The American Tort Reform Foundation’s list of “Judicial Hellholes” often are all-too-familiar jurisdictions for product liability defendants. Some states who are home to these infamous venues, often known for producing nuclear verdicts, have recently rallied for successful tort reform. In the most recent state legislative sessions, Georgia, South Carolina, Louisiana and Arkansas implemented tort reform bills which may serve to neutralize the nuclear verdicts coming out of their courts.
Georgia
Following several nuclear verdicts, including a $1.7 billion verdict in Hill v. Ford Motor Co. and a $2.5 billion verdict in Brogdon v. Ford Motor Co., Georgia has recognized the impact that excessive tort costs have on Georgia’s economy and its ability to attract businesses. Georgia Governor Brian Kemp unveiled a tort reform package in early 2025 that sought to address these issues.
On April 21, 2025, after passing both the Georgia House and Senate with a bipartisan vote, Governor Kemp signed Senate Bills 68 and 69 into law. As relevant to product liability actions, the new laws include the following changes:
- Limiting the amount of economic damages that plaintiffs can recover to only the amount that the plaintiff actually paid or will pay in the future.
- Further dividing phases of trial (separating the liability and apportionment phase from amount of compensatory damages, in addition to the already-existing process for bifurcating the question of punitive damages from the amount of punitive damages).
- Prohibiting counsel from artificially “anchoring” noneconomic damages, including arguments tying the plaintiff’s damages to an unrelated object or value, such as a professional athlete’s salary.
- Prohibiting counsel from arguing the value of the plaintiff’s noneconomic damages in closing if they did not argue it in opening, and requiring that the value be the same.
- Permitting evidence of seatbelt use or non-use;
- Automatically staying discovery where a motion to dismiss is pending;
- Limiting third-party litigation financing; and
- Requiring all entities engaged in litigation financing to register with the state.
While most of these provisions apply to all pending and future litigation, the provisions restricting economic damages and permitting seatbelt evidence apply only to cases filed on or after April 21, 2025. Litigation financing restrictions under SB 69 go into effect on January 1, 2026.
South Carolina
On May 28, 2025, South Carolina Governor Henry McMaster signed into law H. 3430, the Tort Reform and Liquor Liability Act. This Act marks a significant tort reform effort by amending the apportionment of fault scheme, which includes:
- Allowing nonparty tortfeasors and settling tortfeasors to appear on the verdict form;
- Abolishing joint and several liability for defendants (with exceptions for defendants acting in concert or with agency relationship) whose percentage of fault is less than fifty percent; and
- Granting defendants a proportionate set-off of any settlement received from a potential tortfeasor not on the verdict form.
Joint and several liability continues to apply where a defendant is liable for willful, wanton, reckless, or intentional conduct or conduct involving illegal drugs. However, product liability defendants should take note that nonparty tortfeasors and settling parties shall not appear on the verdict form for causes of action under strict liability. The Act applies to all causes of action or claims accrued on or after January 1, 2026.
Louisiana
Similarly, on May 28, 2025, Louisiana Governor Jeff Landry signed into law HB 431, which established a modified comparative fault system. If the percentage of fault attributed to the plaintiff is fifty-one percent or greater, then they are barred from recovering. If the plaintiff is less than fifty-one percent responsible, then their recovery is reduced by their percentage of fault. The Act becomes effective on January 1, 2026. HB 450, also signed May 28, 2025 and immediately effective for all causes of action accruing on or after that date, eliminates the judicially-created “Housley presumption,” which previously created a presumption that an accident or incident caused a plaintiff’s injury if the plaintiff did not have that condition prior to the accident or incident.
Arkansas
Likewise, on February 11, 2025, Arkansas Governor Sarah Huckabee Sanders signed HB 1204 into law, which restricts recovery of “phantom damages,” such as damages for medical expenses billed by medical providers, but never paid due to negotiated rates or other factors. Under the Act, recovery for past medical care, treatment, or services is restricted to the amount actually paid or owed by the plaintiff or a third party, such as the plaintiff’s insurance company. The Act becomes effective on August 3, 2025.
While these efforts may or may not change the status quo, they are welcome developments of which product liability defendants should be aware.
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