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The South Carolina House of Representatives voted 109-0 Thursday in favor of a bill that would end joint-and-several liability for bars and restaurants and would incentivize additional alcohol-server training, an effort to reduce liquor liability insurance costs in the state.

But it’s far from certain that the bill will pass the state Senate, which refused to consider a similar bill last year. And a broader tort-reform bill that would limit bad-faith actions against insurers appears to be dead in the water in the Senate, according to state news and legislative reports.

The liquor liability bill, , would:

• Allow captive insurance companies to apply to provide liquor liability insurance – without a limit on coverage. However, the captive “may not issue eroding or declining insurance coverage whereby the occurrence or aggregate limits are reduced by costs or expenses arising from the insurance company’s duty to defend a claim,” the bill notes.
• Create a risk-mitigation program. Bars could reduce the current $1 million in liquor liability coverage requirement by $100,000 if the establishment stops serving at midnight. The establishment would be able to lower the coverage limit further if it refrains from selling alcohol earlier in the evening. The places also would have to participate in alcohol-server training programs and could reduce coverage if less than 40% of their total sales are from alcohol.
• Revise a section of state law that allows juries to saddle the deepest-pocket food and beverage businesses with most of the damages after an accident. Repealing the so-called “joint-and-several” liability clause has been a top priority for businesses and insurance interests in the state.
• Raise penalties for people convicted of driving under the influence.

The bill now goes to the Senate, where its future is cloudy.

A broader tort-reform bill also appears to be in trouble. would end joint liability for most types of businesses by allowing juries to apportion blame. No damages would be allowed if the jury finds the plaintiff is more than 50% at fault, the bill reads.

The measure also would let defendants, late in the game, add the names of other parties to the jury form to divvy up some of the liability, according to The State and the bill.

But opponents said that would allow insurance companies to unfairly shift the blame in litigation. Sen. Stephen Goldfinch offered an amendment that would essentially bar insurers from adding new parties at the last minute and would establish a process for adding defendants, the news sites .

An effort to vote down Goldfinch’s amendment failed, leading Senate Majority Leader Shane Massey to conclude that SB 244 is “done” and would not pass the Senate.

Critics, including protestors at the Capitol this week, also have argued against a section of the bill that could require plaintiffs to wait 10 months before filing bad-faith lawsuits in liability, underinsured or uninsured motorists insurance claims.

Bad-faith actions would be barred if: “In response to a demand for the policy limits made by the claimant prior to suit being filed on the underlying tort claim, the insurer tenders the policy limits within ninety days after receiving actual notice of a claim that is accompanied by sufficient evidence to support liability and the amount of the claim; or in response to a demand for the policy limits made by the claimant after suit has been filed on the underlying tort claim, the insurer tenders the policy limits by the later of:

• 10 months after the suit was filed, or
• 30 days after receiving actual notice of the demand for the policy limits,” the bill reads.

Topics Liability South Carolina