Home Builders Association of Georgia president: Lawsuit abuse impacts ‘our ability to build houses and address the critical housing shortage’

Home Builders Association of Georgia president: Lawsuit abuse impacts ‘our ability to build houses and address the critical housing shortage’
State Legislature
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Franklin Bailey, President of Home Builders Association of Georgia and Owner of Franklin Bailey Construction | https://roughdraftatlanta.com/author/franklin-bailey/

Franklin Bailey, president of the Home Builders Association of Georgia, emphasized the importance of the state's tort reforms in safeguarding home builders from frivolous lawsuits. He said that such legal actions increase costs, exacerbate the housing shortage, and burden the court system.

"Taking on the trial lawyers was no easy task, but that's exactly what Governor Brian Kemp, State Senator John Kennedy, and countless other lawmakers did," said Bailey. "As the bill was gaining momentum, one Georgia trial lawyer even threatened to sue small business owners that spoke up in support of reforms. Remarks like those acutely highlight the need for reform. These frivolous lawsuits are impacting our businesses and our ability to build houses and address the critical housing shortage in Georgia. Georgia's tort reform package is not just about reducing insurance premiums. It's about ensuring that our courts can focus on justice rather than being bogged down by meritless claims."

According to reports, the passage of tort reform is seen as a significant victory for businesses, consumers, and the economy by addressing lawsuit abuse. Governor Brian Kemp, Senator John Kennedy, and others spearheaded this effort despite strong opposition from trial lawyers. The Home Builders Association of Georgia described these reforms as crucial for reducing insurance costs and protecting businesses amid the state's housing crisis. The Georgia Chamber of Commerce believes that these reforms will enhance the state's competitiveness while maintaining victims' access to justice. The legislation aims to create a fairer legal environment conducive to business and community growth.

On April 21, Governor Kemp signed a comprehensive tort reform package into law, describing it as a historic step toward restoring fairness in Georgia's civil justice system. The legislation addresses issues such as premises liability, medical damages transparency, excessive jury awards, bifurcated trials, and limits on third-party litigation funding from hostile foreign entities. Key legislative leaders praised this bipartisan effort focused on transparency and economic competitiveness. Kemp attributed the success of passing this long-overdue legislation to collaboration among lawmakers and support from Georgians statewide.

On February 7, 2025, Protecting American Consumers Together (PACT) released a poll indicating that 72% of Georgia voters believe lawsuit abuse contributes to rising costs of goods and services. This sentiment was shared across party lines with Republicans (88%), Independents (64%), and Democrats (62%) in agreement. Conducted by Public Opinion Strategies from February 2-5, 2025, the survey also revealed that 85% of voters consider it important for the Legislature to address lawsuit abuse to eliminate hidden taxes on consumers. Additionally, 82% of individuals who have used personal injury lawyers support reforms to the current system.

A study by the U.S. Chamber of Commerce Institute for Legal Reform found that rising tort costs in Georgia are imposing an increasing financial burden on households. In 2022 alone, these costs reached nearly $20 billion in Georgia—averaging over $2,000 per household—stemming from civil litigation expenses impacting both businesses and consumers.

Bailey serves as president of HBAG for the 2024–2025 term and chairs its Government Affairs Committee. He also owns Franklin Bailey Construction LLC., a Valdosta-based firm specializing in custom homebuilding.