Georgia Bill’s Next Phase Restricting Lawsuits Approved

In Atlanta, Gov. Brian Kemp’s primary initiative to curb lawsuits, which has been met with strong opposition from Democrats, saw its second legislative component pass the Senate with unanimous approval on Thursday. Senate Bill 68 initially cleared the Senate last week with the support of one Democratic senator after Kemp enacted last-minute changes to garner necessary votes. Cody Hall, a political strategist for Kemp, mentioned to the Atlanta Journal-Constitution that Kemp plans to financially back challengers against any Republicans who resist or dilute the tort reform measures.

Advocates of the legislation, bolstered by extensive advertising campaigns and lobbying efforts, contend that restricting lawsuits can aid businesses, medical professionals, property owners, and others by reducing costs associated with frivolous claims and lowering insurance premiums. Opponents, however, argue there’s no firm evidence that insurance rates will decline, and they worry that individuals may struggle to receive reparations when wronged.

Senate Bill 69 mandates that third-party entities investing in litigation register with the Department of Banking and Finance, while also prohibiting foreign adversaries and governments from litigation investments. It further restricts the influence litigation funders can exert in civil litigation and those involved in such proceedings. Senate President Pro Tem John Kennedy, a Republican from Macon championing Kemp’s agenda, stated that the legislation addresses “the growing foreign influence” within Georgia courts and safeguards against adversaries accessing private information. Kennedy emphasized the bill as a “consumer protection measure” since little regulation currently governs third-party funders.

Kennedy remarked, “It is purely ensuring that when plaintiffs, many of which are victims of wrongdoing, are not taken advantage of by bad actors who attempt to exploit the tragedy of others.” The bill doesn’t ban third-party financing, providing reassurance to trial attorneys and Democrats, acknowledging that some plaintiffs may need financial assistance for litigation but recognizing the need for regulation. States such as Indiana, Louisiana, and West Virginia previously implemented regulations on third-party financing in 2024.

The Georgia Trial Lawyers Association, which actively opposes lawsuit reform, has yet to fully endorse the bill. Representative Matthew Wilson from the organization declared, “We believe there’s still work to be done to ensure SB 69 fairly addresses its intended purpose. We look forward to working with House leaders to make improvements to the bill.”

Senate Bill 69 is now set to join Senate Bill 68 for further discussion in the House. House Rules Committee Chairman Butch Parrish, a Republican from Swainsboro, announced the formation of a subcommittee composed of both Republicans and Democrats to examine the proposal. Typically, such a proposal would proceed to the House Judiciary Committee. The committee convened its inaugural meeting Thursday afternoon to assess another of Kemp’s proposals—a comprehensive reform of Georgia’s litigation system. This reform introduces stricter criteria for determining property owners’ liability for on-site injuries, prevents double attorney fee recovery for the same case, allows separate trials for assigning liability and damage determination, and endeavors to enable defendants to dismiss baseless claims before incurring significant pretrial costs.