S.C. House passes liquor liability law, but tort reform effort stalls

COLUMBIA, S.C. - Bars and restaurants around South Carolina have been shuttering their doors for the last few years – saying they can’t afford to stay open because of skyrocketing insurance costs.

A push to tackle this problem cleared a major hurdle Thursday in the state Legislature – at the same time another possible solution hit a major roadblock.

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On Thursday, the House of Representatives unanimously passed a bill that would reform South Carolina’s liquor liability law – an issue for which bars and restaurants have been begging for relief for more than a year now.

“Rising liquor liability costs are really becoming a problem and becoming a hindrance on our businesses here in South Carolina,” said Rep. Murrell Smith, R-Berkeley, House speaker.

The bill would crack down on bars and restaurants that knowingly serve intoxicated customers, strengthen penalties for DUI convictions … change existing law so that bars and restaurants aren’t on the hook for outsized damages in lawsuits – all of which supporters say will lower insurance premiums.

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It would also establish a program that allows bars and restaurants to lower the amount of liability coverage they’re required to have – if they take steps like ending alcohol service at midnight and completing an alcohol server training course.

“If you’re a good actor and you’re not going to be engaged in activities later at night and you require save serve training and otherwise, it lowers the required premiums that you have,” said Rep. Weston Newton, Judiciary Committee chair.

House members approved the bill after about an hour of debate Thursday.

Across the State House, senators entered the third day of their debate on the larger and related issue of tort reform.

The Senate bill would address this liquor liability problem, too – but also tackle other issues – including auto insurance, medical malpractice and how fault is divvied up in civil lawsuits.

But that bill hangs in the balance heading into the weekend – as senators refused to kill an amendment on Thursday that the bill’s lead sponsor says would gut the upper chamber’s legislation.

“We’re done. We’re done. It’s over. Congratulations, y’all. It’s done. There will be businesses closed now because of this, alright. Mr. President, I move that the Senate do now adjourn,” said Sen. Shane Massey, R-Edgefield, Senate majority leader.

Gov. Henry McMaster has called on the General Assembly to get a tort reform bill of some form to his desk.