The state of Georgia has taken action to repeal a nearly century-old direct-action statute that covered truck drivers.
Gov. Brian Kemp signed into law a bill that is intended to help address the needs of truck drivers in the state. The action follows the recommendation of a special legislative panel on trucking.
In place since the 1930s, the state’s direct-action rule was a leading topic of the panel that gathered a year ago to discuss issues described as contributing to a truck driver shortage.
State officials endorse change
Georgia Insurance Commissioner John King was a participant during the panel discussion.
He told the group that Georgia is one of four states with a direct-action law. He said the rule that permits a plaintiff to take direct action against the responsible insurance company should to be repealed.
King said that Georgia does not allow any insurer to be named as a defendant in any other business except trucking.
“Only the trucking industry is subject to these kinds of requirements,” he testified.
Senate Majority Leader Steve Gooch, R-Dahlonega, said that the cost of insurance for truck drivers has risen so rapidly over the past few years it has put Georgia truckers at a competitive disadvantage with operations in other states.
Senate Bill 426
Previously SB426, the new law puts into place limits on lawsuits filed by individuals injured in truck-related incidents.
Sen. Blake Tillery, R-Vidalia, previously told lawmakers it was well past time to eliminate the state’s direct-action law.
“In our state, right now, you can directly sue an insurance carrier when it’s related to a common carrier. Most states have done away with that provision. Georgia has not,” Tillery testified.
The new rule largely eliminates the state’s direct-action law. Exceptions to the truck driver rule apply to instances when a trucking operation enters bankruptcy or the truck company cannot be located.
Gooch said the issue was a priority to get signed into law. In prepared remarks, he added that he welcomed the “significant strides” that have been made to address the state’s “litigation environment through tort reform initiatives, such as the passage of legislation to limit direct-action lawsuits.”
Lt. Gov. Burt Jones also welcomed legislative action on the topic.
“With the passage of this bill, we are one step closer to providing Georgia’s growing business community the relief it needs,” Jones stated. LL
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