In its recent decision in Mid-Century Insurance Co. v. HIVE Construction, Inc., 2025 CO 17, the Colorado Supreme Court definitively closed the door on an often-litigated theory: that the economic loss rule does not bar tort claims based on willful and wanton conduct. The ruling clarifies a lingering ambiguity in Colorado law and underscores the importance of contractual risk allocation in construction projects.

Background
HIVE Construction served as the general contractor for the build-out of Masterpiece Kitchen, a Denver-area restaurant. The project’s architectural plans called for two layers of drywall on a wall separating the kitchen and dining area to enhance fire resistance. Instead, HIVE substituted one layer with plywood — without seeking approval or issuing a change order. The plywood, being combustible, contributed to a fire that caused significant property damage.