Opinion ID: 4195557
Heading Depth: 1
Heading Rank: 5

Heading: DCP’s Cross-Appeal

Text: A. Attorney’s Fees In a cross-motion for summary judgment, DCP argued it was entitled to recover its attorney’s fees and costs for two reasons. According to DCP, Higby breached the waiver-of-subrogation provision in the MSA and breached the “other insurance” provision in the MSA by obtaining the CIM Policy, thereby causing the CGL Policy to potentially not be primary coverage for the loss at issue. According to DCP, these two breaches caused it to incur significant attorney’s fees and costs associated with defending Plaintiffs’ lawsuit. The district court granted Higby’s cross-motion for summary judgment, concluding Higby did not breach either provision. A party may recover attorney’s fees based upon a showing of a material breach of the MSA. See Bernhard v. Farmers Ins. Exch., 915 P.2d 1285, 1287 (Colo. 1996) (“As a general rule, in the absence of a statute, court rule, or private contract to the contrary, attorney fees are not recoverable by the prevailing party in either a contract or tort action.” (footnote omitted)). Even assuming Higby breached the two relevant provisions of the MSA, 7 any such breach was not 7 Because we reverse the district court’s entry of summary judgment in favor of DCP on the merits of Plaintiffs’ claims, DCP is no longer the prevailing (continued...) -12- material under the unique facts of this case. The purpose of both the waiver-ofsubrogation provision and the other-insurance provision is to preserve DCP’s rights under the Additional Insured Provision. DCP’s assertion that Higby breached the waiver-of-subrogation provision and the other-insurance provision is simply another avenue by which DCP attempts to enforce the Additional Insured Provision. Because the Additional Insured Provision is void as to the loss at issue in this matter, any breach of those provisions is not material. B. Breach of the MSA DCP argues that if the grant of summary judgment in its favor is reversed, this court should remand this matter to the district court to permit the court to revisit its ruling that Higby did not breach the MSA by failing to purchase CGL insurance covering DCP for DCP’s own negligence. Plaintiffs counter that the MSA was not breached because parties cannot contract around the requirements of Colorado law. This court has concluded any promise Higby made to purchase insurance covering DCP for the loss at issue is void under Colorado’s Anti-Indemnification 7 (...continued) party in Plaintiffs’ subrogation action. DCP’s claim of entitlement to attorney’s fees, however, is based on its counter-claim that Higby breached the MSA by “permitting or failing to preclude” National’s subrogation action. Nowhere in its appellate brief does DCP identify the other damages it sought for the alleged breaches of the MSA. Plaintiffs, however, do not argue DCP’s claim for attorney’s fees was not properly pleaded. See Lawry v. Palm, 192 P.3d 550, 56970 (Colo. App. 2008) (discussing the availability of attorney’s fees as either consequential or special damages). -13- Statute which bars a construction business from contracting out liability for its own negligence. Colo. Rev. Stat. § 13-21-111.5(6). Colorado “[c]ourts will not enforce contracts or contract terms that are void as contrary to public policy.” Norton Frickey, P.C. v. James B. Turner, P.C., 94 P.3d 1266, 1267 (Colo. App. 2004). Accordingly, as a matter of law, DCP cannot show that Higby breached its agreement to provide such coverage and it is unnecessary to remand this matter for further proceedings. See Colo. Rev. Stat. § 13-21-111.5(6)(d)(I) (determining that contract provisions like the one at issue here are “void as against public policy”).