Georgia’s permissive litigation environment is reaching a critical inflection point. On January 30, Governor Brian Kemp unveiled a comprehensive tort reform package aimed at addressing the root causes of excessive litigation, reducing costs, and creating a more balanced legal environment. With Governor Brian Kemp championing tort reform, the state is on the verge of enacting transformative legislation that will rebalance its legal environment. This is a monumental step toward creating a fairer legal system that directly benefits businesses, property owners, workers, and families across the state. By addressing the root causes of excessive litigation, this legislation aims to reduce the risk of financial strain from frivolous lawsuits and create a more predictable and balanced legal environment. 

When discussing the Georgia tort reform package, Governor Brian Kemp emphasized its importance, stating, “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.” He further highlighted the widespread support for these reforms, saying, “Grocery stores, hospitals, road pavers, small business owners, truckers, restaurants, mom and pop stores, retails, gas stations, doctors, childcare facilities and hardworking Georgians across our state are all telling us the same thing: Georgia needs tort reform, and we need it now.” 

SB 68 Will Deliver Real Protections and Savings for Georgians 

The proposed reforms are designed to tackle the skyrocketing costs of litigation that have burdened Georgia’s economy for years. In 2022 alone, Georgia’s tort costs reached nearly $20 billion, translating to an average of $5,050 per household. These costs are driven by a legal system that has allowed plaintiffs’ lawyers to file frivolous lawsuits so they can get massive damages, leading to higher insurance premiums and discouraging investment in the state. If passed, this legislation will provide much-needed relief by curbing these abuses and ensuring that local businesses, property owners, workers, and consumers are protected from unwarranted lawsuits by plaintiffs’ lawyers. 

To view an interactive map of tort costs per household on the U.S. Chamber website, click here. 

This legislation is a lifeline for small businesses, which bear nearly half of the state’s legal system costs. It will help protect them from the constant threat of baseless lawsuits and rising insurance premiums, allowing them to reinvest in their operations, hire more workers, and contribute to Georgia’s economy. Individuals and property owners will also see significant benefits, as the reforms will reduce the risk of being unfairly targeted by opportunistic plaintiffs’ lawyers, ensuring more money can be spent on innovating, expanding and hiring.  

Key Legislation Reforms 

The legislation includes several critical measures to address Georgia tort reform that will directly impact the lives of Georgians: 

• Reforming Premises Liability Standards: Businesses will only be held liable for factors they can directly control. This ensures that property owners are responsible for maintaining safe premises while protecting them from liability for criminal acts outside their control. This reform is particularly important for small businesses in areas where excessive liability has driven up insurance costs and forced closures. 

• Eliminating Phantom Damages: The legislation requires that damages for medical expenses reflect the actual costs incurred, rather than inflated amounts presented during trials. This change ensures fairness in the legal process, reducing costs for businesses and consumers while still making plaintiffs whole. 

• Increasing Transparency in Third-Party Litigation Funding (TPLF): The reforms prohibit foreign interests from engaging in U.S. litigation through TPLF agreements, protect plaintiffs from predatory lenders, and make funding arrangements more transparent. These measures ensure that litigation serves the interests of justice, not hidden financial agendas. 

A Bold Step Forward 

Governor Kemp’s leadership in advancing this legislation demonstrates his commitment to protecting Georgia’s residents and businesses from the harmful effects of excessive litigation. This is not just about legal reform—it’s about creating a stronger, more competitive Georgia where businesses can thrive, physicians can focus on patient care, and property owners can invest with confidence. By passing these reforms, Georgia will set a new standard for tort reform, positioning itself as a leader in creating a fair and efficient legal environment. 

The Bottom Line 

This legislation is a game-changer for Georgia’s lawsuit climate. Lawmakers should seize this opportunity and support these critical reforms. By doing so, they will not only protect businesses and property owners, but also create cost savings for all Georgians. Let’s make Georgia a place where fairness prevails, costs are controlled, and opportunities abound. 

Georgia can set an example for other states and pave the way for a more balanced and just legal system. It’s time for lawmakers to act and support these critical reforms to ensure a brighter future for all Georgians. 

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