A fight between Colorado personal injury lawyers, on one side, and the medical and business establishment, on the other, has ended with a deal brokered by Governor Jared Polis that will increase caps on noneconomic damages secured in court cases, while leaving contingency fees that attorneys can charge their clients unchanged.
The deal will be signed into law as House Bill 24-1472 by the governor after fierce, last-minute negotiations took place, with both sides advancing ballot measures, which would have been put to voters in November, to wear down their opponents and strengthen their respective positions.
Under the deal, which has now passed the House and Senate:
- For civil actions filed on or after January 1, 2025, the bill increases the cap on damages for noneconomic loss or injury from $250,000 to $1.5 million, and starting January 1, 2028, and every 2 years thereafter, adjusts the damages cap based on inflation.
- Current law specifies who may sue for wrongful death. The bill adds a sibling of the deceased as a party who may bring a wrongful death action in certain circumstances.
- The bill imposes a wrongful death damages cap of $2.125 million, and starting January 1, 2028, and every 2 years thereafter, adjusts the damages cap based on inflation.
- Beginning January 1, 2025, the bill incrementally increases the medical malpractice wrongful death damages limitation to $1.575 million over the course of 5 years. Thereafter, the cap is adjusted biennially for inflation.
- Existing law limits the amount recoverable for noneconomic damages in medical malpractice actions to $300,000. Beginning January 1, 2025, the bill incrementally increases the noneconomic damages limitation to $875,000 over the course of 5 years. Thereafter, the cap is adjusted biennially for inflation.
As part of the deal, ballot initiatives 170, 171, 149, and 150 will now be withdrawn, meaning costly work to gather signatures and advance the initiatives through the office of the Colorado Secretary of State will cease.
Governor Polis said bipartisan legislators, health care providers, business leaders, and trial lawyers had agreed to prevent costly, divisive ballot measures that would have been very risky for the future of the state.
“I appreciate the bill sponsors and the hard work and sincere negotiations from all sides to get this done, preventing more costly and divisive ballot measures, protecting the rights of patients, and saving people money on healthcare,” Governor Jared Polis said in a press release.
Kari Jones Dulin, president of the Colorado Trial Lawyers Association, thanked the governor for bringing together a diverse group of leaders to help solve the issue.
“This bill is a significant step forward to improve access to justice for all Coloradans. We are proud to have worked to bring about this change to help people and right wrongs.”
“Efforts to remove noneconomic damage caps would have had a detrimental impact on Colorado’s competitiveness, making it even more expensive to live and do business here,” said Colorado Chamber President and CEO Loren Furman. “We’re pleased that after months of work to find an agreement, this proposal will provide the predictability and stability employers need, avoiding an expensive fight at the ballot.”
Tamra Ward, executive director of Coloradans Protecting Patient Access, a broad coalition of health care organizations and medical professionals, said: “This agreement protects laws that allow for the review and improvement of care delivery and Colorado’s status as the best state to receive quality patient care.”
Advocates for the business and medical entablement had advanced Initiatives 170 and 171, saying contingency fees should be capped at 25 percent, while advocates from the legal establishment advanced Initiatives 149 and 150, saying caps for noneconomic damages should be removed.
The deal puts to rest a long running dispute under which doctors and business interests wanted to limit damages awarded by courts, arguing that runaway juries could award huge amounts to plaintiffs, driving up insurance costs and making Colorado too risky for business.
