Are Punitive Damages Available in Colorado Personal Injury Lawsuits?

When someone causes a serious injury through reckless or intentional behavior, compensating the victim isn’t always enough. Colorado law recognizes this and allows courts to award punitive damages in some personal injury lawsuits—not to compensate, but to punish the wrongdoer and deter similar conduct in the future. These damages are not awarded in every case, and they are relatively rare. But when available, they send a powerful message: egregious misconduct has real consequences.

What Are Punitive Damages?

Punitive damages, also called exemplary damages in Colorado, are a financial penalty imposed on a defendant whose behavior was particularly harmful. They are distinct from compensatory damages, which reimburse victims for medical expenses, lost wages, and emotional distress. Instead of restoring what the victim lost, punitive damages aim to penalize the wrongdoer. They are intended to discourage both the defendant and others from repeating similar misconduct. Colorado law allows for punitive damages only when the defendant’s conduct is proven to be fraudulent, malicious, or willful and wanton. This is a high bar. Ordinary negligence is not enough.

Legal Standard for Punitive Damages in Colorado

To be eligible for punitive damages, a plaintiff must meet the criteria set forth in Colorado Revised Statutes § 13-21-102. According to the statute, punitive damages may be awarded when “the injury complained of is attended by circumstances of fraud, malice, or willful and wanton conduct.” The phrase “willful and wanton conduct” refers to behavior that shows a conscious disregard for the safety of others. It is more than carelessness. It’s a reckless indifference to the consequences of one’s actions. This makes punitive damages most applicable in cases where the defendant’s behavior goes beyond simple negligence, such as:

• Drunk or drug-impaired driving
• Assault or intentional harm
• Hit-and-run accidents
• Reckless driving in school zones or pedestrian areas

How Punitive Damages Are Calculated

In Colorado, the amount of punitive damages generally cannot exceed the amount of compensatory damages awarded in the same case. For instance, if a jury awards $200,000 in compensatory damages, punitive damages typically cannot exceed that amount. However, under certain conditions, the court may increase this cap. For example, if the defendant continues the wrongful behavior during the lawsuit or attempts to hide assets to avoid paying damages, the court may double the punitive award. Colorado courts take a cautious approach to punitive damages. Judges and juries carefully evaluate whether the defendant’s actions meet the required high threshold.

When Are Punitive Damages Most Likely to Be Awarded?

Punitive damages are not awarded automatically, even when the defendant acted recklessly. The court or jury must find clear and convincing evidence of conduct that warrants punishment. Situations where punitive damages are more likely include:

• Drunk driving accidents with serious injury or death
• Intentional physical attacks or assaults
• Cases involving extreme road rage
• Accidents involving repeat safety violations by a company or employer

These are not everyday scenarios. They involve an extra layer of misconduct that sets them apart from standard personal injury claims.

Types of Injuries That May Support a Punitive Damages Claim

Not every serious injury supports a claim for punitive damages. The key is not the severity of the injury alone, but how the injury occurred. However, some types of harm tend to be involved in cases where misconduct is especially egregious.

Traumatic brain injuries from reckless behavior

High-speed collisions caused by drunk or impaired drivers often result in TBIs. These injuries may support a claim for punitive damages when the driver’s behavior is shown to be willful or malicious.

Spinal cord damage from intentional harm

If a person sustains a spinal injury due to assault or intentional vehicle ramming, courts may consider punitive damages appropriate to punish the offender’s conduct.

Wrongful death resulting from extreme recklessness

In cases where a fatal accident occurs because of repeat DUI offenses, street racing, or ignoring multiple safety warnings, the victim’s family may seek punitive damages as part of a wrongful death claim. These are just a few examples. The focus is always on the defendant’s conduct, not just the outcome.

Types of Compensable Damages in Personal Injury Lawsuits

Before the court considers punitive damages, the injured party must be awarded compensatory damages. These fall into two categories: economic and non-economic.

Economic damages

These cover direct financial losses, including medical expenses, rehabilitation costs, lost income, and loss of future earning capacity.

Non-economic damages

These account for the emotional and psychological toll of the injury, such as pain and suffering, emotional distress, and loss of enjoyment of life. Once these are established, the court may consider adding punitive damages if the defendant’s conduct meets the legal standard.

Key Takeaways

• In Colorado, punitive damages are paid to the victim, but they are meant to punish the wrongdoer rather than compensate the victim.
• These damages are only available when the defendant’s behavior is fraudulent, malicious, or willful and wanton.
• Ordinary negligence does not meet the threshold for punitive damages.
• Colorado law generally limits punitive damages to the amount of compensatory damages, with some exceptions.
• Compensatory damages must be awarded before punitive damages can be considered.
• Punitive damages are more likely in DUI, assault, or repeat safety violation cases.
• An experienced personal injury attorney can help determine whether a claim may qualify for punitive damages.

FAQs About Punitive Damages in Colorado Injury Cases

Can punitive damages be awarded in a settlement?

Yes. Although courts must approve any punitive damages awarded at trial, parties can negotiate for them in a personal injury settlement if there is strong evidence of willful misconduct.

Is there a time limit to claim punitive damages in Colorado?

Yes. Colorado’s statute of limitations for personal injury claims is typically two years, as outlined in C.R.S. § 13-80-102 or three years in motor vehicle cases. Failing to file within this timeframe may forfeit the right to seek any damages, including punitive damages.

Can a judge reduce or dismiss punitive damages after a jury awards them?

Yes. A judge can review and reduce punitive damages if they appear excessive or unsupported by clear and convincing evidence.

Do insurance policies cover punitive damages in Colorado?

In most cases, no. Insurance companies are not required to pay punitive damages on behalf of the insured, since these damages are intended to punish wrongdoing.

Can corporations be held liable for punitive damages in Colorado?

Yes. Courts may impose punitive damages if a business knowingly violates safety standards, falsifies records, or engages in willful misconduct that results in injury.

Work With a Boulder Personal Injury Law Firm That Knows How to Hold Wrongdoers Accountable

If you or a loved one has been seriously injured due to someone’s reckless or intentional actions, Sloat, Nicholson & Hoover, PC can help you explore all available options, including the possibility of punitive damages. With over 100 years of combined legal experience, our attorneys have built a strong reputation for ethical advocacy, personalized attention, and meaningful case results. We have helped injured clients across Boulder and throughout Colorado recover full compensation for their injuries. Our team is deeply involved in the Boulder community and takes pride in the relationships we build with our clients. Our experienced Boulder personal injury attorneys offer free consultations and will take the time to understand your situation and legal goals. Call us today at 303-447-1144 or contact us online for a free case evaluation.