Kemp invites business owners to discuss tort reform in Georgia
Georgia Governor Brian Kemp invited more than 500 business owners, franchisees, and doctors to the Gold Dome Thursday morning as he described his wishes for lawsuit limits and tort reform. He believes it will reduce insurance rates statewide. Governor Kemp’s plan will make it harder for the public to sue businesses for accidents that happen on their property but not because of direct negligence. That is part of Kemp’s premise of promising tort reform.
Examples of torts are slips and falls in a hotel shower, a fender bender in a drive-through line, or a deadly shooting in a convenience store parking lot after hours. Additional examples are car accidents or medical injuries that lead to lawsuits.
Albeit, this legislation is not public, Kemp says Senate Pro Tem John Kennedy will carry the bill.
“Grocery stores, hospitals, road pavers, small business owners, truckers, restaurants, mom and pop stores, retailers, gas stations, doctors, childcare facilities and hardworking Georgians across our state are all telling us the same thing,” Kemp said. “Georgia needs tort reform and they need it now.”
Supporters of tort reform say stopping frivolous lawsuits and payouts would lead to lower insurance rates for businesses and consumers. Their argument is if Georgia is the number one state to conduct business, it cannot be a ‘judicial hellhole’.
“We live in a society now where nothing is your fault anymore,” says Georgia Lieutenant Governor Burt Jones. “It’s always somebody else’s blame. Insurance is set up to make you whole. That’s the definition of it. It is not a lottery ticket.”
The 5-year average of insurance claims has increased by 25%, much faster than the growth in population over the last twenty years. During that span, Georgia Republicans controlled every constitutional office and both legislative chambers.
“We’ve got to bring down insurance rates,” said Georgia Chamber CEO Chris Carr. “We’ve got to make it easier for doctors to practice in Georgia. And the only way to do that is if we come in here and work together. And so, I would invite everyone to the table.”
Can Georgia adopt portions of Florida’s Tort Reform legislation?
Florida Governor Ron DeSantis signed a version of tort reform into law in 2023. Under their comparative negligence model, a plaintiff is barred from recovery if the individual is more than 50% at fault for his injuries. This change does not apply to actions based upon medical negligence.
Additionally, according to Florida Statute § 624.155 (4)(b), the insured, the claimant, and representatives of the insured or claimant have a duty to act in good faith in furnishing information regarding the claim, in making demands of the insurer, in setting deadlines, and in attempting to settle the claim.
Could this be part of Georgia’s plans? Again, the legislation is not available to the public.
Democrats vehemently oppose Kemp’s tort reform plans
Senate Democrats held a press conference arguing Kemp’s wishes benefit insurance companies at the expense of consumers. They claimed states with strict tort reform laws haven’t seen reduced premiums. Additionally, Georgia already has laws protecting businesses from frivolous lawsuits.
“A plaintiff is a Georgian who has been harmed,” explained Georgia Senate Minority Leader Harold Jones II. “A plaintiff is somebody who has suffered catastrophic harm in many cases. What the Governor was saying was, ‘what these Georgians have suffered does not need as much, because the insurance industry now has complaints.’”
Democrats propose transparency in rate-setting, capping premium increases, and creating a consumer advocate. They emphasized the need for insurance reform and openness to negotiations. Plus, Democrats urge honest discussions about the real causes of rising premiums.
“Georgia families deserve better than being asked to blindly trust in an industry that has made billions while squeezing working people,” says Georgia Minority House Chair, Tanya Miller, a Democrat from Atlanta. “Georgians deserve a government that works for them, not one that protects powerful special interests. I look forward to reviewing the legislation once it is filed.”
Democrats believe the bill must address transparency, affordability, and accountability. They also believe the proposed insurance reform bill must rein in the unchecked power of insurance companies. Lastly, Democrats want assurances the insurance companies’ practices align with the best interests of Georgia consumers and businesses.
“We have not seen the details of the Kemp proposal,” said Georgia House Minority Leader Carolyn Hugley, a Democrat from Columbus. “And of course, in every legislative proposal, the devil’s in the details. We will look at the proposal through the lens of, ‘how is it going to help Georgia to learn more, earn more and live better.’ If Georgia is going to be the number one state to do business, then we have to be the number one state for people to live.”
