Bill overhauling lawsuit and insurance rules passes SC Senate The next question is whether the House will take it up By: Shaun Chornobroff - March 27, 2025 8:30 am
COLUMBIA — Senators passed legislation late Wednesday that changes the rules on personal injury lawsuits in South Carolina in hopes of driving down insurance rates that business owners say they simply can’t afford.
The agreement that senators passed after 10 p.m. wrapped up four weeks of floor debate that pitted Republicans against Republicans in the supermajority GOP chamber and resulted in a barrage of campaigning by advocates and opponents.
The 35-7 vote followed a 2½-hour recess as senators hammered out the details of what the majority could accept. Three Democrats joined Republicans in passing it. All seven “no” votes came from Democrats.
“I’m not sure compromise is the word. This is an understanding,” said Sen. Mike Johnson, R-Tega Cay, who characterized the deal as “the best result.”
Under existing law, a business that plays any role in someone’s injury or death can be forced to pay the entirety of court-awarded damages.
Senate Majority Leader Shane Massey, the lead sponsor, sought to change that to businesses paying for their part. Backing his effort have been various business associations as well as the state Chamber of Commers, who argued that possibility put businesses at perpetual risk of bankruptcy.
“I think I should pay what I cause, not what somebody else causes,” the Edgefield Republican said repeatedly during debate.
Under the compromise, all damages would be doled out proportionally — unless the business is mostly at fault.
In other words, if a business is deemed 15% responsible, it would have to pay 15% of the verdict’s total award. However, if a business is found more than 50% responsible, it can be held fully liable for economic damages, such as medical expenses, lost wages and property damage. It would still pay proportionally for emotional and punitive damages — essentially, the jury’s award for punishing those at fault.
“The goal is to make a plaintiff whole,” Johnson, who led the subcommittee that handled the bill, said on the floor while explaining the agreement.
The wide-ranging bill also cuts in half the mandated insurance coverage for bars and restaurants that serve alcohol.
Restaurant owners and advocates say their insurance bills have skyrocketed since legislators passed a law in 2017 requiring businesses serving alcohol after 5 p.m. to carry so-called liquor liability policies with at least $1 million in coverage.
That law increased the insurance payout if a claim is filed after someone gets drunk and winds up injuring or killing someone, and the business is at all to blame for whatever happened.
As a result, premiums in South Carolina have continually increased as insurers stopped writing those policies.
The compromise would lower the minimum coverage to $500,000.
“It’s a win for restaurants and bars. I think this absolutely will have an effect of reducing their liability insurance cost,” Massey said.
The final hurdle to the deal involved how to handle lawsuits for asbestos or so-called “forever chemicals” in water supplies.
Last year, the Environmental Protection Agency put a cap on the amount of potentially cancer-causing per- and polyfluoroalkyl substances, known as PFAS, allowed in drinking water.
Environmentalists called it a win for clean water, but the cost to utilities could be staggering — creating the possibility that water bills could soar. To pay for the upgrades, utilities could sue the businesses responsible for putting the chemicals in the water.
They may want to move quickly if they want a big payout.
Under the compromise, lawsuits involving asbestos or PFAS wouldn’t be subject to the new rules of proportional damage if they’re filed before the bill becomes law.
“It was a big issue. We knew that was going to be one of the big issues. That was the reason we held it ’til last,” Massey said.
Up next Whether it becomes law is up to the House.
Senators are expected Thursday to give the perfunctory vote needed to send the bill across the lobby.
The House unanimously passed legislation earlier this month aimed specifically at reducing insurance costs for restaurants and bars. House GOP leaders said the other issues needed further study.
But Massey said he’s optimistic the House will take up the Senate bill.
“Hopefully they’ll take a look at what we did and recognize the work that we put into it, and also appreciate that there are there litigation issues beyond alcohol that need to be addressed,” he said.
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