Just a few days into Georgia’s 2025 legislative session, proposed new limits on lawsuit awards is a priority trumpeted by business groups, some lawmakers and the governor alike as one of the top issues of the year.

At last week’s State of the State address, Gov. Brian Kemp emphasized the importance of passing legislation to transform Georgia’s legal landscape by the end of the 2025 session in early April, citing a rise in insurance rates or difficulty acquiring coverage that he says threatens businesses across the state.

“Small business owners reported insurance premiums up anywhere from 30% to over 100% over the last few years, costing them hundreds, hundreds of thousands or millions or more just to get basic coverage,” he said during his address. “For too many of them, that meant holding back on hiring more employees, waiting to grow their business, or making difficult decisions about whether or not they could even keep the lights on. For others, the biggest problem was a complete lack of insurance options or the threat of paying thousands or millions to fend off excessive lawsuits.”

Proponents of overhauling Georgia’s legal landscape say they aim to create more balance between plaintiffs and defendants in Georgia’s court system, often citing an American Tort Reform Foundation ranking which listed Georgia as one of the top five “judicial hellholes” in the country in 2024. 

Kemp has yet to release a specific policy proposal, but a recent report from Georgia Insurance and Safety Fire Commissioner John King could point to the direction state leaders will take in pursuing changes. The report, commissioned as a result of last session’s Kemp-backed House Bill 1114, initiated a data-collection effort designed to examine Georgia’s current insurance landscape and make recommendations to make the balance of power more friendly to business.

But proponents of the yet-to-be-detailed proposals will be up against Georgia’s civil trial attorneys – some of who serve in the Legislature – and others who are wary of changes that limit access to justice for aggrieved Georgians.

Here are some of the report’s recommended policy changes.

Limiting ‘nuclear verdicts’

One of the most significant changes pushed by the Georgia Chamber of Commerce is limiting “nuclear verdicts” — or damages that exceed $10 million. 

Anecdotal evidence cited in the report argues that legislation limiting non-economic damages — such as money awarded for pain and suffering — may help reduce the frequency of large payouts, which business leaders argue are driving up insurance costs across the board.

“An insurance claim is, ‘you won the lottery,’ and we have to change that back,” King said at the Georgia Chamber of Commerce’s annual Eggs and Issues event last week. “This is to fix your damages, to get you back on your feet, to take care of your injuries, but this is not a lottery.”

One proposal to reduce large jury awards is to limit the use of “anchoring” — or allowing a plaintiff’s lawyers to suggest a monetary value as proposed compensation for pain and suffering. The practice is explicitly outlined in Georgia code, but advocates for limits on lawsuit awards argue that it sets the stage for juries to hand unreasonably high damages to plaintiffs.

“Georgia is one of the only states having a specific statute that allows ‘anchoring,’” the commissioner’s report says. “These unique factors and the increase in nuclear verdicts are reasons why Georgia continues to be identified in the American Tort Reform Association’s ‘Judicial Hellholes’ report as the nation’s most problematic jurisdiction.”

However, Democrats pushed back on the assertion that substantial lawsuit awards are a significant driver of insurance rate increases.

“What we really have to understand is, is there integrity in their position on why rates keep rising for Georgians?” said Rep. Tanya Miller, an Atlanta Democrat who serves as chair of the House Minority Caucus. “It is not, I think, accurate to say that jury verdicts are the sole reason for why insurance rates are rising. I would like to see a robust discussion had about whether and how insurance companies are forced to be transparent when they raise their rates on our citizens.”

Former state Rep. Matthew Wilson, a personal injury lawyer in Atlanta and member of the Georgia Trial Lawyers Association’s executive committee, also questioned the commissioner’s report.

To put it bluntly, I think the insurance commissioner’s data analysis is a sham, and we are all being lied to,” he said, adding that the data collected from insurance companies did not support some of the report’s conclusions.

“One of the big claims that this report says is there’s a crisis of increased [insurance] claims,” he said. “And I think one of the big data points that a number of folks have latched onto here is that there’s been a 25% increase in the number of claims over this 10-year period. But what the commissioner’s report fails to do is to adjust that data for population growth, and when that is adjusted, what the data shows over that 10-year period is that actually, claims have been relatively stable and if anything, they’re slightly decreasing in recent years.”

