On January 30, 2025, Governor Kemp introduced his "Tort Reform" plan that would redefine Georgia rules regarding civil trials and litigation financing with the ultimate aim to lower insurance costs. The Senate responded by introducing two separate bills attempting to support each pillar of Gov. Kemp’s plan.
Senate Bill 68 (“Civil Practice”) would revise civil practice, evidentiary matters, damages, and standards of liability in tort actions in Georgia. The current draft would make significant changes in multiple areas, notably including:
- Restricting discussion of pain and suffering damages during trials
- Creating flexibility to introduce evidence of seatbelt non-use in auto cases
- Establishing new rules limiting recovery of attorneys’ fees, including that contingency fee agreements are not evidence of reasonableness of the fees;
- Creating new standards for negligent security litigation.
Senate Bill 69 (“Georgia Courts Access and Consumer Protection Act”) would establish regulations for litigation financing in Georgia. The current draft would provide:
- All litigation financing entities must register with the State and disclose who owns and controls them
- Financiers may only recover a percentage of plaintiffs’ net proceeds and must indemnify plaintiffs against potential adverse costs or sanctions
- Litigation financing agreements are discoverable but not directly admissible at trial.
Both bills have been favorably approved by the Senate Judiciary Committee, but neither have been voted on by the full Senate. Legislators on both sides of the aisle have expressed support for the bills, but it is too early to tell what provisions may survive both the Senate and House and make it to the Governor’s desk by April 4, 2025, the last day of the legislative session which is known as Sine Die.
While it remains to be seen if Tort Reform will clear all necessary hurdles to become law, insurers that provide coverage for both businesses and motor carriers should be aware of the potential important changes to state law.
