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Senate Majority Caucus Chairman Jason Anavitarte, R-Dallas, has announced legislation intended to close what he described as a loophole that the bill's backers say allows trial lawyers to circumvent Georgia's apportionment statute.
Senate Bill 203, also known as the Trucking Opportunity Act of 2023, is a package of reforms related to trucking. Included in these reforms is the repeal of provisions authorizing the joinder of motor carriers and their insurance carriers in tort and contract causes of action. In addition to Anavitarte, the bill has the co-sponsorship of 16 other Senate Republicans and Sen. Donzella James, D-Atlanta.
Georgia state Sen. Jason Anavitarte, R-Dallas. (Courtesy photo) Backers of bill framed it on Friday as "legislation to protect trucking companies from abusive lawsuits." In particular, Anavitarte cites the Georgia Supreme Court's 2021 opinion in Alston & Bird LLP v. Hatcher Management Holdings. According to the press release, when paired with existing case law, the ruling can be abused by a plaintiffs attorneys to file separate, individual lawsuits against a commercial motor vehicle operator, a motor carrier and an insurer. This strategy would allow trial lawyers to circumvent Georgia's apportionment statute and avoid having to apportion the award of damages among the parties who are liable according to the percentage of fault of each person.
The relevant portion of the bill would remove subsection C of 40-1-112 of the Georgia Code, which allows a person to join the motor carrier and the insurance carrier in the same tort or contract action.
"America is still in the middle of a supply chain crisis. That crisis is exacerbated by a shortage of truckers," Anavitarte said. "The last thing this economy needs is trial lawyers exploiting a loophole in Georgia law that forces motor carriers to pay verdicts and settlements never envisioned by the Georgia legislature."
However, Adam Malone, president of the Georgia Trial Lawyers Association is skeptical of the bill's intent.
Adam Malone, Malone Law. (Courtesy photo) "Neither the Alston & Bird decision nor apportionment have anything to do with direct action lawsuits. Direct action merely allows a truck accident victim to hold the transient driver, particularly out-of-state drivers through Georgia, accountable through their insurer," Malone wrote to the Daily Report in an email. "By contrast, the Alston & Bird decision was about a scrivener's error in the apportionment statute, which we worked with Majority Leader Chuck Efstration to address in HB 961 last session, which Senator Anavitarte voted in favor of thereby mooting any alleged apportionment concerns."
The state Supreme Court opinion in the Alston & Bird case looked at whether apportionment was applicable in single-defendant cases, finding that it only applies in cases "brought against more than one person." While Malone didn't comment on how this opinion could have been used in conjunction with other case law to exploit the loophole Anavitarte is concerned about, the text of HB 961 did change the apportionment statute to apply to actions brought against "one or more persons," effective May 13, 2022.
"We are curious for the Senator to explain why he is pushing a policy that puts the interests of insurance companies and their out-of-state truck drivers over Georgian victims and their families," Malone concluded.