Stansbury v. Kropf - Breach of Contract and Warranty
Summary
The Colorado Court of Appeals, Division V, affirmed the trial court's judgment denying plaintiffs Jerry Stansbury, Front Row Seat, Inc., and Cortez Main, LLC's claims for breach of contract and express warranty against defendants Verlin Kropf and Mountain West Roofing, LLC. The dispute concerned a 2009 commercial roof installation with a 15-year limited warranty. The court applied the economic loss rule to bar tort claims and found the warranty claim failed on the merits.
What changed
The Colorado Court of Appeals affirmed the trial court's denial of plaintiffs' breach of contract and express warranty claims arising from a 2009 commercial roof replacement. The appellate court upheld the trial court's application of the economic loss rule, which bars tort claims when the plaintiff suffers only economic loss without accompanying physical injury or property damage. The court also affirmed the dismissal of the breach of warranty claim on the merits.
This decision reinforces the economic loss rule as a significant barrier to tort recovery in commercial contract disputes involving only economic damages. Commercial property owners and contractors should ensure warranty claims are pursued under contract theories rather than tort claims. The case illustrates the importance of clear warranty terms and the limitations on warranty recovery when express warranty conditions are not met.
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April 2, 2026 Get Citation Alerts Download PDF Add Note
Stansbury v. Kropf
Colorado Court of Appeals
- Citations: None known
- Docket Number: 25CA0398
Precedential Status: Non-Precedential
Combined Opinion
25CA0398 Stansbury v Kropf 04-02-2026
COLORADO COURT OF APPEALS
Court of Appeals No. 25CA0398
Montezuma County District Court No. 23CV30035
Honorable Todd Jay Plewe, Judge
Jerry Stansbury, Front Row Seat, Inc., and Cortez Main, LLC,
Plaintiffs-Appellants,
v.
Verlin Kropf and Mountain West Roofing, LLC,
Defendants-Appellees.
JUDGMENT AFFIRMED
Division V
Opinion by JUDGE TOW
Welling and Lipinsky, JJ., concur
NOT PUBLISHED PURSUANT TO C.A.R. 35(e)
Announced April 2, 2026
Kelly and Fronapfel Law, PC, Jon L. Kelly, Christine M. Kelly, Dolores,
Colorado, for Plaintiffs-Appellants
Fleming, Lowenberg & Cooling, Daniel J. Lowenberg, Montrose, Colorado, for
Defendants-Appellees
¶1 In this dispute involving a commercial building’s roof,
plaintiffs, Jerry Stansbury, Front Row Seat, Inc., and Cortez Main,
LLC (collectively, the owners),1 appeal the trial court’s order denying
their claim for breach of contract and express warranty against
defendants, Verlin Kropf and Mountain West Roofing, LLC. We
affirm.
I. Background
A. Factual Background
¶2 In 2009, the owners hired Mountain West, which Kropf owns
and operates, to replace the roof on a commercial building.
Mountain West and the owners agreed to a limited fifteen-year
warranty (the warranty) as part of the installation. The warranty
1 According to the allegations in the complaint, Stansbury is an
officer and director of Front Row Seat, Inc., and a managing
member of Cortez Main, LLC, with authority to act on its behalf,
and “Plaintiffs later transferred title to the real property to their
limited liability company, Cortez Main, LLC.” According to
Stansbury’s trial testimony, he owns the building “through an LLC”
of which he is the sole owner and which was “named as a plaintiff
in this action” (although he did not specifically testify that the LLC
was Cortez Main, LLC). It is, therefore, unclear whether Stansbury,
as an individual, and Front Row Seats, Inc. are proper plaintiffs in
this litigation. Nevertheless, because no party raises this issue, we
take the parties’ lead and, as a matter of convenience only, refer to
the three named plaintiffs collectively. We offer no opinion as to
whether the plaintiffs are separate legal entities.
