The U.S. Chamber of Commerce Institute for Legal Reform has announced that Georgia's litigation climate has reached a critical juncture, necessitating tort reform to rebalance the state's legal system. This announcement was made on its website on March 11.
According to the U.S. Chamber of Commerce Institute for Legal Reform, Georgia's tort costs reached nearly $20 billion in 2022, accounting for 2.6% of the state's Gross Domestic Product (GDP). This equates to an average of $5,050 per household, imposing a significant financial burden on families statewide. These elevated costs are attributed to a legal system that has permitted frivolous lawsuits, leading to higher insurance premiums and deterring business investments.
The organization reports that small businesses in Georgia bear nearly half of the state’s legal system costs, making them particularly vulnerable to lawsuit abuse. This financial strain limits their ability to expand, hire new employees, and contribute to the state's economic growth. The constant threat of baseless lawsuits and rising insurance premiums further exacerbates these challenges, reinforcing the need for comprehensive tort reform.
On January 30, 2025, Governor Brian Kemp introduced a sweeping tort reform package aimed at addressing the root causes of excessive litigation in Georgia, according to a statement from the Governor’s Office. The proposed legislation seeks to lower costs and create a fairer legal system, offering protections for businesses, property owners, workers, and families across the state. Kemp emphasized that these reforms are essential for ensuring economic stability and restoring balance in the civil justice system.
The Institute for Legal Reform (ILR) is a division of the U.S. Chamber of Commerce dedicated to advocating for legal policy changes that create a fair, predictable, and efficient civil justice system. Established in 1998, ILR works to combat lawsuit abuse, reduce excessive litigation costs, and promote legal reforms that support economic growth and job creation. The organization conducts extensive research, engages in public education campaigns, and collaborates with policymakers at both state and federal levels to implement reforms that balance the rights of businesses and consumers while preventing exploitation of the legal system.