Tort reform: Kemp signs sweeping plan to limit lawsuits in Georgia

ATLANTA - Gov. Brian Kemp signed new legislation that could bring about historic tort reform in Georgia.

The bills, which are aimed at limiting lawsuits and large verdicts, were one of the Republican governor's top priorities for the past legislative session.

What we know:

Senate Bill 69 got overwhelming approval in the Senate and bipartisan support in the House, passing 98-69. 

It requires third-party entities that invest in litigation to register with the Department of Banking and Finance and bans foreign adversaries and governments from investing in litigation, among other reforms. It also limits how much the funders of litigation can influence civil litigation proceedings and the people involved.

Gov. Brian Kemp signs bills into law on April 25, 2023. (FOX 5) (FOX 5)

Senate Bill 68 passed in the House by a single vote, with several Republicans voting against the measure and three Democrats breaking ranks to vote to approve it.

This bill requires anyone who sues a business or property owner over misconduct or injuries on their property to prove the owner knew about a specific security risk and physical condition on the property, but didn’t provide adequate security. Business owners, trucking companies and others say they are threatened by expensive court verdicts or settlements.

What they're saying:

Supporters of the bills argue that excessive lawsuits have driven up costs for businesses and consumers, while opponents contend that tort reform could make it harder for victims to seek compensation. 

"Small business owners have reported that insurance premiums have increased anywhere from 30% to 100% over the last few years, costing them thousands—if not millions—just to maintain basic coverage," Kemp said at the State Capitol in January. "Some insurance companies have pulled out of the state, leaving businesses with fewer options, while others are spending massive amounts to defend against excessive lawsuits. Ultimately, these rising costs are being passed on to consumers."

The governor had previously warned that if action was not taken during the spring session, he might have called for a special legislative session later this year to address the issue.

Republican House Speaker Jon Burns said lawmakers "worked tirelessly to craft" a bill that would "protect our businesses from frivolous lawsuits while upholding the rights of those with legitimate claims to be made whole."

The other side:

Some groups fear children who are abused at childcare facilities, victims of elder abuse, and others would be harmed if a law is passed.

At news conferences before the votes, parents and victims of human trafficking begged lawmakers to oppose Senate Bill 68.

MORE: Georgia's tort reform battle: Parents rally against proposed legal changes

"To be honest with you, my heart is just a little weary. ... I think of the victims that this will impact if passed, they will not have their day in civil court," said Susan Cobb, a Georgia nurse who settled with YMCA after her daughter was abused by a coach and later found dead.

Before passing, lawmakers did add more protections to the section of the bill that made an exception for sex-trafficking survivors after their lawyers said they wouldn’t have been able to bring most cases. However, lawyers say victims of rape and other violence would still be left without the ability to seek recourse from several responsible parties. Supporters have denied that.

Democratic Rep. Stacey Evans, a lawyer in Atlanta, remarked, "The court should be a safe, welcoming place for all of us, and we just picked and chose losers today — those that will get access and those that will not."

What's next:

Burns said that a House committee plans to study the practices of insurance companies, including how they set rates.