H.B. 26-1236: Colorado’s Latest Unsuccessful Attempt To Undermine Arbitration

On June 2, 2026, Governor Jared Polis vetoed H.B. 26-1236, Arbitration Reform, bringing an end to the Colorado General Assembly’s latest attempt to impose additional restrictions on arbitration. Although the bill was not directed specifically at construction defect litigation, its proposed changes to the Colorado Uniform Arbitration Act would have affected arbitration proceedings generally, including those involving builders, developers, contractors, and homeowners.

For those of us who have followed Colorado construction defect litigation over the past two decades, the legislation had a familiar feel. Arbitration has long been a contentious issue in construction defect disputes, with plaintiffs’ attorneys frequently seeking to avoid contractual arbitration requirements in favor of jury trials. H.B. 26-1236 represented another effort that, whatever its stated objectives, threatened to make arbitration more complicated, expensive, and difficult to administer.