J. Thomas Perdue, a policy analyst for the Georgia Public Policy Foundation, said that Georgia lawmakers are beginning to prioritize tort reform to address "frivolous or predatory" lawsuits that harm the state’s economy and consumers. Perdue shared his statement in a June 13 commentary.
"These concerns have caught the attention of some Georgia lawmakers and Gov. Brian Kemp, and ‘tort reform' is quickly becoming a more common term in Georgia's political lexicon," said Perdue. "Tort reform takes many specific forms, but it generally refers to reducing the ability of plaintiffs to bring forth liability litigation, or to reduce the amount of damages they can receive. While liability litigation is not categorically frivolous, the need for tort reform typically highlights cases that are: such as when plaintiffs and their trial attorneys are awarded damages for frivolous or predatory lawsuits. An important takeaway from tort reform efforts is that these kinds of lawsuits have real negative economic consequences for the industries they come across."
According to Perdue, Georgia topped the 2022 and 2023 lists of the American Tort Reform Association’s (ATRA) annual "Judicial Hellholes" ranking, which identifies jurisdictions with a high volume of excessive or frivolous lawsuits. He attributed this ranking to factors such as a large number of "nuclear" verdicts—verdicts larger than $10 million—and unregulated third-party litigation funding (TPLF), where third-party investors profit from lawsuits.
Perdue said Georgia businesses across many industries are forced to build liability costs into the prices for their goods and services. These extra costs result in a "tort tax" for every Georgia resident of $1,213.80 per year. Although the state’s legislature and judicial system have not been very successful in implementing tort reforms in recent years, Gov. Brian Kemp and certain legislators have "recently shown signs of interest" in enacting reforms.
In August, Kemp addressed the issue during an address at the Georgia Chamber of Commerce’s Congressional Luncheon, as reported by Atlanta News First. He said existing state laws make it "too easy to bring frivolous lawsuits against Georgia business owners," leading to higher costs for consumers, particularly in car insurance. "Georgians are paying some of the highest car insurance prices in the country," Kemp said. "Local trucking companies either can’t afford the insurance they’re offered or can’t find a carrier altogether, and business owners live in fear of being sued for ridiculous claims on their property. This is unacceptable." He added that reforming the state’s tort laws should be a legislative priority in the 2024 session.
According to a report from Bankrate, Georgia drivers are paying an average of $2,554 annually for full coverage car insurance, more than the national average of $2,311. Atlanta drivers pay 12% more than the statewide average.
Before joining the Georgia Public Policy Foundation, Perdue worked in policy research and community outreach for The Archway Partnership at The University of Georgia.