Colorado § 44-20-432 - Right of action for loss.

§ 44-20-432. Right of action for loss.

(1) A person has a right of action against the licensed powersports vehicle dealer, used powersports vehicle dealer, or the dealer's powersports salespersons if the person suffers loss or damage by reason of fraud practiced on the person by a dealer or one of the dealer's salespersons acting on the dealer's behalf or within the scope of the employment or suffers loss or damage by reason of the violation by the dealer or salesperson of any provision of this part 4 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 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.

(2) If a person suffers any loss or damage by reason of any unlawful act under section 44-20-423 (1)(a), the person shall have a right of action against the powersports vehicle manufacturer, distributor, or manufacturer representative. In a court action wherein a powersports vehicle manufacturer, distributor, or manufacturer representative has been found liable in damages to any person under this part 4, 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.

(3) If a licensee suffers loss or damage by reason of an unlawful act under section 44-20-423 (1), the licensee shall have a right of action against the powersports vehicle manufacturer, distributor, or manufacturer representative. In a court action wherein a powersports vehicle manufacturer, distributor, or manufacturer representative has been found liable in damages to a licensee under this part 4, the licensee so damaged shall also be entitled to recover reasonable attorney fees.

(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 powersports vehicle dealer, used powersports vehicle dealer, or powersports salesperson if:

(a) The licensed dealer 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 or salesperson; or

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

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 132, § 2, effective October 1. L. 2020: (1) amended and (4) added, (SB 20-140), ch. 225, p. 1106, § 7, effective September 14.

Editor's note: This section is similar to former § 12-6-530 as it existed prior to 2018.