The American Tort Reform Association has labeled Colorado a “lawsuit inferno” in its latest Legislative HeatCheck report, which ranks states based on the number of laws passed each year expanding liability.

During the 2025 session, the Colorado legislature introduced 45 bills creating new private rights of action or expanding civil liability. According to the Colorado Civil Justice League, more than half of those bills were signed into law, including measures expanding the definition of damages under the Colorado Anti-Discrimination Act and modifying the state’s wage and hour enforcement laws. 

“Colorado lawmakers seem hell-bent on making it easier and more lucrative to sue, while doing little to help the people who actually drive their state’s economy,” said Tiger Joyce, ATRA’s president. “The sheer volume of liability-expanding bills introduced this year is staggering.”

State Rep. Steven Woodrow, a Denver Democrat who is also a lawyer, called ATRA “detached from reality.”

“Colorado law and its court system remain exceptionally difficult for every day people to seek and achieve justice,” he said. “Looking at the ‘sheer volume’ of bills passed is a convenient proxy that allows ATRA and the proponents of tort form more generally to paint a false picture. It’s unfortunate they seek to continue penalizing injured parties rather than adequately compensate them.”

Republican leadership in the state legislature agreed with ATRA, arguing that increased liability harms the state’s business environment. 

“Colorado is already the sixth most regulated state in the nation, and now the majority party has added a wave of legislation that opens the floodgates to excessive litigation,” said House Minority Leader Rose Pugliese of Colorado Springs. “This is not just bad for the economy; it sends a dangerous signal to job creators, nonprofits, and community organizations that they are no longer welcome here. Businesses drive opportunity in Colorado, and this type of legal climate makes it harder to grow, invest, and stay open.”

The Civil Justice League noted several laws passed this year they say move the state in a “modestly positive” direction: House Bill 1272, which creates a voluntary program for builders of multi-family housing that choose to provide a six-year warranty and work with qualified inspectors; House Bill 1053, which provides landlords with immunity from civil liability for allowing access to their property during an emergency; and Senate Bill 35, which changes the statute of limitation for claims against real estate appraisers.

According to ATRA, Colorado residents pay nearly $2,000 each year in “tort tax,” the seventh-highest in the nation. 

Colorado’s reputation as a magnet for lawsuits is driving away jobs and investment,” said Joyce. “It’s time for lawmakers to realize that these actions, in the long run, will harm small businesses, workers and families. Communities deserve a fair, balanced legal system — not one that puts their livelihoods at risk and rewards lawsuit abuse.”

Other states labeled “lawsuit infernos” this year include Virginia, New York, and Illinois.