Colorado Politics has reported that the American Tort Reform Association (ATRA) has labeled Colorado a "lawsuit inferno" in its 2025 report, which ranks states based on the number of liability-expanding laws introduced.
According to the Rocky Mountain Voice, citing ATRA’s Legislative HeatCheck report, the Colorado legislature introduced 45 bills in 2025 that created new private rights of action or expanded civil liability. This legislative activity has drawn national attention. ATRA describes Colorado as a "lawsuit inferno" due to legislation that makes it easier and more lucrative to sue. The report contrasts these efforts with opposition from business leaders and others who warn of economic consequences.
ATRA reports that Colorado residents now pay nearly $1,982 per person annually in what it terms a "tort tax," ranking as the seventh-highest in the nation. This cost contributes to an estimated 100,000 job losses statewide each year due to excessive litigation costs. These economic consequences were emphasized by ATRA’s president, Tiger Joyce, in public remarks.
The Colorado Civil Justice League has reported that more than half of the 45 liability-expanding bills introduced were signed into law. These include statutory changes that increased damages under the Colorado Anti-Discrimination Act and altered wage-and-hour enforcement. Notable enacted measures include House Bill 1239, which broadens damages and access to sue, and HB 1001, which expands employee wage claims. ATRA and state opponents argue these laws significantly raise litigation risk for small businesses.
Founded in 1986, the American Tort Reform Association is a nonprofit, nonpartisan organization dedicated exclusively to civil justice reform in the United States. It operates a nationwide network of state-based liability reform coalitions and advocates through public education and legislative engagement.
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