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Thursday, May 2, 2024

Atlanta business owner: Lawsuits are ‘causing auto and commercial rates to explode’

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Insurance Information Institute CEO Sean Kevelighan (left) and Georgia Gov. Brian Kemp (right) | X/III_SeanK, X/GovKemp

Chris Hellgeth, owner of the Atlanta-based fuel-hauling company Vi-Mac, has called for "tort reform" to prevent lawsuits from "causing auto and commercial rates to explode." Hellgeth made this statement in an April 16 post on X.

"Lawsuits are out of control," said Hellgeth, according to X. "We need tort reform. It's causing auto and commercial rates to explode."

According to the Insurance Information Institute (III), plaintiff attorneys are employing tactics that lead to a larger number of lawsuits and higher litigation costs and payouts. These strategies are causing car insurance costs to rise, further exacerbating economic challenges for consumers. "There are real costs behind what we all know and see plaguing our roads with promises of settlement dollars, as billboard attorneys are racking up fees, and consumers are found to be getting less and less. The price of insurance is the effect, not the cause of risk, and there must be more work done to curb legal system abuse, as auto insurers – both personal and commercial – are seeing significant increases in claims costs when attorneys enter into the picture," said III CEO Sean Kevelighan.

The American Tort Reform Association (ATRA) ranked Georgia as the top "Judicial Hellhole" in the country due to its legal landscape and large number of "excessive" verdicts, according to a press release. ATRA President Sherman Joyce commented on this ranking saying, "Georgia’s No. 1 Judicial Hellhole ranking should be a wake-up call," adding that "Lawsuit abuse wipes out billions of dollars in economic activity annually in Georgia and threatens the state’s business-friendly reputation." He also noted that Georgia continues to see an increase in the number of verdicts larger than $10 million, including a $1.7 billion verdict in August 2022.

Law.com reported that despite Georgia Gov. Brian Kemp's call for tort reform in August, the state legislature's efforts on this issue during this session were focused solely on the trucking industry. Chris Clark, CEO of Georgia Chamber of Commerce, stated that rising car insurance costs are contributing to the growing calls for tort reform. Clark also highlighted that Florida recently enacted tort reform measures that were spearheaded by Gov. Ron DeSantis. Pamela Lee, president of the Georgia Defense Lawyers Association, said Georgia’s business owners and residents need "relief from rapidly rising expenses related to our tort system."

Hellgeth has been operating a fuel distribution business since 2004, according to his website. He disseminates insights on the energy and gas industry through his YouTube channel and other social media platforms, as well as through a newsletter.

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