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NEWS

Colorado Supreme Court Affirms $40M Malpractice Verdict

Colorado’s Supreme Court has upheld a $40 million medical malpractice verdict in Banner Health v. Gresser, a catastrophic-injury case that challenged the boundaries of the state’s damages framework. By affirming the jury’s award, the Court reinforced that Colorado’s statutory caps under the Health Care Availability Act do not prevent juries from determining full damages in the most severe cases—particularly when lifelong disability or extensive future care is involved. This decision effectively clears the path for high-severity verdicts to stand when the underlying harm is profound, even in a jurisdiction that traditionally relied on structured limits to moderate outcomes.

The ruling arrives at a moment when severity pressure is already rising nationwide, and it puts Colorado firmly in the category of states where “cap-protected” venues can still produce outlier judgments. For hospitals and large physician groups, this signals a judicial environment more willing to defer to jury assessments of long-term needs rather than compressing damages into statutory ceilings. For specialty practices performing high-risk procedures, the message is equally direct: catastrophic cases may be rare, but when they occur, courts are showing less inclination to intervene.

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For MPL agents, the implications are immediate and material. This is the kind of verdict that recalibrates conversations about limits, towers, and attachment points, especially for multisite systems, obstetric service lines, and surgical groups. Excess programs that once felt “comfortable” may now appear thin, and carriers are likely to scrutinize Colorado exposures with greater intensity. Agents who can help clients articulate their risk-mitigation strategies—handoff protocols, escalation procedures, credentialing rigor, and catastrophic-event preparedness—will be better positioned when negotiating terms.

More importantly, this decision is a clear signal that high-severity claims are not theoretical. They are real, they are defensible, and courts are prepared to let juries decide their scale. For Western Summit’s retail partners, anchoring renewal discussions in this reality—using Colorado as a concrete example—can help clients understand today’s severity trajectory and make more informed coverage decisions.