Updates on Insurance Coverage, Construction Defect
and Commercial Auto Law Developments
in Colorado and Utah
Greetings from Evans & Co. Counselors and Litigators, with another Case Notes series. We write this month with updates on insurance, construction defect, and commercial auto law in the states of Colorado and Utah.
Past Case Notes are archived at and we would be pleased to bring current the decisions on which we've reported previously, at your request.
In Colorado, we digest a 10th Circuit Court of Appeals decision, applying Colorado law, which answers the recurring questions of whether, when a state has an anti-indemnity statute, prohibiting direct indemnity, might the prohibition be side-stepped by requiring that the indemnitee be named and waived on the indemnitor’s liability  policy
In a Federal District Court declaratory judgment action, applying Colorado law, the question was: too soon? The dec action was filed before any underlying tort action.  The court finds no case or controversy and dismisses.
The Utah Federal District Court, applying Utah law, applies the eight-corners rule to find that a sexual abuse or molestation claim, triggers no duty to defend nor a duty to indemnify under homeowners’ policy terms, which included a home-business extension. Compare a second District Court case we digest, where the Court declined jurisdiction over a dec action where it felt that a question of Utah law was presented (usually not an obstacle) and non-essential parties might be joined if the dec action were heard in state court. 
We digest a bad faith case, under Utah law, where the court articulates required elements of pleading bad faith, which were not made by this plaintiff. Factual allegations, or their absence, will make or break a bad faith complaint!
In a second bad faith case, the Federal District case grants an insurer’s motion to bifurcate a bad faith claim, from the underlying breach of insurance contract claim. However, the insurer still needed to participate in prompt and concurrent discovery on issues relating to bad faith. 
Click here for our Case Notes for both states (28 pages).
Click here for Colorado only (14 pages).
Click here for Utah only (15 pages).

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