Georgia Senate passes tort reform measure

The Georgia Senate has passed a measure designed to stop lawsuit abuse and give small businesses stronger legal protections.

Senate Bill 68 passed on a bipartisan vote of 33-21.

“SB 68 is a major step toward reining in the excessive litigation that is driving up costs for healthcare providers, job creators, and consumers,” Senate President Pro Tempore John F. Kennedy, R-Macon, said in a release. “Since 2016, the U.S. Chamber of Commerce has estimated that litigation costs have risen 7.1% per year—far outpacing inflation. Nuclear verdicts and frivolous lawsuits cost Georgia households an average of $5,035 annually. This broken system cannot continue.”

“The consequences of excessive litigation extend far beyond the courtroom,” Kennedy added. “Because of rising litigation cost, small business owners are forced to lay off employees or shut down as their liability insurance premiums skyrocket. Pregnant women in rural areas must now travel over two hours to see an OB-GYN because local hospitals have been forced to close. When healthcare providers leave the state due to an unpredictable legal climate, entire communities suffer. It’s time to restore fairness and stability to our civil justice system, and today’s passage of SB 68 is a critical step in that direction.”

SB 68 would allow judges to reduce unreasonably large sums and direct a jury to acquit if a plaintiff presents no evidence.

“Our small business members appreciate the lawmakers who stood up for small businesses and helped pass this important bill,” National Federation of Independent Business State Director Hunter Loggins said in a release. “Their support brings us one step closer to fixing a system that too often hurts small business owners.

“You have a right to seek damages if you’ve been harmed,” Loggins said, “but too many lawsuits take advantage of the system. Instead of going after the parties responsible, trial lawyers often target whoever has deeper pockets. Many times, that’s a small business by default.”

However, opponents of the bill say the state’s tort regime does not lead to increased insurance premiums and that the measure will hinder Georgians’ ability to take on corporations and insurance companies.

“I believe that people deserve relief from those high insurance premiums,” state Sen. Jason Esteves, D-Atlanta, said in a release. “The problem with this bill, as written, is that it does not provide that needed relief.

“There is nothing in this bill that provides relief from those sky-high premium premiums,” Esteves added. “There’s nothing in this bill that provides you relief from increasing insurance rates. And even worse, it will prevent thousands of Georgians who have been legitimately injured or killed from filing lawsuits and suing people who have done them wrong.”