NFIB State Director Ben Homeyer says the American Tort Reform Foundation’s latest Judicial Hellholes report highlights the need for legislative action to stop lawsuit abuse in South Carolina.

The organization ranked the state No. 3 on its annual list because of issues concerning ongoing asbestos litigation, up two places from 2023.

The report says the courts have “a clear bias against corporate defendants, particularly insurers. This bias is obvious in rulings that result in unfair trials and severe verdicts. Anti-corporate bias is also evident in the judge’s imposition of unwarranted sanctions, a willingness to overturn or modify jury verdicts to benefit plaintiffs, and frequent appointment of a receiver to maximize recoveries from insurers.”

Homeyer said, “The General Assembly did a lot in this year’s session to improve the business climate in South Carolina, but one important piece of legislation that failed to pass was Senate Bill 533, a measure aimed at helping small businesses by addressing lawsuit abuse in the state.

“When the General Assembly returns to Columbia in January, our small business members will be urging their legislators to pass commonsense tort reforms that address this and other important issues,” Homeyer said. “Legislators must remember that small businesses cannot afford large legal departments to fend off every frivolous claim brought against them.

“The cost of defending against just one meritless lawsuit could be enough to shut down a small business for good, and that’s something our state cannot afford.”

Click here to read the full Judicial Hellholes report.