Gregory Chandler - Litigation Costs

Catlin v. Tormey Bewley Corp. is a case of first impression in the Colorado courts. The Colorado Court of Appeals held that, under Colorado law, accrued interest on loans taken out by prevailing parties to finance their case may not be recovered as costs. To be awardable as costs, expenses must be necessarily incurred by reason of the litigation and for the proper preparation for trial. The Court reasoned that any necessity for a loan results primarily from the economic circumstance of the litigant, and only secondarily from what expenses the case requires, and a loan is not preparation for trial. Furthermore, Colorado law does not allow for interest on costs.

The case may be found at 2009 WL (WestLaw) 1477498


GREGORY CHANDLER, Attorney at Law