Kemp unveils sweeping legal overhaul aimed at curbing rising insurance costs in Georgia

The Republican has made the rewrite his signature legislative priority this year, and he’s already warned lawmakers he’ll summon them back to Atlanta for a special session if they fail to pass it by April.

He will be up against a well-funded opposition of trial lawyers, patient advocates and progressive groups who argue his plan would strip Georgians of their right to challenge powerful corporations in court while doing little to bring down insurance rates.

Kemp is wading into a generations-old battle over the complex rules that govern who can sue for damages and how much they can recover. Doing nothing, Kemp told supporters at a crowded Capitol announcement, would put Georgia’s economy at risk.

“Our legal environment is draining family bank accounts and hurting job creators of all sizes in nearly every industry in our state,” said Kemp, adding that “the status quo is unacceptable, unsustainable and jeopardizes our state’s prosperity in the years to come.”

But Kemp stopped short of pushing to reinstate a cap on jury awards for medical malpractice cases, a controversial limit struck down by the Georgia Supreme Court in 2010.

Kemp enjoys high approval ratings and a growing national profile, but passage of the overhaul is no sure thing.

The Democratic Party of Georgia called the legislation corporate cronyism, while the Georgia Trial Lawyers Association dismissed it as a giveaway to special interests.

“It’s clear that Gov. Kemp is intent on giving a huge corporate handout to the insurance companies on the backs of everyday Georgians,” said Matthew Wilson, a former Democratic legislator and member of the group’s executive committee.

Kemp, who has spent much of his second term laying the groundwork for this fight, also has plenty of allies. He was surrounded Thursday by advocates and Republican supporters, including House Speaker Jon Burns and Lt. Gov. Burt Jones.

“We have to work together to ensure that we put families and consumers first by tackling the hidden costs we all pay thanks to Georgia’s current tort laws,” said Jones, a contender to succeed Kemp.

Other Kemp backers are going all in. A network of outside groups funded by major corporations and insurance giants has pledged millions for ad campaigns pushing for what they call “tort reform.” Kemp’s potent political network is also mobilizing.

The debate over Georgia’s litigation rules is nothing new. Former Gov. Sonny Perdue helped engineer a Republican-led overhaul in 2005 shortly after the GOP won control of both legislative chambers.

Over the years, courts have chipped away at key provisions, including the $350,000 cap on pain-and-suffering damages in medical malpractice cases.

Now, Kemp is taking another swing. He surprised lawmakers in 2023 by announcing his legislative push at a Georgia Chamber luncheon in Athens. He stunned them again last year by delaying the full-court press until this session.

With this package, Kemp said he was thinking strategically to attract Democrats, who he said would be “foolish not to support” the bill. That’s one reason he isn’t seeking to reinstate ceilings on jury awards, a notion that is divisive even among Republicans.

“For us, the package we have will move us in a direction that I feel will be good for the state,” he said. “It’s also a package that we should be able to get the votes on.”

Democratic opponents of his proposal see a hint of desperation. State Sen. Josh McLaurin, D-Sandy Springs, said the biggest beneficiaries will be insurance firms and not everyday Georgians.

“This is all hope and a whisper and a prayer that if we do what the insurance company wants, we do their bidding, that somehow, someway will eventually save money,” he said.

This might be Kemp’s last shot. Attention will shift next year to the race to succeed Kemp, and his influence may wane as he focuses on securing his legacy and mapping out his political future. That urgency was clear in Kemp’s tone.

“We did our homework. We listened to every stakeholder and industry,” said Kemp. “The legislation was crafted to be comprehensive, but also reasonable.”

Credit: Natrice Miller/AJC

Credit: Natrice Miller/AJC

What’s in the proposal?

Here’s a breakdown of the key parts of the proposal:

Premises liability: Limits when businesses can be sued for injuries that occur on their property.

Third-party litigation: Blocks foreign adversaries from funding lawsuits in Georgia and requires more disclosure and new limits on other outside groups bankrolling civil cases.

Damages: Bans lawyers from suggesting what Kemp said are outsized jury awards in closing arguments. Also requires plaintiffs to show jurors actual medical costs instead of initial bills that sometimes have inflated costs.

Bifurcated trials: Allows cases to be split into two stages — first deciding fault, then determining damages — rather than considering everything at once.

Seat belt laws: Allows juries to consider whether a plaintiff was wearing a seat belt in injury lawsuits, potentially lowering damages for those who failed to buckle up.

Attorneys fees: Bans attorneys from recovering their legal fees twice in certain cases.