[co-author: Stephanie Kozol]*
In a recent amicus brief submitted to the Colorado Supreme Court, the Colorado Attorney General’s (AG) office has expressed its support for plaintiffs in a case that raises questions about the interplay between Colorado’s landlord-tenant laws and the Colorado Consumer Protection Act (CCPA). The case involves allegations that Home Partners Holdings LLC and its affiliates included illegal fees and provisions in their form leases, misleading tenants about their rights and obligations under Colorado law.
In his brief, the AG argues that including void or illegal provisions in residential leases constitutes a deceptive trade practice under the CCPA. The brief claims that such provisions have the “capacity or tendency” to deceive tenants into believing they are enforceable, even when they are not. This alleged deception can lead tenants to alter their behavior, potentially foregoing valid claims and defenses against their landlords, according to the AG.
Furthermore, the AG argues that legal fallback clauses, which purport to limit the applicability of deceptive provisions “as otherwise required or specified by Applicable Law,” do not cure the alleged deception. To support this point, the AG cites to studies showing that tenants often assume lease provisions are enforceable and act accordingly, even when those provisions are void or illegal.
Why It Matters
If the Colorado Supreme Court agrees to enforce the CCPA in this manner, it could potentially expand tenants’ rights and landlords’ obligations beyond what is simply covered under Colorado’s landlord-tenant statutes.
*Senior Government Relations Manager