Date: 01/16/2008

Final
BILL SUMMARY for HB08-1020

HOUSE COMMITTEE ON JUDICIARY

Votes: View--> Action Taken:
Refer House Bill 08-1020 to the Committee of the WPASS



09:47 AM -- House Bill 08-1020

Representative Madden, prime sponsor, presented House Bill 08-1020, concerning recovery of costs in a civil case in which the plaintiff receives a judgment that is less than a rejected settlement offer. The bill clarifies that if a plaintiff rejects a defendant's settlement offer and subsequently recovers a final judgment that is less than the settlement offer, the plaintiff shall recover actual costs that accrued prior to the time the defendant made the settlement offer. Representative Stafford asked if, in Representative Madden's opinion, this bill will reduce court dockets and encourage early settlement and stop some gaming behavior in civil cases. Representative Madden replied that she believed it would. The committee discussed the safety clause on the bill. Representative Roberts asked if the bill will hurt defendants and cause them to incur unreasonable costs in cases where there is a difference between the settlement offer and the final judgment. Representative Madden replied that she believes the bill actually helps defendants because it cuts off the amount of time that costs can accrue to the date of a settlement offer.

09:55 AM -- Jeff Ruebel, Colorado Defense Lawyers' Association, spoke in opposition to the bill. Mr. Ruebel opposes the bill because it allows a plaintiff to recover some costs in cases where he or she rejects an offer of settlement. He believes it allows the plaintiff a second chance that the defendant does not get. He also stated that the bill would upset the balance that exists between defendants and plaintiffs in civil litigation. If the bill passes, he urges some sort of provision that would restore balance to the process. Mr. Ruebel stated his belief that the bill will encourage more litigation, rather than cutting down on the number of cases filed. He spoke about early information sharing as an incentive for early offers of settlement. The committee discussed the best time in the course of a case to make an offer of settlement.

10:03 AM -- Chris Ottele, Colorado Civil Justice League, spoke against the bill. Mr. Ottele stated his belief that Colorado currently has a very fair system that encourages early settlement of lawsuits. He talked about how passing this law will reduce Colorado's business competitiveness. He mentioned that this bill will hurt reasonable plaintiffs and all defendants and increase the number and duration of lawsuits. He asked for an amendment that would maintain the balance that currently exists in law. Representative Roberts raised a concern about whether this law would raise medical malpractice premiums. Representative M. Carroll stated that she does not agree that this bill would increase the duration of litigation because she believes the law provides several opportunities for early settlement.

10:11 AM -- Gerald P. McDermott, Colorado Trial Lawyers' Association, spoke in favor of the bill. Mr. McDermott stated his belief that the bill would increase incidences of early and reasonable offers of settlement. He believes it will reduce some of the high costs in civil cases. He discussed how the bill addresses a gap that exists in an otherwise very balanced statute. The committee had a lengthy discussion about which party benefits more from this legislation, and how costs are borne in civil litigation.

10:23 AM -- Peter Koclanes, Colorado Trial Lawyers' Association, spoke in support of the bill. Mr. Koclanes supports the bill because it focuses on fairness. He believes there is substantial historic evidence to support the idea of awarding costs to plaintiff who prevail in a civil case. The intent behind the offer of settlement is encourage the parties to make fair and early offers of settlement. Mr. Koclanes commented that he has read a large number of cases pertinent to this bill. He discussed the fact that this bill would change judge-made law, rather than statutory law. He talked about his personal experience as an attorney representing plaintiffs in civil cases.


10:43 AM

Representative Madden wrapped up her presentation of the bill. She commented that not all plaintiffs who choose to reject settlement offers are scurrilous. She believes this is a very fair proposition.

BILL:HB08-1020
TIME: 10:44:50 AM
MOVED:Carroll M.
MOTION:Refer House Bill 08-1020 to the Committee of the Whole with a favorable recommendation. The motion passed on a vote of 6-4, with one excused.
SECONDED:Marshall
VOTE
Carroll M.
Yes
Gardner B.
No
Jahn
Yes
Kerr A.
Excused
King
No
Levy
Yes
Marshall
Yes
Roberts
No
Stephens
No
Stafford
Yes
Carroll T.
Yes
Final YES: 6 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS