Colorado Supreme Court Interferes with Personal Property Rights

New Ruling Contradicts Others Across the Nation

Nov 17, 2015, 08:00 ET from Alliance for Responsible Consumer Legal Funding (ARC)

WASHINGTON, Nov. 17, 2015 /PRNewswire/ -- Yesterday the Colorado Supreme Court issued a decision in Oasis, et al v. Coffman that significantly broadens the reach of government into personal property rights and contradicts both state and federal rulings across the country. 

This anomalous decision imposes state government regulations designed for credit products on property rights. It will limit the options of thousands of Colorado citizens who each year seek legal funding while they pursue the fair value of an insurance claim.

The Alliance for Responsible Consumer Legal Funding (ARC)—a coalition of funding providers, consumers, academics, and policy makers issued a statement in strong opposition to the ruling. 

ARC Executive Director Rob Johnson, a former Oklahoma state legislator, called the decision a "glaring display of judicial activism." He said "the Colorado Supreme Court took a stance far out of the mainstream of established law around the country. This decision will change the dynamics of how much the government can insert itself into the free market in this state."

The U.S. Chamber of Commerce and insurance companies—usually pro-market advocates—have taken a bizarre stance in recent years, trying to limit the free market and restrict availability of legal funding. They pushed hard for today's ruling. Johnson said "it's out of concern for their bottom line. Giving families a choice and allowing them to fight back against lowball settlement tactics isn't in their game plan. The industry's corporate push has been successful in Colorado. Thankfully, state sovereignty has protected citizens in other states across the country from this corporate agenda."

Federal court and higher courts in other states, including nearby Texas and Montana, have contradicted the newly issued Colorado decision, making it an outlier. "This is a win for Big Insurance and a major loss for Colorado consumers," Johnson said. "Fortunately this narrow interpretation will not limit consumer choice outside of Colorado as the vast majority of state laws are clearer in their definitions and are not subject to liberal interpretation. More choice is always a better option."

About ARC

The Alliance for Responsible Consumer Legal Funding (ARC) is a coalition established to preserve legal funding as a choice for the many Americans who have suffered an unexpected economic loss due to an accident and have a pending legal claim. Legal funding can help families pay for immediate personal needs such as rent, mortgages, car repairs, utilities and groceries while they wait for their claims to settle fairly. ARC trade association promotes practices and regulations that lead to informed decisions between individuals and their attorneys, so families have more options—not fewer. For more information about the Alliance for Responsible Consumer Legal Funding, please visit


Kip Eideberg                                                        

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SOURCE Alliance for Responsible Consumer Legal Funding (ARC)