The American Tort Reform Association (ATRA) has announced that excessive litigation costs U.S. families an average of $5,215 annually, with Colorado ranked among the states facing significant economic harm from frivolous lawsuits.
According to ATRA’s post on X, states like Colorado are consistently highlighted for their high tort costs, which the group attributes to lawsuit abuse and liability-expanding policies. ATRA warned that excessive litigation is not just a business issue but also one that directly impacts families and consumers. By ranking Colorado among the states with the heaviest burdens, the association underscored how the state’s legal environment creates systemic risks for its economy and residents.
In its 2025 Legislative HeatCheck report, ATRA found that the average American family pays $5,215 annually in what it calls a “tort tax.” These costs are hidden within higher consumer prices, insurance premiums, and reduced access to goods and services. For Colorado, this translates into a substantial burden on working households, who ultimately shoulder the impact of excessive litigation.
The Legislative HeatCheck 2025 report also highlighted that Colorado’s elevated tort costs harm the state’s competitiveness by discouraging business investment. Frivolous lawsuits and expansive liability rules create uncertainty for employers, resulting in slower job creation and weaker GDP growth. The report emphasized that unless reforms are enacted, Colorado risks continued economic losses linked directly to lawsuit abuse.
The American Tort Reform Association, founded in 1986, is a nonprofit advocacy group dedicated to reforming the civil justice system and addressing the costs of excessive litigation. According to its official materials, ATRA produces research such as the Legislative HeatCheck and the Judicial Hellholes report to inform policymakers, the media, and the public. Its mission is to promote a balanced and fair legal climate that protects small businesses, consumers, and state economies from the burden of lawsuit abuse.
