In Atlanta, the push for tort reform in Georgia, spearheaded by Republican Governor Brian Kemp, is moving toward completion with the recent approval of the second component by the House. This legislative package, designed to tighten controls on lawsuits and cap substantial verdicts, will soon reach the governor’s desk for finalization.
The proposal, which aims to curtail exploitative litigation activities by third parties and foreign adversaries, garnered strong support from the Senate and bipartisan backing in the House, passing with a vote of 98-69. This legislative action occurs amidst ongoing debates over the initial phase of this plan.
The proposal, identified as Senate Bill 69, mandates that third-party investors in litigation register with Georgia’s Department of Banking and Finance. It further prohibits investments in litigation by foreign adversaries and governments and sets boundaries on how much influence these funders can exert over civil proceedings and involved individuals.
“This legislation imposes long overdue regulations and boundaries on a largely unregulated sector,” commented House Republican Majority Whip Rep. James Burchett.
The earlier segment of this reform, Senate Bill 68, narrowly passed in the House and proposes significant transformations to Georgia’s litigation environment, including imposing limits on liability for property- and business-related injuries.
Governor Kemp argues that businesses are overburdened by unfounded lawsuits and anticipates that these reforms will help to stabilize insurance premiums, though evidence supporting this claim remains debated.
Kemp had committed to the Georgia Chamber of Commerce, his influential ally, that he would take actions to curb lawsuit claims within this year.
Senate Bill 68 encountered strong resistance, particularly from legal professionals and survivors of sexual misconduct and violence, who argue it could obstruct justice for victims. Nevertheless, the bill secured support from a minority of Democrats, with one from the Senate and three from the House backing it.
Democratic State Rep. Stacey Evans, an Atlanta attorney, critiqued the bill as overly beneficial to insurance companies, aligning with many of her Democratic peers. Evans expressed considerable dissatisfaction with those who supported the measure, highlighting her frustration.
“Tough decisions become even tougher when disappointing victims in favor of powerful business interests,” Evans remarked. She emphasized that while victims aren’t present daily, influential entities such as the Chamber and insurance firms are, suggesting that political calculus played a role in her colleagues’ decisions.
The repercussions of the vote extended beyond the legislation itself. Democratic Rep. Mack Jackson, who opposed the bill, expressed a personal conviction that his freedom of decision was being manipulated by financial contributions. He likened a colleague’s actions to oppressive historic figures and returned campaign donations to assert his independence.
“I refuse to be shackled by misguided expectations,” Jackson asserted, vowing to refund several contributions that he believes were given with strings attached.
Conversely, Republican Rep. Vance Smith faced professional backlash for his opposition to the first part of Kemp’s package. After being dismissed from his position as the Harris County Chamber of Commerce CEO, Smith expressed gratitude for the solidarity shown by Democrats in the House.
“This legislative body is a family, and the support I’ve received has been overwhelming,” Smith said tearfully.
Governor Kemp has reportedly warned Republican members considering dissent on his judicial reform plan with potential electoral challenges funded by his campaign resources.