The American Tort Reform Association urged Governor Jared Polis on May 20 to veto House Bill 1236, stating the bill would discourage arbitration, generate costly litigation, and expose employers to potentially unconstitutional penalties.
The organization said the proposed legislation could have significant financial impacts on Colorado residents and businesses. According to the American Tort Reform Association, “Colorado families pay one of the highest tort taxes in the nation. Residents face nearly $2,135 per person annually in hidden litigation costs, which adds to the burden on businesses and consumers across the state,” according to the American Tort Reform Association.
House Bill 1236 would repeal Colorado’s prohibition on punitive damages in arbitration and impose automatic double damages on employers who fail to satisfy an arbitration award within 120 days without a finding of bad faith. The changes also include vague standards for disqualifying arbitrators and risk federal preemption under the Federal Arbitration Act, according to the Colorado General Assembly.
“The American Tort Reform Association announced on X that it sent a letter to Governor Polis requesting a veto of House Bill 1236. The organization stated that the legislation would discourage arbitration, generate costly litigation, and expose employers to potentially unconstitutional penalties,” according to the American Tort Reform Association.
The American Tort Reform Association works to reform the civil justice system through education and legislation. The national organization promotes fairness and efficiency in dispute resolution for businesses, consumers, and workers, according to the American Tort Reform Association.
