lease contract who will pay legal costs and attorney fees colorado

Many commercial leases provide that the landlord can collect attorneys fees and costs should the tenant default on the lease. Typically, this attorneys fees clause is not a prevailing party clause – meaning that the party that prevails gets attorneys fees from the party that does not prevail.

Full Answer

Who is responsible for attorney fees in a lease agreement?

Generally speaking there are 3 main circumstances where attorneys’ fees can be awarded: • A contract provides for it; • An award of attorneys’ fees is provided for by statute; or • The lawsuit was frivolous, vexatious, or without merit Attorneys’ Fees May Be Awarded in Denver and Colorado Courts Where a Contract Allows for It

Are attorneys’ fees awarded in Colorado civil litigation cases?

Imposing a late fee more than once for each late payment; Requiring a tenant to pay interest on late fees; Recouping any amount of a late fee from a rent payment made by a tenant; or Charging a tenant a late fee unless the landlord provided the tenant written notice of the late fee within 180 days after the date upon which the rent payment was due.

What does attorneys fees mean in a contract?

29. Attorney Fees: Establishes that to the maximum extent allowable by state law, Tenant will be responsible for paying the Landlord’s attorney fees in the event that the Landlord must take court action against the Tenant under the Lease. 30.

Who pays Attorney’s fees in a civil case?

Justia US Law US Codes and Statutes Colorado Revised Statutes 2016 Colorado Revised Statutes Title 13 - Courts and Court Procedure Costs Article 17 - Attorney Fees Part 1 - Frivolous, Groundless, or Vexatious Actions § 13-17-102. Attorney fees - definitions

How long does a landlord have to pay a penalty?

A landlord who commits a violation must pay a $50 penalty to an aggrieved tenant for each violation. Otherwise, a landlord who commits a violation has 7 days to cure the violation, which 7 days begins when the landlord receives notice of the violation. If a landlord fails to timely cure a violation, the tenant may bring a civil action to seek one or more of the following remedies: 1 Compensatory damages for injury or loss suffered; 2 A penalty of at least $150 but not more than $1,000 for each violation, payable to the tenant; 3 Costs, including reasonable attorney fees if the tenant is the prevailing party; and 4 Other equitable relief the court finds appropriate.

What is the Colorado Consumer Protection Act?

The bill addresses the following items related to landlord and tenant rights in residential rental agreements: When a landlord removes or excludes a tenant from a dwelling without resorting to proper court procedures, it is an unfair or deceptive trade practice for the purposes of the "Colorado Consumer Protection Act"; ...

What is a late fee?

Imposing a late fee on a tenant for the late payment or nonpayment of any portion of the rent that a rent subsidy provider , rather than the tenant, is responsible for paying; Imposing a late fee more than once for each late payment; Requiring a tenant to pay interest on late fees;

What are unenforceable lease provisions?

Unconscionable provisions include (but are not limited to) those in which a tenant agrees to waive rights granted to tenants under applicable law, agrees to pay landlord’s attorney fees beyond what is allowed by law, or agrees to the limit the liability of or hold harmless the landlord for landlord’s legal liabilities related to the lease. If landlord intentionally inserts lease provisions known to him to be unenforceable, landlord may be liable increased damages.

How long does it take to get a notice from a landlord?

A Landlord must typically serve a written notice on the tenant, specifying the amount of rent owed and demanding payment in a period of time usually from three to fourteen days (depending on state law), or face termination of the lease. If tenant pays before the deadline, then the lease is not terminated.

What happens if a tenant doesn't give notice?

If Tenant does not give notice, then at the expiration of the Lease term, the Lease automatically becomes a month-to-month lease, which either Landlord or Tenant may terminate for any reason upon giving 30 day notice. 10. Obligations and Duties of Landlord: Details the duties of the Landlord under state law.

What is security deposit?

Security Deposits. Security deposits may be demanded by landlord at the time of the lease to ensure partial or total coverage of expenses if tenant leaves behind damage, unpaid rent, or leave the premises in an unclean condition after the termination or expiration of the lease.

How long does a landlord have to give notice of nonpayment of rent?

If the breach is non-payment of rent, a period from three days to two weeks is typically allowed for repayment.

Can a landlord sublease a tenant?

