The Georgia legislature has passed a sweeping tort reform package aimed at reducing litigation costs, curbing excessive jury awards, and increasing transparency in civil lawsuits in Georgia state and superior courts. Lawmakers designed these measures, supported and signed by Governor Brian Kemp in late April, to ease financial burdens on businesses while addressing abusive legal practices. The package includes two major bills — Senate Bill 68 (SB 68) and Senate Bill 69 (SB 69) — which introduce significant changes to premises liability, medical damages calculations, third-party litigation funding, and trial procedures.

Senate Bill 68: Addressing Excessive Damages and Litigation Costs

SB 68 seeks to rein in excessive civil lawsuit payouts and bring fairness to Georgia’s legal system by implementing key reforms:

1. Medical Damages Adjustments

• Limits special damages for medical expenses to the "reasonable value of medically necessary" care, based on actual payments rather than inflated billing.
   
• Introduces transparency by allowing juries to see both billed amounts and actual payments made for medical care.

2. Restrictions on Noneconomic Damage Anchoring

• Prohibits attorneys from suggesting a monetary value for noneconomic damages (e.g., pain and suffering) until the close of evidence.
   
• Requires arguments about noneconomic damages to be rationally connected to case facts, preventing undue jury influence.

3. Trial Process Changes

• Introduces bifurcation, requiring juries to determine fault before considering damages, reducing the impact of sympathy on verdicts.
   
• Shortens the timeframe for voluntary dismissal of lawsuits, preventing plaintiffs from withdrawing cases without consequence after significant legal expenses have been incurred.
   
• Allows defendants to file motions to dismiss before responding to complaints, potentially ending frivolous lawsuits early and staying discovery until a ruling is made.

4. Premises Liability Reform

• Raises the legal threshold for holding businesses accountable for criminal acts occurring on or near their premises.
   
• Shifts the burden onto plaintiffs to prove property owners had prior knowledge of specific security risks.

5. Seat Belt Evidence Admissibility

• Modifies existing laws to permit evidence of seat belt use in car accident cases, though judges retain discretion on admissibility.

6. Limiting Attorneys’ Fee Recovery

• Ends the practice of trial lawyers seeking multiple recoveries of attorneys’ fees under different statutes, addressing cost inflation in litigation.

These provisions aim to stabilize insurance costs, protect businesses from excessive liability, and reduce Georgia’s reputation as a "judicial hellhole" for excessive jury verdicts, as the American Tort Reform Foundation has described it.

Senate Bill 69: Regulating Third-Party Litigation Funding

SB 69 targets the growing influence of third-party litigation funding (TPLF), where outside financiers invest in lawsuits in exchange for a portion of settlements. The bill introduces several safeguards:

• Mandatory Registration: Litigation financiers must register with Georgia’s Department of Banking and Finance.
   
• Foreign Influence Ban: Prohibits funding from entities affiliated with hostile foreign adversaries to prevent undue influence over Georgia’s courts.
   
• Consumer Protections: Requires clear disclosures and prevents financiers from controlling lawsuit decisions.
   
• Discovery Requirements: Allows parties in civil cases to request disclosures of litigation funding arrangements of $25,000 or more.

SB 69 was passed into law with broad bipartisan support, with lawmakers emphasizing its role in preventing litigation abuse and ensuring fairness in the legal system.

The Broader Impact

These reforms will materially impact the litigation landscape in Georgia. While the bills were not specifically aimed at litigation between employers and employees, some state law claims such as wrongful discharge and negligent hiring/retention will be affected by these reforms. Corporate entities may benefit from reduced litigation exposure, more predictable damages assessments, and a judicial climate less susceptible to forum shopping and excessive jury verdicts. However, businesses should also anticipate continued legal challenges from trial attorney associations and advocacy groups opposed to these measures. Ultimately, these legislative changes signal a shift in Georgia’s approach to civil lawsuits that warrants close monitoring by in-house legal teams and corporate counsel to refine litigation strategies accordingly.

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