The People of the State of Colorado v. David J. Adams

Summary

The court held that claims for recovery of trust funds are assignable, including on a contingency-payment basis, but the associated treble-damages penalty is not assignable. It nevertheless concluded that Adams's assignments were ineffective and that he engaged in the unauthorized practice of law by pursuing subcontractors' claims in a representative capacity, so it permanently enjoined him and assessed costs while declining to impose fines. Justice EID, joined by Justices RICE and COATS, concurred in part and dissented in part, concluding that the later assignments were valid and that Adams did not engage in unauthorized practice after the relevant date.