A push to limit lawsuits in Georgia is getting increasing blowback

National News

Georgia Republican Gov. Brian Kemp’s priority bill to limit lawsuits and large jury verdicts has gotten increasing pushback after an initial boost in support as the legislative session enters its final weeks.

Crowds of business owners and doctors swarmed the Capitol to back Kemp when he announced the proposal, also called tort reform. Now, people who have sued businesses are rallying as Democrats argue the bill is a handout to businesses and insurance companies.

And a number of House Republicans remain skeptical, even though House Speaker Jon Burns said he is confident it will pass.

“There are two Republicans that are trial lawyers, but I’ve heard a more broad group of people express concerns with the bill as currently written,” said Rep. Trey Kelley, a Cedartown Republican.

Millions of dollars have gone into lobbying for and against Kemp’s package. Here are some reasons why people are concerned. Kemp’s bill would require anyone who sues a business or property owner over misconduct or injuries on their property to prove the owner knew about a specific security risk and physical condition on the property, but didn’t provide adequate security.

Women who were sex trafficked and raped at hotels have begged lawmakers to oppose the bill as written.

“Surely, the hotel would notice, with 40 cars coming in and out at any given moment ... the girls walking around in their underwear, never alone, never speaking unless spoken to,” Michal Roseberry, human trafficking survivor, said at a news conference Thursday.

There is an exception for human trafficking victims in the proposed bill, but the kinds of claims they can bring are limited. Opponents plan to offer a broader amendment.

“Even with that exception, as the bill is right now, nobody would ever file a sex trafficking case in Georgia,” said Jonathan Tonge, a University of Georgia law professor who litigates human trafficking cases.

Kemp’s bill would require anyone who sues a business or property owner over misconduct or injuries on their property to prove the owner knew about a specific security risk and physical condition on the property, but didn’t provide adequate security.

Women who were sex trafficked and raped at hotels have begged lawmakers to oppose the bill as written.

“Surely, the hotel would notice, with 40 cars coming in and out at any given moment ... the girls walking around in their underwear, never alone, never speaking unless spoken to,” Michal Roseberry, human trafficking survivor, said at a news conference Thursday.

There is an exception for human trafficking victims in the proposed bill, but the kinds of claims they can bring are limited. Opponents plan to offer a broader amendment.

“Even with that exception, as the bill is right now, nobody would ever file a sex trafficking case in Georgia,” said Jonathan Tonge, a University of Georgia law professor who litigates human trafficking cases.

Trial lawyers are worried that other changes would drag out trials and delay preparation. Lawyers and doctors dispute whether fair compensation is the face value of a medical bill or only the portion an individual directly paid.

Opponents also question whether the problems the bill claims to address exist, and if it would actually solve them.

For example, doctors have said unfair lawsuits make it hard to recruit talent to rural areas and lead them to administer unnecessary medical tests. They also say they’re getting slammed by rising medical malpractice premiums. In an analysis for the Georgia Trial Lawyers Association, Northwestern University Professor Bernard Black said it’s difficult to recruit doctors outside of urban areas nationwide.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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