Colorado developers, builders, and contractors should take notice of a recently published Colorado Court of Appeals decision that increases the financial exposure created by prevailing party attorneys’ fee clauses. In 1046 Munras Properties, L.P. v. Kabod Coffee, 2025 COA 71, the Court held, for the first time in a published Colorado case, that a prevailing party may recover not only contractual attorneys’ fees, but also the attorney fees incurred to obtain those fees. In short: “fees on fees” are now recoverable when a contract contains a broad fee shifting clause.

This development underscores the same warning sounded years ago in a prior HHMR blog post titled, Attorney Fee Clauses Are Engraved Invitations to Sue. If prevailing party fee provisions already encouraged litigation, the Munras decision supercharges that incentive.