Nuclear Verdicts and ‘Lawsuit Lottery’ Cost Every Georgian $1,372 Annually, American Tort Reform Association says
Georgia dropped from the “Judicial Hellholes®” top spot and is now ranked No. 4 in the American Tort Reform Foundation’s annual report and rankings released this week.
The ranking reduction comes on the heels of what the ATRA says is “Gov. Brian Kemp prioritizing legal reform and holding several solution-oriented roundtables with industry leaders ahead of the 2025 legislative session.”
“The Peach State’s persistent status as a Judicial Hellhole® should alarm every Georgian,” Joyce said. “Despite these challenges, we’re encouraged by Gov. Kemp’s focus on addressing lawsuit abuse and are optimistic that state leaders can work together to provide relief for Georgia families from the economic burden of costly and frivolous litigation.”
In November, the Georgia Office of the Commissioner of Insurance and Safety Fire released an extensive report finding a 25% increase in claims and highlighting the need for civil justice reform to address growing insurance rates.
From the ATRP press release:
ATRF notes in its report the increasing prevalence of high-dollar, nuclear verdicts® coming out of Georgia, driven in part by inflated awards for medical costs. Juries in Georgia also aren’t given the full picture in certain trials due to an outdated rule preventing juries from learning whether a seat belt was used in cases involving automobile accidents.
Last month, however, the Georgia Court of Appeals challenged that rule when it threw out a $1.7 billion verdict levied against Ford Motor Co. in 2022, noting the trial court should have allowed evidence of misuse of the seatbelts. The case is set to go before the Georgia Supreme Court next year.
“This ruling from the Georgia Court of Appeals highlights the need for legislative clarity on the admissibility of seat belt evidence, which could significantly impact liability determinations in automobile accident cases,” Tiger Joyce, American Tort Reform Association president said. “For now, the onus lies with the Georgia Supreme Court to determine whether this, among other critical pieces of evidence, will be permissible.”
ATRF highlighted several other top issues in Georgia courts this year, including:
- Courts Embrace Trial Lawyers’ Tactics: Trial lawyers employ various strategies during trials to secure outrageous awards in Georgia. One tactic, called “anchoring,” involves suggesting an unreasonably large award before a jury, with that number becoming an “anchor” point in juries’ minds. Trial lawyers also use the “reptile theory,” appealing to jurors’ basic survival instincts rather than reason or evidence. To increase payouts, they give “phantom” damage amounts, a legal sleight of hand where inflated medical bill amounts are presented as evidence – figures never actually paid by their client – artificially ballooning payouts.
- Expanded Premises Liability Creates Legal Minefield: The Georgia Supreme Court’s expansion of premises liability creates an environment of uncertainty and excessive risk for Georgia property owners. Businesses can be held responsible for criminal acts committed by third parties on or near their property – even if they had no way to predict or prevent such acts.
- “Standard of Triviality” Ripe for Abuse: ATRF notes that Georgia courts use a flexible “standard of triviality,” creating almost no restriction on when – and to what extent – “nominal” damages can be awarded in personal injury cases. The Georgia Court of Appeals opened the doors for abuse this year when it upheld a $1 million nominal damages award for a plaintiff who suffered no visible injury when a retail employee bumped into the plaintiff’s motorized shopping cart, reasoning the amount is “nominal” because it’s less than one-fifth of the $6.5 million the plaintiff initially requested.
“This reasoning is turning Georgia into a lawsuit lottery and opening the floodgates for even more nuclear verdicts®,” Joyce said. “It’s like saying a Ferrari is a bargain because it costs less than a private jet. Georgia’s courts are sending a dangerous message: come to our state, where even the smallest incident can lead to a million-dollar payout.”
A recent report revealed that Georgia residents pay an annual “tort tax” of more than $1,372 — 32% higher than the average tort tax in its bordering neighbor states. Atlanta residents pay even more, at $2,084 per person each year. Further, the state loses more than 137,600 jobs each year due to excessive tort costs.
“Georgia’s courts have become a breeding ground for excessive verdicts that not only hurt businesses but drive up costs for everyone,” Joyce said. “It’s time to put an end to lawsuit abuse and make Georgia’s legal system work for everyone — not just trial lawyers.”
The full Judicial Hellholes® report and 2024-2025 rankings are available at JudicialHellholes.org.
