Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—DColo: Potential Consumers Had Standing to Sue Under Colorado Consumer Protection Act , (Feb 8, 2013)

By Jody Coultas, J.D.

Potential condominium purchasers had standing to assert Colorado Consumer Protection Act (CPA) against condominium sellers that allegedly misrepresented the qualities of the property, according to the federal district court in Denver (Buyers of Ritz-Carlton Vail, LLC v. RCR Vail, LLC, February 6, 2013, Daniel, W.).

After attending a sales presentation by RCR Vail, LLC and Slifer, Smith & Frampton - Vail Associates Real Estate, LLC for a planned community, the purchasers entered into an agreement to purchase a condominium. After learning of pending litigation against the seller and material misrepresentations and omissions my by the sellers, the purchasers sought to rescind the agreement. They assigned their interest to Buyers of Ritz Carlton Vail, LLC (BRCV), which filed the CPA claim.

RCR Vail argued that the purchasers’ assignment of the CPA claims was invalid and that BCRV lacked standing because neither the purchasers nor BRCV actually purchased the condominium unit and because BRCV had not suffered injury.

BRCV had standing to assert the CPA claims as a potential consumer, according to the court. The language of the agreement at issue contemplated that the seller would sell, and the buyer would buy at a later date (i.e., at the closing). Therefore, the purchasers did not buy anything and BRCV were not consumers under the CPA.

Based on the unique set of facts, however, the court found that BRCV had standing as a “potential consumer” because the purchasers entered into an agreement to buy the condo and took steps to entering into a contract of sale.

The case is No. 11-cv-01789-WYD-KLM

Attorneys: Kerry Haverkamp Wallace (Goodman & Wallace, P.C.) for Buyers of Ritz-Carlton Vail, LLC. Marc Andrew Bonora, Vail Resorts Management Company, for RCR Vail, LLC.

Cases: StateUnfairTradePractices ColoradoNews