Governor Henry McMaster, along with Lieutenant Governor Pamela S. Evette and members of the General Assembly, participated in a ceremonial signing of H. 3430, a bill focused on tort reform and liquor liability in South Carolina. The legislation introduces significant changes to the state’s joint and several liability laws, aiming to address rising insurance costs for businesses and establish new safety and insurance requirements for establishments serving alcohol.
Governor McMaster remarked on the process leading up to the bill’s passage: “In March, we called on the General Assembly to take bold action on tort reform by finding a commonsense solution that provides accountability, certainty, and just compensation without damaging our economy. Today, we gathered back together to celebrate this great victory.”
The law allows defendants in civil cases to include nonparty-tortfeasors on the verdict form for jury consideration when assigning fault. If a jury finds that a nonparty contributed to the plaintiff’s injury, that party may be apportioned some fault, potentially reducing the defendant’s liability.
For incidents involving DUIs, businesses can now only be held liable for up to 50% of damages instead of 100%, as previously mandated. Senate President Thomas Alexander emphasized maintaining a business-friendly climate: “It is important for us to maintain a business-friendly climate and ensure that our actions also address that. At no time should the actions of government put businesses out of business.”
Under the new regulations, establishments selling alcohol after 5:00 PM must have an insurance policy with an annual aggregate limit of $1 million. Businesses can reduce this requirement through various risk mitigation measures such as stopping alcohol sales at midnight or having employees complete alcohol server training.
Speaker of the House Murrell Smith stated: “We needed a bill that protects South Carolina businesses while also protecting victims who should receive compensation, and I believe we accomplished that.”
The law also mandates an alcohol server training program approved by the South Carolina Department of Revenue (SCDOR), covering topics like state alcohol laws and identifying overserved individuals.
Senate Majority Leader Shane Massey acknowledged Governor McMaster’s role: “Progress on important policy matters is often slow, but today is a recognition of a step toward a fair civil justice system.”
Sara Hazzard from the South Carolina Manufacturers Alliance commented on how excessive liability affects businesses: “When certainty, fairness, and goodness are anchors of our civil justice system, families, businesses, and communities can thrive.”
