Gov. Brian Kemp announced during the 2024 Georgia Chamber Congressional Luncheon that the state has initiated steps towards legal system reform with the passage of HB 1114, the Data Analysis for Tort Reform Act, in the last session.
"We took the first meaningful steps on this issue this past session by creating a mechanism to gather needed information that will guide our next steps," said Kemp. "Our efforts in tort reform are about ensuring that every Georgian, no matter their role, can thrive in a fair and balanced legal environment."
Kemp signed HB 1114 into law on April 2, according to the Georgia General Assembly. The bill authorizes Georgia’s Department of Insurance to collect data to support the development of "effective, long-term tort reform legislation that benefits all Georgians" from insurers in the state and directs the Commissioner to submit an initial report with the findings by Nov. 1. The bill states that "frivolous and excessive tort litigation" negatively impacts Georgia’s economy and increases costs for all state residents, particularly higher insurance costs.
According to a video of his speech, Kemp expressed concerns within Georgia’s business community about the costs associated with "out-of-control" legal practices during his address to the Georgia Chamber. He said that "commonsense" lawsuit reforms will support the state’s economic stability and attractiveness to businesses.
The American Tort Reform Association (ATRA) named Georgia the top "judicial hellhole" in the country for 2023/2024, citing the state’s expansion of premises liability and a rise in outsized jury awards. ATRA stated in a press release that Georgia’s legal landscape is "rife" with outsized jury verdicts, resulting in higher costs for consumers. Sherman "Tiger" Joyce, ATRA president, said: "Georgia’s No. 1 Judicial Hellhole® ranking should be a wake-up call. Lawsuit abuse wipes out billions of dollars in economic activity annually in Georgia and threatens the state’s business-friendly reputation." The state is one of few that allows "anchoring," where attorneys can present an "exorbitant award amount" for noneconomic damages, establishing an "anchor" point in jurors’ minds and potentially influencing their decisions.
J. Thomas Perdue, a policy analyst for the Georgia Public Policy Foundation, commented that Georgia lawmakers are beginning to prioritize tort reform to address "frivolous or predatory" lawsuits that harm the state’s economy and consumers. Perdue noted that businesses across many industries are forced to build liability costs into their prices for goods and services, resulting in a "tort tax" for every Georgia resident of $1,213.80 per year.
Kemp took office in January 2019 and was reelected in 2022, according to his website. He previously served as a state senator from 2003 to 2007 and as Georgia Secretary of State from 2010 to 2018.