The Georgia Trial Lawyers Association is hoping to collaborate with the governor’s office and state legislators to craft policy proposals that are fair to both sides, Wilson said. But reforms that limit consumer’s constitutional rights are “going to be a non-starter.”

Limiting liability on private property

Legislation that limits lawsuits against business owners for accidents that occur on their property might be another tactic that lawmakers pursue during the 2025 session. 

There have been recent multimillion dollar settlements awarded in Georgia, including a $16 million verdict against Amazon in 2022, and a $45 million verdict against CVS that led the Georgia Supreme Court to set a new precedent on the kinds of evidence that juries can account for when awarding damages. 

Chris Clark, the president and CEO of the Georgia Chamber of Commerce, said overhauling the current premises liability rules will be one of his organization’s top priorities going into the 2025 legislative session.

“It shouldn’t be legal for two bad guys to come on your property, hurt each other and then you’re to blame and you get sued for it,” he told reporters during the chamber’s Eggs and Issues breakfast.

Limiting third-party lawsuit funding

While some aspects of the proposed lawsuit litigation overhaul are Georgia-specific, attempts to regulate the use of third-party sources of funding for lawsuits are popping up nationwide. The use of third-party funding for damages lawsuits is a multibillion dollar industry, according to the U.S. Chamber of Commerce, and works by allowing hedge funds and other investment groups to finance lawsuits in exchange for a portion of anticipated damages awarded to the plaintiffs.

Critics of the practice, which is sometimes referred to as champerty, say that it allows private equity groups to exert influence over trials, and may give foreign actors access to sensitive information they would not otherwise be able to obtain. Plaintiffs are also not required to disclose the use of outside funding, allowing these subsidies to go unregulated.

Third-party litigation funders are “not just trying to help people win, they’re trying to collect big rates of return on their investments in suing insurance companies,” said Harold Weston, a business professor at Georgia State University who serves as director of the undergraduate risk management and insurance program. “That’s not the way it should work.”

States including Indiana, Louisiana and West Virginia all passed new restrictions against the practice in 2024, requiring plaintiffs to disclose any use of third-party funding. Weston said that adopting similar reforms in Georgia could give both judges and juries a clearer sense of what forces may be influencing a case before deciding whether to award damages.

“Juries don’t know this,” he said. “Courts often do not know this, because these investors — third party finance — are not disclosed to any of them.” 

Savannah and the surrounding area are under a Winter Storm Warning beginning at 5 p.m. and last until Noon on Wednesday.

Two inches of snow or more could fall in the area with another inch or two of sleet expected to mix into the storm as it it passes through.

Snow showers are expected to begin around 6 p.m. with a wintry mix beginning later in the evening. Snow, sleet and a wintry mix are expected until around 5 a.m. Wednesday.

Heavy snow, even blizzard conditions, have swept through Louisiana and Mississippi throughout Tuesday.

Stay tuned here for live updates as Winter Storm Enzo takes hold of the South.

Savannah radar. Follow the winter storm

Senior Director of Marketing and Air Service Development Lori Lynah said about 22 or 23 arriving flights have been canceled at the Savannah/Hilton Head Airport for Tuesday while another 4 to 5 departing flights have been canceled. She said future cancelations for Wednesday will be determined depending on the type of precipitation and amount that could possibly accumulate over night.

She advised that air travelers scheduled to head into or out of Savannah/Hilton Head over the next three days contact their air carriers for the latest information on flight statuses.

— Joseph Schwartzburt, Savannah Morning News

Change in Savannah trash collection

With a Monday holiday and an incoming winter storm, the city of Savannah’s sanitation services are on an altered schedule.

Residential garbage collection, recycling and yard collection services were on a one-day delay due to the Martin Luther King Jr. Holiday on Monday, and now services (including street sweeping) will be halted on Wednesday.

Enzo impacts: Winter storm to impact Savannah trash collection. Here is the updated schedule.

