Georgia Moves Closer to Tort Reform with New Restrictions on Third-Party Litigation Funding

Georgia’s sweeping tort reform agenda is nearing completion as state lawmakers advance the second half of Governor Brian Kemp’s proposed legal overhaul. On Thursday, the Georgia House of Representatives approved Senate Bill 69, a measure designed to regulate third-party litigation funding and prohibit foreign adversaries from financially backing civil lawsuits. The bill passed with bipartisan support, 98-69, and now heads toward final approval before landing on the governor’s desk in the coming weeks.

Senate Bill 69 introduces key guardrails for an industry that critics say lacks transparency. The legislation requires litigation funders to register with the Department of Banking and Finance and restricts their influence on legal proceedings. Lawmakers supporting the measure argue it will help shield the legal system from manipulation by private equity firms and foreign entities. Proponents also believe the reform could lead to more stable insurance costs and a more predictable legal environment for Georgia businesses.

The tort reform initiative began with Senate Bill 68, which narrowly passed the House earlier in March. That bill includes provisions that limit liability for property and business owners, a move that has drawn pushback from trial lawyers and advocates for victims of sexual abuse and trafficking. Detractors argue that the reforms may limit access to justice and shift the balance of power further toward insurers and corporate interests.

While business groups like the Georgia Motor Trucking Association and the National Federation of Independent Business support the reform, critics remain wary of its implications for plaintiffs. With both bills progressing swiftly, Georgia appears set to become a national example in the evolving debate over litigation financing and tort reform.