South Carolina Senate Passes Injury Liability Reform Bill
COLUMBIA, S.C. (WPDE) — In a late-night session, the South Carolina Senate approved legislation reforming personal injury liability lawsuit rules.
The bill, passed with a 35-7 vote, is designed to reduce insurance costs that many business owners have described as “unaffordable”. The debate among Republicans in the GOP-dominated chamber lasted roughly four weeks. Three Democrats voted in favor of the measure.
The tort reform bill offers insurance relief for bars, restaurants, non-profits, and other industries that carry liability insurance policies.
Under current law, businesses can be held liable for the total amount of court-awarded damages in injury or death cases, regardless of their degree of involvement in the incident.
“I’m not sure if the word is ‘compromise,’ but this is an understanding,” said York County Senator Mike Johnson (R), reflecting on the amendment during the Senate floor review.
The legislation aims to change the “joint and several liability” often seen in injury cases by making businesses pay damages in proportion to their level of fault. The compromise dictates that damage allocation will be proportional unless a business is found to be more than 50% at fault. In such cases, the business could be held fully liable for economic damages, including medical expenses and lost wages, while still paying proportionally for emotional and punitive damages.
“The goal is to make a plaintiff whole,” said Johnson, who led the subcommittee responsible for the bill.
Furthermore, the legislation lowers the mandated insurance coverage for bars and restaurants serving alcohol.
Since a 2017 law required businesses serving alcohol after 5 p.m. to carry liquor liability policies with at least $1 million in coverage, insurance premiums have risen sharply. The Department of Insurance reported a 180 percent increase in premiums for bars and restaurants that serve after 5 p.m. The new bill reduces the minimum coverage requirement to $500,000, addressing concerns from restaurant owners and advocates about rising insurance costs.
For non-profits, the $1 million policy is reduced to $300,000.
“This is what we believe is the best result,” Johnson said.
The proposed changes to liability laws will not affect people or entities exempt from civil liability or damages due to workers’ compensation statutes or the U.S. Bankruptcy Code, nor do the changes apply to cases where the plaintiff’s damages stem from assault, battery, sexual assault, sexual abuse, sexual misconduct, financial fraud, or theft. The law also excludes people whose fault is imputed to the defendant or those whose fault is based on the fault of a nonparty for which a defendant is vicariously liable.
Furthermore, cases involving strict liability are not subject to these changes.The provisions do not apply to cases involving PFAS or asbestos that began before the act’s effective date. In such instances, liability will be determined by existing statutory and common law governing these torts.
