Progress is being made at the Georgia statehouse to adopt tort reform that is billed to level the playing field in courtrooms.
The Senate voted 33-21 to advance a bill that addresses phantom damages, anchoring, bifurcated trials and seat belt use. Another bill covering third-party litigation financing has not come up for a final Senate floor vote.
Gov. Brian Kemp is behind the tort reform pursuit. He recently said that Georgia’s legal environment is draining bank accounts and is hurting job creators of all sizes in nearly every industry in the state.
“Grocery stores, hospitals, road pavers, small-business owners, truckers, restaurants, mom-and-pop stores, retailers, gas stations, doctors, child care facilities and hardworking Georgians across our state are all telling us the same thing: Georgia needs tort reform, and they need it now,” Kemp said during a press conference announcing the reform package.
Phantom damages
One issue covered in the Senate-approved bill is inflated medical costs or phantom damages. The provision was amended on the floor to help secure passage.
Currently, Georgia allows jurors to see bills sent by hospitals and physicians before insurers bargain costs down.
As introduced, SB68 called for requiring a plaintiff to seek damages only for medical costs actually paid or that would be paid in the future, rather than the upfront costs now introduced in evidence.
A revision made would allow jurors to see the “sticker price” and out-of-pocket costs. Advocates said the revision would help jurors decide on appropriate damages.
This is not an anti-lawyer or pro-insurance company bill. This is a pro-Georgia consumer bill. I want to thank the Senate body for moving this measure forward, and I’m committed to continuing to work alongside @GovKemp to ensure SB 68 becomes law. https://t.co/kmcBCyAAvr
— Lt. Governor Burt Jones (@LtGovJonesGA) February 21, 2025
Anchoring
Another provision in the tort reform bill would eliminate the ability to arbitrarily anchor pain-and-suffering damages to a jury. Specifically, anchoring tactics by attorneys in closing arguments would be prohibited.
Kemp said the rule change is necessary to allow jury members to use their own discretion instead of using artificial benchmarks like the number of miles a truck was driven.
The governor clarified the change would protect a jury’s decision-making from “irrelevant and improper arguments” from counsel. He added that as a result, the jury would be empowered to decide an award amount on its own.
Bifurcation
Bifurcated trials are also covered in the bill. A party would be permitted to move for bifurcation of a trial, so that liability must be established before the jury hears evidence detailing the extent of the plaintiff’s damages.
The change is touted to clarify important procedures in the courtroom and to give both sides of a case the same opportunity to have their arguments heard.
Senate President Pro Tempore John F. Kennedy, R-Macon, said the bill he introduced is a major step toward reining in excessive litigation in the state that is driving up costs for healthcare providers, job creators and consumers.
“The consequences of excessive litigation extend far beyond the courtroom,” Kennedy said in prepared remarks. “Because of rising litigation costs, small-business owners are forced to lay off employees or shut down as their liability insurance premiums skyrocket.”
Opponents said there is no proof SB68 would result in reduced insurance rates.
Seat belts
Seat belt usage is also addressed. Specifically, a revision would be made to the state’s evidence code to 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.
“It’s time to restore fairness and stability to our civil justice system, and today’s passage of SB68 is a critical step in that direction,” Kennedy said.
The bill has moved to the House.
Third-party litigation financing
The second bill in the two-bill tort reform package covers 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 due to the anonymous third party’s financial stake in the case.
SB69 would prohibit litigation funders from having any input into the litigation strategy or from taking the plaintiff’s whole recovery and would ensure plaintiffs were aware of their rights. Additionally, financing agreements would have to be disclosed to the other party in a case.
The bill advanced from the Senate Judiciary Committee and awaits further consideration on the Senate floor. LL
More Land Line coverage of Georgia news is available.
Credit: Source link
