The Colorado Civil Justice League announced that lawmakers approved 26 bills this session creating new avenues for lawsuits or expanding liability under existing laws, a change the group says could increase litigation and drive up insurance costs for residents.
The organization said that out of 45 bills introduced by lawmakers to create new private lawsuits or expand liability, more than half passed. The group warned that these changes could “open the door for billboard lawyers to file more frivolous lawsuits that drive up insurance rates for consumers.” According to the Colorado Civil Justice League, such legislative activity may have significant financial implications for both businesses and individuals in the state.
Auto insurance rates in Colorado average $3,203 per year for full coverage, reflecting one of the higher-cost markets in the country. The Insurance Information Institute reports that legal system abuse, including tactics by plaintiff attorneys to pursue more lawsuits or inflate settlements, contributes to increased premiums for drivers.
For context, Franklin D. Azar & Associates promotes its services through extensive billboard and television advertising in Colorado. According to Colorado Politics, the firm handles personal injury cases, including class actions and bad-faith insurance litigation against major companies, which reportedly contributes to the volume of lawsuits that raise insurance costs for consumers, and has recovered more than $2.3 billion for clients across the state.
However, the Center for Justice & Democracy released a backgrounder examining claims that “billboard lawyers” are driving up insurance rates through frivolous lawsuits. The report found personal injury cases make up only about 7% of civil cases, and contingency-fee attorneys screen claims to avoid baseless litigation. It attributes rising premiums more to factors such as the insurance industry’s economic cycle and climate-related damages than to lawsuits.
The Colorado Civil Justice League is a nonprofit organization dedicated to reforming the civil justice system in Colorado to promote fairness and reduce excessive litigation. The group advocates for policies that limit frivolous lawsuits and protect businesses and consumers from rising costs associated with abusive legal practices. It works with stakeholders to support tort reform measures that address the impact of litigation on insurance rates and economic growth.
