Chris Clark, president and CEO of the Georgia Chamber of Commerce, recently wrote a letter to members claiming lawsuit reform is essential to business growth in Georgia. Not only is this false, but it is also a scare tactic which will only hurt Georgians. As a small business owner and long-time Chamber member, I feel compelled to respond to these falsities.
Georgia has consistently been ranked as the number one state to do business, a feat our state has achieved for the past six consecutive years, according to Area Development. However, Clark writes that Georgia’s ranking is in jeopardy based off the results of a recent study conducted by the U.S. Chamber Institute for Legal Reform. This study claims Georgia ranks 41st when it comes to lawsuit climates. Based on this claim, Clark recommends state legislators look to tort reform in an effort ameliorate the alleged “lawsuit climate.”
Georgia Chamber Misleading Businesses
Clark and the Georgia Chamber of Commerce are intentionally misleading businesses and Georgians in arguing that tort reform is necessary. Both rely largely on a recent State Senate Committee study (the “Study”).
Even if one were to disregard the make-up of this committee, which conveniently lacks members from the consumer sector, only a cursory review of the sources and “evidence” relied upon by the Study Committee is needed to determine the possible political motivations behind the Study and whether the results are actually the product of an objective analysis and methodology.
According to the study cited in Clark’s letter, Georgia ranks higher than California when measuring costs and compensation paid in the tort system as a percentage of the state’s GDP. Yet, Georgia had an estimated total costs and compensation of $13,384 million, while California, which this study claims is a better state to do business in than Georgia, had $55,966 million in costs and compensation.
Moreover, an article referenced in the Study is an op-ed written by the president and CEO of the Georgia Public Policy Foundation, a non-partisan think tank that “provides analysis of state public policy.” The organization’s reporters are funded, in part, by the Franklin Center for Government and Public Integrity, which has received criticism for the conservative bias of their articles contributed to newspapers around the country.
The research cited in support of the Study needs further investigation, as it is inconsistent with other well-known and verified statistics. For example, not only has Georgia consistently been ranked as the number one state to do business in, but, according to NFIB’s January 2020 report, Georgia’s business growth is projected to continue. The report is aptly titled “Small Business Optimism Starts New Year as Solid as Ever.”
Additionally, a small business survey from 2019 asked its membership to name the “single most important problems” facing small business today. The survey produced a variety of responses, including taxes, inflation, and poor sales. However, small business respondents were completely silent as to the threat of lawsuits or litigation.
Keep Business and Development Open
As a recognized national leader in industry, isn’t it incumbent upon Georgia and its legislators to ensure that its business and development is carried out in an open, responsible, and accountable way? As a leader in business growth, shouldn’t Georgia have a moral obligation to balance that growth with the safety and protection of its residents?
We are failing our own. For instance:
Georgia currently has the highest maternal mortality rate in the country. This is especially important given that preventable medical error is the third leading cause of death in America.
Georgia has also become a haven for sex trafficking, due in part to the state’s weak liability laws which allow this atrocious conduct to continue. Additional tort reform will only accelerate this trend to the detriment of our great state.
Protecting the rights of Georgians can only happen under a robust civil justice system which provides for a trial by jury and recovery for those who have been the victim of injury or who have lost someone they love to the negligence of another.
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