Atlanta, Georgia – Recent findings from the American Tort Reform Association reveal that hefty court verdicts exceeding $10 million are having a detrimental impact on Georgia’s economy, driving up costs for consumers and threatening jobs. The report identifies Georgia as the fourth state in the organization’s “Judicial Hellholes” ranking, indicating a troubling trend in excessive jury awards that have prompted many businesses to settle lawsuits for substantial amounts.
One case highlighted in the report involved a $50 million verdict in DeKalb County related to dental malpractice. A patient claimed she experienced severe pain following a root canal. This verdict followed a prior trial where jurors initially awarded $10 million, a sum later vacated by a judge citing punitive damages that were disproportionate to the evidence presented.
In another instance, a driver in Gwinnett County received a settlement of $32.5 million after a collision with a tractor-trailer, despite the defendants denying any wrongdoing. Additionally, a Gwinnett County jury awarded Ford Motor Company a staggering $1.7 billion in a case concerning a tragic rollover accident that took the lives of a couple. However, this verdict was reversed by the Georgia Court of Appeals, partially due to the exclusion of evidence regarding the couple’s use of seatbelts, a decision criticized by the association as outdated.
The financial implications of these so-called “nuclear verdicts” are significant. According to the association, Georgia residents pay an annual “tort tax” of approximately $1,373 due to these excessive jury awards. The findings from a study by the Perryman Group also suggest that Georgia loses around 137,658 jobs each year as a consequence of the prevailing litigation climate.
Recognizing the urgent need for reform, state officials are prioritizing tort reform as they prepare for the upcoming 2025 legislative session. In a recent statement following a roundtable discussion on tort reform, Governor Brian Kemp emphasized the adverse effects of the current litigation environment, stating it poses elevated costs for consumers and presents barriers for new job creators.
Moreover, Insurance Commissioner John King reported that the number of tort claims filed from 2019 to 2023 has surged by nearly 25% compared to the earlier five-year period. His analysis indicates that approximately 89% of these claims are related to private passenger auto liability, a rise that correlates with increasing insurance premiums.
King expressed concern for Georgia families, highlighting the danger posed by ongoing lawsuit abuse, which could force local businesses to close and reduce access to essential services. He noted that small business owners are often left to shoulder the burden of compensating for the wrongful acts of others, further complicating their ability to maintain coverage.
This ongoing struggle between the legal landscape and economic vitality continues to prompt discussions among lawmakers and stakeholders in Georgia.
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