C.R.S. § 38-26-110: Excessive amounts claimed.

(1) Any person who files a verified statement of a claim or asserts a claim against a principal or surety that has furnished a bond under this article 26 for an amount greater than the amount due without a reasonable possibility that the amount claimed is due and with the knowledge that the amount claimed is greater than the amount due, and that fact is demonstrated in any proceedings under this article 26, shall forfeit all rights to the verified statement of claim and shall be liable to the following in an amount equal to all costs and all attorney fees reasonably incurred in bonding over, contesting, or otherwise responding in any way to the excessive verified statement of claim or excessive bond claim:

(a) The person to whom or which a disbursement would be made but for the verified statement of a claim or bond claim; or

(b) The principal and surety on the bond.

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

(3) For purposes of this section, "amount due" means the amount of money a person reasonably believes, in good faith, represents the value of the labor, materials, sustenance, other supplies, laborers, rental machinery, tools, or equipment, furnished or supplied to a contractor, as defined in section 38-26-101, or their subcontractor, whether or not the amount is unliquidated or disputed, as set forth in section 38-26-107 (1).