Georgia Senate passes tort reform to lower insurance costs for businesses

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Georgia state Sen. Blake Tillery (left) and Lt. Gov. Burt Jones (right) | blaketillery.com, ltgov.georgia.gov

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The Georgia Senate has confirmed the passage of SB 426, a bill aimed at limiting direct action lawsuits. The announcement comes as the Georgia House is yet to schedule a vote on the same legislation. Lt. Gov. Burt Jones has championed the bill as a significant step in tort reform that will offer much-needed relief to businesses within the state.

In a post on social media platform X, the Georgia Senate acknowledged the bill's passage, stating, "Thanks to the leadership of Senator Blake Tillery and @LtGovJonesGA, we passed a tort reform bill with overwhelming bipartisan support. SB 426 is a Senate Republican priority that will help stabilize and reduce insurance costs for Georgia businesses."

Jones further elaborated on the implications of this legislation in a press release. He said that it would limit plaintiffs' ability to engage in direct action lawsuits, where both motor carriers and their insurance providers are sued simultaneously. "The passage of this legislation was desperately needed in order to get Georgia’s business community the relief it needs," Jones stated. "Thanks to the Senate’s passage of Senate Bill 426, we are making legitimate strides to level the playing field when a case reaches the courtroom. I look forward to the House taking swift action to move this legislation to the Governor’s desk and provide critically important aid to Georgia’s business community."

Georgia Gov. Brian Kemp has previously expressed his support for tort reform, citing it as a priority for this year's legislative session, according to Atlanta News First. Similarly, political action committee Hardworking Georgians maintains that excessive lawsuits are escalating insurance costs for Georgia residents who may already be financially strained. "For too long, Georgia tort laws have encouraged frivolous lawsuits that hamstring job creators, drive up insurance costs for families already struggling to make ends meet, undermine fairness in the courtroom, and make it harder to start, grow, and operate a small business," said Cody Hall, executive director of Hardworking Georgians.

Legiscan reports that SB 426 was introduced on Jan. 30 and passed the state Senate by a vote of 46-2 on Feb. 13. The bill, which has more than a dozen sponsors including state Sens. Blake Tillery, John Kennedy, and Ed Setzler, is currently pending in the House Judiciary Committee with no scheduled hearing.

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