The Georgia House of Representatives has passed a bill that aims to restrict the ability of plaintiffs to file simultaneous lawsuits against motor carriers and their insurers. Lawmakers believe that this measure is crucial in order to uphold the state’s pro-business environment.
The House has given its approval to Senate Bill 426 with a resounding 172-0 vote, thus sending the measure to Republican Governor Brian Kemp for his signature. Supporters argue that this legislation, which aims to prohibit “direct action” against insurance companies, will help stabilize the market and lead to a reduction in insurance rates.
“In a statement, Lt. Governor Burt Jones expressed his optimism about the passing of this bill, highlighting its significance in providing much-needed relief to Georgia’s thriving business community. He emphasized the importance of fostering a business-friendly environment in order to maintain the state’s position as the top destination for business. With this new legislation, the playing field can now be leveled when it comes to courtroom proceedings.”
The measure allows a plaintiff to include the motor carrier and the insurance provider in the same lawsuit if the motor carrier involved is “insolvent or bankrupt” or unable to serve the vehicle driver or the motor carrier.
In a recent column, state Sen. Frank Ginn, R-Athens, emphasized the importance of prioritizing tort reform in order to support workforce development. He explained that a new measure has been introduced to address this issue by placing limitations on the ability of plaintiffs to sue motor carriers and their insurers simultaneously.
“According to Ginn, the existing laws allow for the filing of frivolous lawsuits, which ultimately lead to increased costs for insurance companies. As a result, this hampers economic opportunities within our state. By implementing restrictions on certain types of lawsuits, we can encourage aspiring entrepreneurs to establish their own small businesses.”
Last year, Senate Bill 191, which was a similar measure, did not pass.
