Monday, Georgia Governor Brian Kemp signed the tort reform legislation during a ceremony at the State Capitol. The issues dominated the majority of this year’s General Assembly’s legislative session. Kemp believed it would be harder for persons to file frivolous lawsuits while limiting huge payouts. The governor intensely pushed tort reform during his State of the State Address in January. He promised to call a special session if Georgia’s General Assembly did not successfully get this passed. While Kemp staked his political future on tort reform, he didn’t want to hear any of it.
“Today is a victory for the people of our state who for too long were suffering the impacts of an out-of-balance legal environment,” said Governor Brian Kemp. “I am grateful for the diligent work of Commissioner John King and his office in studying this issue. As a result of this collective effort and outpouring of support from Georgians of all backgrounds, 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.”
The legislation will overhaul the process of civil lawsuits in Georgia. For example, there will be limits on the monetary amounts of damages that can be awarded to plaintiffs. The final version made concessions for sex trafficking victims. But, the legislation does not include survivors of child abuse, elder abuse, sexual abuse. It also does not account for violent crimes when plaintiffs seek to sue places like abusive daycares or retirement homes.
Kemp says tort reform is better for consumers (and business)
Supporters of tort reform say stopping frivolous lawsuits and payouts would lead to lower insurance rates for businesses and consumers. Their argument is if Georgia is the number one state to conduct business, it cannot be a ‘judicial hellhole’. However, Kemp once again told everyone the legislation will protect people’s right to bring claims and “be made whole.”
According to the Governor’s Office, the bill does not place a cap on the amount of money a jury may award. Additionally, the Governor’s legislation protects the jury’s decision making from irrelevant and improper arguments from counsel. Also, they claim it empowers the jury to decide an award amount based on real evidence in the case.
“Getting lawsuit reform across the finish line took all of us coming together to deliver this win for Georgia,” said Senate Pro Tempore John Kennedy. “Georgians deserve a balanced civil justice system, not one that incentivizes frivolous lawsuits, leading to higher insurance premiums that burden small businesses, job creators, healthcare providers, and families. I am grateful to Governor Kemp for his trust in me as the Bill Sponsor and his unwavering leadership to get these meaningful pieces of legislation across the finish line.
Democrats fought tooth-and-nail to keep this bill from becoming law
What concerns the Democratic Caucus about the tort discussion is the notion that insurance rates are going to go down. That is a lofty promise knowing that in Georgia and surrounding states, once-in-a-generation weather events are becoming more common. Moreover, according to a Tampa Bay Times investigation, insurance companies claimed they were losing money after hurricanes. But, executives operating companies in Florida distributed $680 million in dividends to shareholders while diverting billions more to affiliate companies.
“I am disappointed but not surprised that Governor Kemp signed Georgia Republicans’ scam to strip away the fundamental rights of victims who have been harmed through no fault of their own,” said State Rep. Stacey Evans in a statement.
In May 2023, Governor Kemp signed a bill giving Georgia Insurance Commissioner John King the ability to review all car insurance rate filings before they go into effect. Subsequently, the average annual cost of full auto coverage increased 20% in Georgia. Currently higher than the nationwide percentage of 15%, according to Insurify.
“During the session, we heard hours of heartbreaking testimony from victims who begged the legislature to reject this dangerous legislation, but Georgia Republicans did not care,” Evans said. “Instead, they cruelly dismissed these victims and were all too happy to provide a free pass for large corporations to escape accountability for their negligence. Our laws should stand up for injured Georgians, not give big corporations a free pass for turning a blind eye.”
