Colorado Senate Bill SB062

Colorado 2024 Regular Session

• Introduced: 1/19/24
• Failed: 2/12/24
• Refer: 1/19/24

Caption

Prohibit Attorney Fees on Personal Injury Interest

Impact

The implications of SB062 are significant for both personal injury plaintiffs and their attorneys. By disallowing attorneys from charging contingency fees on the interest awarded, it is expected to incentivize quicker settlements and minimize delays in awarding damages to plaintiffs. This may help streamline legal proceedings and enhance the efficiency of the judicial process in personal injury cases. The legislation is framed around the premise that major financial incentives for attorneys to prolong cases can undermine the justice system, which SB062 aims to remedy.

Summary

Senate Bill 24-062 seeks to amend existing law regarding the collection of attorney contingency fees in personal injury cases. Currently, plaintiffs in such cases can claim interest on their damages at a rate of 9% from the time a tort claim is filed until the judgment is satisfied. However, the bill proposes to prohibit attorneys from collecting fees based on the portion of the damages awarded that constitutes this 9% interest, starting from July 1, 2024. The intent behind this change is to expedite resolutions in personal injury cases and ensure that plaintiffs receive just compensation more swiftly.

Contention

Opponents of SB062 may raise concerns over the fairness of placing additional restrictions on attorneys' fees, potentially affecting their willingness to take on cases that carry uncertain outcomes. Critics might argue that limiting attorneys' compensation can lead to a decrease in the quality of legal representation for plaintiffs, particularly those with less financial stability. Proponents, however, maintain that the overarching goal is to protect the interests of plaintiffs seeking timely justice and to discourage any disincentives that attorneys might have to expedite resolutions.