SC law protects innocent victims; why change that?

The law is the system we have as a society to ensure crimes and offenses are fairly addressed. The law should and does impose accountability in support of the fundamental right for justice. And, right now, there is a serious threat to our justice system in South Carolina.

A well-funded, coordinated effort to roll back laws designed to protect the rights of victims is taking place with one clear goal: to increase the record-breaking profits of large insurance companies at the expense of victims.

Why is this happening now?

In 2017, a law pushed by victim advocate groups and the state’s hospitality trade group passed with broad bipartisan support requiring bars to carry liquor liability insurance. If they overserve a patron in a reckless manner that contributes to devastating results such as injury or death, they can be held liable – a responsible consequence for irresponsible practices. The law holds wrongdoers accountable and protects innocent victims and, in the worst cases of death, their survivors.

Now, insurance industry-backed special interest groups are trying to overturn good laws with bad bills that would allow them to avoid having to pay reasonable claims to victims of extraordinary injury.

Dangerous bills like S.533 and H.3933 would make it next to impossible, in many cases, for victims to even recover legitimate medical costs, much less be made whole. To add insult to injury, these new laws are even using the name “The Justice Act.” Justice for whom, exactly?

The reality is that the changes the bills propose would force victims and/or their survivors to suffer further after a tragic and life-changing event. We simply cannot allow insurance companies to create laws that increase their profits at the expense of victims and public safety.

Insurance companies are skillfully misleading bars and business owners saying their insurance rates are increasing because of our state’s laws. In truth, they are raising rates rapidly across the board, including those for property and automobile insurance. These skyrocketing increases are impacting everyone, and yet at the same time insurance companies just posted record profits to their shareholders. They use practices like the “insurance float,” where the insurer collects premiums, invests them elsewhere (the “float”), but is not yet obligated to pay out a claim. The insurance float is so significant that these companies often operate at an underwriting loss.

Additionally, changing state law to further benefit insurance companies in the hopes that it will encourage them to lower rates is a fool’s errand. We heard this same refrain before from insurance companies complaining about medical malpractice law. The law was changed, and rates did not drop – in fact, a 2023 report on the effects of that reform indicated evidence of “in some cases doubledigit rate increases.” As the saying goes, there is no education from the second kick of a mule.

Our existing laws are reasonable and fair. Bars and restaurants, like every other business or individual, can only be held responsible in court if 12 independent jurors are unanimously convinced that the business broke the law, contributing significantly to a victim’s injuries or death. That is a high bar that correctly holds all parties responsible when there is overwhelming evidence to support a case.

The public interest would be much better served if bars utilized mandatory alcohol server training and avoided reckless overserving of patrons. That way we could protect bar owners and their business along with the safety of our residents.

Ultimately, this is a simple moral question. Should we change good law to allow insurance companies to increase profits, or do we value more the lives and safety of our friends, families, and neighbors? There is only one answer: Put South Carolinians first.

Tom Killoren is president of the South Carolina Association for Justice and a Spartanburg-based attorney.