Colorado § 38-22-123 - Payment to avoid invalid.
Full text of Colorado Colorado Revised Statutes § 38-22-123 — Payment to avoid invalid., with citation guidance and answers to common questions.
§ 38-22-123. Payment to avoid invalid.
No payment made by any owner to any contractor for the purpose of avoiding any anticipated lien of any subcontractor shall be valid; and if any person files either of said statements for a lien for a larger sum than is due or to become due, in fact, or in probability, as the case may be, with intent to cheat or defraud any other person, and that fact appears in any proceeding under this article, such person shall forfeit all rights to such lien under this article.
Source: L. 1883: p. 235, § 29. G.S. § 2159. R.S. 08: § 4047. C.L. § 6464. CSA: C. 101, § 37. CRS 53: § 86-3-23. C.R.S. 1963: § 86-3-23.
ANNOTATION
Trial court should invoke forfeiture on its own initiative when the facts warrant its application whether or not it has been affirmatively pleaded. Pope Heating & Air Conditioning Co. v. Garrett-Bromfield Mtg. Co., 29 Colo. App. 169, 480 P.2d 602 (1971).
"Cheat or defraud" standard encompasses "knowledge". The "cheat or defraud" standard as to the lien claimant's state of mind in this section encompasses the "knowledge" standard in § 38-22-128. If a person intends to cheat or defraud someone regarding the amount of a mechanic's lien, he would necessarily have to have had knowledge that the amount was in error. Concrete Contractors v. E.B. Roberts Constr. Co., 664 P.2d 722 (Colo. App. 1982), aff'd, 704 P.2d 859 (Colo. 1985).
This section is facially irreconcilable with § 38-22-128, but since § 38-22-128 was enacted later, it controls. Wigham Excavating v. Colo. Fed. S & L, 796 P.2d 23 (Colo. App. 1990).
Applied in Armour & Co. v. McPhee & McGinnity Co., 87 Colo. 97, 285 P. 942 (1930).
Frequently Asked Questions About Colorado § 38-22-123
What does Colorado Revised Statutes § 38-22-123 cover?
Section 38-22-123 ("Payment to avoid invalid.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 38-22-123?
A common citation format is "Colorado Revised Statutes § 38-22-123" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 38-22-123 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.