Turner Padget Insights

Proposed Tort Reform Legislation in South Carolina

Posted On February 27, 2025

By Adrian Peguese-Carter

South Carolina lawmakers are currently debating significant tort reform measures that could reshape liability, alcohol-related offenses, and insurance coverage across the state. The proposed legislation introduces amendments to multiple sections of the South Carolina Code of Laws.

Key Provisions of the Proposed Legislation

Fault Apportionment – The bill modifies how fault is allocated in legal cases, including exceptions for alcohol- or drug-related incidents. It also repeals certain sections related to joint liability.

Passenger Liability – Individuals who knowingly ride with an intoxicated driver or someone likely to become intoxicated will be barred from recovering damages in related claims.

Court and Department Actions – New requirements mandate the submission of complaints and judgments to the Department of Revenue, impacting permit revocations and suspensions.

Alcohol Server Training – Establishes mandatory training and certification for alcohol servers. Bars that violate training requirements may face a six-month license suspension for a first offense, with permanent revocation for a second offense.

Insurance and Liability Adjustments – Updates liquor liability insurance requirements and mandates specific coverage for certain damages.

Civil Actions – Introduces new provisions for filing lawsuits against unknown defendants and modifies uninsured motorist coverage regulations.

Penalties and Comparative Negligence – Expands penalties for legal violations and allows evidence of such violations to be used in negligence cases.

Damages and Bad Faith Actions – Establishes guidelines for awarding non-economic damages and actions for bad faith in liability cases.

Significant Revisions to Liability Laws

Under current law, a plaintiff may recover full damages from one defendant even if they were not the primary party at fault. The proposed reform limits full liability to defendants who are at least 50% at fault. The reform does not apply to cases involving willful, wanton, reckless, grossly negligent, or intentional misconduct, or cases involving alcohol or illegal drugs.

Key Amendments to Section 15-38-15

Fault Determination – In cases involving personal injury, wrongful death, property damage, or economic/noneconomic loss, courts will assign fault percentages to all parties, including nonparties. A defendant with less than 50% fault will only be liable for their assigned percentage of damages.

Jury Instructions – Juries must determine fault percentages for all parties, including nonparties, rule in favor of the defendant if the claimant is more than 50% at fault (or if the claimant is 50% or less at fault, calculate damages before applying fault percentages), assign damages to each defendant based on their percentage of fault. Special Verdict on Liability – The court will specify fault percentages for multiple defendants. The plaintiff’s fault does not reduce recoverable damages but contributes to the total fault calculation.

Multiple Defendants – Courts may treat multiple defendants as a single entity if they acted in concert or if one is vicariously liable for another.

Tortfeasor Defenses – Defendants may argue that nonparties contributed to  the plaintiff’s damages.

Settlement Setoffs – If the claimant settles with any party before trial, the settlement amount will be deducted from the final damages, proportionate to the settling party’s fault percentage.

Changes to Insurance Coverage Requirements

Significant amendments are also proposed for Section 38-77-150(A) and 38-77-160, affecting automobile insurance carriers and punitive damages. In Section 38-77-160, new language clarifies that automobile insurers are not required to offer coverage for punitive or exemplary damages as part of underinsured motorist (UIM) coverage.

Legislative Status and Industry Impact

This bill was introduced in January 2025 and is currently under committee review in the South Carolina Senate. The proposed changes have sparked substantial debate among stakeholders, including citizens, insurance companies, and businesses serving alcohol.