1
provided that “the roof will be free from water leaks resulting from
ordinary wear and tear from the elements or from improper
application of the [s]ystem[2] for a period of fifteen years from the
date of completion,” and that Mountain West would fix — at its own
expense — any leaks resulting from ordinary wear and tear or
improper application during the fifteen-year period. The warranty
also gave Mountain West the right “to inspect the applied system,
and in the event of any defect covered by this warranty, to repair
and correct the same.”
¶3 The warranty explicitly excluded from coverage damage or
failure of the roof system resulting from
A. Natural disasters, including but not limited
to floods, lightning, hurricanes, hail, [and]
windstorms.
....
C. Damage to the system resulting from cracks
or openings in [s]ystem substrate.
D. Improper application or failure of any
component underlying the roofing membrane,
such as . . . drains.
2 Mountain West installed a Conklin Flexion rubber roof system,
which is a single-ply roofing membrane that is commonly placed on
commercial buildings.
2
E. Erection or construction of any additional
installation on or through the [s]ystem after
date of completion unless installed in a
manner prescribed and accepted by [Mountain
West].
F. Damage from pooled water.
¶4 The warranty also stated that “if [o]wner[s] shall make or
permit, without prior written consent of [Mountain West], repairs,
alterations, or additions to the roof which affect the [s]ystem or
change the use, function, or purpose of the structure, this warranty
shall become immediately null and void and of no further effect.”
¶5 From 2010 to 2023, Mountain West responded to maintenance
requests for repair of water leaks from the owners and the property
manager, Kira Lekos, over a dozen times. Mountain West
completed repairs on the roof during this period without charging
the owners. In 2023, in response to roof leaks, the owners
consulted with another roofer, Mark McLaughlin, who
recommended replacing the roof. Prior to commencing litigation,
the owners demanded that Mountain West replace the roof free of
charge. Mountain West refused to do so.
3
B. Trial Court Proceedings
¶6 The owners filed suit against defendants, alleging breach of
contract and express warranty. During a two-day bench trial, the
court heard testimony from Kropf, Stansbury, Lekos, McLaughlin,
and Trent Shrock, the owner of a competing commercial roofing
business.
¶7 Kropf testified that Mountain West had properly installed the
roof on the property. Testifying as an expert, he opined that the
leaks were attributable to a variety of issues, including (1) a frozen
water pipe; (2) pooling water; (3) hail and wind damage; (4) bird
pecks; (5) plugged drains; and (6) improper maintenance. The
warranty did not cover repairs resulting from any of these issues.
¶8 McLaughlin testified that he observed leaks originating from
drains on the property. Lekos testified that she saw “pools of
stagnant water” on the roof. And Stansbury testified that, without
Mountain West’s permission, he put PVC pipe through the roof to
drain off water.
¶9 Shrock inspected the roof for purposes of this litigation and
testified for defendants as an expert in commercial roofing. Shrock
opined that Mountain West had installed the roof properly. He
4
testified that his inspection showed that the roof was littered with
debris, the drains were plugged, and the owners had not properly
maintained the roof.
¶ 10 The owners and defendants each submitted written closing
arguments following the conclusion of the bench trial. In
summarizing their argument, the owners asserted that Mountain
West waived its defenses by “honor[ing] the warranty until 2023,”
and that, “[e]ven in the absence of waiver, [defendants] ha[d] not
proven that the leaks were caused by something outside the
warranty.”
¶ 11 In a written order, the trial court found that Kropf’s and
Shrock’s testimony was credible and convincing. The court
concluded that Mountain West had properly installed the roof. It
also found that Mountain West’s continued servicing of the roof
without charge to the owners was born out of Kropf’s fear of
litigation, as opposed to any admission of culpability for leaks.
Finally, the court found that the leaks were caused by improper
maintenance, wind damage, defective drains, and unauthorized
repairs, none of which triggered repair work under the express
terms of the warranty. The court entered judgment in favor of
5
defendants and awarded them reasonable attorney fees and costs
against the owners per the terms of the parties’ contract.
