Colorado Chamber CEO: Tort reform legislation 'is essential for maintaining a fair legal system'

Loren Furman, president and CEO of the Colorado Chamber, emphasized the importance of transparency in foreign third-party litigation funding to ensure fair trials, protect Colorado's economy, and maintain the integrity of the judicial system.

"Transparency in foreign third-party litigation funding is essential for maintaining a fair legal system," said Furman. "When all parties are aware of who is funding and potentially controlling a lawsuit, it ensures that decisions are made in the best interest of justice. This legislation recognizes the major risks foreign third-party influence poses to Colorado's economic stability and national security, and implements the necessary safeguards to help protect the integrity of our judicial system."

In a recent press release, the Colorado Chamber announced the passage of House Bill 1329. This legislation aims to increase transparency and limit foreign influence in third-party litigation funding. The bill prohibits foreign entities from controlling or manipulating civil lawsuits and mandates disclosure to the Attorney General when such entities are involved. Additionally, it bans sharing proprietary or sensitive national security information with foreign funders. According to the Colorado Chamber, this tort reform bill is crucial for protecting economic stability, judicial fairness, and national security. The legislation aligns with similar efforts in other states and recent federal proposals.

The American Tort Reform Association (ATRA) has described Colorado as a "Lawsuit Inferno" in its latest Legislative HeatCheck report. ATRA cites a surge of liability-expanding legislation passed by the state’s Democratic-controlled legislature as a reason for this label. Despite vetoes from Governor Jared Polis on some controversial bills, lawmakers have advanced numerous measures creating new private rights of action and significantly increasing caps on noneconomic damages, particularly through House Bill 1472. ATRA warns that these changes could lead to excessive litigation, higher insurance costs, and economic strain. They estimate an annual "tort tax" of $1,874 per resident and nearly 100,000 jobs lost statewide. According to ATRA's analysis, the Colorado legislature has empowered trial lawyers at the expense of consumers and businesses.

A report from the U.S. Chamber’s Institute for Legal Reform highlights that lawsuit costs in the U.S. tort system are escalating rapidly, reaching $529 billion in 2022—equivalent to 2.1% of the national GDP and $4,207 per household. The average annual growth rate of tort costs has been 7.1% since 2016 and 8.7% for business-related cases, with projections suggesting costs could exceed $900 billion by 2030. While intended to deliver justice for actual harms, some plaintiffs’ lawyers exploit the tort system through abusive lawsuits and deceptive advertising practices. In Colorado alone, tort costs total over $9.4 billion or 1.9% of the state’s GDP with an average growth rate of 7.3%. These rising costs affect not only defendants but also all consumers and households through increased prices and economic strain.

Furman has served as President and CEO of the Colorado Chamber since January 2022 after more than a decade as Senior Vice President of State & Federal Relations at the Chamber. With experience in lobbying and public policy in both Colorado and Florida, she has led business advocacy efforts on issues ranging from workforce reform to tort policy.