Shelters, school closings in Effingham County

Local officials in Effingham County are bracing for a winter storm that is slated to bring freezing temperatures and snow to Southeast Georgia.

Effingham prepares: Leaders in Effingham County brace for winter storm

Wednesday school closings in Bryan, Effingham counties

School administrators in Bryan County and Effingham County are taking extra precaution to protect students and staff as a winter storm is expected to make landfall Tuesday afternoon.

More: School officials in Bryan and Effingham County to keep schools closed Wednesday

State of Emergency in Savannah

The National Weather Service has issued a Winter Storm Warning for Chatham County through Noon, on Wednesday, Jan. 22. From Tuesday night through possibly Thursday morning, the service is calling for a mix of snow and freezing rain in the Savannah area, which has impacted operations at local schools, companies and institutions across Chatham County.

Read a roundup of the impacts from closings to remote learning shifts.

Savannah State of Emergency declared: School and business closings as winter weather closes in

Savannah prepares for winter storm

Chatham County leaders and officials gathered in downtown Savannah to discuss the incoming winter weather that has already started chilling Coastal Georgia and surrounding areas.

Chatham County and Southeast Georgia are currently under a cold weather advisory, and the winter storm watch has been upgraded to a winter storm warning as of this afternoon. The National Weather Service is forecasting the accumulation of snow, or freezing rain in the area starting in the afternoon Tuesday and ending Wednesday morning.

More: Here’s what Chatham County, municipalities are doing to prepare for winter weather

Historic pictures of snow in Savannah

ATLANTA – Kaiser Permanente has named Corwin N. Harper as the new president of Kaiser Foundation Health Plan of Georgia.

Release:

Kaiser Permanente has announced that Corwin N. Harper has been named president of Kaiser Foundation Health Plan of Georgia, effective January 21, 2025. As regional health plan president, Harper will lead the organization’s focus on providing integrated, high-quality health care and coverage for more than 327,000 Kaiser Permanente members.

Harper brings 39 years of health care and hospital leadership experience to his position as regional president, including 25 years of prior success at Kaiser Permanente. He served in multiple leadership positions at Kaiser Permanente in Northern California, including various senior vice president, medical group administrator, and area manager roles. He also served as director of hospital operations with The Permanente Medical Group.

Most recently, he served as CEO of Ochsner LSU Health North Louisiana, an integrated academic health system with three acute care hospitals, a behavioral health hospital and 20 clinics with over 600 students, residents, and faculty. Earlier, as regional CEO and chief growth officer for Ochsner Health, he led the turnaround efforts of hospitals and clinics on the Northshore of Louisiana and the Mississippi Gulf Coast.

“We are pleased to welcome Corwin back to Kaiser Permanente,” said Brandon Cuevas, executive vice president, National Health Plan, for Kaiser Foundation Health Plan, Inc. and Hospitals. “His deep knowledge of our integrated care model and health plan operations will be crucial in advancing Georgia’s strategic and operational performance to fulfill our mission to provide high-quality, affordable care and service to our members. We are excited to have a leader of Corwin’s experience and commitment to our mission leading our Georgia Health Plan during this exciting time as we continue to expand and invest in the great state of Georgia.”

Harper has served on the University of the Pacific Board of Regents Finance Committee. He is also a board nominee for the American College of Health Care Executives Board of Governors, and preceptor for the U.S. Army Baylor Residency Program. He received a Master of Health Care Administration from Baylor University and a bachelor’s degree in biology from The Citadel.

About Kaiser Permanente

Kaiser Permanente is committed to helping shape the future of health care. We are recognized as one of America’s leading health care providers and not-for-profit health plans. Founded in 1945, Kaiser Permanente has a mission to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. We currently serve nearly 12.5 million members in 8 states and the District of Columbia. Care for members and patients is focused on their total health and guided by their personal Permanente Medical Group physicians, specialists, and team of caregivers. Our expert and caring medical teams are empowered and supported by industry-leading technology advances and tools for health promotion, disease prevention, state-of-the-art care delivery, and world-class chronic disease management. Kaiser Permanente is dedicated to care innovations, clinical research, health education, and the support of community health. For more information, go to about.kp.org.