Partner at Shook, Hardy & Bacon: HB25-1291 could create 'more lawsuits and excessive liability'

Partner at Shook, Hardy & Bacon: HB25-1291 could create 'more lawsuits and excessive liability'

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Cary Silverman, Public Policy Attorney for Shook, Hardy & Bacon | Shook, Hardy & Bacon

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Cary Silverman, a partner and Public Policy Attorney at Shook, Hardy & Bacon, expressed concerns over proposed Colorado legislation that he said would enable the improper use of consumer protection laws to pursue personal injury claims. He made this statement during testimony.

"ATRA understands the safety concerns underlying the bill, including the horrific cases the sponsor's witnesses discussed today," said Silverman. "Our opposition to the bill was limited to its opening the door to private lawsuits under the state consumer protection act as a means of enforcement. These are the types of claims that can and should be brought under tort law. Creating more lawsuits and excessive liability, in our view, is not necessary to achieve the bill's goals."

Colorado House Bill 25-1291 (HB25-1291), known as the Transportation Network Company Consumer Protection Act, has sparked significant legal and economic debate in the state. Introduced in February 2025, the bill proposes stringent safety measures for rideshare companies. However, companies like Uber argue that the bill imposes excessive technical and financial burdens, threatening their operational viability in Colorado. The bill passed the House with a 59–6 vote and is currently under Senate consideration. According to The Colorado Sun, Uber has threatened to cease operations in the state if the bill becomes law, citing concerns over user privacy and operational costs.

According to The Perryman Group, excess tort costs in Colorado amount to more than $5,700 per household annually, significantly above the national average. These costs are driven by factors such as higher insurance premiums, diverted resources, and reduced productivity tied to litigation-related expenses. The economic consequences of such costs include increased inflationary pressures and diminished real earnings, affecting both consumers and businesses across the state. The study indicates that these burdens hamper economic growth and contribute to a less competitive business climate in Colorado.

Nationally, The Perryman Group estimates that excessive tort costs lead to a $285 billion loss in output annually and reduce overall U.S. employment by nearly 2 million jobs. In comparison, Colorado faces a relatively higher per-household burden, with tort-related inefficiencies undermining state-level productivity and consumer purchasing power. The study underscores how litigation abuse imposes cascading economic costs, especially in states with permissive legal environments or ambiguous regulatory frameworks. "Consumers are unnecessarily strapped by the economic inflation due to lawsuit abuse," said Protecting American Consumers Together (PACT) Executive Director Lauren Zelt in a press release announcing the Perryman Group study.

Silverman is a partner at Shook, Hardy & Bacon LLP where he specializes in legislative strategy, tort reform, and civil justice policy. He has authored influential studies for the U.S. Chamber of Commerce and testified before Congress and state legislatures on litigation trends and consumer protection laws. Silverman has worked on legal reform initiatives nationwide and is frequently cited in public policy debates concerning lawsuit abuse and economic impact. According to his official firm biography, he is also an adjunct professor at George Washington University Law School.

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