SC Liquor Liability Tort Reform H. 3430

Some movement has finally started happening with the reform of Liquor Liability tort law in South Carolina. Gov. Henry McMaster signed H. 3430 into law on 5/13/2025 and the following is a summary of the bill. The changes will take effect 1/1/2026 and the following highlights of the changes are from a release presented by the South Carolina Coalition for Lawsuit Reform and published on the IIAB-SC website. These are highlights and not all of the changes.

Logo for the South Carolina Coalition for Lawsuit Reform

H 3430: “Tort reform” or “Liquor liability plus” SECTION Summary

SECTION 1: Modified Joint & Several Liability

With certain exceptions, allows fault to be apportioned to non-named tortfeasors, with modified joint & several liability (50%).

• If any defendant is found to be greater than fifty percent responsible for the total fault, joint and several liability applies

• Damages will be apportioned among the plaintiff, defendant(s) and tortfeasors who proximately caused the damages, with certain exceptions

o The legislation replaces the word “defendant” with “tortfeasors” in several places, which will no longer limit the apportionment of fault to named defendants

• Preserves the empty chair defense

• Setoff may be used in lieu of adding a nonparty to the verdict form

• Joint and several liability applies to defendants whose conduct is determined to be wilful, wanton, reckless, or intentional

• Defendants may add additional tortfeasors for purposes of allocating fault o Defendants bear the burden of proof for adding an additional tortfeasor o Disclosure of the additional tortfeasor must be provided within 180 days of the commencement of the action

• Exceptions (adding additional tortfeasors to the verdict form are not allowed in the following):

o Parties who are immune from liability

o Wilful, wanton, reckless, or intentional actions of the non-named party

o Vicarious liability o Strict liability o Asbestos cases

• For incidents involving DUIs, a licensee cannot be held liable for more than fifty percent of the plaintiff’s damages

SECTIONS 2-5: Liquor Liability Laws and Server Training Requirements

• Provides that licensees who sell liquor by the drink may not “knowingly” sell to intoxicated persons

• Creates mandatory server training

• Establishes penalties for violations

• “Loser pays” attorney fees in dram shop cases

• Requires alcohol server training, and creates administrative penalties and fines for violations

• Reduces the current mandatory minimum insurance requirements for liquor liability to $500,000

o Non-profits must carry $300,000

SECTIONS 6&7: Insurance Reporting Requirements & Captive Insurance

• Allows captive insurance companies to offer liquor liability insurance

SECTION 8: Risk Mitigation Program

• Allows licensees to reduce the mandatory minimum insurance requirement provided certain criteria are met

• Requires a per occurrence limit that is at least 50% of the aggregate limit

• Requires insurers to offer “reasonable discounts” if the licensee complies with the mitigation standards

• 501(C)(3) non-profits are only required to carry $500,000 in aggregate limits

SECTION 9: DUI Drivers

• Tortfeasors charged with driving under the influence shall appear on the verdict form for purposes of apportioning fault.

• If a verdict is rendered against a licensee and another tortfeasor who is charged with a DUI, the licensee is joint and severally responsible for 50% of the plaintiff's actual damages

This is only a summary and only addresses changes. Please take time to read the entire law so that you are familiar with what is staying the same as well as what is being changed. If you have questions that may impact your business, please consult an attorney for clarification.

Currently, due in part to the way the liquor liability law is written in South Carolina, there are only a handful of carriers willing to write this coverage. Anyone in business knows the law of supply and demand - low supply, high demand leads to what supply there is being very expensive. With these changes being made, the hope is that after 1/1/2026, carriers will begin to return to the state and the premiums will become more reasonable for small businesses that serve alcohol so that they can stay in business.