Colorado § 44-20-131 Right of action for loss

Colorado Statutes

§ 44-20-131 — Right of action for loss

Colorado § 44-20-131

Title 44Revenue -

Art.Sale of Self-propelled Vehicles

This text of Colorado § 44-20-131 (Right of action for loss) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 44-20-131 (2026).

Text

(1)(a) If a person suffers loss or damage by reason of fraud practiced on the person by a licensed dealer or one of the dealer's salespersons acting on the dealer's behalf or within the scope of the employment of the salesperson, or if a person suffers any loss or damage by reason of the violation by the dealer or salesperson of any provision of this part 1 related to fraud that is designated by the board by rule, whether or not the violation is the basis for denial, suspension, or revocation of a license, the person suffering loss or damages has a right of action against the dealer or the dealer's motor vehicle salespersons. The right of a person to recover for loss or damage as provided in this subsection (1) against the dealer or salesperson is not limited to the amount of the

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(1) (a) If a person suffers loss or damage
by reason of fraud practiced on the person by a licensed dealer or one of the
dealer's salespersons acting on the dealer's behalf or within the scope of the
employment of the salesperson, or if a person suffers any loss or damage by reason
of the violation by the dealer or salesperson of any provision of this part 1 related to
fraud that is designated by the board by rule, whether or not the violation is the
basis for denial, suspension, or revocation of a license, the person suffering loss or
damages has a right of action against the dealer or the dealer's motor vehicle
salespersons. The right of a person to recover for loss or damage as provided in this
subsection (1) against the dealer or salesperson is not limited to the amount of their
respective bonds.

(b) A person suffering loss or damages has a right of action against a
licensed business disposer if:

(I) The loss or damage is caused by fraud practiced on the person by the
disposer or the disposer's agent within the scope of employment; or

(II) The loss or damage is caused by the disposer violating any provision of
this part 1 related to fraud and the violation is designated by the board by rule,
whether or not the violation is the basis for denial, suspension, or revocation of the
license.

(2) If any person suffers any loss or damage by reason of any unlawful act as
provided in section 44-20-124 (1)(a), the person shall have a right of action against
the manufacturer, distributor, or manufacturer representative. In any court action
wherein a manufacturer, distributor, or manufacturer representative has been
found liable in damages to any person under this part 1, the amount of damages so
determined shall be trebled and shall be recoverable by the person so damaged.
Any person so damaged shall also be entitled to recover reasonable attorney fees
as part of his or her damages.

(3) If any licensee suffers any loss or damage because of a violation of
section 44-20-124 (1), the licensee shall have a right of action against the
manufacturer, distributor, or manufacturer representative. In any court action
wherein a manufacturer, distributor, or manufacturer representative has been
found liable in damages to any licensee under this part 1, any licensee so damaged
shall also be entitled to recover reasonable attorney fees and costs as part of his or
her damages.

(4) A person who suffers loss or damages resulting from fraud may bring a
separate action against, and recover from the surety on the bond of, the licensed
dealer, business disposer, buyer agent, or salesperson if:

(a) The licensed dealer, disposer, buyer agent, or salesperson has not
reimbursed the person for the loss or damages; and

(b) After either:

(I) The board issued a final agency order with a finding of fraud by a licensed
dealer, disposer, buyer agent, or salesperson; or

(II) A court entered judgment upon a claim of fraud by a licensed dealer,
disposer, buyer agent, or salesperson.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 85, � 2, effective October 1. L. 2019: (1) amended, (SB 19-249), ch. 309, p. 2806, � 11, effective August 2. L. 2020: (1) amended and (4) added, (SB 20-140), ch. 225, p. 1104, � 4, effective September 14.