The Colorado Supreme Court issued a unanimous ruling in Ralph L. Wadsworth Construction Company, LLC v. Regional Rail Partners, reversing the Colorado Court of Appeals and siding with Wadsworth. The decision clarifies key provisions of Colorado’s Public Works Act, §§ 38-26-101 to -110, C.R.S. It has significant implications for contractors, subcontractors and material suppliers across the state.
The dispute arose from Wadsworth’s work as a subcontractor on the Regional Transportation District’s North Metro Rail Line project, a $343 million public works project connecting Thornton and Denver. Wadsworth sought $12.8 million in unpaid costs, including delay and disruption damages, through a verified statement of claim under the
Public Works Act. While the trial court awarded $5.6 million, the Court of Appeals had reversed, finding the claim excessive and concluding Wadsworth had forfeited its right to recovery.
Berg Hill Greenleaf Ruscitti LLP represented Wadsworth at both the trial and appellate levels, with BHGR’s Rudy Verner presenting oral argument before the Supreme Court. The Court clarified that disputed or unliquidated amounts may lawfully be included in a verified statement of claim and that filing an excessive claim forfeits only statutory rights, not all legal remedies. The case was remanded to the Court of Appeals for further proceedings, marking a significant victory for subcontractors on public projects in Colorado.