Colorado recently enacted legislation significantly increasing damages caps for tort actions from 2025 forward (HB 24-1472). The increases include:
- For noneconomic damages in tort actions (other than against medical professionals), more than doubling the cap from the current limit of $642,180 to $1.5 million (with future inflation adjustment).[1]
- In wrongful death actions (other than against medical professionals), greater than a threefold increase from the current limit of $598,350 to $2.125 million (with future inflation adjustment).[2]
- In medical professional actions for wrongful death, a 50% increase from the current $1 million overall cap to $1.575 million in 2029 (with future inflation adjustment). For injury claims, more than doubling the cap for noneconomic damages from $300,000 to $875,000 in 2029 (with future inflation adjustment).[3]
The legislation reportedly stemmed from a compromise among personal injury attorneys, business and medical organizations, and insurers, in lieu of potential ballot measures that could possibly have removed caps altogether. The legislation substantially revises tort reform caps adopted nearly forty years ago in response to concerns about cost and availability of insurance, particularly for medical professionals.
While no one can predict the new law’s impacts, they will likely affect business pricing, consumer costs, and insurance premiums.
To read the new legislation, click here.
For more information about our attorneys in Colorado who can address questions regarding this new legislation, please contact Marilyn S. Chappell or Megan A. Jones.
[1] HB 24-1472, §2, amending C.R.S. § 13-21-102.5(3)(a)(II).
[2] Id., § 4, amending C.R.S. § 13-21-203(1)(a).
[3] Id., § 4, amending C.R.S. § 13-21-203(1)(b); id., § 6, amending C.R.S. § 13-64-302(1)(c).