2 weeks Ago
The South Carolina Senate recently passed a sweeping lawsuit-reform package in bill S. 244. Intended as a response to the liquor liability insurance crisis, the long-awaited legislation addresses various legal areas that multiple industries claim are preventing them from being competitive.
Here's what's at play: South Carolina’s insurance rates for multiple industries — not just for bars and restaurants — have seen substantial increases in recent years due to the state’s joint and several liability statutes, which have created overexposure for litigation by making it possible for entities to be sued for significant damages regardless of their percentage of fault. Senate Bill 244, sponsored by Senate Majority Leader Shane Massey, proposed multiple tailor-made reforms to litigation practices for numerous industries, from construction to medical malpractice. It also had numerous provisions specifically designed to assuage concerns from bars and taverns.
There is one, House Bill 3497 , which passed the lower chamber unanimously and was sent to the Senate for consideration. Massey never moved it, though. He placed it on the objected calendar where it could not be brought up for debate.
Advocates say it includes a lot of positive aspects: new mandatory training requirements for servers and bartenders, as well as stricter penalties for DUI. Critics say it didn’t address the root of the problem, which they say is the joint-and-several aspects of assigning blame in lawsuits. Liquor liability is seen as a driving force in putting bars, clubs and restaurants out of business as their insurances rates skyrocket.
While insurance companies did not testify this session, data from the S.C. Department of Insurance show liquor liability policies are massive money losers for the insurance companies, which is what makes them expensive when available.
Beyond the stand-alone liquor liability bill, S. 244 fixes joint and several liability for direct damages (lost wages or medical costs, for example), but not for damages related to things such as emotional distress. It also amends the jury verdict form (a document juries are given to assess damages prior to delivering a verdict) to include only those found 50 percent at-fault or more, for eligibility to pay full damages, but exclude certain groups from being included under this law.
These include the following: The bill has a number of specific provisions designed to lower liquor liability insurance rates. People over the age of 19 who knowingly get into a vehicle with a drunk driver are ineligible to sue the bar or venue for damages. Licensees cannot serve to someone who is visibly intoxicated — which is a law already — but doing so could result in stricter penalties.
Bars, restaurants and venues will also need to take a number of mandatory server and safety trainings to ensure compliance. Bars open after midnight will also need a forensic digital identification verification system at the door. One lesser-known provision is around auto insurance.
Under the new law, minimum coverage rates are set to double, while the million-dollar minimum coverage for bars' liquor liability insurance policies will be cut in half. Finally, the bill caps maximum damages at $500,000 for individual cases and $1 million for a total case — a provision set to reduce risk for the insurance companies. This aspect is likely to face opposition from trial lawyers.
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