Gov. Kemp Unveils Plan to Tackle Tort Reform and Stabilize Insurance Costs for Hardworking Georgians

Today Governor Brian P. Kemp, joined by Lieutenant Governor Burt Jones, Speaker Jon Burns, Commissioner John King and leaders from industries across Georgia, unveiled his tort reform package that levels the playing field in our courtrooms, bans hostile foreign powers from taking advantage of consumers and legal proceedings, aims to stabilize insurance costs for businesses and consumers, increases transparency and fairness, and ensures Georgia continues to be the best place to live, work, and raise a family.

“As I said in my State of the State address earlier this month, our legal environment is draining family bank accounts and hurting job creators of all sizes in nearly every industry in our state,” said Governor Brian Kemp. “After months of listening to our citizens, businesses, and stakeholders across the spectrum, it is clear the status quo is unacceptable, unsustainable, and jeopardizes our state’s prosperity in the years to come. This tort reform package protects the rights of all Georgians to have access to our civil justice system, and ensures that those who have been wronged receive justice and are made whole. I look forward to working with our partners in the General Assembly to pass this comprehensive and commonsense package, and achieve meaningful progress on this important issue during this legislative session.”

“My position on this important issue has always been the same,” said Lt. Governor Burt Jones. “If we want to continue to be the No. 1 state in which to do business, we must foster a business-friendly climate. We have to work together to ensure that we put families and consumers first by tackling the hidden costs we all pay thanks to Georgia’s current tort laws. I look forward to working with those in the General Assembly to move these bills through the legislative process.”

“For a long time now, I’ve said that Georgia’s legal climate amounts to a hidden tax on families and small businesses, driving up costs and threatening our long-term future,” said Commissioner John King. “That’s the message we’ve heard across the entire state, too. The plan Governor Kemp is rolling out today will tackle a failed status quo, level the playing field in our courtrooms, and help ensure Georgia’s long-term prosperity and security. I’m all-in to help him get it across the finish line.”

“For an unprecedented eleven consecutive years, Georgia has been named the Number One Place to do Business,” said Speaker of the House Jon Burns. “Because of Governor Kemp’s leadership and efforts to maintain that designation, we have heard from countless businesses of every size across the state about the issues they are facing—and the consensus is clear. Our current legal environment is in need of common-sense reform. The House is looking forward to working alongside Governor Kemp and stakeholders throughout Georgia to balance the scales of justice in our courtrooms and return stability to our insurance markets—all while respecting the rights of our citizens with legitimate claims to be made whole.”

These much-needed reforms strike the right balance by protecting every Georgian’s constitutional right to civil justice while also bringing Georgia more in line with the legal environments of our neighboring states that we compete with for jobs and investment.

Below are the specific policy areas addressed by the legislation:

• Reevaluates the Standard for Negligent Security Liability (“Premises Liability”):Ensures businesses should only be liable for what they directly control. If signed into law, the legislation would hold property owners liable for failures to keep their property safe for their customers and the public, but protect establishments for simply opening their doors and employing hardworking Georgians in communities and neighborhoods that need them.
• Truthful Calculation of Medical Damages in Personal Injury Cases  (“Phantom Damages”): Requires the plaintiff to only seek damages in the amount actually paid (or will be paid in the future) for a medical bill, rather than the inflated amount that is currently introduced in evidence – ensuring Georgians who are successful in their litigation are made whole, and have their costs covered, while protecting consumers from inflated costs being passed on to them.
• Eliminates the Ability to Arbitrarily Anchor Pain and Suffering Damages to a Jury (“Anchoring”): Prohibits the use of anchoring tactics by attorneys in closing arguments so the jury can use their own discretion—rather than artificial benchmarks like the cost of fighter jets, or the number of miles a truck drove, or the salary of a professional athlete—all of which are real examples from cases.
  • This bill does NOT place ANY limit on the jury’s discretion. In fact, the Governor’s legislation protects the jury’s decision making from irrelevant and improper arguments from counsel – empowering the jury to decide an award amount on their own.
• Bifurcated Trials: Permits a party in a case to move for bifurcation of the trial, so that liability must be established before the jury hears evidence detailing the extent of the plaintiff’s damages. This clarifies important procedure in the courtroom and gives both sides of a case the same opportunity to have their arguments heard.
• Allow a Jury to Know Whether the Plaintiff Wore Their Seatbelt (“Admissible Seatbelt Evidence”): Remove the current exclusion from the evidence code that prevents the defendant from showing evidence the plaintiff was not wearing his or her seatbelt in an auto accident. Allowing admission of seatbelt evidence at trial may be used by the defense to mitigate damages, particularly where the plaintiff’s failure to use this essential safety feature results in significantly worse injuries for the plaintiff.
• Eliminate Double Recovery of Attorney’s Fees: Closes an important loophole that allowed plaintiff’s counsel to recover their fees twice for the same lawsuit. Courts will remain able to award attorney fees—but only once.
• Eliminate Plaintiff Dismissal During Trial: Amends the timeline for voluntary dismissals – putting an end to the practice of plaintiffs dismissing a case and refilling in or “cherry pick” a more favorable jurisdiction to them after the defense has already racked up the cost of preparing and beginning the trial.
• Motion to Dismiss Timing Changes: Changes the civil practice act to allow a defendant to file a motion to dismiss in lieu of an answer – cutting down unnecessary discovery expenses while a motion to dismiss is pending.
• Reforming and Bringing Transparency to Third Party Litigation Funding:
  • First, the legislation bans hostile foreign adversaries from using our litigation climate to undermine our vital security and economic interests – protecting Georgia businesses and consumers from foreign actors who may fund litigation to obtain trade secrets or advance their own political interests against the interests of the citizens of this state.
  • Second, the legislation protects consumers from predatory lenders that want to take advantage of litigants in vulnerable situations by prohibiting litigation funders from having any input into the litigation strategy or from taking the plaintiff’s whole recovery and making sure plaintiffs are aware of their rights.
  • Third, increases transparency for all parties—the courts, opposing litigants, and the plaintiffs themselves.

Above all, Governor Kemp’s tort reform package puts families and consumers first by tackling the hidden costs we all pay thanks to Georgia’s current tort laws.

You can watch the Governor unveiling this plan here.