The opinions presented here are solely those of the author and do not necessarily reflect the perspectives of FreightWaves or its affiliates.
Significant Changes in Georgia’s Legal Landscape
For almost a century, Georgia has been one of only four states permitting plaintiffs to sue insurance companies directly following accidents with tractor-trailers. This longstanding provision, a persistent issue for insurers yet a vital safeguard for public safety and ensuring fair compensation, is on the brink of alteration — and not for the better.
Impact of Senate Bill 426
Starting Monday, Senate Bill 426 will come into effect, representing a crucial shift in the dynamic between accident victims and insurance firms. The law substantially restricts Georgians’ ability to file lawsuits against insurance companies, a change long desired by the insurance sector.
Historical Context of Direct-Action Laws
Georgia’s soon-to-be-abandoned statute permitting direct-action lawsuits against truckers’ insurance providers has been in existence since the 1930s, making the state’s retreat from this policy particularly noteworthy. It remains uncertain if other states will adopt similar measures.
New Restrictions on Legal Action
The previous system enabled plaintiffs to initiate legal action against an insurance company directly without naming the insured driver or motor carrier as a defendant. This was initially meant to help injured parties secure fair compensation when trucking companies attempted to evade responsibility, or when the owner was unreachable. However, as the internet has made locating individuals easier, fewer states are allowing direct-action lawsuits; currently, the only remaining states with this provision are Kansas, Louisiana, and Wisconsin.
Governor’s Support for the Bill
Gov. Brian Kemp’s decision to endorse S.B. 426 is unsurprising, as it embodies a classic example of tort reform spurred by the lobbying of insurance companies. The bill appears focused on safeguarding insurers’ profits rather than enhancing public safety or protecting the public from negligent drivers on Georgia’s roads.
Concerns Over Road Safety and Insurance Practices
This new legislation may also have wider implications for road safety. With insurance companies now shielded from direct lawsuits, the financial motivation for them to thoroughly vet the trucking companies they insure could diminish. This could lead to more relaxed safety standards and a rise in dangerous drivers on Georgia’s highways.
Future Implications for Victims
Ultimately, this legislation revolves around minimizing jury awards by removing insurers from legal proceedings, fostering an environment where juries might hesitate to grant significant damages. While the idea of lower insurance premiums is appealing, it starkly contrasts the reality faced by families affected by negligent drivers. The enactment of S.B. 426 threatens to restrict Georgians’ access to complete and just compensation following trucking accidents, potentially leaving many victims struggling to manage mounting medical bills, lost wages, and other expenses stemming from their injuries.
In the future, the full effect of S.B. 426 will become evident. Will it merely bolster insurance company profits while providing inadequate remedies for victims? Time will reveal the answer. A dip in jury awards in Georgia might not be surprising, and it will be intriguing to observe just how low these decisions might fall as a result of this law.
About the Author
Since 2005, Ted Spaulding, an Atlanta-based trial attorney and founder of Spaulding Injury Law: Atlanta Personal Injury & Car Accident Lawyer, has dedicated his career to assisting victims of negligence and theirfamilies in securing justice within Georgia’s personal injury courts. Spaulding has recently offered insights on platforms like CNN regarding the Maui fires and the Titan submersible tragedy, along with contributions to The Atlanta Journal-Constitution, The Associated Press, The Washington Post, CourtTV, and many other media outlets.
