Gov. Henry McMaster signs Tort Reform, Liquor Liability Bill into law

FILE – Republican Gov. Henry McMaster addresses business leaders on Aug. 18, 2022, in Columbia, S.C. McMaster is seeking reelection and will face Democrat Joe Cunningham and Libertarian Bruce Morgan Reeves in the Nov. 8 election. (AP Photo/Meg Kinnard, File)

RICHLAND COUNTY, S.C. (WOLO)– Governor Henry McMaster and Lieutenant Governor Pamela S. Evette were joined on Wednesday, May 28, by members of the General Assembly and the business community for a ceremonial bill signing of H. 3430, Tort Reform and Liquor Liability.

“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,” says Governor Henry McMaster.

Officials say the 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.

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.

Additionally, officials say 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.

“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,” continues Gov. McMaster.

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, according to officials.

Under the law, anyone who sells alcohol after 5 p.m. 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

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).