Georgia Governor Brian Kemp (pictured) has unveiled a comprehensive tort reform package aimed at bringing more transparency to third-party litigation funding and addressing several key issues within the state’s legal system.
The proposal, which was anticipated following Kemp’s earlier remarks about the importance of tort reform, includes measures designed to curb rising litigation costs and ensure more equitable outcomes in legal cases.
The legislative package focuses on several key provisions, including the reinstatement of standards for negligent security liability. Under these standards, businesses would only be held accountable for factors they can directly control.
Additionally, the bill would limit the damages plaintiffs can seek for medical expenses to the actual costs incurred, rather than inflated amounts presented during trial, according to a report from AM Best.
Kemp's office also outlined provisions to prevent "anchoring tactics" commonly used by plaintiffs’ attorneys. This technique involves requesting an excessively large reward to establish a baseline for a jury’s calculations of damages.
The legislation would also introduce bifurcated trials, ensuring that liability is established before evidence regarding a plaintiff’s damages is presented. This approach is intended to offer both sides a clearer and more balanced opportunity to present their cases.
A major component of the package would reform third-party litigation funding rules, including prohibiting hostile foreign nations from engaging in US litigation through these agreements. The proposal also includes measures to enhance transparency, ensuring that litigation funders are not allowed to influence litigation strategy or take a disproportionate share of the plaintiff’s award.
Additionally, the legislation aims to make plaintiffs more aware of their rights in such agreements.
Further, the proposed changes would permit juries to learn whether a plaintiff was wearing a seatbelt during an automobile accident, which is currently excluded from evidence in Georgia courts.
The reform would also eliminate the practice of double recovery of attorney fees and amend the timeline for voluntary plaintiff dismissals during trial. This provision seeks to curb the practice of plaintiffs dismissing and refiling cases in more favorable jurisdictions.
The package also includes a proposal to allow defense attorneys to file motions to dismiss instead of responding to complaints. This change is designed to reduce unnecessary discovery expenses, which can add significant costs to the litigation process.
The American Property Casualty Insurance Association (APCIA) expressed support for the governor’s proposal, highlighting the impact of litigation abuses on Georgia consumers and businesses.
Ron Jackson, vice president of state government relations at APCIA, said that inflated damages are a key factor driving up insurance costs. He also pointed out that insurers in Georgia are losing money, particularly in personal auto and liability coverage lines.
“APCIA applauds Governor Kemp as well as Lieutenant Governor Burt Jones, Speaker Jon Burns, and Senator John Kennedy for their commitment and ongoing leadership in addressing legal system abuse. We look forward to working with the governor and members of the House and Senate to pass this critical legislation this session,” he said.
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