Gov. Brian Kemp said a new effort to curb “frivolous” lawsuits and limit large jury awards would take a multiyear approach, dashing hopes of business boosters who dreamed of an overhaul of litigation rules in 2024.
The Republican told hundreds of executives and politicians at the Georgia Chamber’s annual legislative breakfast on Wednesday that he came to the decision over so-called “tort reform” after months of meetings between his staff, industry experts and legislators.
Instead, he said, he would take a “first step” this year to introduce draft legislation that could serve as a starting point for a fresh debate.
“In Georgia, we have some of the highest premiums in the country,” he said. “We can and should do something about that.”
It’s a sharp turnabout for Kemp, who surprised corporate executives at the Georgia Chamber’s annual meeting in August by vowing to reshape regulations guiding plaintiffs’ litigation.
A few months later, Kemp’s political allies launched a six-figure media campaign that included digital ads warning Georgians of “senseless regulations.” It seemed a sure sign that Kemp was about to launch an all-out push to pass the changes.
But Kemp and his staff decided to back off, at least for a year, and gather more industry data to ready a campaign for a comprehensive overhaul next year. As word spread through the Capitol this week, some lobbyists privately termed it a “betrayal,” while others shrugged off the move.
Why the change of heart? Some involved in the discussions say it was doubtful whether they had the votes to muscle the legislation through the Legislature amid internal dissension over the scope of the package. Still, they say, there’s a chance several piecemeal changes are adopted.
A broad overhaul was never going to be easy. The battle pits corporate leaders, medical organizations and the insurance industry against a powerful network of trial lawyers opposing changes.
Doctors and hospitals say the measures would help lure more physicians to Georgia, while business lobbies promise that speedier out-of-court settlements and limits on jury awards will help lower insurance premiums and cut legal costs.
Trial lawyers and patient advocacy groups, meanwhile, frame the legislation as a giveaway to powerful corporations that would rob Georgians of their legal rights.
It’s such a politically popular idea to some conservatives that when Republicans first won control of the General Assembly in 2004, they immediately set out to overhaul litigation rules.
The legislation, signed into law by then-Gov. Sonny Perdue, capped medical malpractice pain-and-suffering awards at $350,000, added tougher standards for expert witnesses in malpractice trials and offered incentives for patients to settle out of court.
Court rulings have chipped away at elements of the law over the years, including a Georgia Supreme Court decision in 2010 that struck down the $350,000 cap. Legislators have revisited sections of the law since then with mixed results.
Kemp described his decision to tap the brakes on an overhaul not as a retreat but a recalibration.
“Like in every major undertaking our state has tackled in the past, we will work on a Georgia-specific solution,” he said, “one designed to make meaningful reforms in this area over the next several years.”
