By Jonathan Shapiro

This past March, the Georgia Supreme Court ruled unanimously that limits on jury awards in medical malpractice cases are unconstitutional.

“The very existence of the caps, in any amount, is violative of the right to trial by jury,” wrote Chief Justice Carol Hunstein. “[The cap] clearly nullifies the jury’s findings of fact regarding damages and thereby undermines the jury’s basic function.”

The ruling effectively strikes down the centerpiece of Georgia’s sweeping 2005 tort reform law, Senate Bill 3, which capped noneconomic awards – including those for pain and suffering – at $350,000. Read more

[This originally appeared in Healthy Debate Georgia, the blog of consumer advocacy group Georgians for a Healthy Future.]

by Holly Lang

In a March ruling that could hold implications for all nonprofit hospitals, the Illinois Supreme Court stripped not-for-profit Provena Covenant Medical Center of its exemption from property tax, stating that the hospital did not provide enough charity care to justify that exemption.

A hospital earns its tax-exempt status through the benefits it provides to the community, the most of which being the free or reduced-cost care for those eligible for such assistance. Such care is deemed indigent or charity care. Read more

[This editorial was published April 19 in the Georgia Report.]

The Georgia Legislature has an opportunity to pass meaningful ethics reform. They should stop passing the buck and get the job done.

Georgians are hungry for integrity in the political process. It has become tattered and we the people are disgusted with the greed, backroom deals, and unscrupulous antics taking place in our state capitol. Read more

New study from Nobel Prize Winner shows how aggressive energy efficiency policies could make Georgia a leader in smart energy use

ATLANTA, GA – (April 12, 2010) – According to a new study released today by a team of researchers at the Georgia Institute of Technology and Duke University’s Nicholas Institute, aggressive adoption of energy efficiency programs in Georgia would lower utility bills by $3.8 billion and create 32,200 new jobs by 2020. Avoided annual electricity consumption is equal to the amount of electricity produced by six power plants in 2020 and 10 power plants in 2030.

Across the Southern region, aggressive adoption of energy efficiency programs would lower utility bills by $41 billion and create 380,000 new jobs by 2020.

“Georgia families are letting hundreds of dollars slip through their fingers each year – money none of us can afford to waste,” Angela Speir Phelps, executive director of Georgia Watch (and former Georgia Public Service Commissioner) said. “It’s imperative that state leaders encourage energy efficiency as a way to help consumers mitigate increasing utility bills.” Read more

Georgia Watch, the state’s leading consumer watchdog, is urging the state legislature to preserve the ability of the Public Service Commission (PSC or Commission) to help customers resolve complaints against their telephone service provider. The current version of House Bill 168 would do away with the PSC’s ability to act on behalf of customers who have complaints about their telephone service and billing.

“This bill will leave thousands of Georgians who are AT&T customers no recourse and nowhere to turn for help,” said Angela Speir Phelps, executive director of Georgia Watch. “A customer can file a complaint and the Commission can ‘receive’ it – but without the authority to resolve it – the company can say ‘go jump’ and that’s that – and that’s not good for consumers.”

A provision in section 6 of the bill (proposed OCGA 46-5-251(b)(2)) would remove the enforcement authority that the PSC currently has in regards to consumer phone complaints. Instead of being able to resolve complaints, the PSC would only be able to “receive” complaints. HB 168 is a comprehensive bill that makes sweeping changes to the UAF (Universal Access Fund) and mandates changes to what small local telephone companies can charge AT&T.

According to the PSC, in calendar year 2009, the Commission assisted AT&T customers with complaints resulting in $145,650.18 of credits or refunds.  This amount is almost half of the total amount of credits and refunds the Commission helped consumers to secure across all utilities, including natural gas, electric, and telecom, thus highlighting the importance of the Commission retaining its ability to resolve telecommunications complaints.  If HB 168 were to pass in its current form, the Commission would no longer have the authority to help phone customers who have billing or service issues to be issued credits or refunds when appropriate and also would lose any leverage to order the phone companies to resolve a customer’s non-credit/refund-related complaint.

“This legislation is being pushed by AT&T, so it makes sense that they want to tie the hands of regulators,” said Danny Orrock, deputy director of Georgia Watch. “But it doesn’t make sense to leave consumers out in the cold when they have been wronged by their phone company.”

HB 168 has been passed by both the House and Senate, but the different versions of the legislation must be reconciled before the bill can go to the Governor for signature. It is currently awaiting Senate action.

ATLANTA – The House Judiciary Committee passed SB 57 Thursday after adopting a number of amendments that weakened core provisions of the legislation. The bill is the only attempt that the legislature has moved forward that addresses the careless underwriting practices that led to the mortgage lending collapse of the past several years.

“We’re disappointed that the bill has been watered down,” said Danny Orrock, Deputy Director of Georgia Watch. “Under the Judiciary substitute, an important provision requiring creditors to verify that a borrower can repay a subprime loan was weakened. This is exactly the sort of mentality that caused the subprime meltdown.”

The Judiciary committee included language that would protect creditors from being held liable for ignoring the risk of foreclosure to a borrower so long as the total monthly cost to service the debt is less than 50 percent of the borrower’s gross monthly income.

Additionally, a section of the bill that would have banned yield spread premiums (YSPs) on subprime and FHA loans was removed. It was replaced with language that allows YSPs to be paid as long the kickback is reflected in a good faith estimate to the borrower. But such disclosure is convoluted at best, as it allows YSPs to be lumped in with other closing costs and appear as both a credit and a charge to the borrower.

“The Senate banned the kickbacks on subprime and FHA loans to mortgage brokers known as yield spread premiums,” Orrock said. “But the language on yield spread premiums from the Judiciary Committee is a loophole that allows mortgage brokers to play games with disclosures and continue to generate kickbacks for steering borrowers towards unsuitable loans.”

SB 57 now sits in the House Rules Committee, which will determine when it goes to the floor and the terms of the debate.

By Beth Malone

We’re in a housing crisis – one that hasn’t even hit its peek. The middle class is starting to feel the direct effects of foreclosure as the balloon that is their adjustable rate loan, bursts. That means more foreclosures to come in 2010. Read more

The following is a short film on Betty Nestlehutt. After receiving plastic surgery, Mrs. Nestlehutt, 72, was left with severe injuries to her face. Her ordeal and the botched procedure has caused Georgia’s arbitrary $350k cap on damages to come under fire at the GA Supreme Court. Warning: This film includes graphic images and may upset some viewers.