Georgia Enacts Litigation Reform Laws Aimed at Reducing Insurance Costs

Georgia Governor Brian Kemp signed two new laws overhauling the state's litigation system, aiming to reduce insurance costs and improve the business climate. The legislation, backed by business groups and framed as necessary to curb frivolous lawsuits, limits liability for businesses and property owners and adds trial regulations to lower jury awards. The changes seek to put Georgia's legal environment on par with neighboring states called competitors for jobs and investment.

Supporters, including insurance advocacy groups, commend the reforms as fair and effective steps to strengthen the insurance marketplace and encourage competition. They argue that large jury payouts and legal practices currently incentivize unnecessary lawsuits, contributing to rising insurance premiums. The legislation also addresses third-party litigation funding and imposes new trial restrictions.

Opponents of the measures express concern that some legitimate claims may be impeded, diminishing access to justice for injured parties. Trial lawyers and some lawmakers warn that the laws restrict how injury cases are presented to juries, potentially undermining accountability. Critics also question the direct correlation between litigation reform and insurance rates, pointing to evidence from other states like Florida where outcomes have been mixed.

The legislative debate featured intense lobbying, reflecting the high stakes for businesses, insurers, and plaintiffs' attorneys. Gov. Kemp framed the reforms as balancing legal protections with economic competitiveness, highlighting the legislative victory as a significant political achievement. Ongoing monitoring will be needed to evaluate the reforms' impact on Georgia's insurance costs, litigation environment, and business climate.