Opinion ID: 2638092
Heading Depth: 2
Heading Rank: 3

Heading: Harmonious Reading of the Statute

Text: Our holding here ensures that the Trust Fund Statute is both internally consistent and consistent with the General Mechanics' Lien laws. Contrary to the Regan's arguments to the Tenth Circuit, the Trust Fund Statute, because it is separate from lien claims, does not thereby keep lien claims alive for an indefinite period. For example, the agreement between the contractor and the subcontractor, laborer, or material supplier controls the timelines for the disbursement of funds. See Chicago Lumber Co. v. Newcomb, 19 Colo.App. 265, 275, 74 P. 786, 789 (1903) (holding that the contract controls the payment burdens imposed). Although the time limitations on the perfection of a lien, set forth in sections 38-22-109 and 110, C.R.S. (2006), do not apply to the Trust Fund Statute, trust fund claims are nonetheless limited by the applicable statute of limitations just as lien claims are limited by sections 38-22-109 and 110. [6] Treating trust fund claims separate from lien claims results in a harmonious reading of the statutes when both lien and trust fund claims are pursued. For example, a subcontractor who pursues a lien claim is not foreclosed or discouraged from also pursuing trust funds. Though a supplier who has foreclosed on a perfected lien and obtained a judgment may no longer have a lien, they nonetheless qualify for protection under the Trust Fund Statute. Because subsection one lists among those persons entitled to the statute's protection those who claim or may claim, against a principal and surety, a person with a judgment on a foreclosed lien has a claim. [7] § 38-22-127(1). Thus, that person is in the same position as a person who has a lien or may have a lien and entitled to the same protection.