Governor Kemp Pushes Legal Reforms to Ease Financial Strain on Families
Georgia’s rising costs have left families and businesses scrambling to keep up. Inflation has made everyday necessities like groceries, gas, and insurance more expensive. But according to state leaders, another factor is quietly draining household budgets: excessive litigation.
A recent study from the Perryman Group found that lawsuit-related expenses in Georgia cost the average family of four more than $5,000 last year. That price tag includes settlements, legal fees, and court costs—making Georgia one of the most expensive states for litigation in the country. Now, Governor Brian Kemp is leading a push for tort reform, arguing that reining in lawsuit abuse is critical to stabilizing costs for consumers and businesses alike.
The High Cost of Litigation
The financial burden of lawsuits doesn’t just hit major corporations. Small businesses, healthcare providers, and insurers all face the consequences of what critics call “lawsuit abuse.” These costs often trickle down to consumers in the form of higher prices on goods and services.
According to industry groups, Georgia’s legal climate has made it a hotspot for excessive settlements and high attorney fees. Proponents of reform argue that without changes, businesses will struggle to grow, insurance premiums will keep rising, and economic competitiveness will suffer.
One of the major targets of the proposed legislation is Georgia’s “nuclear verdicts”—jury awards that far exceed actual damages. These sky-high settlements have become more common in personal injury and medical malpractice cases, adding another layer of costs to businesses and insurers.
Governor Kemp’s Plan
Governor Kemp’s legislative proposal aims to curb lawsuit abuse through several key measures:
- Limiting non-economic damages: Placing caps on payouts for pain and suffering claims to prevent excessive awards.
- Adjusting attorney fee structures: Ensuring that legal fees are proportionate to settlements and don’t inflate costs for businesses.
- Curbing third-party litigation funding: Reducing the influence of outside investors who fund lawsuits in exchange for a cut of the payout.
- Strengthening liability protections: Shielding businesses from frivolous lawsuits, particularly those that arise from accidents beyond their control.
Kemp has called excessive litigation one of the “biggest threats to the state’s future,” emphasizing that legal reforms will put money back into the pockets of hardworking Georgians.
Opposition Pushes Back
Not everyone agrees with the governor’s approach. Trial lawyers and consumer advocacy groups argue that limiting lawsuits could hurt victims who deserve fair compensation. They say capping damages and restricting legal fees would only benefit corporations while leaving injured individuals with fewer options to seek justice.
Opponents also contend that there’s little evidence tort reform will significantly lower costs for consumers. Instead, they argue, it may discourage legitimate claims and reduce accountability for businesses engaged in wrongful practices.
Business Community Sees an Economic Boost
For the state’s business community, the proposed changes are a welcome relief. Georgia Chamber of Commerce officials have long pushed for tort reform, arguing that excessive litigation makes the state less attractive for investment. By reducing legal costs, they say, companies can reinvest in expansion, hiring, and wage growth.
Insurance groups also support the legislation, hoping that limiting lawsuit payouts will slow the rise of auto and health insurance premiums. According to data from the American Property Casualty Insurance Association, legal expenses contribute significantly to rising insurance costs nationwide.
Will Georgia Follow Other States?
Georgia is not the first state to tackle tort reform. Texas, Florida, and Tennessee have all passed similar legislation in recent years, with mixed results. Some states saw immediate declines in insurance premiums and legal costs, while others faced legal challenges that slowed implementation.
Legal analysts predict that if Georgia moves forward with reforms, challenges in state courts are likely. Opponents may argue that limits on damages violate constitutional protections, setting up a legal battle that could delay any potential cost savings.
What Comes Next?
The legislative fight over tort reform is expected to be one of Georgia’s most contentious policy debates this year. With inflation already straining household budgets, Kemp and his allies will push to frame the issue as a financial necessity. Meanwhile, opponents will fight to keep legal protections for consumers and injury victims intact.
For now, Georgia families will be watching closely to see whether lawmakers take action—or whether the costs of litigation continue to climb unchecked.
