Damage caps, sometimes called “damage limits,” are the legal restrictions placed on the amount of compensation or damages that can be awarded to a plaintiff (person filing the lawsuit, usually the injured party) in a civil suit, particularly in cases of personal injury. If you were recently injured due to the negligent actions of another person or party, you might wonder if there are damage caps that will limit your financial recovery.
An injured party can seek both economic and non-economic damages for their injuries. Economic damages cover quantifiable financial losses such as medical bills and lost wages. . Non-economic damages, on the other hand, cover intangible losses like pain and suffering, emotional distress, loss of companionship, decreased quality of life, physical impairment, and disfigurement.
Damage caps often apply to non-economic damages, which are more subjective and less easily quantifiable. Advocates for damage caps argue that they are necessary to prevent unjustifiably high awards that can strain businesses, medical providers, and the legal system.
Opponents contend they can have negative consequences for plaintiffs, particularly those who have suffered severe injuries or significant emotional distress. They argue that damage caps can result in inadequate compensation for victims experiencing life-altering consequences.
Colorado has no caps on economic damages.
Under C.R.S. section 13-21-102.5, pain and suffering damages are presently capped at $613,760. (2023). However, the following exceptions apply:
Colorado has no caps on physical Impairment and disfigurement damages. Physical impairment is not defined by statute, but generally relates to the impaired function of a body part or system, e.g. paralysis, reduced range of motion, or decreased strength.
Under C.R.S. section 13-21-102, punitive/exemplary damages can’t be awarded for more than the actual damages award in a personal injury claim. For example, if the injured party received $100,000 in actual damages, punitive damages (if the jury chooses to award them) must be $100,000 or less.
There is a $368,260 (2023) total recovery cap against a tavern or bar licensed to sell alcohol, per person injured, as detailed in C.R.S. section 12-47-801.
In the event that a person’s negligent act causes the death of another, certain caps apply:
Colorado has no caps on the net financial loss to the surviving family or burial expenses.
Under C.R.S. section 13-21-203(1), pain and suffering damages are capped at $613,760 (2023). However, the following exceptions apply:
Under C.R.S. section 13-21-102, punitive/exemplary damages can’t be awarded for more than the actual damages award in a wrongful death personal injury claim. For example, if the injured party received $100,000 in actual damages, punitive damages (if the jury chooses to award them) must be $100,000 or less.
At Keating Wagner Polidori Free, our seasoned Denver personal injury attorneys fight for the compensation you deserve and maximize damage caps whenever appropriate. If you recently sustained a personal injury, contact our office today to schedule a no-obligation case review.
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