The Senate gave preliminary approval today to a bill that critics charge amounts to another installment in a series of pay offs to trial lawyers.

“This session has been one bill after another paying off the majority party’s political backers,” said Sen. Tom Wiens, R-Castle Rock. “We’ve seen them reward labor unions and trial lawyers with favorable new laws almost every day.”

The bill in question is House Bill 1247, which alters the process for civil lawsuits over unpaid wages. Colorado currently has a “loser-pays” system that requires the party who loses the lawsuit to pay the legal expenses of the party that wins.

The purpose of the loser-pays system is to discourage frivolous lawsuits by trial lawyers who know they cannot win at trial, but hope to prompt an out-of-court settlement.

“Loser-pays prevents a showdown,” Wiens said.

HB 1247 alters that system so that the employee is not liable for the employer’s legal fees if they lose the suit. The employer, though, would still face that penalty if they lose.

The bill sponsor, Sen. Ron Tupa, D-Boulder, argued during debate that his bill helps bring economic justice to the disadvantaged. He pointed out that Colorado is one of only a few states that allow for employees to pay their own attorney’s fees in such lawsuits, regardless of the outcome of the case.

“The loser-pays system is fair, and stops frivolous claims from being filed,” said Wiens. “Replacing it with a one-sided penalty not only encourages those frivolous claims, but it’s also just fundamentally unfair. We’re putting a bias against business into the legal code.”

Senate Minority Leader Andy McElhany, R-Colorado Springs, echoed Wiens’ comments. “This bill eliminates any penalty for filing unfounded claims, but leaves in place a substantial incentive for businesses to throw in the towel before going to trial.”

“There’s no rational basis for this policy – it will only lead to more lawsuits, more frivolous claims, and a drag on our economy,” he added. “Of course, it also means more money in the pockets of trial lawyers, and maybe that’s the idea.”

McElhany listed Senate Bills 66, 117 and 129 as other measures that aim to increase profits to trial lawyers.