News Summary
Georgia has enacted new tort reform legislation aimed at improving its judicial environment for businesses, specifically targeting the trucking industry. This includes Senate Bill 85 and Senate Bill 86, which seek to streamline legal processes and enhance accountability. Key changes include the admissibility of seat belt evidence in personal injury cases and improved transparency in medical billing during litigation. The reforms, effective January 1, 2026, are anticipated to lower property-casualty insurance rates, benefitting consumers and businesses alike.
Atlanta – Georgia’s new tort reform legislation has been signed into law by Governor Brian Kemp on April 21, 2025. This legislation includes two significant bills, Senate Bill 85 (SB 85) and Senate Bill 86 (SB 86), aimed at overhauling judicial practices that have previously been viewed as detrimental to the trucking industry and the state’s motor carriers.
In recent years, Georgia has faced criticism for its legal environment, being rated the #1 Judicial Hellhole in both 2022 and 2023, and ranking #4 in 2024. The introduction of these reforms is seen as a necessary step to improve the state’s judicial standing and make Georgia a more business-friendly environment.
Key Provisions of Senate Bill 85
SB 85 introduces several critical changes that impact legal procedures. One of the main provisions halts discovery processes while motions to dismiss are pending, which could streamline litigation timelines. Additionally, this bill changes the admissibility rules regarding seat belt usage in court. The previous “seat belt gag rule” has been lifted, allowing evidence related to seat belt non-usage to be admissible in personal injury cases where applicable.
Impact of Senate Bill 86
Senate Bill 86 aims to improve transparency in privately-funded lawsuits. A notable feature of this legislation allows defendants to present actual payments made by health insurers for medical treatment, thus reducing reliance on inflated billed amounts in court. This could lead to a system where medical expense recoveries are capped at the reasonable value of necessary care, enabling juries to evaluate actual costs against inflated bills.
However, the new law also presents challenges for plaintiffs. It is noteworthy that the legislation does not clarify how health insurance offsets will be handled during damage assessments, which might disadvantage insured plaintiffs.
Additional Reforms and Responsibilities
The reforms entail stricter regulations on how cases can be voluntarily dismissed. Under the new rules, plaintiffs must seek a court order for dismissals post a certain period after filing. Additionally, changes surrounding property owner liability for negligent security have been established. Liability can only be assigned if specific conditions are met, and juries are now required to apportion fault among all parties involved, including criminal actors.
To ensure accountability, property owners must conduct regular safety inspections of their premises and keep records of tenant security concerns for a minimum of three years. These measures are designed to enhance safety standards and promote responsible property management.
Projected Outcomes of the Legislation
Both SB 85 and SB 86 are scheduled to take effect on January 1, 2026. Following the implementation of these reforms, Insurance Commissioner John King forecasts a potential drop in property-casualty insurance rates ranging from 3% to 5% within a year. This reduction could provide financial relief to consumers and businesses alike as the new laws aim to streamline litigation and reduce excessive costs associated with claims.
Conclusion
The approval of this tort reform legislation marks a significant change in Georgia’s legal landscape. By focusing on transparency and accountability, the state aims to rebuild its reputation while fostering a more stable environment for businesses and individuals alike. The anticipated impacts of the legislation may contribute to a more balanced judicial system that better serves the needs of all parties involved.
Deeper Dive: News & Info About This Topic
- FreightWaves: Georgia’s Judicial Hellhole Looks to Change That with Recent Tort Reform
- Wikipedia: Tort Reform
- Forbes: Kemp Signs Tort Reform in Georgia as Similar Proposal Passes in Texas
- Google Search: Georgia Tort Reform
- Fox 5 Atlanta: Tort Reform – Gov. Kemp Signs Plan to Limit Lawsuits in Georgia
- Encyclopedia Britannica: Tort Law
- Insurance Journal: Georgia Governor Signs Tort Reform Package
- Google News: Georgia Tort Reform
- National Law Review: Georgia’s Tort Reform Legislation – Key Procedural Changes
- AP News: Georgia’s Kemp Signs Tort Reform Legislation
