Every year, the American Tort Reform Foundation publishes a “Judicial Hellhole” report which highlights the top jurisdictions for unfair and unbalanced civil justice systems. The jurisdictions that make the list are typically known for excessive lawsuits, exorbitant damage awards and unfair and biased trial practices. Georgia has made the list six years in row, making the top spot in both 2022 and 2023, due to several nuclear verdicts, judges allowance (if not promotion) of plaintiff bar’s reptile theory tactics, expansive premises liability and “gotcha” bad faith liability. Just when we thought Georgia might actually take pride in its tenure on the “Judicial Hellhole” list, in April Georgia surprised us with its passage of bills SB 68 and SB 69, Georgia’s most expansive tort reform measures in at least 20 years.
Key Highlights of SB 68:
Premises Liability from Negligent Security: This provision addresses the surge in negligent security cases that have driven runaway and nuclear verdicts in recent years and placed undue burden on both business owners and insurers alike. Under SB 68, property owners or security contractors are only liable for injuries caused by third-party wrongful conduct on premises, if they could reasonably foresee and mitigate specific risks. Liability is excluded for injuries to trespassers or those arising from felonious activities on the premises.
Anchoring and Phantom Damages: The most controversial sections of SB 68 relate to the prohibition of anchoring and phantom damages. Anchoring is a tactic used where a jury is asked to consider dollar figures that are unrelated to the facts of the case but heavily influence the jury in determining damages and phantom damages are the gross amount of medical charges a plaintiff is billed for treatment of injuries versus the actual reduced amount that is actually paid. SB 68 not only limits recoverable damages to the reasonable value of medically necessary care, treatment, or services and outlines evidentiary rules to support reasonableness, but it also prohibits plaintiffs from imploring anchoring tactics to unduly increase jury awards.
Bifurcation: The bill allows for liability and damages to be tried separately, reducing the potential for prejudicial influence on juries. The jury will first be asked to consider if the defendant(s) are liable and if they find that is the case, a second trial will be held to determine the appropriate award of damages.
Seat Belt Defense: Juries can now consider whether an injured party was not wearing a seat belt in an auto accident when determining recovery amounts.
Senate Bill 69, also signed into law in April and will take effect January 1, 2026, establishes guardrails for third-party litigation funding, a rapidly growing industry that has contributed to prolong litigation and higher settlements ad introduces some much-needed transparency and regulation to this space. The bill creates a disclosure regime for litigation funders, limits foreign ownership of litigation funders, makes the involvement of litigation funding discoverable in civil cases, and all litigation funders must register with Georgia’s department of Banking and Finance.
Skyward Specialty Chairman & CEO Andrew Robinson is an active voice against litigation financing and its impact on the insurance industry.
Why Tort Reform Matters to the Insurance Industry
Abuses of the legal system have transformed it into a tool for profiteering, causing widespread economic harm at both the state and national levels. Excessively litigious tort environments drive up business costs, strain resources and economic opportunities. At its core, tort reform aims to restore fairness and balance to the civil justice system. For the insurance industry, and for companies like Skyward Specialty, this is not just a legal matter, it’s a critical business issue.
Excessive litigation and unpredictable jury awards create instability in underwriting and claims practices. They lead to inflated insurance premiums, reduce the availability of coverage in high-risk jurisdictions, and ultimately harm consumers and businesses alike.
Skyward Specialty, like many insurers, strongly support thoughtful and adequate tort reform. We believe in protecting the right to fair compensation for genuine harm, while also guarding against legal system abuse that drives up costs and undermines trust. Runaway litigation and nuclear verdicts distort the risk landscape and challenge insurers’ ability to provide sustainable, affordable coverage, especially in specialty lines where risks are already complex.
Tort reform helps to create a more predictable and just legal environment which benefits not only insurers but policyholders, businesses and consumers. It’s a vital part of fostering a healthy economy and a fair civil justice system.
A Step Forward, But the Journey Continues
These actions by Georgia’s legislature are certainly a step in the right direction. SB 68 and SB 69 will likely usher in positive change to the legal landscape in Georgia and it speaks volumes for the legislature to directly attempt to tackle the legal system abuse that has plagued the state of Georgia for decades. Recently, Florida and Louisiana, also known for problematic legal systems, enacted similar tort reform measures, signaling a broader movement across the country. However, true reform doesn’t happen overnight.
Although we are optimistic with the Georgia tort reform actions, we must recognize that this is only the beginning and there is still a long way to go. The extreme legal climate in Georgia, and other states, developed over years and it will take continued advocacy, thoughtful policymaking and collaboration among legislators, legal professionals, insurers, businesses and consumers to fully restore balance. True tort reform will not occur until there is a balanced approach that addresses both the concerns of reducing frivolous lawsuits and ensuring fair compensation for genuine claims.
At Skyward Specialty, we are committed to doing our part to supporting tort reform initiatives that promote fairness, reduce abuse and protect the integrity of the civil justice system. We applaud the actions taken by the Georgia legislature and hope that the legal climate is shifting in a positive direction.