Gwinnett Judge Strikes Down Part of New Tort Law
Fulton County Daily Report
September 27, 2005


A Gwinnett County judge has ruled unconstitutional a section of the state's new tort law that encourages parties to settle. Gwinnett County Superior Court Judge Michael C. Clark ruled Thursday that the offer-of-judgment provision, O.C.G.A. ß 9-11-68 (b) and (d), is unconstitutional because it limits access to the courts. The ruling came in response to a request for attorney fees by the defendants in a personal-injury suit.

Designed to encourage settlements and deter costly trials, the offer-of-judgment provision penalizes a party that rejects an offer if a subsequent jury verdict isn't at least 25 percent more favorable. In such instances, the party that rejected the settlement can be required to pay a portion of the other party's attorney fees and costs.

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University of Georgia law professor Thomas A. Eaton called the legislation a "drafting nightmare." Some read the law as requiring plaintiffs, for example, to win at trial at least 125 percent of the settlement offer to avoid paying the defendant's legal fees. But Eaton said the law is unclear about how to calculate whether a jury's financial award is low enough to force one side to pay the other's fees.Lawmakers already had said they planned to revisit and probably rewrite the offer-of-judgment provision because of the problems.

 

 

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