Georgia Enacts Major Tort Reform Legislation

On April 21, 2025, Georgia Governor Brian Kemp signed Senate Bills 68 and 69 into law, enacting broad-ranging tort reform affecting negligent security cases, damages, evidentiary matters, civil practice, and third-party litigation funding. The historic legislation—the first major tort reform in Georgia since 2005—is expected to have significant implications for Georgia litigants. Key changes include:

• Redefining Negligent Security Actions. The new legislation establishes a clearer and narrower framework for when a property owner or occupier or security contractor can be held liable for injuries caused by a third party's wrongful conduct. It defines and limits liability—such as requiring knowledge of prior wrongful conduct on or within 500 yards of the property—and establishes a presumption that most of the fault for any damages should be apportioned to the third party that actually caused the injuries.
• Bifurcating Fault and Damages Verdicts at Trial. The new legislation allows parties to demand bifurcation of most trials in bodily injury and wrongful death cases, with the first phase addressing fault and apportionment and the second phase addressing damages. This may prevent a jury's sympathy for a badly injured plaintiff from affecting its findings as to who was responsible for the injuries. The court may deny bifurcation only when the amount in controversy is less than $150,000 and in certain cases involving sexual offenses against minors.
• Limiting "Anchoring" of Noneconomic Damages. The new legislation restricts "anchoring" arguments, evidence, and voir dire questions regarding the monetary value of noneconomic damages like pain and suffering in trials for bodily injury or wrongful death, permitting such arguments only after the close of evidence and under specific conditions. "Anchoring" is a litigation strategy whereby a jury is given a number or value, sometimes arbitrary, that is intended to be a reference point when determining the actual amount of a plaintiff's damages. 
• Exposing "Phantom Damages" for Medical Expenses. The new legislation limits the recovery of damages for medical and healthcare expenses by allowing defendants to present evidence of not only the amounts healthcare providers charge for such expenses but the amount actually needed to satisfy those charges, which is often far less. By doing so, plaintiffs are limited from recovering damages that were billed, but either written off or never paid—commonly known as "phantom damages." The new law also allows discovery and potential admission of "letters of protection" and similar agreements by a provider to render treatment in exchange for a share of the plaintiff's recovery.
• Restricting Attorneys' Fees. The new legislation limits the recovery of attorney's fees, court costs, and litigation expenses to prevent duplicate recoveries and excludes contingent fee agreements as proof of reasonable fees.
• Allowing Evidence of Seatbelt Usage. Under the new legislation, evidence of seatbelt usage will be admissible as relevant to issues such as negligence, causation, and apportionment of fault, subject to other evidence rules.
• Deadline for Answers and Stay of Discovery. The new legislation revises the timing for responsive pleadings and discovery. Previously, both an answer and any Rule 12 motions were due within 30 days after service of the complaint. Going forward, defendants who file a motion to dismiss need not file an answer until 15 days after the court decides the motion, unless the court sets a different time. Additionally, discovery is automatically stayed until the court rules on the motion to dismiss or if the defendant files an answer, whichever is sooner. The court is required to rule within 90 days after the conclusion of the briefing period. 
• Transparency in Litigation Financing. Effective January 1, 2026, any person or entity engaging in litigation financing in Georgia will be required to register as a litigation financier with the Department of Banking and Finance. Litigation financiers are prohibited from influencing litigation strategy, making decisions about settlements, paying or receiving referral fees, advertising false information, or assigning litigation financing agreements (with limited exceptions). They also may be jointly and severally liable for any award in a legal proceeding in which the litigation financier provides $25,000 or more in funding. Additionally, parties can now request discovery about the existence and terms of any litigation financing agreement related to a pending action, although such information is not automatically admissible as evidence in trial. 

Most of these changes are effective immediately and apply to pending cases. The provisions regarding negligent security actions, evidence of medical expenses, evidence of seatbelt usage, and the discovery of litigation financing agreements apply only to causes of action arising on or after April 21, 2025.