Lt. Gov. Burt Jones (R-Ga.) has announced that Senate Bill 426 (SB 426) aims to safeguard Georgia's businesses from potential exploitation of the legal system. The bill, which recently secured approval from Georgia's Senate, is designed to curtail direct action lawsuits.
"The passage of this legislation was desperately needed in order to get Georgia's business community the relief it needs," said Lt. Gov. Burt Jones (R-Ga). "Thanks to the Senate's passage of Senate Bill 426, we are making legitimate strides to level the playing field when a case reaches the courtroom. I look forward to the House taking swift action to move this legislation to the Governor's desk and provide the critically important aid to Georgia's business community."
The passage of the bill was disclosed by the Georgia Senate in a post on social media platform X. The post read, "Thanks to the leadership of Senator Blake Tillery and @LtGovJonesGA, we passed a tort reform bill with overwhelming bipartisan support. SB 426 is a Senate Republican priority that will help stabilize and reduce insurance costs for Georgia businesses."
According to Morris, Manning & Martin LLP, the bill seeks to limit the capacity of a plaintiff to file a lawsuit against the insurance provider of a motor carrier. Exceptions are made if the driver or trucking company cannot be sued directly or if the defendant company is bankrupt. Notably, Georgia remains one of few states in America where plaintiffs can still pursue damages from an insurance provider directly. A similar bill to SB 426 failed to pass last year due to opposition from the plaintiffs' bar. Now, it falls upon the Georgia House to send SB 426 to the governor's desk before March 28.
As reported by Atlanta News First, Georgia Gov. Brian Kemp has previously voiced his support for tort reform and emphasized its importance for this year’s legislative session. Echoing these sentiments, political action committee Hardworking Georgians argues that excessive lawsuits are inflating insurance costs for Georgian residents who may already be grappling with affording basic necessities. Cody Hall, executive director of Hardworking Georgians said: "For too long, Georgia tort laws have encouraged frivolous lawsuits that hamstring job creators, drive up insurance costs for families already struggling to make ends meet, undermine fairness in the courtroom, and make it harder to start, grow and operate a small business."
Legiscan reports that SB 426 was introduced on Jan. 30 and passed the state Senate by a vote of 46-2 on Feb. 13. The bill boasts more than a dozen sponsors, including state Sens. Blake Tillery, John Kennedy, and Ed Setzler. Currently, the legislation is pending in the House Judiciary Committee, with no hearing scheduled yet.
Before his election as Georgia's lieutenant governor, Jones served as a state senator representing the state's 25th district, according to his website. Jones is also the founder of risk management firm JP Capital & Insurance Inc., and he collaborates with his family's business, Jones Petroleum, which employs almost 2,000 Georgia residents.