COLUMBIA, S.C. (Legal Newsline) - A proposed tort-reform bill in South Carolina has hit its first snag, as three senators, two of whom are personal injury lawyers, threw up a roadblock of an amendment that guts the legislation.
The bill, S. 244, was the subject of a press conference held March 5 by Gov. Henry McMaster and targets the share of verdicts defendants are forced to pay in the state. It is designed to help companies forced to pay entire verdicts despite not being found entirely at fault, known as joint-and-several liability.
If one defendant can't pay and the plaintiff is found to be below a certain percentage of fault, it's up to the others to satisfy the full amount - causing a defendant to pay more than its apportioned share. And juries don't currently apportion fault to defendants that settled before trial.
The bill mobilized personal injury lawyers hoping to preserve the status quo to make sure their clients' awards, and the attorneys fees, are paid in full. Proponents say it is needed to help in-state companies struggling with liability insurance premiums keep up with rivals in other Southeast states that have already addressed the issue.
The amendment introduced March 6 by Sens. Stephen Goldfinch, Josh Kimbrell and Billy Garrett radically changes the proposal with a host of stipulations. Sen. Shane Massey moved to table the amendment, but 25 of the 44 senators voted against him, causing the issue to be adjourned until Tuesday.
Goldfinch is a Republican from Georgetown County whose LinkedIn page says his law practice focuses on people with injuries, among other areas of the law. He formerly worked at Goldfinch Winslow, now Winslow Law.
Personal injury lawyers have long held substantial power in the South Carolina General Assembly. For instance, seven of the 23 members of the Senate Judiciary Committee are personal injury lawyers, including chairman Luke Rankin.
Last year, there were 47 lawyers in the 170-member legislature. Even Republicans fit the mold of the personal injury lawyer/legislator.
While proponents of the bill say it is needed to help South Carolina companies struggling with liability insurance premiums keep up with competition in neighboring states that have already embraced joint-and-several liability changes, plaintiff lawyers have reportedly funded a campaign through a group called Reform Insurance Now SC that claims the insurance industry is behind S. 244.
The group urges viewers to contact senators to vote against it. And some plaintiffs firms have gone as far as to create pages on their websites bashing the bill.
Sens. Goldfinch and Garrett, two of the three that brought the amendment, have personal injury practices. Goldfinch's top campaign donor is the statewide group for plaintiff lawyers - the South Carolina Association for Justice - which isn't out of the ordinary in South Carolina's legislature.
The SCAJ has given almost $1.7 million to candidates in the last 17 years. The Speaker of the House is Murrell Smith, Jr., a personal injury lawyer whose biggest donor is the SCAJ.
The SCAJ was also the subject of a bizarre situation in which Sen. Tom Fernandez insinuated it agreed to pay him to vote against the bill then, following an immediate recess, dialed back his claims. The SCAJ denied it in a statement to the Post and Courier.
Much of the coverage of the bill highlights its possible effects on the bar-and-restaurant industry. For lawsuits in which alcohol is a factor, plaintiffs can be almost entirely at fault yet the defendants must still pay the full amount of any verdict.
Massey introduced the bill on Jan. 16 after a similar measure failed last year. McMaster said at the press conference he wanted a commonsense solution that he can sign into law "the minute it arrives at my desk."
"Tort reform is not about politics," he added later. "It is indeed about fairness. It is about insuring that our legal system works as intended - not as a weapon but as a tool for justice."