It is allowable in a lease for the landlord to retain complete control over whether a tenant is allowed to sub-lease the premises. In a minority of states, the landlord may not unreasonably refuse permission. On the other hand, the landlord is always free to assign his interest in the leased property to another. A Tenant must be notified of the change and of the new address at which to pay rent.

What is a landlord obligated to do?

A Landlord is obligated to supply possession of the premises as agreed in the lease. The premises must meet minimum standards of habitability including compliance with applicable building codes. Weatherizing, locks, running water, working plumbing, heating and cooling, pest control, and other basics must be in place.

What is the warranty of habitability in Colorado?

Colorado law states that in every agreement concerning the rental of residential property, there is an implied warranty of habitability. 1 This is a guarantee that Colorado landlords will keep their rental units in livable condition (which generally involves maintenance and upkeep).

Can you break a lease early in Colorado?

Colorado law lays out, in clear language, the circumstances in which a tenant may end a lease early and not be penalized for doing so. For instance, tenants in uninhabitable rental units can break a lease relatively quickly and easily.

What is the duty to mitigate in Colorado?

This means that a landlord must take reasonable steps to re-rent a unit that a tenant has moved out early, instead of letting it sit empty and forcing the original tenant to pay the rest of the rent due under their lease. Although Colorado law contains no such provision, state courts have found that such a duty exists under general principles of contract law. 8

Does Colorado have a lease break clause?

These clauses detail what will happen in the event that a tenant ends a lease early, and usually involve the tenant paying a predetermined amount of money as a penalty. Tenants should check their leases to see if there is any specific penalty they must pay if they choose to break a lease early.

Can a landlord collect unpaid rent?

If the landlord doesn’t make a real, good-faith attempt to find a replacement tenant, they can’t collect unpaid rent from the vacating tenant. However, the landlord doesn’t have to actually find a new tenant to be following the law—they just need to make a reasonable effort to look for one. How to Get Out of a Lease Early.

What happens if you don't break your lease?

First, a tenant must allow the landlord access to the unit to make the requested repairs. If they don’t, they lose their right to break the lease. Second, the problem with the unit can’t have been caused by the tenant. So, if the tenant took a sledgehammer to the floors, ...

How to end a lease early?

In these cases, the best way to end a lease is to reach out to a landlord and negotiate a termination. Tenants should reach out to their landlord as soon as they think they may need to end a lease early. They should also work to find a replacement tenant who would be willing to sign a new lease. Landlords and tenants can also negotiate ...

What is a default in a commercial lease?

Many commercial leases are written so that the landlord may deem any breach by the tenant to be a default. A default may allow the landlord to accelerate all lease payments due over the entire lease term, invoke a default interest rate on amounts due and owing, charge late fees in addition to the default interest rate and collect all attorneys fees.

What is a buyout clause in a lease?

A buyout clause is an option to allow the tenant out of the lease, for a price. Most commercial leases in Colorado do not contain a buyout clause. From a tenant’s perspective, a buyout clause is a way to determine and limit liability. While the buyout may be 6 months of rent, it provides some relief should hard times arise.

Can you enforce attorney fees?

Judicial Enforcement of Attorneys' Fees Provisions. Just because you include an attorneys' fees provision in your contract, you shouldn't assume that the clause will be enforced if a lawsuit arises and one side tries to get their legal costs reimbursed by the other. Courts are allowed to judge contracts for fairness and to change their terms ...

What is a mutual provision in a lawsuit?

Under a mutual provision, such as the example above, the party that wins the lawsuit is awarded attorneys' fees. This is fair and encourages the quick resolution of lawsuits. However, a "one-way provision" allows only one of the parties to receive attorneys' fees, usually the party with the better bargaining position.

What happens if you bring multiple claims against a tenant?

If you bring multiple claims against a tenant which include claims not made pursuant to the lease, and you prevail on all, then the court may decide to reduce the non-contractual damages you are owed by the amount of attorney’s fees you are awarded.

What happens if you insert an attorney's fee clause in a contract?

Under California law, if an attorney’s fees clause is inserted in a contract, then a judge will award attorney’s fees to whoever the prevailing party is, regardless of whether the contract specifies only one party should receive fees. Thus, if you insert an attorney’s fees clause specifying only you should receive fees, be prepared to pay the other party’s fees as well if you lose.

Can you run up a legal bill?

This may go without saying, but you should never run up a legal bill under the presumption that the other party will be the one who has to pay the exact amount specified. The court will determine what the reasonable fees should have been, not you.