GA Tort Reform Legislation: The Rationale

Before commenting on the specific components of the legislation, it makes sense to address its rationale.  Governor Kemp and his allies argue that tort reform will lower insurance premiums and improve the economy for consumers, including boosting jobs and lowering costs.  Other than assertions, I have seen little evidence offered that tort law is the reason that Georgia’s insurance premiums are high.  I am willing to assume without evidence that Georgia’s insurance premiums are high, because they are high and increasing almost everywhere.  Recent rates of inflation mean that the cost of repair and replacement for structures and automobiles has increased and also that medical bills are higher.  In short, inflation is a likely culprit in Georgia’s high premium costs.  Is there evidence that unreasonable tort costs also play a substantial role?

At the same time that Governor Kemp is arguing that tort reform is needed, he is also heralding that Georgia is ranked No. 1 for business climate in multiple publications.  It is important to recognize that these two things are not necessarily inconsistent.  It could simultaneously be true that Georgia has the most business-friendly environment in the country and that it has a tort system that is bloated and inefficient.  Governor Kemp and his allies are free to make both points, but it necessarily follows that tort costs are only so important in the overall health of the economy (this is also true for the massive health care system).  If this lesson could be learned, and less sweeping claims were made on behalf of tort reforms, it would be a fantastic step in the right direction.  Tort law is not perfect as is; parts of it could be improved.  Those offering proposed reforms should try and keep claims on behalf of the reforms as reasonable and accurate as possible.