Colorado’s Caps on Noneconomic Damages in Personal Injury Cases
Broadly speaking, a person injured in a car accident can seek both economic and noneconomic damages from the negligent driver or third party. Economic damages encompasses out-of-pocket losses that are fairly easy to quantify in monetary terms, such as medical bills and lost income. In contrast, noneconomic damages are those losses that can never be measured in purely quantitative terms yet still clearly exist. This is why noneconomic damages are generally described using terms such as “pain and suffering” or “mental anguish.”
How Colorado Limits Pain and Suffering Damages
Unlike many states, which allow a judge or jury to decide the full amount of a personal injury plaintiff’s noneconomic damages without restriction, Colorado law currently imposes a hard limit or “cap” on such damages. Prior to January 2025, this was a “soft” cap that a judge could double if there was “clear and convincing evidence” to support a specific case for higher noneconomic damages. But for all personal injury claims arising and filed after January 1, 2025, a newer, “hard” cap applies.
For cases filed or resolved during 2026, Colorado’s baseline cap on noneconomic damages is $1.5 million. This applies to all noneconomic damages, not just pain and suffering. Absent further legislative action, the cap will remain at this level until January 1, 2028. The cap does not apply, however, in cases where the victim suffered a “permanent physical impairment” as a result of the defendant’s negligence.
In wrongful death cases, i.e., where the victim died as the result of a negligent or intentional act, the 2026 cap for noneconomic damages payable to the surviving family members is $2,125,000, except if death was due to medical malpractice, in which case such damages are capped at just $550,000. (In malpractice cases where the victim survived, total damages are limited to $1 million, including no more than $300,000 in noneconomic damages.) The wrongful death cap does not apply if the defendant was convicted of criminal homicide in connection with the victim’s death.
Are There Limits on Economic and Punitive Damages?
Except in personal injury cases involving certain defendants, such as health care providers or government agencies, Colorado does not cap or limit an award of economic damages. The plaintiff can therefore seek the full amount of their out-of-pocket financial losses. In cases where the defendant’s conduct justifies punitive damages, Colorado law limits such an award to the amount of actual (economic plus noneconomic) damages awarded, except if the court determines certain criteria apply, in which case punitive damages may not exceed 3 times the amount of actual damages,
Contact a Grand Junction Car Accident Lawyer
Obtaining compensation following a serious car accident can be a long and difficult process based on a number of factors. Our experienced Grand Junction car accident attorneys are ready to assist you each step of the way. Call Killian, Davis & Richter, PC, today at 970-241-0707. We serve clients in Grand Junction, Montrose and Mesa County, Colorado.