¶ 12 The owners filed a motion for post-trial relief pursuant to
C.R.C.P. 59. They argued that the court “did not make findings
concerning nor rule on [the owners’] waiver argument.” The court
denied this motion, saying that its judgment “adequately
addresse[d] all issues raised by [the owners].”
II. Discussion
¶ 13 The owners contend the trial court erred when it denied their
claim for breach of contract and express warranty. Specifically,
they argue that the court should have found that defendants waived
any defenses they may have had under the warranty. We disagree.
A. Applicable Law and Standard of Review
¶ 14 Waiver is the intentional relinquishment of a known right or
privilege. Dep’t of Health v. Donahue, 690 P.2d 243, 247 (Colo.
1984). Waiver may be explicit, such as “when a party orally or in
writing abandons an existing right or privilege.” Id. Waiver can
also be implicit, “as, for example, when a party engages in conduct
which manifests an intent to relinquish the right or privilege, or
acts inconsistently with its assertion.” Id.
6
¶ 15 The parties disagree as to the applicable standard of review.
The owners argue that we should review “the [t]rial [c]ourt’s
application of the law to the facts of the case de novo.”3 Defendants
argue that the trial court’s consideration of documentary evidence,
as well as witness credibility and demeanor, constitutes factual
findings that we should review for clear error.
¶ 16 While the owners’ contention would be accurate if the facts
related to waiver were not in dispute, see NationsBank of Ga. v.
Conifer Asset Mgmt. Ltd., 928 P.2d 760, 763 (Colo. App. 1996), the
trial court’s resolution of the waiver dispute — including,
specifically, determining whether Mountain West intended to waive
the warranty exclusions — required the resolution of conflicting
testimony and assessment of the numerous witnesses’ credibility.
Thus, the issue of waiver was a factual matter determined by the
3 We pause to note that, in their opening brief, the owners cite an
unpublished opinion of a different division of this court.
Unpublished opinions announced by a division of this court have
no precedential value. Patterson v. James, 2018 COA 173, ¶ 40.
Moreover, with exceptions not applicable here, this court’s policy
prohibits citations to our opinions that are not selected for official
publication. Colo. Jud. Branch, Court of Appeals Policies, Policy
Concerning Citation of Opinions Not Selected for Official Publication
(2026), https://perma.cc/ZQW2-H29D. We thus do not consider
the cited case. And we trust that this violation will not be repeated.
7
trial court. Avicanna Inc. v. Mewhinney, 2019 COA 129, ¶ 24. A
trial court’s “factual findings are binding unless they are so clearly
erroneous as not to find support in the record.” M.D.C./Wood, Inc.
v. Mortimer, 866 P.2d 1380, 1383 (Colo. 1994).
B. Analysis
¶ 17 The owners argue that Mountain West implicitly waived the
exceptions codified in the warranty when it fixed the roof free of
charge despite knowing that the cause of the damage fell outside
the warranty’s scope. But while “an intent to waive a benefit may
be implied by conduct, the conduct itself should be free from
ambiguity and clearly manifest the intention not to assert the
benefit.” Donahue, 690 P.2d at 247. During the bench trial, Kropf
testified that Mountain West continued to service the roof because
he feared litigation if the company did not make the repairs.
¶ 18 The trial court found Kropf’s testimony to be credible. Thus,
there is clear record support for the court’s finding that Mountain
West’s conduct did not signify an intent to waive the benefit of the
warranty but rather stemmed from Kropf’s desire to avoid conflict.
¶ 19 And because the terms of the warranty remained in effect, the
record clearly demonstrates that the owners violated those terms
8
(and voided the warranty) when they implemented unauthorized
roof repairs and failed to properly maintain the roof. Finally, the
trial court correctly noted that the owners did not offer any credible
evidence that Mountain West improperly installed the roof, which
would have triggered the warranty requirement that the company
correct the leakage at its own cost.
III. Disposition
¶ 20 The judgment is affirmed.
JUDGE WELLING and JUDGE LIPINSKY concur.
9
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