Rep. Richardson: HB25-1239 is ‘legalized extortion’ dressed up as civil rights reform

Chris Richardson, a Colorado state representative for House District 56, has expressed concerns over House Bill 25-1239, describing it as a "punitive, lawyer-driven trap" that penalizes Colorado businesses for unintentional and victimless mistakes.

"HB25-1239 Is a Legal Trap for Colorado Businesses Disguised as Civil Rights Reform - … a sweeping expansion of the Colorado Anti-Discrimination Act (CADA) that imposes punitive civil liabilities on Colorado businesses—regardless of intent, actual harm, or corrective action," said Richardson, State Representative (HD-56). "Marketed as a modernization of civil rights enforcement, this bill is, in reality, a trial lawyer's dream and a small business owner's worst nightmare... HB25-1239 introduces a new legal structure that consolidates remedies for all protected classes and includes provisions for up to $50,000 in noneconomic damages per violation, plus a statutory fine of $5,000, even in cases where the business did not act knowingly or intentionally and the complainant suffered no measurable economic loss. Let's be clear: this is not about justice. This is about punishment without proportionality... In effect, we've created a system where liability attaches to unintentional, victimless mistakes, and trial lawyers are given a new revenue stream at the expense of entrepreneurs. This is not civil rights enforcement. This is legalized extortion. It's time to stop pretending this is about fairness—and start calling it what it is: a punitive, lawyer-driven power grab against job creators."

According to Richardson, the bill expands the state's Anti-Discrimination Act in ways that unfairly target small businesses. It allows for up to $50,000 in noneconomic damages and $5,000 fines per violation, even in cases where there is no intent, harm, or economic loss and where the business has promptly corrected the issue. The legislation enables lawsuits over minor infractions such as misworded advertisements or administrative errors. Richardson also highlighted HB25-1312, which classifies "dead-naming" and "misgendering" as public accommodation violations with similarly subjective standards that put small businesses at greater legal risk. He said that HB25-1239 represents a dangerous overreach that punishes good-faith efforts and creates a new revenue stream for trial lawyers.

Richardson's May 22 statement | X.com

In its 2025 session, the Colorado legislature introduced 45 bills expanding private rights to sue—26 of which passed—continuing a trend of growing legal exposure for businesses and employers. Among these was House Bill 1239, which significantly increases damages under the Colorado Anti-Discrimination Act. The bill encourages more "drive-by" lawsuits and allows up to $150,000 per visit in accessibility-related claims. Another piece of legislation, House Bill 1001, expands wage claim liability and adds emotional damages while narrowing employers' ability to recover legal fees. A third bill, Senate Bill 157—which would have made it easier to add consumer protection claims to lawsuits—was defeated by a bipartisan coalition.

Uber has threatened to leave Colorado if House Bill 1291 becomes law. This rideshare regulation bill would require more frequent driver background checks and mandatory audio and video recordings of every ride. Uber argues these measures are unworkable and infringe on privacy while claiming they already implement industry-leading safety features. The company says the proposed requirements would be technically burdensome and costly, potentially driving up consumer costs. Both Uber and Lyft have expressed willingness to work with lawmakers on a compromise but assert that the bill in its current form threatens their ability to operate in Colorado.

A report from the U.S. Chamber’s Institute for Legal Reform indicates that lawsuit costs in the U.S. tort system are increasing significantly, 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; projections estimate 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. 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 impact not just defendants but all consumers through higher prices and economic strain.

Richardson is a U.S Army veteran with a distinguished military career spanning over two decades including combat service during Desert Storm. Since retiring from military service as Colonel commanding the 43rd Sustainment Brigade at Fort Carson he has served Elbert County as County Commissioner along with roles on various local boards focusing on transportation housing broadband public health among others leveraging his mechanical engineering background from University Pennsylvania into public service governance advocacy roles now running represent Colorado’s House District bringing decades experience leadership logistics policy-making role.