Kemp says lawsuit reform is his top legislative priority

Georgia governor says it's too easy to sue businesses, while others argue against a cap on civil lawsuits
Published: Jan. 15, 2025 at 3:47 PM EST
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ATLANTA, Ga. (Atlanta News First) - At the annual Eggs and Issues breakfast, bringing together of the Georgia Chamber of commerce and state lawmakers, Gov. Brian Kemp made no mistake about his most important legislative issue in the newly minted General Assembly session.

“Tort reform will be my top priority for this session,” he said to a large crowd at the Georgia World Congress Center on Tuesday.

It was a familiar cry for change, as lawmakers have been trying for years to reform the state’s laws around civil lawsuits and tort, the sector of law dealing with civil legal liability. You can see it present on any drive along Georgia’s highways, on road signs advertising big money for civil judgments if a person is injured in an accident or because of medical malpractice.

Kemp said when people win those judgments, insurers have to pay out and raise the rates for the rest of us to make up the difference.

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Lawmakers weren’t hyper-specific on their proposals for change, but Kemp wasn’t alone in his desire to see an overhaul.

“Our justice system should not be about jackpots it should be about justice,” said Chris Clark, president of the Georgia Chamber of Commerce. “At the end of the day, I think what we’re trying to do is what’s right for Georgia citizens, what we’re trying to do is what’s right for Georgia small businesses.”

Clark said he’s aware of businesses having to shutter after just one civil judgement. Others are moving out of state to nearby neighbors like Florida, Texas, Tennessee and North and South Carolina, which have all undergone tort reform in recent years, leading to lower insurance rates.

“Every other state around us has made these moves. We’ve made some baby steps, it’s time to make some bigger moves,” he said. “It’s got to be about our families that are paying over $4,500 more than their neighboring state friends in insurance every year.”

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“I’ve heard from small businesses that are having to get their insurance for their fleet in other states, or that don’t have insurance, or they’re taking the signs off the side of their trucks because people are short-stopping so they can sue them.”

Opponents of the change say there’s no evidence civil lawsuits raise insurance s. Many – citizens and trial lawyers – have argued people should be able to sue for any amount if they’re injured.

Lawmakers may try to put a cap on judgments involving emotional damages when there’s no physical harm present. Twenty years ago, state legislators placed a $350,000 cap on civil suits, but it was later overturned and ruled an unconstitutional move by the state Supreme Court.

Lawmakers may also try to tackle premise liability, or a businesses’ assumption of responsibility if someone were hurt or killed on their property, regardless of whether the business was directly involved.

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Attorney General Chris Carr was also at Tuesday’s breakfast and added his to reform efforts sure to take place in the coming months.

“The red flags are flying higher than they ever have, the cost of doing business is going up,” said Carr on business insurance rates. “And look, I’m a lawyer, I believe that you have to have a place to go to resolve disputes. When people are injured, absolutely you have to have access. But that access has been abused.”

Carr also mentioned his concern over third-party litigation funding, when investors or hedge funds invest in lawsuits for a percentage of the judgment.

“You’ve got folks that are literally investing in suing businesses,” said Carr. “That’s not right, we’ve got to figure out who that is.”

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He also expressed concern about the most visually present sign of Georgia’s more lax tort laws: billboards, TV and print ads that Carr said encourage frivolous lawsuits.

“I think it’s impacting juries,” he said. “And I think what’s happening is juries may be saying well, I don’t know if that person hit the standard for proving their case but if that’s me up there I want to make sure that I get my money too and I think that’s on the backs of business and I just don’t think it’s right.”