Georgia Governor Brian Kemp has signed a legislative package into law that aims to stabilize insurance costs for both businesses and consumers while enhancing transparency and fairness in legal proceedings. The new laws, described by Kemp’s administration as “commonsense, meaningful tort reform,” are designed to create a more balanced legal environment in Georgia courtrooms and prevent “hostile” foreign entities from exploiting consumers and legal processes.
The legislative package includes two key bills: SB68 and SB69. SB68 comprehensively revises provisions related to civil practice, evidentiary matters, damages, and liability in tort actions. SB69 focuses on regulating third-party litigation financing practices in Georgia. According to the press release from Kemp’s office, the new laws address several critical areas:
- Reevaluating the standard for negligent security liability, also known as premises liability
- Ensuring accurate calculation of medical damages in personal injury cases
- Eliminating “anchoring tactics” when presenting damages for pain and suffering to juries during closing arguments
- Allowing parties to request trial bifurcation, where the defendant’s liability is determined before the jury hears evidence about the extent of the plaintiff’s damages
- Permitting juries to consider whether plaintiffs were wearing seatbelts during auto accidents
- Eliminating double recovery of attorney’s fees
- Ending voluntary dismissal during trials
- Allowing defendants to file motions to dismiss before responding to complaints, potentially reducing “unnecessary” discovery expenses
- Reforming and increasing transparency in third-party litigation funding
Governor Kemp emphasized that the new laws are the result of collective effort and broad support from Georgians, stating, “Georgia continues to move in the right direction as we work to stabilize costs and compete for economic opportunities that will create good-paying jobs for hardworking Georgians across our state.”
Georgia Insurance and Safety Fire Commissioner John King expressed optimism about the potential impact on insurance rates, telling Atlanta News First Investigates, “So much political capital was spent on getting tort reform, they better not come to our office and ask a ridiculous rate increase.” King expects insurance companies to file for rate decreases soon, as he believes the reforms address key issues driving high rates.
The changes are expected to curb multi-million dollar insurance payouts in lawsuits against businesses for alleged negligence in preventing crimes or injuries. However, the effects on insurance rates are not expected to be immediate. Mark Friedlander, spokesperson for the Insurance Information Institute, noted that it may take 12-18 months for the full impact to be felt through the courts, and national challenges may further delay rate reductions.
While supporters like Lt. Gov. Burt Jones and House Speaker Jon Burns view the reforms as pro-Georgia measures that will benefit families and consumers, critics like state Rep. Tanya Miller (D-Atlanta) argue that the legislation won’t address insurance premiums for car accidents, homeowners, or businesses. House Speaker Jon Burns described the new laws as the most comprehensive lawsuit reform in Georgia in nearly two decades, aiming to “return much-needed balance to our state’s courtrooms and deliver financial relief to Georgia’s citizens and businesses facing skyrocketing insurance premiums.”
The new laws reflect a significant shift in Georgia’s legal landscape, with proponents arguing they will create a more favorable business environment while protecting legitimate claims. As the legislation takes effect, its impact on insurance costs and legal proceedings will be closely monitored.
