Georgia Enacts Comprehensive Tort Reform to Address Rising Insurance Litigation Costs
On April 21, 2025, Georgia Governor Brian Kemp signed Senate Bill 68, a comprehensive tort reform law targeting the state's civil litigation environment, which has been noted for its impact on insurance claims and costs. This legislation aims to address the rising claim frequency and severity in Georgia's insurance market, responding to data from the Georgia Office of the Commissioner of Insurance showing a 24% increase in claims over a five-year period and significant growth in large policy losses. Prior assessments ranked Georgia as a challenging jurisdiction for defendants, with high verdicts and extensive liability exposures negatively influencing insurers and businesses.
The Act introduces substantive changes including limitations on attorneys' ability to use 'anchoring' tactics to argue for non-economic damages, requiring such evidence to be rationally related to actual damages. It also reforms the treatment of medical damages by allowing evidence of amounts actually paid by health insurers, discounting inflated 'sticker prices' commonly presented in trials.
Premises liability laws have been amended to clarify landowner and security contractor responsibilities, specifying conditions under which negligent security claims can be made. The law outlines factors for establishing duties, breaches, and defenses, and mandates fault apportionment among all responsible parties. It excludes claims involving trespassers, certain criminal activities by plaintiffs, single-family residences, and injuries off-premises.
Procedural reforms include permitting motions to dismiss without simultaneous answers to reduce litigation costs, limiting plaintiffs' ability to voluntarily dismiss and refile lawsuits, and preventing duplicate recovery of attorney's fees under multiple statutes. Additionally, the law enables bifurcated trials separating liability and damages phases to mitigate jury bias.
The Act also changes evidentiary rules around seatbelt use, allowing such evidence to be considered in negligence contexts but prohibiting premium increases or coverage cancellations based on this factor.
Insurance industry groups such as the American Property Casualty Insurance Association welcomed the legislation as a step to curb legal system abuse and rising insurance costs, drawing parallels to similar reforms in neighboring states like Florida. Conversely, plaintiffs' legal organizations criticized the law, arguing it favors insurers and could impede valid claims, with debates continuing over insurer profitability in Georgia.
This legislation reflects a significant policy shift within Georgia's political context, overcoming entrenched litigation practices despite opposition and the influence of trial lawyer associations. While the new standards may reduce excessive litigation over time, initial legal complexities could increase disputes until judicial interpretations stabilize the reforms.
Overall, Georgia's Tort Reform Act represents an important development for liability insurers, property owners, and businesses seeking to mitigate litigation risks and stabilize insurance markets, though its long-term impact will depend on implementation and court rulings.