Thought Leaders: Damage limits increasing in personal injury lawsuits

On January 1, 2025, the statutory damages caps related to certain personal injury claims are set to increase significantly. This article discusses personal injury claims, statutory damages caps, and recent changes to the law increasing Colorado’s statutory damages caps.

What is a Personal Injury Claim? An individual who is injured or harmed by the negligence or unlawful conduct of another may be able to seek compensation from the responsible person or business by filing a personal injury claim in court. Personal injury claims include those resulting from events like automobile accidents, dog bites, medical malpractice, and workplace accidents.

What are damages caps? There are generally two types of financial damages which an injured or harmed individual may seek to recover in a personal injury lawsuit: (1) economic damages such as medical expenses, lost wages, or property damage; and (2) non-economic damages for things such as pain and suffering, emotional distress, or changes to some types of family relationships. By statute, the Colorado Legislature limits the amount that can be recovered for non-economic, wrongful death, medical malpractice wrongful death, and medical malpractice damages. These limits are called “damages caps.”

How are damages caps changing in 2025? In 2024, the Colorado Legislature passed HB24-1472, increasing the damages caps applicable in some personal injury lawsuits. Those increases affect civil actions filed on or after January 1, 2025 and are briefly summarized as follows:

• The cap on damages for noneconomic loss or injury will increase from $729,790 (and $1,459,600 in cases involving clear and convincing evidence) to $1.5 million. Beginning January 1, 2028, the damages cap will be adjusted biennially for inflation.

• The cap on wrongful death damages in cases involving non-felonious killings will increase from $679,990 to $2.125 million. Beginning January 1, 2028, the cap will be adjusted biennially for inflation.

• The cap on medical malpractice wrongful death damages will incrementally increase over the next five years from $300,000 (and $600,000 in cases involving clear and convincing evidence) to $1.575 million. The cap will then be adjusted biennially for inflation.

• The cap on noneconomic damages in medical malpractice actions will increase incrementally over the next five years from $300,000 to $875,000. The cap will then be adjusted biennially for inflation.

If you have questions about a personal injury claim involving your business, contact BHGR’s Personal Injury Group today. 

This article is informational only. The presentation or use of this information does not in any manner constitute an attorney-client relationship between BHGR and the website user. While the information on this site concerns legal issues, it is not intended as legal advice and is not a substitute for particularized advice from your own legal counsel.