2022 Colorado Code
Title 7 - Corporations and Associations
Article 30 - Uniform Unincorporated Nonprofit Association Act
§ 7-30-108. Effect of Judgment or Order
A judgment or order against a nonprofit association is not by itself a judgment or order against a member or a person considered to be a member by the nonprofit association.
Source: L. 94: Entire article added, p. 1274, § 1, effective May 22.
OFFICIAL COMMENT1. This section is consistent with Restatement (Second) of Judgments, Section 61(2), which provides: "If under applicable law an unincorporated association is treated as a jural entity distinct from its members, a judgment for or against the association has the same effects with respect to the association and its members as a judgment for or against a corporation ... ."
2. Section 8 (numbered as section 7-30-108 in C.R.S.) applies not only to judgments but also to orders, such as an award rendered in arbitration or an injunction.
3. Section 8 (numbered as section 7-30-108 in C.R.S.) reverses the common law rule. Under the common law's aggregate view of an unincorporated association, members, as co-principals, were individually liable for obligations of the association.
4. Some states changed the common law rule by statute. Ohio, for example, provides that the property of an unincorporated association is subject to judgment, execution, and other process and that a money judgment against the association may be "enforced only against the association as an entity" and not "against a member." Ohio Rev. Code Ann., Section 1745.02 (Baldwin 1991).
An obvious corollary of this section is that a judgment against a nonprofit association may not be satisfied against a member unless there is also a judgment against the member.