Georgia Legislature Passes Litigation Reform Bill

By Matt Brady

NU Online News Service, Feb. 15, 9 :14 p.m. EST?The Georgia Senate gave final approval yesterday to legislation that will cap non-economic damages in medical malpractice lawsuits as well as implementing other legal reforms.

The measure now goes to Gov. Sonny Perdue, who is expected to sign it into law.

A spokesperson for the governor said today that the bill had not yet been physically delivered to the governor. Additionally, the spokesperson said, while the governor is "very familiar" with the legislation, he will review the bill before signing it into law.

The insurance industry and other tort reform advocates hailed the bill's passage as a means of improving the state's business climate and ensuring greater availability of healthcare.

"S.B. 3 should improve the stability and predictability of Georgia's liability environment for insurers, and that's good news for consumers, health care providers and businesses," said Raymond Farmer, American Insurance Association assistant vice president, Southeast region.

He added that, "The ability to attract and keep businesses, medical facilities and providers is directly related to a state's litigation environment, and in recent years Georgia's has shown signs of weakness."

Mr. Farmer related that, "A multi-year legislative effort to address the issue was not successful until this year, when the Republican leadership in the House and Senate, a well as the state's business and medical communities, made tort reform their top priority."

The American Tort Reform Association noted that hostile litigation environments can be a driving force in lowering access to healthcare, as doctors to give up specialty practices, leave the profession altogether or relocate to other states with more balanced litigation systems.

Georgia, the ATRA noted, is considered a "crisis" state by the American Medical Association, but legislative measure similar to those in SB 3 have helped improve the conditions of other jurisdictions.

"Other states, including Mississippi and Texas, have recently enacted similar legislation that has improved those states' business climates and has helped keep doctors
where their patients need them," said ATRA President Sherman Joyce.

SB 3 will cap non-economic damages at $350,000 for medical malpractice cases with a single defendant and $1.05 million for those involving multiple defendants.

Additionally, the bill would strengthen standards for expert witnesses, limit emergency room liability and provide incentives for out-of-court settlements.

The bill also would enact venue reforms for cases with multiple defendants, requires the reporting of judgments and settlements to the state Board of Medical Examiners and removes the joint and several liability system, in which one defendant could be liable for an entire damage award, regardless of their actual liability.