Rep. Mike Collins, representing Georgia's 10th Congressional District, expressed his support for legal reforms aimed at curbing lawsuit abuse, reducing inflated damages, and stabilizing insurance costs. This statement was made on the Protecting America’s Consumers and Taxpayers (PACT) website on February 5.
"Georgia's current legal environment, plagued by frivolous lawsuits, inflated damages, and nuclear verdicts," said Collins, U.S. Representative. "Driving up insurance premiums and the cost of goods and services. Governor Brian Kemp's comprehensive tort reform package strikes the right balance."
According to a letter posted on PACT's website, Governor Brian Kemp's tort reform package seeks to address rising insurance costs by prohibiting attorneys from using "anchoring" tactics. These tactics involve tying damages to unrelated, emotionally charged examples such as fighter pilot or professional athlete salaries. The reforms aim to ensure that damages reflect actual costs incurred, thereby protecting both plaintiffs and consumers from unnecessary financial strain. Additional measures target predatory third-party litigation funding (TPLF) and promote liability fairness to support businesses and taxpayers.
The Institute for Legal Reform reports that as of 2022, Georgia's tort costs reached nearly $20 billion, accounting for 2.60% of the state’s GDP. This equates to an average of $5,050 per household, placing a significant financial strain on families across the state. These costs are largely driven by nuclear verdicts—jury awards often exceeding $10 million—which are common in cases such as medical liability and premises liability. These verdicts drive up insurance premiums and legal fees affecting both consumers and businesses.
The Georgia Public Policy Foundation indicates that the rise of TPLF in Georgia is contributing to increased auto insurance costs by elevating litigation expenses and the financial risks faced by insurers. TPLF allows wealthy financiers to fund lawsuits in exchange for a share of the settlement or verdict, often resulting in higher legal payouts. These increased costs are passed on to consumers through higher auto insurance premiums, further burdening Georgia households.
Collins' website notes that he is a lifelong resident of Jackson, Georgia, with decades of business experience including founding a successful trucking company that employs over 100 Georgians.
