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Colorado Named ‘Lawsuit Inferno’ in Annual Legislative HeatCheck Report

Colorado Named ‘Lawsuit Inferno’ in Annual Legislative HeatCheck Report

July 29, 2025

Colorado named a “Lawsuit Inferno” for the second consecutive year in the American Tort Reform Association’s latest Legislative HeatCheck report.

DENVER (July 29, 2025) – With Colorado named a “Lawsuit Inferno” for the second consecutive year in the American Tort Reform Association’s latest Legislative HeatCheck report, NFIB State Director Michael Smith called on lawmakers to prioritize civil justice reform that benefits hardworking Coloradans.

“When lawmakers make it easier and more lucrative to sue, small business owners and their employees pay the price. Lawsuit abuse doesn’t just stifle our state’s economy but results in nearly 100,000 jobs lost in the state per year. Our Main Street businesses want to create good-paying jobs and meet their customers’ needs, but every dollar spent fighting a frivolous lawsuit is one less dollar going toward operating their business and investing in their community. It’s time for lawmakers to stand up for small businesses and the hardworking Coloradans they employ and promote a more balanced civil justice system here in our state.”

Background:

According to the Legislative HeatCheck report:

  • Colorado lawmakers introduced 45 bills that created new private lawsuits or expanded liability under existing laws this year, with more than half of those becoming law, according to the Colorado Civil Justice League.
  • Among the most concerning new laws are H.B. 1239 and H.B. 1001.
    • H.B. 1239 will likely result in more lawsuit abuse and burden small businesses, all while doing little to improve accessibility for people with disabilities.
    • H.B. 1001 will likely increase litigation against small and family-owned businesses by employees suing under wage and hour laws.
  • Coloradans already pay the 7th-most expensive “tort tax” in the nation at nearly $8,000 annually.
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