Court-ordered inspection.

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(1) If a cooperative refuses to allow a member, or the member's agent or attorney, who complies with section 7-56-307 to inspect or copy any records that the member is entitled to inspect or copy by said section within a prescribed time limit or, if none, within a reasonable time, the district court for the county in this state in which the street address of the cooperative's principal office is located or, if the cooperative has no principal office in this state, the district court for the county in which the street address of its registered agent is located or, if the cooperative has no registered agent, the district court for the city and county of Denver, may, on application of the member, summarily order the inspection or copying of the records demanded at the cooperative's expense.

(2) If a court orders inspection or copying of the records demanded, unless the cooperative proves that it refused inspection or copying in good faith because it had a reasonable basis for doubt about the right of the member or the member's agent or attorney to inspect or copy the records demanded:

  1. The court may order the losing party to pay the prevailing party's reasonable costs,including reasonable attorney fees;

  2. The court may order the losing party to pay the prevailing party for any damages theprevailing party shall have incurred by reason of the subject matter of the litigation;

  3. If inspection or copying is ordered pursuant to subsection (1) of this section, the courtmay order the cooperative to pay the member's inspection and copying expenses notwithstanding the provisions of section 7-56-307 (1); and

  4. The court may grant either party any other remedy provided by law.

(3) If a court orders inspection or copying of records demanded, it may impose reasonable restrictions on the use or distribution of the records by the demanding member.

Source: L. 96: Entire article R&RE, p. 500, § 1, effective July 1. L. 2003: (1) amended, p. 2226, § 82, effective July 1, 2004.


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