Second part of Georgia governor’s bill to limit lawsuits passes unanimously

ATLANTA - Gov. Brian Kemp’s top priority to limit lawsuits has drawn fierce criticism from Democrats.

The second part of the package passed the Senate on Thursday with unanimous support.

The backstory:

Gov. Brian Kemp's legislative agenda has prioritized limiting lawsuits, a move that has sparked significant debate in Georgia. The initiative, often referred to as tort reform, aims to reduce the financial burden on businesses, physicians, and property owners by curbing frivolous lawsuits and potentially lowering insurance rates. However, this proposal has faced criticism, particularly from Democrats, who argue that there is no evidence to support the claim that insurance rates would decrease and express concerns about victims not receiving fair compensation.

What we know:

Senate Bill 68, a key component of Kemp's tort reform package, recently passed the Senate with bipartisan support after last-minute modifications. The bill seeks to establish stricter standards for property owner liability, prevent attorneys from recovering fees twice for the same case, and allow separate trials for assigning responsibility and determining damages. It also aims to enable defendants to dismiss baseless cases before incurring significant pretrial costs.

Senate Bill 69, another part of the reform package, targets third-party entities that invest in litigation. It requires these entities to register with the Department of Banking and Finance and prohibits foreign adversaries and governments from investing in litigation. The bill also limits the influence of litigation funders on civil proceedings and the individuals involved.

What they're saying:

Senate President Pro Tem John Kennedy, a Macon Republican and sponsor of Kemp’s bills, emphasized that Senate Bill 69 is a "consumer protection measure" designed to combat foreign influence in Georgia's courts and protect plaintiffs from exploitation by unscrupulous third-party funders. "It is purely ensuring that when plaintiffs, many of which are victims of wrongdoing, are not taken advantage of by bad actors who attempt to exploit the tragedy of others," Kennedy stated.

The Georgia Trial Lawyers Association, which opposes lawsuit reform, has expressed reservations about Senate Bill 69. Matthew Wilson, speaking on behalf of the organization, acknowledged the need for regulation but insisted that "there’s still work to be done to ensure SB 69 fairly addresses its intended purpose." The association looks forward to collaborating with House leaders to refine the bill.

What's next:

Senate Bill 69 will now join Senate Bill 68 for debate in the House. House Rules Committee Chairman Butch Parrish, a Swainsboro Republican, has appointed a bipartisan subcommittee to study the proposal, diverging from the usual process of sending it to the House Judiciary Committee. The subcommittee held its first meeting to review Kemp’s broader litigation system overhaul, indicating that further discussions and potential amendments are on the horizon.

Big picture view:

The push for tort reform in Georgia is part of a broader national trend, with states like Indiana, Louisiana, and West Virginia having taken steps in 2024 to regulate third-party litigation financing. Proponents argue that these measures are necessary to protect businesses and consumers from the rising costs associated with litigation. However, the debate continues as stakeholders seek a balance between regulation and ensuring access to justice for plaintiffs.

SEE ALSO:

• Georgia Senate passes tort reform bill after heated debate
• Gov. Kemp pushes for tort reform to combat rising insurance costs in Georgia
• Georgia State of the State : Kemp wants to again speed up income tax cuts
• Gov. Kemp unveils comprehensive plan to enhance K-12 education, school safety in Georgia
• Georgia lawmakers begin 2025 legislative session: Here are the issues to watch