Colorado § 8-41-403 - Exemption of certain lessors of real property.

§ 8-41-403. Exemption of certain lessors of real property.

(1) The provisions of this part 4 shall not apply to any lessor or sublessor of real property who rents or leases real property to any lessee or sublessee for the purpose of conducting the business of such lessee or sublessee, whether as a franchise holder, independent agent, or consignee or in any other separate capacity and whether or not such person is an employer, as defined in section 8-40-203, but in no event where such lessee or sublessee is an employee, as defined in section 8-40-202.

(2) No such lessee or sublessee, or any employee or insurer thereof, shall have any right of contribution from or action against such lessor or sublessor under articles 40 to 47 of this title.

(3) The provisions of this part 4 shall not apply to any lessor or sublessor of real property who leases or rents real property to any lessee or sublessee for the purpose of conducting any agricultural production business of such lessee or sublessee, and no such lessee or sublessee, or any employee or insurer thereof, shall have any right of contribution from or action against such lessor or sublessor under articles 40 to 47 of this title.

Source: L. 90: Entire article R&RE, p. 483, § 1, effective July 1. L. 93: (1) and (3) amended, p. 1771, § 22, effective June 6.

Editor's note: This section is similar to former § 8-48-103 as it existed prior to 1990.

ANNOTATION

Annotator's note. Since § 8-41-403 is similar to § 8-48-103 as it existed prior to the 1990 repeal and reenactment of the "Workers' Compensation Act of Colorado", articles 40 to 47 of this title, relevant cases construing that provision have been included in the annotations to this section.

Subsection (1) continues to constitute an exception only to the concept of statutory employment; it is inapplicable in those instances in which the evidence establishes an actual employment relationship between the parties. Bailey v. C.P. Const., Inc., 837 P.2d 277 (Colo. App. 1992).

Application of the statute hinges upon whether the property upon which the injury occurred is under lease to a lessee who conducts its business upon the property. Bain v. Doyle, 807 P.2d 1225 (Colo. App. 1990).

What lessors exempt. This section provides that those lessors who rent property which is used for the purpose of conducting the business of the lessee are exempt from the liability imposed by § 8-48-101. Standard Oil Co. v. Indus. Comm'n, 38 Colo. App. 39, 552 P.2d 1029 (1976).

The test as to whether a lessor is liable is whether the subcontracted work is part of the regular business of the lessor. Standard Oil Co. v. Indus. Comm'n, 38 Colo. App. 39, 552 P.2d 1029 (1976).

Oil company was the constructive statutory employer of claimant who worked at a service station leased by the oil company to its dealer. Standard Oil Co. v. Indus. Comm'n, 38 Colo. App. 39, 552 P.2d 1029 (1976).

Applied in Rian v. Imperial Mun. Serv. Group, Inc., 768 P.2d 1260 (Colo. App. 1988); Virginians Heritage Square Co. v. Smith, 808 P.2d 366 (Colo. App. 1991).