In Georgia, the financial impact of tort costs on households is becoming increasingly burdensome. Tort costs, which include the expenses associated with civil litigation, compensation to claimants, and the administrative costs of processing claims, play a significant role in the state’s economic landscape. These costs affect everything from insurance premiums to the overall cost of living, making it crucial to understand their impact on Georgia households.
As of 2022, Georgia’s tort costs reached nearly $20 billion, accounting for 2.60% of the state’s GDP. This translates to an average of $5,050 per household, a substantial financial burden that affects the disposable income and financial stability of families across the state. The high tort costs in Georgia can be attributed to several factors that shape the state’s legal environment, which is known for significant nuclear verdicts—large jury awards exceeding $10 million.
One reason for the high tort costs in Georgia is the prevalence of nuclear verdicts, particularly in medical liability and premises liability cases. These large awards not only increase the cost of individual cases but also contribute to higher insurance premiums and legal fees, which are ultimately passed on to consumers and businesses.
ILR has been actively involved in researching and advocating for legal reforms to address these issues. Our recent report provides a comprehensive analysis of the costs associated with the tort system across different states, including Georgia. The report highlights the need for continued legal reforms to manage and potentially reduce these costs.
Bottom Line
In conclusion, while tort costs are an inherent part of the legal system, their impact on Georgia households is increasingly burdensome. By implementing targeted reforms and promoting a more efficient legal process, Georgia can work towards reducing these costs and ensuring a fairer, more sustainable legal environment for its residents.
To view an interactive map of tort costs per household on the U.S. Chamber website, click here.