Caps on Damages in Colorado
Damages refers to the amount required to make a plaintiff whole for the damage done by the defendant’s negligence. Damages are often categorized as either economic, such as loss wages or medical expenses, and non-economic or (“non-pecuniary”). Many states, including Colorado, have adopted laws limiting the amount personal injury plaintiffs may recover from a lawsuit. These limits are called “caps on damages” or simply “caps” because the amount of money which may be collected by a plaintiff is capped. Generally speaking caps apply only to non-economic damages, what are called “pain and suffering” damages. Non-economic damages are difficult to measure because they are damages for such things as humiliation, physical and mental pain, loss of enjoyment of life.
Be advised, different damage caps are applicable in medical malpractice cases and cases brought against Colorado state or local governmental agencies, municipalities, cities, or other subdivisions of government.
Caps on Personal Injury Damages Not Resulting in Death
Non-economic damages are capped by Colorado law, but the amount can be doubled if the court finds justification to increase the award based clear and convincing evidence. C.R.S. 13-21-102.5. A plaintiff seeking noneconomic damages against multiple defendants can seek the capped amount from each defendant, unless the plaintiff is seeking noneconomic damages under the Wrongful Death Act. (See discussion below.)
Generally, a person seriously injured in an accident may claim, without limitation by caps, all of their economic damages and compensation for any disfigurement or physical impairment. In cases where more than one wrong-doer is responsible, the noneconomic damages cap applies to each award, rather than to each action; in this way, jury’s apportionment of fault percentages is retained while at the same time any award in excess of the statutory cap is limited. General Electric Co. v. Niemet, 866 P.2d 1361, 1368 (Colo. 1994).
The caps are follows:
- For accidents before January 1, 1998: $250,000 which may be increased to $500,000 by the court upon a showing of clear and convincing evidence for the increase.
- For accidents between January 1, 1998 and January 1, 2008: $366,250 which may be increased to $732,500 000 by the court upon a showing of clear and convincing evidence for the increase.
- Accident after January 1, 2008: $468,010 which may be increased to $936,030 by the court upon a showing of clear and convincing evidence for the increase.
Caps on Damages for Wrongful Death Noneconomic Loss
Colorado wrongful death claims are governed by the Wrongful Death Act, that includes six statutes, C.R.S. §§ 13-21-201, -202, -203, -203.5, 203.7 and -204. In 2008, the Colorado Supreme Court held that a plaintiff can seek damages on a per claim basis only, and not a per defendant basis. Lanahan v. Chi Psi Fraternity, 175 P.3d 97 (Colo. 2008).
Colorado has placed a cap on the non-economic damages recoverable in a wrongful death case. Non-economic damages include grief, sorrow and loss of companionship, pain and suffering, and emotional stress. The cap for non-economic damages under the Colorado Wrongful Death Act. Caps for non-economic damages on wrongful death claims are as follows:
- For claims that accrue before January 1, 1998: $250,000.
- For claims that accrue between January 1, 1998 and January 1, 2008: $341,250.
- Claims that accrue after January 1, 2008: $468,010 which may be increased to $436,070.
C.R.S. §13-21-102.5. C.R.S. § 13-21-203.7, which was amended in 2007, provides for an inflationary adjustment of these amounts effective January 1, 2008.)
Economic damages not capped and are determined by the “net pecuniary loss” rule. For instance, if the husband, who is a family breadwinner, dies, the plaintiff or plaintiffs may recover as economic damages the amount of the husband’s past and future earnings, less any amount the husband would have consumed for his own support.
If you have a wrongful death case, contact a Colorado Wrongful Death Attorney: http://acoloradowrongfuldeathattorney.com/
Colorado Exemplary Damages
Contrary to popular myth, punitive damages, also known as “exemplary” damages, are not routinely awarded, and not collected in dramatically huge amounts. In Colorado, to collect exemplary damages one must prove “fraud, malice, or willful and wanton conduct.” And then, “the award for exemplary damages cannot exceed the amount of the actual damages awarded to the injured party.” C.R.S. § 13-21-102. Typically, awards of exemplary damages are not covered by a driver’s auto insurance policy.
Dram Shop Cases
Dram Shop cases are generally claims against bars or restaurants (licensees) that knowingly provide alcohol a visibly intoxicated person who then injures someone as the result of being intoxicated. Colorado’s Dram Shop Act, C.R.S. § 12-47-801, sets out different standards of conduct for licensees and social hosts. For licensees, liability exists if they willingly and knowingly serve a person who is: (1) visibly intoxicated or (2) under twenty one years old. For social hosts, the standard is different. Social hosts, meaning those providing alcohol at a party or other social event, are allowed to serve visibly intoxicated guests. Social hosts are only liable if they willingly and knowingly serve a person under twenty one years old. The willing and knowing service standard is hard to meet. In 1992 the Colorado Court of Appeals held that a parent that knowingly allows their home to be used for underage drinking has no social host liability unless they directly purchase or exercise control over the alcohol. Forrest v. Lorrigan, 833 P.2d 873 (Colo. App. 1992). A civil suit must be filed be within one year of the incident and the maximum judgment allowed is capped by statute as follows:
- Prior to January 1, 1998: $150,000.00
- Between January 1, 1998 and January 1, 2008: $219,750
- After January 1, 2008: $280,810.00