(1) (a) If a person suffers loss or damage by reason of fraud practiced on the person by a licensed dealer or one of the dealer's salespersons acting on the dealer's behalf or within the scope of the employment of the salesperson, or if a person suffers any loss or damage by reason of the violation by the dealer or salesperson of any provision of this part 1 related to fraud that is designated by the board by rule, whether or not the violation is the basis for denial, suspension, or revocation of a license, the person suffering loss or damages has a right of action against the dealer or the dealer's motor vehicle salespersons. The right of a person to recover for loss or damage as provided in this subsection (1) against the dealer or salesperson is not limited to the amount of their respective bonds.
(b) A person suffering loss or damages has a right of action against a licensed business disposer if:
The loss or damage is caused by fraud practiced on the person by the disposer or thedisposer's agent within the scope of employment; or
The loss or damage is caused by the disposer violating any provision of this part 1 related to fraud and the violation is designated by the board by rule, whether or not the violation is the basis for denial, suspension, or revocation of the license.
If any person suffers any loss or damage by reason of any unlawful act as provided insection 44-20-124 (1)(a), the person shall have a right of action against the manufacturer, distributor, or manufacturer representative. In any court action wherein a manufacturer, distributor, or manufacturer representative has been found liable in damages to any person under this part 1, the amount of damages so determined shall be trebled and shall be recoverable by the person so damaged. Any person so damaged shall also be entitled to recover reasonable attorney fees as part of his or her damages.
If any licensee suffers any loss or damage because of a violation of section 44-20124 (1), the licensee shall have a right of action against the manufacturer, distributor, or manufacturer representative. In any court action wherein a manufacturer, distributor, or manufacturer representative has been found liable in damages to any licensee under this part 1, any licensee so damaged shall also be entitled to recover reasonable attorney fees and costs as part of his or her damages.
A person who suffers loss or damages resulting from fraud may bring a separateaction against, and recover from the surety on the bond of, the licensed dealer, business disposer, buyer agent, or salesperson if:
(a) The licensed dealer, disposer, buyer agent, or salesperson has not reimbursed the person for the loss or damages; and (b) After either:
The board issued a final agency order with a finding of fraud by a licensed dealer,disposer, buyer agent, or salesperson; or
A court entered judgment upon a claim of fraud by a licensed dealer, disposer, buyeragent, or salesperson.
Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 85, § 2, effective October 1. L. 2019: (1) amended, (SB 19-249), ch. 309, p. 2806, § 11, effective August 2. L. 2020: (1) amended and (4) added, (SB 20-140), ch. 225, p. 1104, § 4, effective September 14.
Editor's note: (1) This section is similar to former § 12-6-122 as it existed prior to 2018.
(2) Section 8 of chapter 225 (SB 20-140), Session Laws of Colorado 2020, provides that the act changing this section applies to offenses committed on or after September 14, 2020.