Mark Hillman, executive director of Colorado Civil Justice League, said Colorado lawmakers are encouraging costly lawsuits instead of commonsense resolutions, enriching lawyers rather than resolving problems efficiently.
“Everywhere we turn, there’s an ad for a lawyer – on television, streaming services, radio, podcasts, public transportation and, of course, billboards,” said Hillman. “For reasons that defy common sense, our lawmakers increasingly choose to make filing a lawsuit the first option for solving disputes. In just the past two years, the legislature passed 53 bills that created new opportunities for Coloradans to file lawsuits. Remember, the lawyer’s objective is to resolve the problem and get paid (again 40-45% of the total recovery) which takes time and creates incentives to make the claim as expensive as possible. Conscientious legislators will recognize that even when a legitimate problem exists, lawsuits are never the most efficient way to fix it. Litigation should be a last resort.”
In an op-ed, Hillman said that Colorado’s increasing reliance on lawsuits to settle everyday disputes is driven by aggressive advertising from “billboard lawyers” and the lawmakers who support them. According to Hillman, the state legislature has passed 53 bills in two years creating new avenues for litigation, often promoting lawsuits as a first resort. He suggests that many disputes, such as those related to employment or construction issues, can be resolved without legal intervention. However, attorneys often inflate claims and delay resolutions to increase their fees. This trend, he says, raises costs for all parties involved and discourages direct problem-solving.
An analysis by the Common Sense Institute of Colorado highlighted the economic impact of HB 1291 on rideshare companies like Uber. The bill’s mandates could lead these companies to exit the state due to requirements such as ride recordings and increased liability. The institute found that approximately 34,900 rideshare drivers currently earn an estimated $745 million annually in Colorado. The potential exit of these companies could result in 46,027 fewer jobs and significant reductions in GDP and business output by 2030.
The American Tort Reform Association (ATRA) has labeled Colorado 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 the reason for this designation. Despite vetoes from Governor Jared Polis on some controversial bills, lawmakers have advanced measures creating new private rights of action and significantly increasing caps on noneconomic damages through House Bill 1472. ATRA warns these changes will lead to excessive litigation and higher insurance costs.
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 they could exceed $900 billion by 2030. In Colorado alone, tort costs total over $9.4 billion or 1.9% of the state’s GDP.
Hillman is a former Senate Majority Leader and State Treasurer who now serves as executive director of the Colorado Civil Justice League advocating for tort reform.
