Tort Reform Legislation Unveiled to Help Businesses

Gov. Sonny Perdue announced that Sen. Bill Cowsert has introduced SB 101 and SB 108, to improve Georgia’s business environment. Sen. Bill Heath introduced SB 75, the Landowner’s Protection Act.

“Through this tort reform package, Governor Perdue is sending an important signal that Georgia is committed to maintaining a strong pro-business environment and that companies who locate here can expect a level playing field in the courts,” said Jim Snyder, chair of the Georgia Chamber of Commerce Law & Judiciary Committee.

SB 101 will protect manufacturers and sellers of medical devices and drugs with a significant presence in Georgia from lawsuits if their product received approval from the federal Food and Drug Administration. The legislation covers defects in design, which undergo a strenuous FDA approval process, but it does not cover defects that occur in the manufacturing process.

This summer, Georgia will host more than 15,000 energy innovators at the biggest bio-life science conference in the world – BIO 2009.

“At the same time the world’s bio companies focus on our state, this legislation will show that Georgia welcomes the bio-tech industry and the high-paying jobs the industry brings,” said Sen. Cowsert. “It is an outstanding economic development tool.”

SB 108 will provide relief to individuals and companies wrongly sued. Current law provides little deterrent for unfounded lawsuits and often makes it cheaper to settle even if a company is wrongly sued. Under SB 108, in most cases if a claim is dismissed at the earliest possible stage, the litigant bringing the claim will be responsible for the prevailing party’s attorneys’ fees. And if the attorney fails to notify the client of this provision, that attorney could pay the award. Last, the bill will make sure that the costly discovery process will not begin until the legal merits of a complaint have been tested.

The Landowner’s Protection Act will protect landowners, who allow hunters to hunt on their property, from being sued for accidents arising during a hunt except those due to gross negligence on the part of the landowner.

Likewise, visitors to an agri-tourism attraction (e.g., visiting a farm to pick peaches) would not be able to win lawsuits filed against the landowner for injuries during such a visit except in cases of gross negligence.