Georgia Gov. Brian Kemp on Aug. 22 hosted the first of three small business roundtable listening sessions aimed at informing policy proposals in the upcoming legislative session.
During this first roundtable, the governor met with small business leaders and state officials to discuss civil litigation policies impacting the state’s business climate.
“A little over a year ago, I announced my intention to work toward common-sense lawsuit reform while still bringing jobs to Georgia and maintaining our position as the No. 1 state for business,” said Kemp. “We took the first meaningful steps on that issue this past session through the Data Analysis for Tort Reform Act.”
Sponsored by the governor’s Floor Leader State Rep. Will Wade, the Data Analysis for Tort Reform Act created a mechanism to gather information that will guide next steps on this multi-year effort. Both chambers of the General Assembly also worked on legislation during the 2024 session specific to the issue of civil litigation.
“As we move forward, I want to thank the legislature and those from around the state who have been engaged on this issue as we work together to address this growing problem,” Kemp said.
In his opening remarks during the roundtable discussion, Kemp emphasized that all sides of the lawsuit reform issue will be able to make their voices heard during the course of this process.
He also acknowledged the difficulties of tackling this problem, but noted it is one that should be addressed with a united effort to stabilize costs for Georgians and businesses, according to the governor’s staff.
Specifically, participants discussed the impacts of Georgia’s civil litigation climate and its effect on insurance rates and availability for small businesses and their communities. Many of the roundtable participants seemed to be on the same page.
For instance, State Speaker of the House Jon Burns pointed out that ensuring Georgia is pro-business while also protecting the rights of consumers requires a balanced approach to litigation reform.
“The Georgia House has made significant strides to improve our litigation climate, but there is certainly still more to be done,” Burns said, noting that lawmakers “will be driven by the facts, gather input from constituents and stakeholders from across the state, and look at thoughtful, data-driven solutions to balance the scales and ensure our business climate and our quality of life in Georgia continues to thrive.”
“I have always supported measures to get Georgia’s business community the relief it needs. We made legitimate strides last session to level the playing field when a case reaches the courtroom,” added Georgia Lt. Gov. Burt Jones. “I look forward to working with Gov. Kemp, Speaker Burns, and other stakeholders to pass sensible lawsuit reform that will benefit our growing business community and strengthen Georgia’s business friendly climate.”
Insurance and Safety Fire Commissioner John King agreed that the topic is timely and necessary, saying, “lawsuit abuse reform is needed to ensure Georgia and its citizens stay in the forefront of states to do business.”
Likewise, Peter Skiko of the National Association of Security Companies said that security companies are facing a two-pronged challenge while they work to help provide a safer Georgia: a growing number of lawsuits brought about by recent court decisions and an inability to find affordable insurance in Georgia’s current litigation climate.
“We commend Gov. Kemp and other state leaders for hearing the concerns of industry experts and addressing the need for tort reform in Georgia head on during the upcoming legislative session,” he said.
John Sambdman of the National Federation of Independent Business said that lawsuit abuse is taking a financial toll on Georgia’s economy. “Frivolous lawsuits lead to higher insurance rates, which small business owners can’t afford, especially with inflation driving up the cost of doing business,” said Sambdman.
Matt Jones of the Georgia Association of Convenience Stores hopes elected officials understand that not only is the current civil litigation climate burdening small and large businesses in the state, it also impacts all Georgians. “Virtually everyone has seen premium spikes in personal insurance, along with significant increases in business insurance premiums,” he pointed out.
John Triplett of the Georgia Food Industry Association said grocers across Georgia appreciated the state’s top legislative leaders listening to the challenges the industry faces regarding “the skyrocketing cost of running a business in Georgia.”
“Grocers are essential businesses in every community and operate on an extremely low profit margin,” said Triplett. “The increased cost of liability insurance could result in the closure of some locations, causing food deserts. We commend our elected leaders on addressing this issue.”
Similarly, Alexis Kinsey of the Georgia Restaurant Association said that the state’s restaurants, like many others, are truly family owned and operated, and the prevalence of frivolous lawsuits in the state jeopardizes their ability to grow, provide jobs, and serve communities.
“This conversation is a great step toward addressing this much-needed reform and continuing to make our state a great place to do business,” she said.
Representatives from the Independent Insurance Agents of Georgia, the Georgia Motor Trucking Association, and the Georgia Child Care Association also participated in the roundtable discussion.