Tort victims in Colorado got a huge win this week after Governor Polis signed into law HB 24-1472 which raises several damage caps that have been in place since the heyday of tort reform.
Big shout out to CTLA President Kari Jones Dulin, President Elect Sam Cannon, Executive Director Julie Whitacre, and all the other folks (there are many!) who've been working hard on this bill for nearly four years.
Here's what this will mean for our clients:
GENERAL LIABILITY
Non-Economic Damage Caps
· Increase non-economic damages cap to $1,500,000 on January 1, 2025
· New cap applies to claims filed on or after January 1, 2025, and before January 1, 2026, or any claim for relief that accrues on or after January 1, 2025
· Inflation adjustment on January 1, 2028, calculated from 2025
· Cap adjusts every 2 years thereafter on January 1 and applies to claims that accrue on or after the adjustment date
Wrongful Death Damage Caps
· Increase wrongful death cap to $2,125,000 on January 1, 2025
· New cap applies to claims filed on or after January 1, 2025 and before January 1, 2026 or any claim for relief that accrues on or after January 1, 2025
· First inflation adjustment on January 1, 2028, calculated from 2025
· Adjusts for inflation every 2 years thereafter on January 1 that applies to claims that accrue on or after the adjustment date
Add additional claimants
· Siblings + siblings’ heirs can now be claimants for wrongful death actions.
MEDICAL MALPRACTICE
Non-Economic Damage Caps
· Increase non-economic damages cap to $875,000
· 5 year phase in, increasing $115,000 year until January 1, 2029
· The first increase to $415,000 applies to claims filed on or after January 1, 2025, and before January 1, 2026, or any claim for relief that accrues on or after January 1, 2026
· Subsequent January 1 phase in adjustments applies to claims that accrue on or after the adjustment date
· First inflation adjustment on January 1, 2030, calculated from 2028
· Adjusts for inflation every 2 years thereafter on January 1 that applies to claims that accrue on or after the adjustment date
· Soft cap is 125% of wrongful death damages after wrongful death damages exceed $1 million
Wrongful Death Damage Cap
· Increase wrongful death cap to $1,575.000
· 5 year phase in, increasing $255,000 year until January 1, 2029
· The first increase to $555,000 apples to any claim for relief that accrues on or after January 1, 2026
· Subsequent January 1 phase in adjustments applies to claims that accrue on or after the adjustment date
· First inflation adjustment on January 1, 2030, calculated from 2028
· Adjusts for inflation every 2 years thereafter on January 1 that applies to claims that accrue on or after the adjustment date
· Soft cap is 125% of wrongful death damages after wrongful death damages exceed $1 million
Add additional claimants
· Siblings + siblings’ heirs can now be claimants for wrongful death actions resulting from medical malpractice.