionable conduct or that unconscionable conduct has occurred in the
collection of a claim arising from a lease contract, the court may grant appropriate
relief.

(3) Before making a finding of unconscionability under subsection (1) or (2) of
this section, the court, on its own motion or that of a party, shall afford the parties a
reasonable opportunity to present evidence as to the setting, purpose, and effect of
the lease contract or clause thereof, or of the conduct.

(4) In an action in which the lessee claims unconscionability with respect to a
consumer lease:

(a) If the court finds unconscionability under subsection (1) or (2) of this
section, the court shall award reasonable attorney's fees to the lessee.

(b) If the court does not find unconscionability and the lessee claiming
unconscionability has brought or maintained an action he or she knew to be
groundless, the court shall award reasonable attorney's fees to the party against
whom the claim is made.

(c) In determining attorney's fees, the amount of the recovery on behalf of
the claimant under subsections (1) and (2) of this section is not controlling.

Legislative History

Source: L. 91: Entire article added, p. 278, � 1, effective July 1, 1992.