Second part of Georgia governor’s bill to limit lawsuits passes unanimously
ATLANTA (AP) — Gov. Brian Kemp’s top priority to limit lawsuits has drawn fierce criticism from Democrats, but the second part of the package passed the Senate Thursday with unanimous support.
Senate Bill 68, passed the Senate last week with one Democratic vote after Kemp modified a section at the last minute to secure the votes he needed. Cody Hall, a political strategist for Kemp, told the Atlanta Journal-Constitution that Kemp would fund challengers to Republicans who opposed or watered down the measures, also called tort reform.
Backed by millions of dollars in advertising and lobbying, proponents say that limiting lawsuits would help businesses, physicians, property owners and others save money from frivolous lawsuits and lower insurance rates.
Opponents say there is no proof insurance rates would drop and worry people won’t win compensation when they are wronged.
Senate Bill 69 requires third-party entities that invest in litigation to register with the Department of Banking and Finance and bans foreign adversaries and governments from investing in litigation. It also limits how much litigation funders can use to influence civil litigation proceedings and the people involved.
Senate President Pro Tem John Kennedy, a Macon Republican sponsoring Kemp’s bills, said Thursday the bill “combats the growing foreign influence” in Georgia’s courts and prevents adversaries from accessing private information. He also called the bill a “consumer protection measure” because third-party funders are subject to little regulation.
“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,” Kennedy said.
The bill does not ban third-party financing, which comforted trial lawyers and Democrats who said some plaintiffs struggle to afford litigation and need assistance but acknowledged the need for regulation.
Indiana, Louisiana and West Virginia took measures in 2024 to regulate third-party financing.
The Georgia Trial Lawyers Association, which lobbies against lawsuit reform, isn’t fully on board yet.
“We believe there’s still work to be done to ensure SB 69 fairly addresses its intended purpose,” Matthew Wilson said in a statement on behalf of the organization. “We look forward to working with House leaders to make improvements to the bill.”
Senate Bill 69 will join Senate Bill 68 for debate in the House. House Rules Committee Chairman Butch Parrish, a Swainsboro Republican, announced Wednesday that he appointed a subcommittee with Republicans and Democrats to study to proposal. Usually, that bill would go to the House Judiciary Committee.
The committee held its first meeting Thursday afternoon to review Kemp’s other bill, a more sweeping overhaul of Georgia’s litigation system. It sets stricter standards for when owners are accountable for injuries on their property, and it stops attorneys from recovering fees twice for the same case. It allows separate trials for assigning responsibility and determining damages, and it tries to make sure defendants can get a baseless case dismissed before engaging in expensive pretrial preparation.
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Kramon is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Kramon on X: @charlottekramon.
By CHARLOTTE KRAMON
Associated Press/Report for America
