Governor Brian Kemp of Georgia has expressed concerns over the state's legal environment, which he claims is leading to grocery store closures and increased insurance costs, affecting all residents. In a post on February 14, Kemp called for tort reform.
"From shuttering grocery stores to skyrocketing insurance costs, our current legal environment and lawsuit abuse impacts all Georgians," said Kemp. "Let's get tort reform done!"
According to Atlanta News First, some Atlanta neighborhoods are experiencing rising rents and a lack of essential services like grocery stores. This situation is partly attributed to increasing insurance premiums for property owners due to Georgia's premises liability laws. These laws hold property owners accountable for crimes occurring on their properties, creating financial challenges that deter businesses from operating in high-crime areas and contributing to food deserts. Residents are also facing higher living expenses, including rent and car insurance premiums. In response, Kemp has proposed a tort reform package aimed at reducing the burden on property owners and encouraging business investment in underserved communities.
Governor Kemp's Feb 14 statement
| X.com
On January 30, Kemp announced a comprehensive tort reform package intended to create fairness in Georgia’s court system and prevent exploitation by foreign entities. The proposal seeks to stabilize insurance costs for businesses and consumers while promoting transparency and fairness in legal proceedings. Kemp was joined by Lt. Governor Burt Jones, Speaker Jon Burns, and Insurance Commissioner John King in emphasizing the need to protect Georgians from rising costs due to excessive litigation. The reform package has received support from industry leaders who believe it will enhance the state’s business climate and legal system.
A study released by the U.S. Chamber of Commerce Institute for Legal Reform on January 24 found that rising tort costs in Georgia are placing an increasing financial burden on households, driving up insurance premiums and overall living costs. In 2022, these tort costs amounted to nearly $20 billion statewide, averaging more than $2,000 per household.
According to InsuranceRateReporter.com on February 18, a survey conducted by the American Property Casualty Insurance Association (APCIA) and Munich Re US found that plaintiff lawyer tactics such as third-party litigation funding (TPLF) and jury anchoring contribute significantly to rising insurance costs, with an estimated $529 billion impact on the U.S. economy. The survey indicates that 69% of Americans believe these practices increase insurance premiums, while 86% support legal reforms addressing this issue.
Brian Kemp hails from Athens, Georgia, where he established his career as a small business owner before becoming the state’s 83rd governor in 2019. His leadership has focused on economic growth with record-setting achievements in jobs and investments during his first term.