Colorado Chamber CEO: Tort reform legislation ‘will help protect the integrity of our legal system’

Loren Furman, president and CEO of the Colorado Chamber of Commerce, emphasized the importance of limiting third-party litigation funding to protect the state's economy and ensure court decisions are based on justice rather than external financial interests.

"Third-party influence in civil litigation poses a significant risk to Colorado's economy and national security," said Furman. "These safeguards will help protect the integrity of our legal system, ensuring decisions are made in the best interest of justice."

The Colorado Chamber of Commerce recently announced the passage of House Bill 1329, a key piece of legislation for the Chamber that introduces new restrictions on third-party litigation funding. According to Furman, this bill aims to reduce the influence of foreign entities in civil lawsuits, which pose a threat to both Colorado’s economy and national security. She said that the legislation will help maintain the integrity of the state’s legal system by ensuring decisions are grounded in justice.

In an opinion piece, Civil Justice League Director Mark Hillman discussed Colorado's increasing reliance on lawsuits to resolve everyday disputes. He attributed this trend to aggressive advertising from "billboard lawyers" and supportive lawmakers. Hillman noted that in just two years, 53 bills have been passed by the state legislature creating new avenues for litigation, often encouraging lawsuits as a first resort. He argued that many disputes could be resolved without involving attorneys who may inflate claims and delay resolutions for higher fees.

The American Tort Reform Association (ATRA) has labeled Colorado a "Lawsuit Inferno" in its latest Legislative HeatCheck report. The report highlights a surge in liability-expanding legislation passed by the state's Democratic-controlled legislature. Despite vetoes from Governor Jared Polis on some controversial bills, numerous measures were advanced creating new private rights of action and significantly increasing caps on noneconomic damages, particularly through House Bill 1472. ATRA warns these changes could lead to excessive litigation, higher insurance costs, and economic strain.

A report from the U.S. Chamber’s Institute for Legal Reform indicates that lawsuit costs in the U.S. tort system reached $529 billion in 2022—equivalent to 2.1% of national GDP and $4,207 per household. The average annual growth rate of tort costs has been 7.1% since 2016, with projections suggesting costs could exceed $900 billion by 2030. In Colorado alone, tort costs total over $9.4 billion or 1.9% of the state’s GDP.

Furman has led business advocacy efforts as President and CEO of the Colorado Chamber since January 2022 after serving over a decade as Senior Vice President of State & Federal Relations at the Chamber.