§ 35-27-123 — Requirement and effect of arbitration

Colorado § 35-27-123

• Jurisdiction: Colorado
• Title 35: Agriculture
• Art.: Colorado Seed Act

Text

(1) (a) If a buyer of seed
suffers damage because such seed does not produce or perform in conformance
with the labeling or warranty or because of negligence by the seller, the buyer shall
submit such buyer's claim to arbitration pursuant to this section and section 35-27-122. Such submittal shall be a prerequisite to such buyer's right to maintain any
legal action against the seller of such seed. Any statute of limitations shall be
tolled until ten days after the filing of the arbitration report.

(b) No claim may be asserted as a counterclaim or defense in any action
brought pursuant to paragraph (a) of this subsection (1) by a seller against a buyer,
if the buyer has not submitted such claim to arbitration. After the buyer files a
written notice of intention to assert a claim as a counterclaim or defense in such
action, accompanied by a copy of the buyer's complaint filed under section 35-27-122 (2)(a), the statute of limitations shall be tolled for such claim until ten days after
the filing of the arbitration report pursuant to section 35-27-122 (2)(d).

(2) (a) Every label required pursuant to section 35-27-105 shall include clear
language that arbitration is required for claims arising out of the sale of seed;
except that arbitration shall not be required if the notice required pursuant to this
paragraph (a) is not included.

(b) A notice in the following form or equivalent language shall be sufficient
to comply with paragraph (a) of this subsection (2):

NOTICE OF REQUIRED ARBITRATION

UNDER THE COLORADO SEED ACT, ARTICLE 27 OF TITLE 35, COLORADO
REVISED STATUTES, ARBITRATION IS REQUIRED AS A PREREQUISITE TO
CERTAIN LEGAL ACTIONS, COUNTERCLAIMS, OR DEFENSES AGAINST A SELLER
OF SEED. INFORMATION ABOUT THIS REQUIREMENT MAY BE OBTAINED FROM
THE COLORADO COMMISSIONER OF AGRICULTURE.

(3) (a) An arbitration report filed pursuant to section 35-27-122 (2)(d) shall be
binding upon all parties to the extent agreed upon in any contract governing the
sale which was the subject of the arbitration.

(b) In the absence of an agreement to be bound by arbitration, a buyer may
bring legal action against a seller or assert such claim as a counterclaim or defense
in any action brought by the seller at any time after the arbitration report has been
filed.

(c) During litigation involving a complaint which has been arbitrated pursuant
to this section, any party who was subject to such arbitration may introduce the
arbitration report as evidence of the facts found in the report if the party against
whom the report is offered was also subject to the arbitration. The court may give
such weight to the council's findings and conclusions of law and recommendations
as to damages and costs as the court sees fit based upon all the evidence before
the court. The court may also take into account any finding of the arbitration
council of any failure of any party to cooperate in such arbitration proceedings,
including any finding as to the effect of delay in filing the arbitration claim or
answer upon the ability of the arbitration council to determine the facts of the case.

Legislative History

Source: L. 93: Entire article R&RE, p. 1020, � 1, effective July 1.