Georgia lawmakers have approved the governor’s tort reform legislation that is touted to level the playing field in courtrooms.
House lawmakers voted 94-77 to advance amended legislation that covers phantom damages, anchoring, bifurcated trials, and seat-belt use. Senators signed off on the changes on a 34-21 vote.
The statehouse actions cleared the way for the bill, SB68, to head to Gov. Brian Kemp’s desk.
The governor has said that Georgia’s legal environment is draining bank accounts and is hurting job creators of all sizes in the state. He included trucking operations among the industries that would benefit from tort reform.
The American Tort Reform Association commended state lawmakers for “taking this crucial step toward creating a more fair and balanced civil justice system for all Georgians.” The group has identified the state as the fourth-worst “judicial hellhole” in the country.
Phantom damages and anchoring
One notable issue covered in the legislation is inflated medical costs, or phantom damages.
Georgia allows jurors to see bills sent by hospitals and physicians before insurers bargain costs down.
The tort reform bill would allow jurors to see the “sticker price” and out-of-pocket costs. Advocates said the revision would better help jurors to decide on appropriate damages.
The ability to arbitrarily anchor pain and suffering damages to a jury is also addressed in the bill. Specifically, anchoring tactics by attorneys in closing arguments would be prohibited.
Kemp has said the rule revision would allow a jury to use their own discretion instead of using artificial benchmarks like the number of miles a truck was driven.
I want to thank @GovKemp for prioritizing meaningful lawsuit reform and Georgia citizens, families and consumers. My position on this important issue has always been the same, and I believe we made positive strides today to ensure that we put families and consumers first by… https://t.co/8JViYJoZ7b
— Lt. Governor Burt Jones (@LtGovJonesGA) March 21, 2025
Bifurcation and seat belt use
Another provision in the tort reform bill would permit a party to move for bifurcation of a trial. The distinction allows for liability to be established before a jury hears evidence detailing the extent of a plaintiff’s damages.
Supporters said the rule revision would clarify important procedure in the courtroom and give both sides of a case the same opportunity to have their arguments heard.
Seat belt usage is also addressed. A revision to the state’s evidence code would remove the current exclusion that prevents a defendant from showing evidence a plaintiff was not wearing a seat belt in a vehicle accident.
The change would allow admission of seat belt evidence at trial to be used by the defense to mitigate damages, particularly where the plaintiff’s failure to use the device results in significantly worse injuries for the plaintiff.
“Georgians need lawsuit reform to rebalance the scales of justice and remove incentives for abusive lawsuits,” reads a House Republican statement. “With the changes passed in SB68, we expect to see stabilized insurance markets.”
Senate President Pro Tempore John F. Kennedy, R-Macon, added that the bill’s passage “brings us one step closer to meaningful tort reform that puts job creators, families, and consumers first.”
Today, we finished the drill and got tort reform across the finish line. Republicans are committed to lowering costs for Georgia families and leveling the playing field in our civil justice system. pic.twitter.com/NEjD79n6Ne
— John F. Kennedy (@johnfkennedyga) March 21, 2025
Third-party litigation financing
The second bill in the two-bill tort reform package addresses third-party litigation financing.
The term is used to describe instances when third-party litigation financing firms pay for lawsuits they feel have a good chance of being won. In many cases, the practice makes reaching a reasonable agreement more difficult because of the anonymous third-party’s financial stake in the case.
Senate lawmakers voted unanimously to advance a bill that would prohibit litigation funders from having any input into the litigation strategy or from taking the plaintiff’s whole recovery and making sure plaintiffs are aware of their rights. Financing agreements must also be disclosed to the other party in a case.
SB69 has moved to the House Rules Committee. LL
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