C.R.S. § 38-22-128: Excessive amounts claimed.

(1) Any person who files a lien under this article for an amount greater than is due without a reasonable possibility that said amount claimed is due and with the knowledge that said amount claimed is greater than that amount then due, and that fact is shown in any proceeding under this article, shall forfeit all rights to such lien plus such person shall be liable to the person against whom the lien was filed in an amount equal to the costs and all attorney's fees.

(2) An award by a court having jurisdiction of an amount that is less than the amount for which a person's lien was filed does not render the amount excessive for purposes of subsection (1) of this section if the person had a good faith basis to believe the lien amount was due at time of filing.

(3) For purposes of this section, an amount is "due" if a person reasonably believes, in good faith, that the amount represents the value of the labor, services, equipment, or other materials or persons furnished or supplied to a contractor, as described in section 38-22-101 (1), whether or not the amount is unliquidated or disputed.