Republican Governor Brian Kemp’s political organization has taken to social media to highlight his achievements in reforming Georgia’s lawsuit regulations, using a familiar yellow-and-black style akin to Waffle House’s iconic sign. Kemp recently signed into law two significant measures aimed at overhauling the state’s litigation system, a move that has been championed by business groups for years. These new laws are designed to reduce insurance costs, assist businesses, and boost Georgia’s economy by limiting liability for negligence and introducing trial regulations intended to lower jury awards.
The new measures have sparked intense debate during the legislative session, with questions arising about their effectiveness in protecting businesses and doctors from frivolous lawsuits and increasing insurance rates. Some experts are skeptical of the promise that these changes will lead to reduced insurance rates for everyone. Critics argue that the new limits could prevent some Georgians who have suffered wrongs from seeking justice in court. Despite this, Kemp assured that the legislation would still uphold individuals’ rights to file claims and seek compensation.
Significant lobbying efforts were made on both sides of the issue, with millions of dollars spent in the process. Kemp leveraged his influence within the Republican-led Legislature to secure the passage of these laws, which could bolster his political profile as he eyes potential future campaigns for the U.S. Senate or presidency. Political strategists highlight this legislative victory as a demonstration of Kemp’s commitment to conservative principles.
Kemp’s recent legislative efforts, however, are more complex for voters to grasp compared to previous initiatives like the 2019 abortion bill or recent tax reductions. To address this, Kemp cleverly referenced the much-loved Waffle House in his communications to resonate with the public.
Businesses, property owners, and professionals in fields like medicine and transportation have raised concerns about the burden of lawsuits and escalating insurance rates affecting their profitability. On the other hand, opposition from Democrats and trial lawyers remains strong. They expressed willingness to revise the laws concerning lawsuits against businesses and property owners for lacking adequate security, which leads to personal injury or distress, but argue that the new laws excessively restrict proving knowledge of security risks by property owners.
While some supporters of the new legislation argue that trial lawyers have exploited these legal avenues, opponents point to the rare occurrence of multimillion-dollar verdicts, suggesting these do not drive insurance rates. Furthermore, some experts indicate that no clear correlation exists between litigation systems and insurance rates, as evidenced by other states.
In Florida, a related investigation unveiled claims of insurance companies hiding profits while reporting financial losses, a key point in the state’s tightening of litigation rules. Critics argue these changes have not decreased insurance rates, while supporters believe they have stabilized, and further improvement will take time.
Georgia’s new laws will introduce structural trial changes, impose new restrictions on how lawyers present cases, and regulate third-party litigation funding. Republican House Speaker Jon Burns emphasized the necessity of these reforms to bring stability to insurance markets and balance to judicial proceedings.
