After threats and deals, Kemp’s litigation overhaul clears Senate vote

Both sides of the debate have framed what they call “tort reform” in the loftiest terms. Supporters say Georgia’s economic lifeblood is at stake and warn that doing nothing could risk irreparably damaging the state’s business climate.

“Let’s give Georgians an opportunity to hope for a better day,” said Senate President Pro Tem John Kennedy, the sponsor of the proposal.

Opponents, including Democrats and trial lawyers, view it as an affront to the civil justice system and sneer at promises that its passage will stabilize rising insurance premiums or bring down the price of household goods.

“It’s a massive giveaway to an industry that doesn’t need another handout,” said Democratic state Sen. Nabilah Islam Parkes of Duluth.

The legislative fight now shifts to the Georgia House, where similar tensions are bound to emerge.

“The fight is going to continue all the way up to Day 40 at 11:59, quite frankly,” Senate Minority Leader Harold Jones said of the April 4 end of the legislative session.

Credit: Arvin Temkar/AJC

Credit: Arvin Temkar/AJC

The overhaul takes a series of steps to end the generations-old battle over the complex rules that govern who can sue for damages and how much they can recover in Georgia courts.

It would limit when businesses can be sued for some injuries that occur on their properties, regulate how damages are calculated in personal injury cases and allow juries to consider whether someone was wearing a seat belt in determining awards in vehicle injuries.

A separate pending measure that is far less controversial would restrict outside groups from bankrolling litigation.

But a sticking point emerged this week as critics of the broader rewrite sought to strip a provision that would require plaintiffs to show jurors actual medical costs instead of initial bills that sometimes have inflated estimates.

Kemp considered that a fatal blow to the legislation, and his political adviser, Cody Hall, threatened to dip into the governor’s well-stocked campaign account to oppose any Republican who backed the amendment.

The threat may have worked. Late Thursday, Senate negotiators and Kemp’s office reached a deal on scaled-back changes that would allow plaintiffs to show jurors both the initial bill and the actual costs of medical bills.

“We were able to thread the needle,” said Republican state Sen. Bo Hatchett of Cornelia, one of the critics of the initial proposal. “We removed problematic elements from the previous bill and we brought forth an amendment that reflects fairness and balance.”

Credit: Arvin Temkar/AJC

Credit: Arvin Temkar/AJC

Although Kemp enjoys high approval ratings, a growing national profile and tremendous political clout, final passage of the measure 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. Well-funded opponents have looked for ways to halt, or slow, its progress in the Legislature.

“My constituents, business owners, citizens are looking for relief on insurance premiums,” said state Sen. Derek Mallow, a Savannah Democrat who assailed supporters of the bill for failing to make firm promises about lower premiums. “It’s all conjecture about the numbers.”

The governor, of course, has plenty of allies. He spent much of his second term laying the groundwork for this fight, and he’s backed by House Speaker Jon Burns and Lt. Gov. Burt Jones. Several outside groups financed seven-figure campaigns to push the bill.

Kemp has used a mix of strong-arm tactics and a velvet glove approach to marshal the bill this far through the legislative process. He’s hoping it could have more lasting impact than the last sweeping rewrite of litigation rules, passed in 2005, which was steadily rolled back by court decisions.

The governor acknowledged he stopped short of pressing to reinstate a cap on jury awards because he wanted a chance to win bipartisan votes. His adviser, Hall, said his team worked more with opponents than supporters to craft the language.

The governor’s tough talk of threatening primaries and summoning lawmakers back to a special session has ruffled feathers in the Legislature, though few Republicans were willing to publicly voice their frustrations.

To Kemp, however, there is good reason for an all-out push after delaying the effort last year.

This might be Kemp’s last shot to secure a rewrite that’s been atop the GOP wish list for a generation. Attention will soon shift to the race to succeed Kemp, and his influence may wane as he focuses on burnishing his legacy and mapping out his political future.

“The governor recognizes we have a choice,” said Republican state Sen. Greg Dolezal of Cumming. “And doing nothing is not a choice.”

What’s in 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 allows plaintiffs to show jurors actual medical costs as well as initial bills, which 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.