COLUMBIA, S.C. – Governor Henry McMaster and Lieutenant Governor Pamela S. Evette were joined today by members of the General Assembly and the business community for a ceremonial bill signing of H. 3430, Tort Reform and Liquor Liability. The commonsense bill enacts significant reforms to South Carolina’s joint and several liability laws, addresses rising insurance costs for businesses, and establishes new safety and insurance requirements for establishments that serve alcohol.
“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," said Governor Henry McMaster. "Getting to this day was not easy, at times disagreements and obstacles seemed impossible to overcome, rhetoric was sharp, emotions ran hot, and tempers flared, but with a spirit and determination as indomitable as has ever been seen in this Capitol, our legislative leaders persevered."
The new law allows defendants in civil cases to have nonparty-tortfeasors (individuals or entities not named in the lawsuit) included on the verdict form for the jury to consider when assigning fault. If the jury finds that a nonparty’s conduct contributed to the plaintiff’s injury, that nonparty may be apportioned a percentage of fault, reducing the liability of the defendant.
For incidents involving DUIs, a business cannot be held liable for more than 50% of the plaintiff’s damages, as opposed to 100% under the previous law.
"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," said Senate President Thomas Alexander. "It has not been an easy road, but by working together, we can move South Carolina forward."
Under the law, anyone who sells alcohol after 5:00 PM for on-premises consumption must have a liquor liability or general liability insurance policy with an annual aggregate limit of $1 million. Businesses may reduce their insurance coverage requirement by completing one or more of the following risk mitigation measures:
- Stop selling alcohol at midnight - $250,000 reduction
- Have all employees complete the alcohol server training within 60 days of employment - $100,000 reduction
- Have less than 40% of total sales be from alcohol - $100,000 reduction
- Use a digital forensic identification system between 12:00 AM and 4:00 AM - $100,000 reduction
- Be a 501(c)(3) organization or hosting an event where a special event license is obtained - $500,000 reduction
"We needed a bill that protects South Carolina businesses while also protecting victims who should receive compensation, and I believe we accomplished that," said Speaker of the House Murrell Smith. "I am proud to lead the House in finding a commonsense solution to this issue. Today is a great day not only for the citizens of South Carolina, but also for the businesses and those who use the court system."
The law also creates a mandatory alcohol server training program, requiring those who serve alcohol to complete a certified course recognized by the South Carolina Department of Revenue (SCDOR). Topics include state alcohol laws, liquor liability, identifying overserved individuals, concealed weapons and alcohol, and identifying fake IDs. Servers will be issued alcohol-server certificates by SCDOR.
"Progress on important policy matters is often slow, but today is a recognition of a step toward a fair civil justice system," said Senate Majority Leader Shane Massey. "The governor’s support was instrumental. If it had not been for him being willing to come out and take the steps to be in front of everybody on this issue, it would not have happened."
"The legal system in our state should reflect our South Carolina values—of goodness and fairness—and lay a reliable foundation for economic development. But exposing businesses to excessive liability drives up costs that make it more difficult to invest in our employees, our businesses, and our communities," said Sara Hazzard, President and CEO of the South Carolina Manufacturers Alliance. "When certainty, fairness, and goodness are anchors of our civil justice system, families, businesses, and communities can thrive.”