American Tort Reform Association warns H.B. 1291 could risk earning Colorado a 'Lawsuit Inferno' designation

The American Tort Reform Association (ATRA) has announced its opposition to House Bill 1291, urging the Colorado Senate to reject the measure. The group warns that the bill could lead to excessive lawsuits under the Consumer Protection Act and potentially earn Colorado a "Lawsuit Inferno" label.

According to ATRA, House Bill 1291 would significantly alter the Colorado Consumer Protection Act by permitting private lawsuits for issues traditionally handled through tort law. The association cautions that this change could encourage attorneys to reframe conventional injury claims, such as those from auto accidents or assaults, as consumer protection cases. This shift would allow plaintiffs to circumvent stricter tort law standards and considerably expand liability.

ATRA cites data indicating that Colorado residents bear one of the highest tort tax burdens in the nation, estimated at nearly $2,000 per person annually. The analysis links these legal expenses to a loss of approximately 98,000 jobs each year statewide. ATRA argues that enacting H.B. 1291 would further escalate these costs by facilitating broader private litigation and weakening the state's business environment.

The association specifically notes the potential impact on rideshare companies, stating that H.B. 1291 would enable plaintiffs’ attorneys to attach consumer protection claims to standard personal injury lawsuits involving rideshare services. According to ATRA, this strategy could be employed to gain leverage in settlement negotiations by expanding potential damages. The organization warns that such legal exposure is likely to increase operational costs for companies, drivers, and consumers.

Founded in 1986, ATRA is a nonprofit, nonpartisan organization advocating for civil justice reform at both state and national levels. Its mission is to promote legal fairness, reduce frivolous litigation, and educate the public on the effects of excessive tort costs. ATRA is known for publishing its Judicial Hellholes and Legislative HeatCheck reports, which track litigation trends and legal climates across the United States.