Town of Alma v. AZCO Construction, Inc.
Colorado Supreme Court
10 P.3d 1256 (2000)

- Written by Sean Carroll, JD
Facts
The Town of Alma (plaintiff) hired AZCO Construction, Inc. (AZCO) (defendant) to build improvements to its water system. In the contract, AZCO guaranteed its performance with a one-year warranty. After one year had passed, Alma discovered leaks in the water system that AZCO had built. AZCO refused to fix the leaks because the warranty had expired. Alma paid to fix the leaks and sued AZCO for negligence. The trial court dismissed the complaint. The court of appeals affirmed, ruling that the economic-loss rule barred any recovery for Alma. Alma appealed.
Rule of Law
Issue
Holding and Reasoning (Rice, J.)
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