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Thursday, November 14, 2024

Gov. Kemp hosts roundtable discussing civil litigation impact on small businesses

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Governor Brian Kemp (2022-2026) | GOVERNOR BRIAN P. KEMP OFFICE of the GOVERNOR

Governor Brian Kemp (2022-2026) | GOVERNOR BRIAN P. KEMP OFFICE of the GOVERNOR

Governor Brian P. Kemp, alongside other state leaders, hosted a roundtable discussion with small business leaders today in Atlanta to address civil litigation policies impacting Georgia's business climate and affordability for residents. This session is the first of three planned discussions announced by Governor Kemp earlier this month to engage stakeholders statewide and inform policy proposals for the upcoming legislative session.

“A little over a year ago, I announced my intention to work toward common-sense lawsuit reform while still bringing jobs to Georgia and maintaining our position as the No. 1 state for business,” said Governor Kemp. “We took the first meaningful steps on that issue this past session through the Data Analysis for Tort Reform Act. As we move forward, I want to thank the legislature and those from around the state who have been engaged on this issue as we work together to address this growing problem.”

The Data Analysis for Tort Reform Act, sponsored by Floor Leader Rep. Will Wade, was designed to gather necessary information to guide further steps in this multi-year effort. Both chambers of the General Assembly also worked on related legislation during the 2024 session, including SB 426 and SB 83.

“I want to thank Governor Kemp for bringing this group together,” said Lieutenant Governor Burt Jones. “I have always supported measures to get Georgia's business community the relief it needs. We made legitimate strides last session to level the playing field when a case reaches the courtroom.”

Speaker of the House Jon Burns emphasized a balanced approach: “Ensuring that Georgia remains the number one state for business while also protecting consumers' rights requires a balanced approach to litigation reform.”

Insurance and Safety Fire Commissioner John King expressed appreciation: “Lawsuit abuse reform is needed to ensure Georgia and its citizens stay at the forefront of states to do business.”

Governor Kemp highlighted that all sides of the lawsuit reform issue would be heard throughout this process, acknowledging its complexity but stressing its importance for stabilizing costs.

Peter Skiko of the Georgia Independent Security Association commented on industry challenges: “Security companies are facing a two-pronged challenge...a growing number of lawsuits brought about by recent court decisions and an inability to find affordable insurance in Georgia’s current litigation climate.”

John Sambdman of the National Federation of Independent Business remarked on financial impacts: “Frivolous lawsuits lead to higher insurance rates, which small business owners can't afford, especially with inflation driving up costs.”

Matt Jones from the Georgia Association of Convenience Stores noted broader impacts: “Virtually everyone has seen premium spikes in personal insurance along with significant increases in business insurance premiums.”

John Triplett from the Georgia Food Industry Association discussed operational concerns: “The increased cost of liability insurance could result in closures causing food deserts."

Alexis Kinsey from the Georgia Restaurant Association emphasized family businesses' struggles: "The prevalence of frivolous lawsuits jeopardizes our ability to grow, provide jobs, and serve communities."

Will Wilson from Independent Insurance Agents of Georgia praised legislative efforts: "Excessive litigation drives up insurance premiums and hinders businesses' ability to thrive."

Charles Tarbutton from Georgia Motor Trucking Association called for legislative action: "Balance must be restored...for our state to continue prospering."

Robert Hill from Georgia Child Care Association highlighted benefits for family businesses: "Reducing unnecessary lawsuits means we can invest more in quality, safety, and community future."

Hosted by Samson Tours, today's roundtable saw participation from various stakeholders committed to addressing these issues collaboratively.

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