ATLANTA – Governor Brian Kemp has made tort reform the main theme of his annual address to Georgia’s political and business leaders in August.
But his speech on August 7 at this year’s congressional luncheon in Athens, sponsored by the Georgia Chamber of Commerce, sounded different than the 2023 version.
Kemp followed through on his promise last year to make tort reform a top priority by effectively pulling the rug out from under the issue when he addressed the chamber again at the start of this year’s General Assembly, saying comprehensive tort reform would take more than a year.
To that end, lawmakers this year passed a bill sponsored by Kemp that directs the state insurance agency to collect data on legal trends affecting premiums and prepare a report by Nov. 1.
More: Georgia Governor Kemp tells a business group he wants to spend $1.8 billion more on infrastructure
“The governor made a very wise decision to step back and look at the data,” said Nancy Palmer, vice president of government affairs for the Georgia Chamber. “Judiciary reform is a huge, sweeping issue. We’re talking about the entire civil justice system.”
Tort reform has been a goal of Georgia Republicans and their allies in the business community for decades, but the most significant reform bill to pass the General Assembly was a law passed in 2005 that placed a $350,000 cap on noneconomic damages awards in medical malpractice and product liability lawsuits.
The cap immediately came under fire in the form of lawsuits challenging its constitutionality. The Georgia Supreme Court ruled in favor of the plaintiffs and lifted the cap in 2010.
Since then, calls for tort reform have been made almost every year, with Republican lawmakers and conservative political groups warning that large verdicts on frivolous lawsuits would jeopardize job creation by forcing companies to close their operations.
“I hear stories every week from business owners who can’t get insurance or can’t afford it,” says Kyle Wingfield, president and CEO of the Georgia Public Policy Foundation, a think tank that promotes free-market approaches to policy issues. “There needs to be more balance.”
Palmer said improving access to insurance for businesses is just as important as the premiums they have to pay for coverage.
“There are insurers leaving the market,” she said. “We want companies to not only pay lower premiums but also have more choice. … There should be more competition in this market.”
Opposition to tort reform comes from trial lawyers and Democrats in the legislature, who argue that Georgia residents injured by medical malpractice or defective products are entitled to legal redress.
“Constitutionally, people have a right to go to court, and Georgia’s appellate courts have protected that,” said state Rep. Mary Margaret Oliver (D-Decatur), a member of the House Judiciary Committee.
Oliver said Republicans have so far failed to push through major tort law reforms because many former governors and legislative leaders, including Republicans, have been lawyers who understood the complexity of the issue.
“What’s unique about this case is that neither the governor, nor the lieutenant governor, nor the speaker of the House are lawyers,” she said. “That makes it easier for them to say they’re for tort reform.”
One reform Republicans are expected to push in 2025 is in the area of premises liability. Business owners have long complained about being embroiled in lawsuits when injuries or deaths occur on their property that are not their fault and, in many cases, occur at night when the business is closed.
“If someone shows up and decides to commit a crime on your property without your permission, how much do you have to do to prevent that?” Wingfield said. “That should be a reasonable starting point.”
Two bills on building liability insurance were presented to the General Assembly this year, but neither was passed.
Palmer said the chamber is looking to Kemp to outline what tort reforms lawmakers should seek in 2025. A new two-year legislative session begins next year, so anything being considered will have to start from scratch.
