James Jan-Feb 2024 web - Flipbook - Page 80
Insurance Group announced that
it was exiting the commercial
insurance market in Georgia because of “profitability challenges.”
These things will damage Georgia’s
business reputation by causing
increases in insurance premiums
and costs of goods and services.
Another consequence of relaxing the standard for proving reasonable foreseeability in premises
liability cases based on third-party
crime is the likely increase in
nuclear verdicts. Nuclear verdicts
are verdicts that are unreasonably
excessive in relation to the nature
of the injury sustained by the
plaintiff, the amount of medical
bills, and other circumstances
of the case. For example, in 2019
a DeKalb County jury returned
an $81 million verdict for a man
who was shot but not killed in
the parking lot of a grocery store.
Also in 2019, a Fulton County jury
returned a $45 million verdict
for a man who was shot but not
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JAMES
JANUA RY/F E B RUA RY 2024
killed in the parking lot of a drug
store while attempting to sell an
iPad. Nuclear verdicts have been a
problem for many years, and this
problem is likely to become worse
without legislative intervention.
Fortunately, Gov. Brian Kemp
recognizes the need to reform
the law of premises liability. In a
speech at the Georgia Chamber of
Commerce Congressional Luncheon on August 8, 2023, he announced his intention to support
tort reform during the 2024 session
of the General Assembly. Specifically addressing the need to reform
the law of premises liability and
the impact of frivolous lawsuits on
insurance and business costs, Gov.
Kemp said, “business owners live
in fear of being sued for ridiculous
claims on their property.” Gov.
Kemp has not yet specified the
reforms he wants, but there is already a pending bill in the General
Assembly. SB 186 was introduced in
2023 and passed the Senate Insur-
ance and Labor Committee before
being tabled for the remainder
of the session. It would enact the
Georgia Landowners Protection
Act and would provide that a landowner may be liable to an invitee
who is injured by a third-party
crime on its property only if it (1)
participated in the crime, or (2) had
actual knowledge of the specific
threat posed by the third-party
criminal to the invitee and could
have prevented the crime through
reasonable action.
Whether through the enactment of SB 186 or some other law,
reforming the law of premises
liability with respect to claims
against property owners based
on third-party crime is necessary
to level the playing field and to
ensure that Georgia retains its
favorable business climate.
Jacob E. Daly is Senior Counsel with Freeman
Mathis & Gary, LLP in Atlanta. He is also the
president of GDLA Action Fund, Inc.