News Summary

In Charleston, business leaders are urgently advocating for updates to South Carolina’s liability laws as rising insurance costs threaten the food and beverage sector. With the looming 2025 reform discussions, local chambers of commerce stress the need for a fair liability framework to protect businesses while ensuring accountability. The proposed S.244 bill aims to cap liability costs based on fault percentage, but the debate continues on its potential implications for victims’ compensation.

Charleston: Business Leaders Advocate for Updates to South Carolina’s Liability Laws

In Charleston, a growing wave of concern is rippling through the state’s business community as conversations around civil liability laws take center stage. For years, South Carolina’s tort law has sparked debate, but as 2025 approaches, local chambers of commerce are hopeful for a much-needed overhaul.

The Push for Change

With increasing pressure on the food and beverage sector due to soaring liquor liability insurance rates, it’s clear that changes to tort laws can no longer be delayed. Owners of bars and restaurants are feeling the pinch and fearing that ever-rising insurance premiums could severely impact their businesses. The local chambers believe that without substantial reforms, economic growth in South Carolina may be jeopardized.

Understanding Joint Liability

A major point of contention lies in the existing joint and several liability laws. Critics argue that these laws lead to a situation where defendants who may only be partially at fault still end up shouldering the financial burden of lawsuits. This has effectively created a legal landscape that incentivizes lawsuits against those with the deepest pockets rather than those truly responsible for a wrongdoing. The belief is that by making these laws fairer, defendants can be held accountable in a way that reflects their actual involvement.

The “Tort Tax” Impact

Adding to the urgency of the situation, the South Carolina Chamber of Commerce has indicated that households across the state are facing an extra burden. They estimate that the shortcomings in the tort system amount to a staggering $3,700 more in annual costs for essential goods and services. Dubbed the “tort tax,” these extra expenses are what consumers are indirectly paying when the system fails to function smoothly.

What’s on the Table?

As discussions heat up, a proposed bill known as S.244, or the South Carolina Justice Act, is currently up for evaluation by a subcommittee in the state Senate. This legislation aims to establish a cap on liability costs based on the percentage of fault attributed to each party involved. Under this proposed bill, defendants found to be less than 50% responsible would only be liable for damages equivalent to their share of fault. Proponents of the S.244 argue that the bill seeks to create a fairer playing field, balancing the rights of victims while ensuring businesses aren’t disproportionately burdened by lawsuits.

Mixed Reactions from Stakeholders

Of course, not everyone is on board with the proposed changes. While some groups, such as the Coalition for Lawsuit Reform, view the bill as a necessary step toward restoring fairness, others worry that it could negatively impact victims’ ability to receive just compensation. This ongoing debate has captured the attention of lawmakers from both sides of the aisle, signaling that reforming civil liability laws is not just a business issue, but also a societal one.

Concerns Among Business Owners

Senate Majority Leader Shane Massey has raised alarms about how the current civil liability system could push businesses to the brink of failure due to ever-increasing insurance costs. The anxiety is especially palpable among alcohol-serving establishments where the impact of rising insurance rates could lead to a wave of closures. Past attempts at tort law reform have faltered, facing significant pushback from various advocacy groups who fear these changes may harm those who are wronged.

The Hearings

Discussions surrounding the South Carolina Justice Act culminated in a testimony session held earlier this month, where community members dedicated over three hours to deliberate on the implications of the bill. This public discourse has illuminated the fears of business owners who stand to lose much more than just profits if insurance costs continue to rise unchecked.

As we look ahead to 2025, it’s clear that the trajectory of South Carolina’s tort laws is a topic that remains crucial not only for business owners but also for everyday citizens. As these discussions evolve, all eyes will be on how lawmakers address these pressing issues.

Deeper Dive: News & Info About This Topic

• Upstate Business Journal
• Post and Courier
• ABC News 4
• Encyclopedia Britannica: Tort Law
• Google Search: South Carolina Tort Reform