Understanding Exemplary Damages in Colorado Personal Injury Cases

 Posted on June 30, 2025 in Personal Injury

If you suffered injuries because of someone else’s reckless or intentional actions, you could be entitled to more than just reimbursement for your losses through a personal injury claim. In certain cases, Colorado law allows injured people to pursue punitive damages, known in Colorado as exemplary damages. A Fort Collins, CO personal injury lawyer can help you understand the financial value of your incident and injury, including whether or not you may qualify for exemplary damages.

What Are Exemplary Damages Under Colorado Law?

Under Colorado Revised Statutes § 13-21-102, exemplary damages are awarded in addition to the compensatory damages, meaning the actual losses incurred. The purpose of exemplary damages is to punish the defendant for conduct that was particularly egregious. Examples include:

• Drunk driving accidents: If a driver knowingly gets behind the wheel while intoxicated and causes a crash, that could be considered reckless disregard for others’ safety.

• Road rage assaults: For instance, if a driver intentionally chases down another, forces them off the road, and physically assaults them, such malicious and violent behavior could justify exemplary damages.

• Failing to fix known hazards: If a business owner discovers a dangerous condition, like a broken stair or slippery floor, and does nothing to correct it despite knowing that it caused injuries, that could display reckless indifference to the safety of others.

• Product liability misconduct: If a manufacturer learns of a deadly defect in their product but chooses to hide it from the public, their actions are fraudulent and malicious.

• Medical malpractice with intent: If a healthcare provider intentionally harms a patient or hides information about a harmful procedure, that could be seen as willful or fraudulent.

Are There Limits to Exemplary Damages in Colorado?

Under section 102(1)(a) of the exemplary damages statute, the amount of exemplary damages cannot exceed the amount of actual damages awarded to the plaintiff. In other words, exemplary damages are typically capped at one times the amount of compensatory damages.

However, there are exceptions to the rule. Section 102(3)(a) states that the court may increase the award for exemplary damages up to three times the amount of compensatory damages if it finds certain aggravating factors. For example, if the defendant continued the wrongful behavior during the case or after the lawsuit was filed, or if the defendant tried to conceal or misrepresent the facts of the case, those would be aggravating factors. Ultimately, judges have the discretion to reduce or increase an exemplary damages award based on the circumstances.

How Are Exemplary Damages Different From Compensatory Damages?

Colorado Revised Statutes § 13-80-101 allows victims of personal injuries to file a civil lawsuit against someone within three years from the date the incident occurred. You file a civil action to recover compensatory damages, namely, the cost of medical expenses, lost wages, pain and suffering, property damages, and anything else you lost or suffered as a direct result of the other party’s actions. The purpose of compensatory damages is to make the injured person "whole." Exemplary damages do not compensate for a loss. Instead, they are specifically designed to punish the behavior that led to the accident and deter similar activity in the future.

Talk to an Experienced Fort Collins, CO Personal Injury Attorney

If you think you have a claim for compensatory or exemplary damages, the Larimer County, CO personal injury lawyer at Hoggatt Law Office, P.C. can help. We will evaluate the facts of your case and build a strong claim based on the evidence. To learn more, call 970-225-2190 and schedule a free consultation today. Se Habla Español.