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Weld judge denies Future Legends claims against former contractor

WINDSOR — A Weld District court judge has denied motions in court by attorneys for the Future Legends Sports Complex seeking a judgment against its last general contractor, who is a major lienholder on the property.

Amid multiple lawsuits and liens filed over the last couple of years Future Legends in October claimed that its general contractor, Jaco General Contractor Inc., filed an excessive blanket lien on the property, and that Jaco was responsible under an agreement with Future Legends to pay liens filed by subcontractors.

    Weld District Court Judge Shannon Lyons, however, denied the pleadings, stating that while the lien certainly had some problems, there were irregularities from Future Legends pleadings that didn’t support a judgment against the contractor, Future Legends’ second on the project, and the second general contractor to end up in court with attorney and Future Legends owner Jeff Katofsky.

    “To begin, the motion is presented in an unusual fashion,” Lyons wrote in his ruling. “There are certain facts the parties seem to agree upon, such as the fact that Jaco filed its lien in which it identified 22 properties. However, the parties do not agree on the lien amount. Jaco states its lien is for $3,485,777.46 while Future Legends argues the lien amount is that amount multiplied by 22 for a total of more than $76 million. Similarly, the parties disagree on whether the lien may be readily and definitely apportioned to the different parcels. The Court finds these disputed issues preclude entry of summary judgment.”

    Essentially, Jaco’s lien of $3.48 million was filed in February 2024. Jaco attorneys stated the lien was filed only after nonpayment of their invoices and Future Legends’ failure to pay after repeated demands. Last September, Future Legends claimed that since that lien was filed against 22 properties within the Future Legends complex, it would equate to more than $76.8 million and was an excessive and improper blanket lien.

    Future Legends alleged in October that Jaco as general contractor on the project violated the master agreement they both signed, which stated Jaco would defend Future Legends in the event that liens were filed against it, and Jaco was obligated to pay any liens filed during its governance of the project, with either a bond or collateral held by the bank.

    Lyons ruled that Future Legends’ arguments whether Jaco was responsible for the subcontractors’ liens was “flawed,” problematic, and “inconceivable” in his seven-page ruling discussing contract law.

    “It is difficult to imagine, however, that the parties intended the control agreements to require the contractor to fully satisfy and release or otherwise bond over any liens placed on the property by subcontractors when the contractor had not yet been paid with funds adequate to pay the subcontractors,” Lyons wrote. “Nothing in the Control Agreements, including section 13, expressly requires the Contractor to fully satisfy liens under circumstances where the Owner or Disburser of Funds has not paid the Contractor. Jaco disputes that was the intent and, despite its inconceivability, Future Legends apparently maintains that was the parties’ intent. The Court cannot determine as a matter of law that the Control Agreements were intended to amend section 13.5.4 of the Master Agreement.”

    This case is intermingled with two others together, rulings in which Future Legends has appealed to the Colorado Court of Appeals. The appellate court has not yet ruled on whether it will hear the case, in which Future Legends is appealing a $600,000 judgment in the case of Brightview Landscape, which was suing for lack of payment.

    • Case No. 2023CV030946, Coloscapes Concrete Inc et al v. Jaco General Contractor Inc et al, filed Nov. 22, 2023 in Weld District Court. Combined with case Nos. 2024CV30033 and 2024CV30470 also filed in Weld District Court. (U.S. Eagle Federal Credit Union files cross-claim for $45 million; judge places Future Legends Sports Complex structures in receivership).

    • Case No. 25CA 1044, Future Legends vs. Brightview Landscape filed in Colorado Court of Appeals, Jan. 27, 2025.

     

    This article was first published by BizWest, an independent news organization, and is published under a license agreement. © 2025 BizWest Media LLC. You can view the original here: Weld judge denies Future Legends claims against former contractor

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