Georgia Governor Brian Kemp announced a tort reform package on January 30, aiming to address the state's legal environment, which he claims is adversely affecting family finances and business operations. The announcement was made through a press release.
"our legal environment is draining family bank accounts and hurting job creators of all sizes in nearly every industry in our state," said Kemp, Governer, according to Lieutenant Governor of Georgia. "After months of listening to our citizens, businesses, and stakeholders across the spectrum, it is clear the status quo is unacceptable, unsustainable, and jeopardizes our state's prosperity in the years to come. This tort reform package protects the rights of all Georgians to have access to our civil justice system, and ensures that those who have been wronged receive justice and are made whole."
The proposed reforms include measures to curb excessive litigation costs, stabilize insurance rates, and enhance fairness within Georgia's legal system. The package suggests premises liability reforms to ensure businesses are only accountable for conditions they control, medical damage calculations to prevent inflated claims, and guidelines for jury awards to stop attorneys from using arbitrary comparisons in pain and suffering cases. Additionally, the legislation seeks to increase transparency in third-party litigation funding and prohibits foreign adversaries from exploiting Georgia’s courts.
According to the U.S. Chamber of Commerce Institute for Legal Reform (ILR), Georgia's tort costs amounted to $20 billion in 2022, representing 2.60% of the state's Gross Domestic Product (GDP). On average, this equated to $5,050 per household. These expenses encompass settlements, legal fees, and related costs.
State officials have attributed civil litigation as a factor contributing to higher insurance premiums for both businesses and individuals. These increased costs are reported by Wabe as impacting sectors such as healthcare and transportation. The proposed legislation aims to address these issues through changes in damage calculations and procedural rules.
Kemp's website details his background as a native of Athens, Georgia, where he began his first small business over 35 years ago with just a pickup truck and a shovel. Elected as Georgia’s 83rd governor in 2018 and re-elected in 2022, Kemp has overseen Georgia being ranked as the No. 1 state for business for ten consecutive years. His administration has enacted legislation concerning public safety, economic policy, tax cuts, education funding, and human trafficking prevention. Kemp resides with his family on their farm in Athens.